how can mcdonald's tackle performance related problems… · 7 how can mcdonald’s tackle...

1

Your topic: how can McDonald's tackle performance related problems?

Paper Type: Dissertation

Your educational level: Masters

Referencing Style: Harvard Referencing

Number of page: 52

2

How can McDonald's tackle performance related problems?

[Writer Name]

[Institute Name]

3

Dedication

I dedicate this dissertation to my wonderful family, particularly to my Parents. Their energy,

time, and assistance were important to the completion of my reserach. I also my thanks to all my

class mates helped in this research project. I learned about the energy, motivation and enthusiasm

that one can obtain from success of someone else‘s. I expect to perform this lesson with me long

after latest study has developed our understanding of incidental learning. Special thanks to my

academic supervisor, [Dr____Name_____], for his/her commitment and guidance throughout the

project.

4

Acknowledgments

Writing this thesis has been very demanding, challenging and time-consuming, but also

remarkable, informative and above all fun. Nevertheless, it feels great to have finally completed

my master‘s thesis and I am now looking forward to a nice relaxing period for recovering. It has

been both advantages and drawbacks with the limited amount of earlier research conducted

within this area, even though I faced serious troubles but sometimes the advantages of this

research luckily were in my favour and have made this research both challenging and interesting.

I would like to thank my supervisor -------, professor at -------University, who has been great in

guiding my through this thesis, helping me through the difficulties I faced during the entire

process and motivated me to work hard. Furthermore, I would like to thank all my friends, for

their contributions by sharing their perceptions and opinions with me.

5

Declaration

I [type your full first names & surname here], assert that this reserach and its complete content

has been an individual, unaided attempt and has not been published or submitted before.

Moreover, it shows my view and take on the subject and is does not represent the view of the

University.

Signature: _________________

Dated: ___________________

6

Abstract

Business all over the world today is very challenging. Internal and external operating

environment factors continue to challenge corporate performance and revenue growth. To stay

profitable in the highly challenging and competitive global market economy, all the factor of

production - men, machine and materials – should be wisely managed. Among the factors of

production the human resource constitutes the biggest challenge because unlike other inputs

employee management calls for skilful handling of thoughts, feelings and emotions to secure

highest productivity. Employee performance delivers long-term benefits in the form of high

productivity. A motivated employee is a valuable asset which delivers immense value to the

organization in maintaining and strengthening its business and revenue growth. The attached

project paper studies performance management in McDonalds. This is accomplished through the

six main chapters of this project study which includes: Introduction, literature reviews,

Methodology, Data collection and Analysis, and Conclusion and Recommendations. The

survey/questionnaire research method was used as the basis for the research design and results of

this survey is analyzed and discussed. This project paper ends with Conclusion and

Recommendations.

7

How can McDonald’s tackle performance related problems?

Chapter 1

1.1 Background

No one actually knows when Performance Management was first used, but the first

monitoring system stem up form Frederick Taylors work before World War 1. The rating for

Army Officers started in 1920s in US which was followed by the UK and merit rating came up in

UK in 1950s and 1960s, and it was renamed Performance Appraisal. The term Performance

Management was first used by Beer and Ruh in 1970s. Their findings were that Performance is

best developed through practical challenges and feedback from superiors. However this was not

popular until late 1980s and in 1992, The Institute for Personnel Management showed that

Performance Management System was in line with the textbook definition where the

organisation showed some similarities: It relates its vision of objectives to all workers, it also

evaluated if employees need training and development, it also showed if employees were

performing well or if they need to improve. The research also showed that 85 per cent

organisations use performance related pay and 76 per cent use rated performance. It also

identified that some organisations are going for competing analysis and two of IPM researchers

(Beran and Thompson) saw the Performance Management Systems as an integrating process

which merges the human resource activities with the business objectives.

Performance management is a comparatively latest view to the subject of management.

Literature of performance management normally begins with different observations of the term

"performance". Supervisors and managers have performed performance appraisals for years.

Staffs have attended sessions of training for years. Company‘ members have performed long,

8

hard hours for centuries. Procedures, like budgeting, planning, sales, marketing, accounting and

billings have been performed for years in companies. Performance management reminds people

that being busy is not the similar as making outcomes. It reminds people that strong

commitment, training, and lots of hard actions alone are not outcomes. The main participation of

performance management is its concentrate on getting outcomes – helpful services and products

for consumers outside and inside the company. Performance management redirects attempts

away from busyness toward efficiency.

1.2 Introduction

Performance management is a process which uses some elements to manage and help

employees to reach their full potential and which results in achieving organisations goals.

Managers are one of the important element which enable employees to work well for the

organisation. So, Performance management is about setting a tradition in which people and

groups take liability for the incessant development of processes of business and of their abilities,

contributions and behaviour. It is about sharing anticipations. Managers apparently contact what

they hope individuals and teams to perform and individuals and teams can also impart of how

they would please to be controlled and how they can best do their work. Additionally

Performance Management is about interconnections and about developing the quality of

connections, between employees and managers, between teams and managers, between members

of teams and so on, and is so a combined procedure. Additionally it is also about planning

describing anticipations demonstrated as aims and in business plans and about calculations; in

the words of the old saying, if you can‘t calculate it, you can‘t control it. It must use to all staffs,

9

not only managers, and to teams as much as people. It is a constant method, not a one-off event.

It is holistic and must permeate every feature of running a company. Eventually, there has been a

shift in concentration away from the calculation of personal output to define performance

development or give decisions, about a greater concentration on individual participation to

objectives of companies through capability and behaviour with.

The procedures through which managers assure outputs of staffs match the goals of

companies. So performance management is important if a company is to achieve aggressive

benefit. So the performance management must be connected to the strategic goals of the

company and must be incorporated in to all features for life of company. It must be not single

issue with performance but also with improvement which in turn will allow performance to be

developed. One of the big complications with performance management is that it‘s means

various things to particular department in the company, like:

normally concentrate on the appraisal system assuring that managers

perform reviews on time and pursue through on improvement requirements. And observe

performance in the situation of improvement plans, and reviewing how efficiently abilities,

capabilities and information are being used across the company.

aware on getting target of production

observes at ratio between remuneration and rewards and productivity.

But in fact, the performance management is the merger between all these function. So

here people again recognised the idea of optimization rather than sub optimization.

10

Managers in performance management have two major tools to assure performance of

employees meeting goals of company. These tools are performance feedback and appraisal.

Normally performance management has three important tasks or three features of

implementation from tools of performance management:

(1) Strategic Utilization or Strategic Function: taking a strategic method to performance

management relates combining HR exercise to both latest and next performance.

(2) Administrative Utilization or Administrative Function: applying performance

management to make views about promotions, salaries, redundancies, retentions, and

identifications of personal performance.

(3) Developmental Utilization or Developmental Functions: apply performance

management to recognise when employee is not working well and how they can develop.

