24724062 hrm in mcdonalds pakistan

Human Resource Management

Human Resource Management

TABLE OF CONTENTS

• Introduction• Recruiting Goals Factors that affect recruiting efforts Constraints on recruiting efforts• Recruiting: a global perspective• Recruiting sources Internal search External search• Recruitment alternatives

RECRUITMENT

It refers to the process of screening and selecting qualified people for a job at an organization or firm. It is a linking activity that brings together those with jobs to fill and those seeking jobs.

Human Resource Management

HISTORY OF MCDONALDS

• The business began in 1940, with a restaurant opened by brother Dick and Mac McDonald in San Bernardino California.

•Their introduction of the “speedy service system” in 1948.

•McDonalds restaurants are found in 119 countries and serve nearly 47 million customers each day.

•McDonalds operates over 31000 restaurants worldwide, employing more than 1.5 million people.

Human Resource Management

WELCOME TO MCDONALD’S PAKISTAN

• September 1998, Lahore• Operating in 6 major cities• Network of 20 restaurants

“when you are green you are growing”

Human Resource Management

McDonald's Pakistan

• McDonald’s Pakistan is part of the Lakson Group of Companies, a leading business house in Pakistan.

• With a head office in Karachi and regional office in Lahore.

Human Resource Management

…to be our customers favorite place and way to eat with inspired people who delight each customer with unmatched quality service, cleanliness and value every time…

McDonald's Mission

Human Resource Management

Recruiting goals

• Significant pool of candidates• Diversity• Encourage qualified candidates• Discourage unqualified candidates• Minimize the cost

…In McDonalds

• Quality recruitment • Employees with core-competencies• Addressing diversity in organization

Diversity

The varied personal characteristics that makes the workplace heterogeneous. This can be along the dimensions of race, ethnicity, gender and sexual orientation.

…In McDonalds

• 100% diversity is followed in McDonalds (ratio depends on market)

• No discrimination• Worker diversity resulting in higher profits

Factors affecting recruiting efforts

• Size• Employment conditions• Working conditions• Salary and benefit packages• Skill shortages

…In McDonalds

• Culture (flexibility, opportunity, equality and diversity)

• Its demographics and norms

Constraints on recruiting efforts

The factors that can limit recruiting outcomes. Lets focus on five specific constraints:

• Organization image• Job attractiveness• Internal organizational policies• Government employees• Recruiting costs

Organizational image

Poor image may limit its attraction to applicants. Engaging in practices that result in polluted environment, poor quality products and unsafe working conditions

…In McDonalds

Their overall image and local reputation as an employer is shaped daily by many factors:

• Benefits programs• Compensation packages• Fun working place• Employee development programs

Job attractiveness

Jobs should not be • Boring• Hazardous• Anxiety creating• Low paying• Lacking in promotion

…In McDonalds

• Respect and recognition• Value and leadership behaviour• Total compensation• Learning, development and personal

growth• Resources to get the job done

Internal organizational policies

“promote from within where ever possible”

…In McDonalds

McDonalds form policies according to the

fluctuations in market and availability of applications.

Government influence

An employee can no longer seek out preferred, individuals based on non-job related factors such as physical appearance, sex or religious background.

…In McDonalds

As per other MNC’S McDonalds is also greatly affected by government intervention. Thus it also follows minimum wage law.

Recruiting cost

• Expensive• Budget restrictions

…In McDonalds

Being a MNC McDonalds does not face recruiting cost as a constraint

Recruiting: a global perspective

• Home-country nationals• Host-country nationals• expatriates

…In McDonalds

There are currently no expatriates and home-country nationals working in McDonalds. But there are many host-country nationals serving McDonalds.

• McDonalds hire employees within the country it is working in.

Recruiting sources

Some employers find it necessary to use several recruiting sources in order to generate a sufficient number of qualified applicants.

• Internal search• External search

…continue

…internal search:It is when the business looks to fill the

vacancy from within its existing workforce.• Employee referralA recommendation from a current employee

regarding job applicant

…In McDonalds

Employee referrals lower level

Professional acquaintance higher level

…continue

…external searchIt is when the business looks to fill the vacancy

from any suitable applicant outside the business• Advertisements• Employment agencies• Schools, colleges and universities• Professional organization• Unsolicited applicants• Cyberspace recruiting

Advertisement

To attract employees advertisements must arouse hope or desire, they should have

• Prominent display• Motivating content• Proven outcomes

Blind box-ads

Employment Agencies

It is an organization which matches employers to employees. Three types of agencies come under this heading:

1. Public or state employment agency2. Private employment agency3. Head hunters

Schools, Colleges and Universities

May provide entry-level or experience workers through their placement services. May also help companies establish co-operative education assignments and internships.

