Human Resource Management |
McDonalds
McDonald's
McDonald's has been around since 1937, and has created a household name for itself being the number one ranked Fast Food Chain across the globe ("Human resource management at McDonald's," 2009). In 1993, their annual sales reached a jaw-dropping $23 billion dollars. In the United States, the organization has well over half a million workers, making it one of the biggest employers in the nation. McDonald's has around 10, 000 locations, covering 137 countries and operating over 30, 000 restaurants worldwide.
One of the main strategies of McDonalds is to increase revenue by selectively designating locations where it is believed a franchise would benefit ("McDonald's Corporation," 2010). This is done by the company placing restaurants not only in neighborhoods, but also in malls and airports to expand its target market and gain revenue. McDonalds targets markets mainly families with children, suburban communities as well as teenagers. These reasons are- for families with children, automatically, Mcdonald's will sell at least three meals per family dining, suburban communities, for greater brand recognition and comfort with the brand within a community and for teenagers, it gives them a place to "hang out." The strong brand recognition of those golden arches gives McDonalds an advantage because of repeat customers.
McDonald's has been pursuing growth for the past few decades; they boast about their billions of burgers sold each year. However, throughout the past years, McDonald's has been facing a decline in sales with current law suits, negative media coverage and health issues relating to their contribution to the growing number of children suffering from obesity ("Human resource management at McDonalds," 2009). McDonald's became in desperate need to attract more customers in-order to stabilize their sales, or better yet increase them. They had attempts to change their menus and offer different products aside from their regulars. Some new products proved as failures and were rejected by the public, causing McDonalds' sales to decline more. McDonald's strong strategic orientation when it comes to marketing is assumed to be one of the main reasons why it is leading in the fast food industry.
Competitive Advantage
Recruitment and Selection
Employees of McDonald's fall under three groups -- franchise owners, restaurant staff and corporate staff. Corporate staff members work in corporate headquarters which can be located at the regional offices of McDonald's. Human resource management is defined as the strategic and coherent approach for a company towards their employees, who are considered their most valuable assets. In other words, human resource management takes care of the human capital in an organization ("HRM function," 2008). It focuses on recruitment, management and pointing out directions for people who work in that certain organization (Heathfield, 2010). It includes a variety of activities such as deciding what the staff may need, compensation, hiring, etc. (McNamara, n.d.).
Crew members or the restaurant staff is the majority of McDonald's employees. These positions are mostly entry-level, and part-time. Amongst the restaurant staff are the managers and the assistant managers, they watch over the performance of the crew members and ensure that the quality of the products and services provided are kept consistent. Human resource management is often seen as a reflection of the distribution of power within a system (Schuler, & Jackson, 2007). The goal of human resource management is to achieve the goals of the organization. For McDonald's the goals of their organization highly depend on the job structure.
Since most McDonald's staff is comprised mostly of the youth, the organization is committed to prioritizing education. McDonald's ensures that all school-aged employees see their education and school work as their top-priority.
McDonald's and management
Management and operations of McDonalds is very well organized and has kept McDonalds' doors open for decades and decades to come. Management of McDonalds is mostly commended for its great customer service. It follows management policies, and has strict rules each branch follows, no matter where it is across the globe. The branches are well kept and well organized. It is supervised by head branches to ensure that quality is met every time. McDonalds also encourages customer feed-back, and requires its employees to greet customers with full respect. Also, McDonalds keeps its promise as a fast-food restaurant, continuing to serve its customers promptly and hassle free. The drive-through feature of most-branches adhere to this fast-food claim, and employees are well trained to be able to give customers full satisfaction in the delivery, presentation, quality of taste and consistency of their products offered.
The company's production and operations have been running for decades...
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