Unluckily, management of company currently is working developmental and

administrative tasks only.

1.3 McDonalds Background

McDonald‘s the world‘s main burger fast-food chain with presence of market in 120

nations and over 35,000 outlets in the world. McDonald's is the world's major food service

company (Gyr, and Friedman, 1998). The corporation started out as a small drive through in

1948 with two brothers, Mac McDonald and Dick. Ray Kroc, a salesman, observed a great

chance in this market and suggested Dick and Mac to develop their action and start latest

restaurants. In 1961 Kroc bought out the McDonald brothers and by 1967 McDonalds developed

11

its activities to nations outside the America (Hirsch, 2003). This development has guided the

company to start more than 30,000 McDonald's restaurants in 120 nations, making billions of

dollars in yearly income. You should choose McDonalds when eating fast food because they

have quality products, their service is excellent, and their restaurants are very clean. The

strengths and weaknesses of businesses performance also have a lot to do with the success

McDonald‘s has today.

1.4 Rationale of Reserach

Performance Management is concerned with people and the latter are the backbone of a

business, and thus performance management is an essential element in the organisation. Today

Performance Management is carried out but not in the right way. An example is the organisation

I work for, managers do not really motivate employees, they are only concerned about making

sales; people are not trained well, especially new crew members and they are not told what is

expected from them and when they do not perform to the standard managers shout at them which

results in bitterness for the manager and the employee sometimes leaves the job because s/he

cannot cope (Bourne, France-Santos, and Pavlov, 2008). This is a big disadvantage for the

company as it has to recruit, and then train someone again. It is time consuming and costly as

well. Hence I want the retail industry to show appreciation and encouragement when their

employees perform well, I believe managers have the right knowledge and skills and they should

support, guide, advise and correctly coach their employees to extract good work from their

people.

12

1.5 Research Objectives

The objectives of this reserach are to assess the significance performance appraisal and

assessment in the management of McDonalds. Particularly, this reserach focuses on getting the

following aims

1. Identify the basic idea of performance management system in McDonalds.

2. Recognise the view of the staffs about the performance management system.

3. Decide the methods implemented through management for performance management.

1.6 Research Questions:

This reserach looks to observe and assess performance management and assessment in

the management of McDonalds. Particularly, the following questions shall be replied:

1. How motivation and performance appraisal supports the management in McDonalds?

2. What are basic ideas of performance management system in McDonalds?

3. What is the view of the staffs about the performance appraisal system?

4. What are the methods implemented through management of McDonalds for performance

management.

5. Are consumers please with the service they get?

6. Observing at the sales of the company can present a view if staffs are working well or

not?

7. Are management of McDonalds are useful?

8. Do they present support, help to their staffs?

13

1.7 Limitations of Reserach

The difficulties I went through to write this research were; I did not plan my time well for

research. Also employers were not very keen to let me see their sales figures and write, moreover

the questionnaire did not get enough response thus I had to send it again and implore people to

fill it.

14

Chapter 2 Literature review

Bates and Holton (1995) have defined it as performance is a multi-dimensional construct,

the measurement of which varies depending on a number of factors. While Kane(1996) puts

forward that performance is something that the person leaves behind and that exists apart from

the purpose. Another person Bernadin et al (1995) see it as performance should be defined as the

strongest linkage to the strategic goals of the organization, customer satisfaction, and economic

contribution. Moreover The Oxford English Dictionary defined performance as the

accomplishment, the execution, the carrying out, and working out of anything ordered or

undertaken. A very clear picture of performance is given by Brumbrach (1988): performance

means both behaviours and results. Behaviours emanate from the performer and transform

performance from abstraction to action. Not just the instruments for results, behaviours are also

outcomes of in their own right- the product of mental and physical effort applied to tasks - and

can be judged apart from results. (Armstrong, 2000, p.3) All definitions above mean the same

thing; when managing performance managers need to show good behaviour to employees to get

good results.

2.1 Internal Functions in Performance management of McDonalds

Internal functions are methods and actions in which the staffs, managers and management

of McDonalds work. Internal functions are essential to achievement of any company locally and

globally as it can present the excellent opportunities of affecting the common result of the project

being performed. The plans used through internal methods are based on the accessibility of

capitalization, resources, time, man power, technology, to give the most competent and useful

15

activities to focus the market. Additionally, it is essential that McDonalds assess their process of

management as it is the single part of the business condition in which the corporation can greatly

impact and manage the variables and actions. Among the various tasks that McDonald‘s should

concentrate on are leading, planning, managing, controlling and implementing. All these tasks

are important to the achievement of the plan and without one of these tasks; complications will

be faced as the project is in development.

2.2 Planning

McDonald‘s assessed the viability of the local market in UK as well as if local preference

would match the global marketing strategy and mission of the company. Once assessment has

been made, McDonald‘s provided the missions and goals of the local outlets in accordance to the

international and global standards set by the company. Among the necessary plans needed are

the plans on establishment of supply chain in the local market, general business plan which can

be used by new outlets in UK, hiring policy, marketing plan and sales projection. Also included

in the planning process would be the general plan of action with a corresponding time table.

2.3 Leading

McDonald‘s provided an executive to oversee and lead the project from conception to

completion. This would assure that every aspect of the project supervised by experienced

personnel in opening international outlets and assigned as the project manager responsible for all

16

aspects of the project. The project manager has a hand-on approach in order to motivate fellow

project members in accomplishing the task in a timely and efficient manner (Bevan, 2007).

2.4 Organizing

The local outlet follows traditional McDonald‘s organization structure. A manager is in-

charge of the general operations of the outlet and assisted by an assistant-manager who monitor

daily sales, inventory, personnel scheduling and pay-roll. Two shift managers also are hired; one

handling morning and early afternoon shift while the other handles the late afternoon and night

shift. The required staff and crew are determined depending on the size of the location available

and worked on rotating shifts preferably two shifts per day.

The corporate organization in UK established after a significant number of outlets have

opened in the country and only after profitability and viability of the local market has been

established. This ensured that the additional cost of establishing a corporate headquarters can be

sustained by the local outlets established in the country (Fernie, and Metcalf, 1995). Once

established, the corporate headquarters in charge of maintaining uniformity and homogeneity as

well as the quality of the products of all outlets in the country as well as advertising and

marketing.

2.5 Implementation

Implementation of the details for an outlet in UK depended on the plans formulated

during the planning process. The timetable determined if the project‘s progress is according to

the specifications and time allotted to complete the project. Deviations from the timetable would

17

mean that extra effort would be need to ensure that the project completed in a timely manner and

ensure enough time for unforeseen problems and complications to the project.

2.6 Controlling

Ensuring the quality of the products being served in the local outlet is the highest priority

of the project. In order to maintain the quality of the product as well as the service, metrics are

established based on the international standards set by McDonald‘s. The metrics allowed

measurement of quality and performance and allowed for adjustments in the strategy

implemented in UK in case the metrics fall below expected levels.