Professional Organization

• Publish list of people for vacancies• Placement services at meetings• Control the supply of prospective applicant

Unsolicited Applicants

When the company has no current openings, the applications can be kept on file for later needs. The number of unsolicited applicants depends on:

• Economic conditions• The job seeker’s perception

Cyberspace Recruiting

By adding a recruitment section to their website to recruit new employees which carries typical information such as:

• Employment advertisement• Qualification sought• Experience required• Benefits provided• Organization products• Organization services• Corporate philosophy• Mission statement

…In McDonalds

External recruitment totally depends on demand of the organization

• Advertisement• Cyberspace recruiting• Schools, colleges and universities

70-75% employee hiring is done through online search

Recruiting alternatives

• Temporary help services• Employee leasing• Independent contractors

…in McDonalds

The part time and temporary workers are do hired by McDonalds as it saves money and increase the worker flexibility.

Human Resource Management

Mission Statement:

“We value you, your growth and your contributions.”

McDonald's People Promise

Human Resource Management

GMReal Estate

DOCEO

CountryHRManager

GMFinance

CountryProduction Manager

GMOperations

GMEquipment

GMMarketing

TrainingConsultant

HR MKarachi

HR MLahore

HRCoordinator

HR Coordinator

Op.Manager

Op.Manager

1st Asst

2nd Asst

2nd Asst

FM

FM

FM

FM

Op.Consultant

Op.Consultant

Res.Manager

TrainingCoordinator

Asst.HR M

SWOT ANALYSIS

Strengths

•Strongest International Presence•120 Countries

•Brand Recognition

•Leader in Quick Service Food Industry•World’s Largest Burger Chain•Over 30,000 Stores, $41 billion in sales

•Real-Estate Holdings•Prime time high-traffic locations•Have control over what to do with the land•Easily Recognizable Product•Big-Mac as Trademark

•Variety Sources of Income•Franchise – Rent and %-of-Sales•Company-owned Restaurants•Brand Portfolio of Restaurants

•Franchise Business Model

Weaknesses•Customer Service Level

•Poor Marketing

•Not attentive to customer’s needs•Failed of healthy menu/low fat products•High Employee Turnover•Nature of Industry at 300%•Higher than Rivals•Believed to be One of the Factors for Poor Service Rankings

•No Flexible Timings for employees•Time hours•Working environment

Opportunities

•Initial Public Offerings in Other Countries•Success in US and Japan•120 countries

•Growth in Global Food Service Industry•International Expansion•Grow more than 200 billion

•Acquisition of Other Restaurants•Diversifying Brand Portfolio

•Retail Sales of Merchandises•McDonald’s family characters•License Agreements

Threats

•Health Conscious Consumer Trend•increased consumption of fried food, junk food, and red meat

•Increased Competition from Various Industries•Quick Service Restaurants Industries

•Non-Traditional outlets

•Value-Conscious Consumer Trend•Demand Quality for Good Value for Price

•Saturation of fast-food Market•Aggressive Expansion no longer an option

•Price War Business Practices•Weak Economy – attract value conscious consumers•Hurt Profitability

Human Resource Management

Benefits

When employee joins the McDonald's management team, he will receive the following:

Profit Sharing: Fully funded by McDonald's. Share in the profits of the most successful quick service restaurant in the world.

Vacation:Increased vacation time per years of service.

Mission Statement:“We know we can’t afford everything for every one but neither do we deny to any one.”

Human Resource Management

BenefitsLeaves: McDonald's employees can also apply and obtain a leave of up to two months for personal reasons or to study for examinations or school projects.

Company Car:Restaurant managers are eligible for a company vehicle after only three years of service.

Educational Assistance:McDonald's offers an educational assistance program for its employees.

Human Resource Management

BenefitsSocial Activities: Enjoy a variety of activities with his team which could include an annual Convention, summer picnic or outing, Eid Party etc.

SUGGESTIONS AND RECCOMENDATIONS

• Provision for part-time employees• One female manager must be in every branch• Recruitment must be conducted for higher posts• Selection process should be clear and transperant• There should be more than one feedback session for

improvement of performance of employees

COUNTRY HR EXECUTIVE SHUMAILA HAMEED’S

MESSAGE“People are hired on the basis of their

personality traits (i.e. education, family, social class, style, experience, etc), but are fired due to character traits (i.e. dishonest, cheater, untruthful, corrupt, etc.)”

THANKYOU……