2.7 International Factors in Performance Management of McDonalds

Being an international company, McDonald‘s must be able to recognize the different

international factors that can influence their business strategies. Among, the factors to be

considered are international marketing, accounting, operations, human resources and research

and development. Addressing these factors, McDonald‘s can better strategize their actions as

well as adjust them to better suit the international market (Hyman, 2000).

2.7.1 International Marketing

McDonald‘s enjoys the advantage of having one of the most recognizable logos in the

world. The popularity of the brand name allows for easy marketing as initial introduction of the

18

company in UK may no longer be necessary. Moreover, McDonald‘s can take advantage of the

hype that there are finally opening a local branch in the country, rather investing heavily on

marketing their products. The international marketing efforts of McDonald‘s, e.g. Olympic

sponsor, have already increased the company‘s publicity and the company, instead, may focus on

the local marketing strategy such as additional information on deliveries, uniqueness of the menu

in the country and other services that the local market are not aware (Hyman, 2000).

2.7.2 International Finance/Accounting

Since the local outlet in UK can function independently, accounting and financing

responsibilities can be done per outlet basis to minimize work and confusion in the corporate or

higher organization structure. Completed summary of the financial report can be submitted to the

regional office for better consolidation and regional reporting which in turn would be submitted

to the corporate headquarters. Once the local office in UK is established, provided enough outlets

are established, local headquarters can be the one to take charge of the accounting

responsibilities to ensure uniformity and accurateness of the report (Hyman, 2000). In cases

where in franchises have already been offered to the country, financial and audit reports may be

done by a hired accountant of the local office to assist franchisees with their financial reporting.

2.7.3 International Operations

Local outlets can carry out daily operations without the constant support of international

offices. Local headquarters are often in play for administrative support but daily operations in the

19

outlets are often self-sufficient on the management and crew of the outlet. However, during the

initial entry of McDonald‘s in UK, it may be necessary that additional support from international

offices may be needed to help establish the local market. Financial and administrative support

may start to decline as progress is realized in the local market. Further, international support can

be limited to the local region or the nearest regional headquarters. However, it would still be

favourable for the local chapter to have the support coming from the corporate headquarters to

ensure the stability and efficiency of the local branch to be established in UK. Particular to the

operational needs of the local outlet in UK would be the transfer of technology standard in all

McDonald‘s outlets in the world. Corporate headquarter must be able to provide the necessary

automated kitchen equipments that allows for standardize cooking and preparation of the

products.

2.7.4 International Human Resources

Similar to international operations, local outlets in the country can manage themselves

once the market has been established. Initial support from the corporate headquarters may play

largely in the training of the local management and staff of the staff in UK. Although, service

standards have been implemented, it would still be best for the local outlet if considerations are

made on the local culture and personality and incorporate them with quality of service they

provide.

2.7.5 International Research/Development

20

McDonald‘s products remain the same throughout the years and the possibility of

changing the basic menu is highly improbable. However, McDonald‘s continues to add new

items in the menu as part of providing variety to the market and catering to vast market

preference they encounter. Moreover, the international trend of healthy living prompted

McDonald‘s to introduce vegetarian entrees to their menu. Finally, McDonald‘s is well known

for offering geographic items in the menu where in they adapt to the culinary taste of the local

area they conduct their business.

Thus, support for the local research and development would mainly focus on additional

menu that may be developed by corporate headquarters based on the feedback they received

from the local market. Moreover, they may provide the additional items on the menu based on

the local preference again to be determined by the local outlet. However, the important

contribution of international R&D would be the transfer of technology in terms of business

process ensuring that local outlets carry out their operations efficiently.

2.7.6 Cost/Benefit Relationship

To determine if the project is viable or not, cost and benefits of the project must be

examined to determine if benefits would outweigh the cost of undertaking the project. The cost

for undertaking the project would be the uncertainty of acceptance from local market. However,

since other international fast-food outlets have already entered the market and are doing well, the

risk of entering an unknown market is unlikely. Moreover, the cost associated with starting a

branch oversees can often be financially rigorous but cost can be spread especially when more

outlets are established through time. Thus, initial cost to the project should be considered.

21

2.8 Measuring performance in McDonalds

It is essential for people and the company they work in to calculate their performance and

observe how well they are working. A staff must recognise what is needed of him/her in the

corporation and what standard of output is needed of them to identify if they are pleasing this

demand. Some methods are there for calculating performance that can be efficiently

implemented in McDonalds.

(Brewster, Higgs, and McBain, 2007)

2.8.1 Motivation

Motivating is the work managers perform to motivate, support and impel individuals to

take action. To inspire the staffs, the staffs should be reached to reach him there should be a

22

completed consideration of the complication his make-up. Efforts of motivation should be

directed towards developing operations of company. To be successful, however they should also

be planned to demonstrate advantages to the staff. Actually, inspiration can best be achieved

when staffs are capable to combine their individual aims with those of the company. According

to Robin and DeCenzo (1995; 271) inspiration is described so ―the eagerness to exert high

standard of attempt to reach goals of company, conditioned through the ability of attempt to

please some individual demand‖. Campbell and Pritchard (1976) in describes inspiration as a set

of independents and dependant connections that defines the amplitude, direction, and persistence

of a staff ‘s behaviour holding stable the impacts of approach, abilities, considering of an aim

and the constraints working in the work situation.

Schrader (1972) connected staffs need to inspire and it was consequently defined through

Thomas et al. (1990) that there is poof encouraging the existence of a connection between

motivational level of a staff and their personal performance. Atkinson (1964) described it as the

modern immediate impact on the vigour, direction, and persistence of activity. The connection

between the company and staffs should be one of consideration in order for the staff to recognise

himself with his action and with the company he is functioning for. Lack of inspiration in return

impacts output. Several signs can point to low morale: reducing output, high turnover of

employee, enhancing several grievances, higher occurrence of tardiness and absenteeism,

enhancing number of substandard products, higher number of incidents or a higher level of scrap

and waste materials (Brewster, Higgs, and McBain, 2007).

Inspired staffs are a faithful staff and to be loyal implies that the staffs help the objectives

and actions of the company. The emergence of the work as a whole has, actually a bearing on the

eagerness and value for performance of a staff (Fredrickson and Joiner, 2002). Considering what

23

inspires staffs to perform can present the platform and basis to observe the performance of staffs

in McDonalds. Researchers have observed the different inspiring aspects throughout the latest

time and have an excellent consideration of what inspires a staff in McDonalds. Their research

can make the method for calculating performance (Cleland, Townend, and Mitchinson, 2008).

Fredreric Herzberg proposed that there are two kinds of aspects that impact a workers work

satisfaction called ‗motivators‘ that present optimistic work contentment and ‗hygiene aspects

that can impact a staff unenthusiastically. Motivators are the inspiration for a staff to obtain

contentment in their work and enjoy it; hygiene aspects have to be pleased to avert the staff from

being miserable but are not essentially going to cause lasting satisfaction of job. The individual‘s

performance is directly impacted through these aspects and will develop and get worse

accordingly (Forth, and Bewley, 2006). Here is a list of Herzberg‘s hygiene aspects and

motivators:

1. Company policy and admin 1.Achievement

2. Managers competence 2. Recognition for achievement

3. Salary 3.Work itself

4. Relations with manager 4. Responsibility

5. Working conditions 5. Psychological growth

2.8.2 Increasing Employee Engagement

24

What is it that McDonalds is working to assure that individuals don‘t fell like numbers?

When inquired in the strategic HR Review why managers were shifting from satisfaction of

staffs to engagement, responded: staff satisfaction was actually an action of how individuals like

it here a opposed to calculating approaches that will support companies become more successful

for engagement exercise, researchers have made a list of important aspects for enhancing staff

engagement.

• keep in mind that staffs are looking to get more than only money from their work and

profession. Through working with people they anticipate to achieve both personal and

professional abilities.

• Engage staffs through direct contact through relating them in essential decisions and

keeping them update of latest improvements or modifications within the corporation.

• Get to identify staff with their aims and motivations, so that together company can

improve an apparent path for development and chances for development.

• Improve a powerful employee-manager connection. It is normally fact that when staffs

leave a company, they are actually leaving their manger.

• Give excellent and continuing training for latest and experienced staffs with presenting

recognition and rewards for staffs that excel and/or shown a powerful passion for their job and

company. According to the Institute of Employment Studies (IES), the major driver of

engagement is logic of feeling involved and valued (Forth, and Bewley, 2006).

2.9 Employee Involvement and Productivity

25

The important beginning position in observing the connection between workplace

connections and output is the indefinite, or open-ended, style of the job relationship (Alchian,

and Demsetz, 1972). Whereas compensation and common working situations are approved in

some style at the period of job, the actual contribution of staff, in terms of quality and volume of

output, keeps largely unspecified. Much depends on willingness of staff to invest their abilities

and information in the process of production. Generally, this commitment is made on

arrangement of company, well approved working situations and co-operative connections more

commonly (Aijala, Walsh, Schwartz, 2007). In summary, involvement of staff is important as, to

a large condition, attempt remains optional.

2.10 Practical implementation of theories

Putting suggestions of Frederic Herzberg into exercise in a functioning situation can be

easier said than done because of the many internal and external factors that affect a company. A

lot can depend on the nature and type of the company that you operate in because a football club

will have different expectations from its employees to a steel factory. But in general, the

foundations can be laid out using Herzberg‘s theory; by having reliable hygiene factors such as a

clean and pleasant working conditions and emphasise on the motivating factors by making the

job itself as enjoyable as possible for the worker (Alimo-Metcalfe, et al, 2007). Herzberg also

stressed the need for job enrichment using some key features including:

A complete unit of work- The employee should see and understand his/her own

contributions to the finished product. They will thus feel proud of their own job role and have

more motivation.

26

- A worker should have an open relationship with the manager with

easily understood methods of feedback. These could be formal or informal. An open and honest

environment is best for all parties.

- Communication throughout the McDonalds should be direct

without the need for formalities and bureaucracies that will seriously hamper communication

within the business and de – motivate the workforce.

- The job will be a lot more enjoyable for the worker if they have a

variety of tasks that involves all aspects of the business. Job enlargement is designed to make the

job more enjoyable and interesting.

Empowerment- Workers should be given freedom and genuine decision making

powers in performing their job. This will help the worker to develop their thought and skills and

reduce the tension between a manager and the worker. Managers should be given as much

freedoms as possible so that the worker doesn‘t feel like he/she is being watched all the time.

This is very important in motivating people.

- This will differ depending on the nature of the business, but team

working is important to satisfy the social needs of the worker as social exclusion and an isolated

environment is not a good working environment. All human beings need to socialise no matter

how much they enjoy it or not.

2.11 Using Appraisal

27

Appraisal is a system that monitors and assesses the workers performance over a period

of time. Most companies have an appraisal system and are the best way of presenting feedback

regularly on a one to one basis. This is a formal procedure that is recorded and discussed by the

manager and the employee in McDonalds. This is where all the information, monitoring and

performance measuring is analysed and formally written down and discussed with the employee.

Some sort of training may also be involved on any areas that the employee can improve on and

McDonalds give short presentations to a group of employees on ways of improving

communication etc (Guest, and Peccei, 2001).

The employee will discuss the job and any problems that they are experiencing, which

may hinder their performance and all other matters that they can formally discuss and record

regarding the job. Appraisal is perhaps the most important stage of performance monitoring

because it is where the communication takes place between the manager and the employee and

gives an opportunity for both parties to address the most important issues about the job (Brown,

2000). The McDonalds also has an opportunity to establish a good working relationship with the

workers and develop some motivating factors that Fredric Herzberg spoke about. They can ask

for suggestions on ways of improving the facilities of the company or ways of improving

hygiene etc.

Appraisal is not an opportunity that the company or the employee should waste and is an

excellent way of enhancing the working relationship between employer and employee. This

relationship is something that Herzberg stressed as being an important motivating factor

therefore both parties should seize this opportunity that the company offers every once in a while

(Jensen, and Meckling, 1979). In fact both the hygiene factors and the motivators that Herzberg

discussed can be addressed in the appraisal process; the manager or person conducting the

28

appraisal should in a wise manner try to develop some of the motivating factors that Herzberg

has identified. The worker should also make any formal complaints about working conditions

identified above as hygiene factors to the manager so that possible improvements can be made

(Bourne, France-Santos, and Pavlov, 2008).

2.12 Traditional Performance Appraisal (TPA):

Old Performance Appraisal:

The old performance appraisal consists of three main parts:

Part one: Performance Target

In this part of appraisal the objectives set at the end of the year by the manager who

responsible from the department, but in actual practice sometimes the objectives filled by the

employees themselves not even the supervisors, the main problem here is that the objectives are

filled at end of the year (Hyman, 2000). It should be noted that this part has 75% from total

degrees of the appraisal. In addition to objectives and targets, there are many columns in the

table of objectives because for all objectives there are many things should be identified such as:

(1) Expected outcome.

(2) Unit of measuring the expected outcome.

(3) Actual outcome.

(4) Comments on actual vs. expected outcomes and ways to develop it further

(Mandatory for filling by appraiser).

29

(5) Score by appraise.

(6) Score by appraiser.

(7) Final appraisal score.

Part Two: General Capabilities (For Non-managerial positions)

In this part of performance appraisal the objective of performance management is to

know the competencies of the staff by taking a major five skills and capabilities that the

management aims to be developed in the staff:

(1) Adaptability: To what extent can the employee adapt well when unforeseen

circumstances demand change of directions or job specific procedures? The management put

three choices for appraise:

• Finds it difficult to accept changes.

• Takes initiative to adapt to changes.

• Quick to understand and adapt to changes.

(2) Interpersonal skills and communication: To what extent the employee is sensitive to

the needs of others and takes initiative to ensure there is communication & flow of information.

• Not sensitive to other peoples‘ needs.

• Communicates well with peers, subordinates and superiors.

• Excellent in establishing good work relationship and sharing information.

30

(3) Commit toward company rules and regulations: To what extent the employee actively

seeks to understand company rules, explain them to others and operate according to the rules and

regulations.

• Careless towards company rules and regulations.

• Generally efficient with regard to the rules and regulations.

• Shows high level of adherence to all company rules and regulations.

(4) Dependability and Responsibility: To what extent can you depend on the employee to

take responsibility?

Part Three: General Capabilities (For managerial positions).

• Demonstrate organizational skills in terms of planning and implementing tasks.

• Ability to motivate staff and obtain their cooperation.

• Maintain objectivity even in circumstances where individual interest may be in danger.

Open minded and able to accommodate diverse personalities.

• Leadership by example (moral leadership).

• Readiness to take decisions, render judgment and take actions.

• Capacity to understand which factors (internal and external) will have an impact on the

McDonalds.

• Problem solving ability to come up with creative solutions to business problems or

develop opportunities.

31

• Ability to evaluate course of action and reach rational and logical conclusions.

In each part of performance appraisal, the employees have a chance to appraise

themselves, and then the manager appraises the employee and the employee and manager meet

to agree with the appraisal score.

2.13 New Performance Appraisal

The new performance appraisal is the Individual Performance Plan (IPP), which designed

by SKOPOS Consulting Company. IPP is a part of Performance Management System (PMS),

what‘s it for McDonalds?

2.13.1 The concept of PMS in the mind of McDonalds:

to work effectively and efficiently as possible in line with needs of the organization. So the

ultimate objective of the PMS is to improve results and achieve the company objectives.

division objectives, departmental objectives, team objectives and employee objectives. At each

level management system provide a measurement of the achievement of the objectives, and also

provide means of supporting performance through diagnosing development needs, provide

ongoing feedback and review and coaching where required.

32

2.14 Situation Analysis

Obviously, the old appraisal system has many points of failures which have a huge

Impact on company and employee as well, can be illustrated more as per following points:

the objectives at the end of the year in the TPA will never clear the road for the

employee rather than paving this road for him/her which is the managers and supervisors‘ role,

and also it‘s not fair to assess an employee according to unknown objectives.

since simply the company will not going to utilize the available resource efficiently and

effectively.

y bad environment in the

organization, and will open a room for gossips, alliances and many other things that employee

will find himself forced to use in order to secure his position in the company, this unhealthy

environment will never lead to the company growth, and we lead to lose the direction (Kersley,

and Martin, 1997).

The new system has a lot of features that help the management, HR, supervisors and

employees to plan for them and get the results and be rewarded according to their performance,

the following points will discuss this in-depth:

setting the objectives prior to the assessment year and regular review of the

achievements and needs will pave the road for the employee and will clearly tell him what to do?

And how to do it?

33

The objectives of McDonalds have been clearly stated, communicated and cascaded to

the employees, the summation of all employees out-put will give the whole organization

outcomes which are its objectives, the one who let the company down can‘t hide any more.

bjectivity of this system, the assessment of the employees will be totally

fair, the employee will be able even to asses himself (Kessler, and Purcell, 2003).

2.15 Customer and Employee Focus

Whatever is performed within McDonald‘s is normally reviewed and calculated against

its affect on consumers. Experience levels and customer service are main metrics that are

embedded within the performance hopes for staffs throughout the system. The focus of company

on commitment to Quality, Service, Cleanliness and Value (QSC&V) is important. These

variables have been demonstrated to be strongly connected to expectations of customer and

loyalty. Any and all attempts to increase the global workforce management system of company

incorporate a concentration on major approaches (e.g. consumer concentration and service

orientation) and results-metrics (e.g. quality and speed of service, environment and food) that

give to consumers what they value. McDonald‘s has also given important focus to its staffs and

their improvement throughout its history. The corporation is identified for the chances it has

presented many of its people to develop with the corporation and to rise (over time) from

performing as a member of a store crew to its maximum executive positions. Moreover, the

corporation has positioned powerful focus on its ability of managers to make a work situation,

within which their staffs are inspired to improve, give their best and support to make

McDonald‘s ―everyone‘s favourable place and style to eat‖. For the last decade, McDonald‘s has

implemented its Commitment Survey to review the situation to which the required work situation

34

is being made throughout the corporation. This survey collects staff response on an extensive

range of particular management styles and exercises that have been demonstrated to be

connected to personal satisfaction of staffs and dedication and to the business success of

corporation. More particularly the survey reviews staff satisfaction with: like aspects as the

recognition and support they obtain, the situation to which their abilities are applied and

improved, their workload, the level; of their empowerment, resource accessibility to achieve the

job performed, the value of supervision/leadership, and their benefits. Scores of a manager on the

Commitment Survey are one of many essential aspects supposed in rating his/her efficiency and

possibility for development. Moreover, tenure measures and turnover are applied to assess the

success of managers—particularly in retaining top ability.

2.16 Global Succession Planning and Development Process

Prior to 2003, this system was less structured, less formal, and less stable across different

areas of the world, yet it possibly met the demands of the trade which had an extraordinary

record of development of profitability (Ackers, Marchington, and Dundon, 2005). As business

development slowed and competition enhanced, though, there was a known demand to increase

the concentration on leadership talent to combine excellent with the latest challenges of

worldwide business.

The defined aim of these Executive Talent Reviews was as follows:

• Recognise executive talent demand for successfully performing their organizational

plan over the next 3 years and how these demands will be achieved.

35

• Make sure that strategies are in position in every company to develop the executive

talent through planned movement, improvement, strategic hiring, etc.

• Make sure the ―next generation‖ of leaders has been recognised and is being improved

The Talent Reviews were performed as planned in 2003 and ensued in a much more

rigorous and realistic review of the ―health‖ of the talent pools in every domain of the world and

every working area than had been obtained earlier within McDonald‘s. The enhanced possession

that leaders were taking for the outcomes of theses assessments was demonstrated in the

particular performances that they proactively started to respond to the present and expected

replacement gaps that had appeared (Armstrong, 2006).

2.17 McDonalds’ Leadership Development Institute

In 2006, the McDonald‘s Leadership Institute and the Global Leadership Development

Program were started as the two modern additions to arsenal of McDonald to assist leadership

talent improvement through retaining and attracting high-performing leaders. The Leadership

Institute of McDonald has been currently confirmed through the CEO of company and supported

to give increased improvement assistance for all leaders in the company who are placed at the

director position and above (Ackers, Marchington, and Dundon, 2005). It will moreover house

all of the company‘s great possible plans with give resources of development to all non-high

possible leaders in the style of an ―On-Line Development Resource Centre‖, an in-house

leadership course, particular learning actions, executive coaching, etc.

36

The Institute is observed as a global society that drives business of McDonald through

assisting leaders to reach their full possibility. Unlike a ―brick and mortar‖ method --the Institute

is not a physical position, but a society that gives a tradition of development and learning and

that can be accessed from any geographic place through Leadership Portal and team of Institute

Guides. Its aim is to be respected as an important part of McDonald‘s trade and a world class

leadership institute presenting excellent support with confronting, modern improvement chances

and resources to an admired society of leaders (Alimo-Metcalfe, and Bradley, 2008).

2.18 Recruitment & Training at McDonald’s

2.18.1 Recruitment

As the important family restaurant trade in the world, vision of McDonald is to give the

excellent family restaurant knowledge– by far. To obtain this, company put staffs at the centre of

everything they do, and that goes for their staffs as much as their customers. McDonald‘s

identifies people perform well when they feel excellent in their work, so company go all-out to

make the right working situation for everyone. That‘s a lot of people to think, which is why

corporation strive to give a range of benefits and rewards to suit all types of lifestyles. In

obtaining the excellent experience of working for their people, they focus to give the excellent

experience of restaurant for their consumers (Knights, and McCabe, 2000).

In functioning for McDonald‘s, staffs not just become part of one of the biggest global

brands, but a continually developing company that presents a tradition of flexibility, chance,

diversity and equality. Reflective of the communities and society in which corporation perform,

they present possibly one of the most varied work traditions in the UK. Whereas their staffs

37

come from all walks of life, they share a general system: a positive one. When hiring staffs,

policy of corporation is to hire the smile (Knights, and McCabe, 2000). This supports to foster a

workforce of individuals with a constructive approach and outlook, which in turn makes a

friendly and upbeat condition. In fact, it‘s not only about hiring happy individuals– it‘s about

working everything they can to keep them smiling. How? Through presenting benefits and

rewards that fit in with their style of life, whether they‘re a temporary staff working to support

their education or a Trainee Business Manager straight out of university.

2.18.2 Recruiting suitable applicants

Recruiting proper people whether staffs join as a crew member or a trainee business

manager, corporation can give exceptional assistance, genuine progression chances, a variety of

important rewards and all the possible connected with performing for a world-famous brand

(Knights, and McCabe, 2000).

2.18.3 Crew Members

To assure they are suitable for each other, they have planned a two-step application

procedure for possible crew members (Phillips, 2004). The first stage of the application is an

online application. If flourishing, the applicant will be invited to a restaurant for interview and an

On Job Evaluation (OJE). The OJE serves two aims: it presents an excellent chance to assess the

customer service skills of candidate against what‘s required to be an excellent member of the

McDonald‘s team, and it permits the candidate to observe if the high-energy environment of

38

McDonald suits their favoured approach of working (Bevan, 2007). Throughout the procedure,

which just lasts about 15 minutes, the candidate will perform in one of their consumer facing

areas and will be presented complete assistance on what to do. Moreover, they will have an

interview with the Business Manager. The whole procedure must take about half hour.

2.18.4 Welcome Meeting

Once Crew Members have been hired, they will attend a welcome meeting at their chosen

restaurant or recruitment centre. This meeting will last an hour and is designed to engage and

inform new starters. It involves viewing a DVD which gives important information about the

company, and also allows for manager/new starter interaction (Kessler, and Purcell, 1992). The

second part of the orientation is a compulsory online Health & Safety and Food Safety test that

the new starter completes in their own time. The first shift begins with a tour of the store

highlighting key Health & Safety and Food Safety procedures. It is recommended that this

should last for the first two hours of the shift (Phillips, 2004).

2.18.5 Trainee Business Manager

A Trainee Business Manager will be participating in an award winning management

training scheme and will need to show strong leadership skills (Bag, 2004). Winning a place on

Management Development Programme is no small feat. Nor is it a short term commitment but

rather represents a long-term career decision. Company want to make sure that the candidate and

McDonald‘s are right for each other, so the candidate goes through a four-step selection process.

39

The first stage is the initial screening process which ensures that the candidate meets the basic

criteria. If the candidate is successful, they will be asked to complete the next stage, an online

personality questionnaire. This will ensure that the candidate has the desired attributes and that

the McDonald‘s environment is suited to their preferred style of working. The next step will be

the restaurant based ‗On Job Evaluation‘ or OJE (Knights, and McCabe, 2000). The candidate

will do the job for real for a day and discover what it‘s really like working in a McDonald‘s

restaurant. The final step of the selection process is an interview with a Senior Manager. Initially

the Trainee Business Manager will complete an intensive 18-week Management Development

Programme. The Management Development Programme will give the candidate a thorough

grounding in the McDonald‘s business and all the commercial skills needed to thrive and

develop into an effective Assistant Manager. An Assistant Manager may later progress to

become a Business Manager or an Operations Consultant (Area Manager) depending on their

desire to achieve (Heery, Keely, and Waddington, 2003).

2.18.6 The process of Training

Training is designed to develop the skills of the workforce and forms an integral part of

the relationship between the employer and the employee. This is also a method of

communication that the company uses to outline company ethics, aims, objectives and

requirements of its workers. Most companies will have regular training that is part of the

company procedure to help develop its employees. It is also another great opportunity to asses

and measure performance of workers and tries to exploit weaknesses and develop them with

40

specialised training. Once employees are trained and understand the broad requirements of the

company then this will help them to improve and maintain performance at a high level. Training

could be done on a one to one level or in groups and could involve some written tests or exams

(Cantalupo, 2003).

The training process is another good way of communication at all levels of the company

and can be turned into an assessment of the skills of the workers through questions and answers,

discussions between groups of employees on possible methods of improvement and a speech by

an individual who possesses an expertise in a particular area (Baghai, 1999).

2.18.7 Crew Development Programme

The first phase of training is at the Welcome Meetings where the standards and

expectations of company are defined. This is pursued through a prepared training plan that gives

training in all domains of the company. Crew Trainers perform side by side with trainees as they

know the abilities essential to run each of the workstations in the company, from the front

counter to the grill area. The major part of the training is floor based, or on-the-job training, as

staffs know more and are more possible to keep knowledge if they are capable to exercise as they

know. All fresh staffs have an early training phase. Throughout this phase they are demonstrated

the basics and presented the opportunity to improve their abilities to a position where they are

able in every area within the company. The time level for this will depend on their position i.e.

whether they are part-time or full time staffs. They will moreover complete workbooks and unit

examinations in the fields of service, cleanliness and quality.

41

2.18.8 Management

Individual managers will have their own methods of managing workers and this is very

important in establishing the performance of individuals and helping them to be happy and able

to develop their skills. Most individuals who are in a position of assessing and measuring the

performance of others will have authority over others and will most likely be managers of some

sort. Each individual manager in McDonalds will apply their own personal preferences in how to

deal with the workers under him/her and if they can establish a one to one relationship informally

that involves helping others to be happier at work or possible ways of improving or developing

then this will be good for all concerned (Fredrickson and Joiner, 2002). Others who are not

performing as they should may need words of advice or help in achieving their tasks.

The way the manager operates in their job could heavily influence workers to perform

better or worse and his/her techniques of management are very important in this whole process.

Assessing and measuring performance of workers could be done best by observations conducted

by the manager on staff and then skilfully help the problem or give advice where it‘s required.

The manager should understand his workers and when or whether they need help on a particular

matter.

McDonalds do promote Crew Members to hourly paid management positions where they

have the responsibility for shift running within the restaurant (Keep, and Rainbird, 2003). The

training begins within the restaurants with a Shift Management Development Programme and

development days which cover areas. On completion of a management entrance test, staffs will

attend a training session held through the Training Department before returning to the company

in position of management.

42

2.18.9 Externally recognised qualifications

As part of being a progressive employer, McDonald‘s provides a company website called

ourlounge.co.uk which is open to all employees and which provides access to a learning facility

which can lead to nationally recognised Level 1 and 2 basic skills qualifications.

Qualifications are achieved via an online learning platform, My Learning, which has been

specially designed for McDonald‘s. The Individual Learning Plan generated for each learner is

unique to the learner‘s own curriculum needs which are accessed via an initial skills check. E-

tutors are assigned to learners at the beginning of the programme and are on hand throughout to

assist, help and advice. E-tutors are ‗Skills for Life‘ tutors who have, or are in the progress of,

completing Level 4 qualifications in Skills for Life tutoring. The programme is optional and

flexible enough to allow learners to study whenever and wherever they feel comfortable and at

their own pace. Exams are held in accredited exam centre restaurants with trained invigilators.

The Maths and English qualifications map to National Standards. In 2008 McDonald‘s was given

official awarding body status by the exam regulator, meaning it can develop and award its own

nationally recognised qualifications. This means that the in-house training managers receive at

McDonald‘s will be accredited and count towards other academic qualifications such as

vocational diplomas or even degrees.

2.18.10 Team working

43

Working in teams is an imperative requirement that every individual will face at some

point in their life whether it is at work or during their leisure time. Most businesses are organised

in a group format where each team of individuals will have a specific task to perform that

contributes to the end product of the organisation. Large companies are all organised in large

teams that look after certain aspects of the business. These are broken down into different

functional areas such as marketing, finance, personnel, production etc. The individuals that make

up the team should have an understanding of what makes a successful team and what their own

role is in the team that they are working in. Firstly their needs to be a clear system in place from

top to bottom in a company that identifies each job role and the requirements within that job.

Organising the company in this way must be done in an effective way otherwise the company

may employ too many workers or not delegate well enough leaving individuals to perform too

many tasks. An organised system is the first step in establishing a successful company striving

towards achieving their targets (Adam, 1991). Established companies will already have this

system that is easy to understand; where each worker knows exactly what their own job role in

the functional area they are working for. The system will have a leader for each task and those

underneath that perform the tasks. This applies the same regardless of the type of business i.e.

whether a manufacturing team or a team in tertiary sector. An example of this is that a factory

will have a supervisor who oversees the frontline workers who listen to instructions and perform

their tasks; likewise an office environment will have a manager of some sort who organises his

team to perform the tasks that need doing.

2.18.11 organising the team

44

F.W. Taylor is an early 1900s theorist that studied how work should be organised in a

company using its workforce. His work is very traditional and can be considered old fashioned

but forms the backbone of the way the majority of companies are organised especially large

franchises like McDonalds. Other theorists have modified Taylor‘s version of organising the

workplace but his style applies more to the production process of the business rather than the

design process conducted in an office (Davies, and Chun, 2007).

He said that the work should be split up into as many different groups as possible in order

to make the jobs easier to do. This allows workers to become more easily skilled at performing

the tasks and thus should produce more output. This should require little or no training and the

worker should get paid per unit of work produced (Davies, and Chun, 2007). He identified the

scientific approach to organising work whereby the job would be studied in detail to identify the

best way of performing tasks and approximating the level of work produced. He also advocated

that workers should be given the best tools for the job to enable them to produce the most output

possible.

His theory is considered to limit the skills that the worker possesses and therefore modern

theorists have modified his version to apply this to the modern innovative business era.

Nowadays the western economies are a lot richer and the work is more related to innovating new

ideas and creating better products. Most of the manufacturing is done in countries with cheap

labour or by machinery. This allows workers and teams to focus more on marketing,

understanding its customers and competitors and focusing more time on selling products.

2.19 Leadership

45

The most important member of a team is the leader. The leader dictates the type of

culture in the team and the way the team operates and conducts its daily practices. The skills and

the way he/she behaves towards others are therefore considered very important and influential in

the way they behave. Here are the different types of leadership styles that a person can adopt:

1. Autocratic- a style issuing orders and unquestionable obedience e.g.

2. Paternalistic- fatherly like style with a family type system

3. Consultative- the managers will consult staff before making decisions

4. Democratic- decisions that are made after discussing with staff

5. Laissez-faire- the leader will have little influence over staff and won‘t interfere much

with their affairs

The above leadership styles are rigid and in reality most leaders will have a combination

of some of the above characteristics. The job itself will also dictate how the leader behaves

towards the team because some jobs require minimal interference in the affairs of the workers

but in other jobs the manager or a leader will dictate and direct the workforce towards what is

required. The nature and value of the workers is also important because skilled workers such as

lawyers, doctors and professors cannot be replaced easily so are considered very important in an

organisation and are given freedom to do their job. However workers with unskilled jobs in

factories or grocery stores etc can be replaced easily and the manager can dictate and give others

and operate in a more autocratic way.

2.20 Managing a team

46

Douglas McGregor said that manager‘s fall into one of two categories; theory x manager

and a theory y manager. A theory x manager believes that his employees need to be controlled

and told what to do. They need to be monitored and told what is required of them and what needs

to be done in completing the tasks. He/she also believes that the workers have little aspirations to

improve their skills and are happy to be told what to do and how they need to do their work

(Bourne, France-Santos, and Pavlov, 2008).

A theory y manager believes workers are able and keen to offer their own ideas to

problems and like to be left alone to perform their duties. He/she prefers to leave workers alone

and relies on them giving their best rather than monitoring them and ordering and commanding

on what they should and should not do (Axtell, Harrington, and Unsworth, 2000). He/she will

also delegate work more often and try to listen to the workers opinions wherever possible.

In reality a manager will have aspects of both characteristics and may not necessarily be

one or the other. Managing a team requires wisdom and understanding of the task that needs to

be performed as well as understanding human behaviour so that he/she can deal effectively with

those working below him/her. Sometimes a manager may need to be hard on his/hers subjects

and other times more relaxed. If the tasks are not being performed then a little pressure from the

manager is what may be required (Phillips, 2004).

The character and behaviour of the individuals in the team also has great influence on

how you manage them because different characters will need a different type of management.

This will depend a lot on how well they work within the company and how much work they

produce. A lot of these different aspects will be dealt with during the training process in most

businesses (Crabtree, 2005).

47

Chapter 3 Research Methodology

3.1 Research Design

To do this study, a questionnaire contains questions designed in the way that helps to

achieve my study objectives will be used. The study conducted to determine employee

satisfaction towards and their impact on overall productivity of the organization in terms of

sustained business and revenue, results obtained are intended to be presented for the

consideration of the top management to enhance the employee‘s performance (Crabtree, 2005).

3.2 Sampling Procedure

The study should be conducted with people from different locations. The questionnaires

were e-mailed to 70 workers in McDonalds who working in various departments with different

job responsibilities and organization position.

3.3 Instrumentation

A survey method will be conducted as a research method for making this project. Survey

can be defined as a method of primary data collection in which information is collected by email

and analyzed.

3.4 Scale Validity and Reliability

The scales used to measure the variables in the questionnaire are Numerical scale.

48

3.5 Data Collection Procedures

Survey can be classified as an Internet Surveys. For much research, data collection using

the internet is often an efficient and effective method. Survey using Internet is easy to get the

respondents feedback in short period of time without costing them anything.

49

Chapter 4 Data Collection & Analysis

4.1 Introduction

The data for the research has been collected using internet questionnaire. The

questionnaire was distributed randomly to a sample of employees, over 70 employees who were

working in various departments, with different job responsibilities and organization position.

4.2 Data Analysis

After collecting the filled questionnaire, they were analyzed for presentation of research

findings under data analysis.

How long have you worked with the present organization

50

The research was directed to find information on the duration of service the employee has

been with the organization. Survey results indicated that highest number of 21 (40.4%)

respondents had been working between 5-10 years and this followed by 15 respondents (28.8%)

who have been with the organization between 1- 3 years. Respondents who have been working

for the shortest period of time less than 1 year stood with 5 respondents (7.7%).

State the department you work in.

51

Regarding the inquiry on the nature of work performed by the respondents, a highest

number of 11 respondents (30.6%) were engaged in Research and Development. With 9

respondents (25%) came next for Human Resource Management. Closely following these

respondents in other area have given their approval to proceed further:

Sales and Marketing = 7 (19.4%)

Manufacturing = 5 (13.9%)

IT and Finance & Accounting = 2 (5.60%)

Describe your job responsibility

52

The research inquired to find the nature of jobs of respondents. The research showed that highest

number 33 respondents (63.50%) were engaged in operative employee related job

responsibilities and this closely followed by 13 respondents (25.58%).

These were followed next by:

Manager = 5 (9.6%)

Senior Management = 1 (1.9%)

Which of the following aptly describes your satisfaction level with the present

organization?

53

The research was directed to find how satisfied the respondents are with their present

organization and results collected indicated the following:

Very Satisfied = 6 (11.5%)

Satisfied = 32 (61.5%)

Neutral = 10 (19.2%)

Dissatisfied = 4 (7.7%)

Very Dissatisfied = 1 (1.9%)

54

Inform about your supervisor / manager

An inquiry was made to know what kind of perceptions the employees have about their

supervisor and manager. Results indicated the following:

Listens to employees

Positive Agreement = 44 (83.02%)

Neutral = 7 (13.21%)

Disagreed = 2 (3.77%)

Have knowledge about employee‘s work


Neutral = 8 (15.09%)


Being fair to employees


55

Neutral = 16 (30.19%)


Support personal development


Neutral = 13 (24.53%)


Has realistic expectation of employee contribution


Neutral = 13 (24.53%)


56

Rate your satisfaction with your overall management

An inquiry was made to know whether the employees are fully satisfied with their

current management. Results indicated the following:

Relationship with boss

Very Good = 16 (29.63%)

57

Good = 26 (48.15%)

Neutral = 11 (20.37%)

Bad = 1 (1.85%)

Boss’s / Supervisor’s management abilities

Very Good = 11 (20.37%)

Good = 26 (48.15%)

Neutral = 15 (27.78%)

Bad = 1 (1.89%)

Communication with general management

Very Good = 11 (20.37%)

Good = 13 (24.07%)

Neutral = 24 (44.44%)

Bad = 5 (9.26%)

Recognition from management

Very Good = 5 (9.26%)

Good = 18 (33.33%)

Neutral = 22 (40.74%)

58

Bad = 8 (14.81%)

Career development support from supervisor/management

Very Good = 5 (9.26%)

Good = 19 (35.19%)

Neutral = 22 (40.74%)

Bad = 7 (12.96%)

State your satisfaction level with your supervisor, manager or management for response

to suggestions proposed by you.

59

Inquiry on the satisfaction levels of employees to suggestions they propose to supervisor,

manager and the management indicated that satisfaction registered with 29 respondents (55.8%)

which is higher than employees expressing neutral with 13 respondents (25.0%) and 5

respondents (9.6%) were very satisfied employees and 4 respondents were dissatisfied

employees. In this case, the highest respondents were registered by the satisfactions employees

which is very good indication.

How would you rate your job satisfaction?

60

With reference to job satisfaction in terms of the level of recognition employees 30

respondents (56.60%) were satisfied as against 8 respondents (15.09%) who were not presently

satisfied with their work.

61

How satisfied are you with the level of training and development received?

Whether the levels of training employees receive supports in the development of job

handling was inquired into and the response indicates the following. In respect of initial training

and development which employees receive 32 respondents (59.26%) expressed satisfied while 21

respondents (38.89%) expressed dissatisfaction. As regard the ongoing training, 31 respondents

(57.41%) expressed satisfied while 22 respondents (40.74%) expressed dissatisfied.

62

Job Knowledge among work force

Information was also sought to find out whether the workforce around the employee has

job-relevant knowledge and skills. Results obtained indicated that 35 employees stated in

positive agreement and this contrasts with 2 employees who disagreed the workforce is capable

of performing given tasks. 15 respondents were neutral being unable to agree or disagree to the

stated inquiry.

63

Employee Skills Development

Information on whether the workforce is given opportunity to improve their job skills

results obtained indicated 28 employees (51.85%) were satisfied with agreement and against this

64

a low number of 6 respondents (11.11%) disagreed to the issue and 18 respondents were unable

to confirm their opinion either positively or negatively.

Employee Development Support

34 respondents (62.96%) positively stated their satisfaction but against this only 6

respondents (11.11%) expressed their disagreement. While 13 respondents (24.07%) were

neutral being unable agree or disagree positively.

65

To the inquiry whether the supervisor / team leader offer valuable information on how

increase productivity. Results obtained indicated that 34 respondents (62.96%) were in strong /

somewhat agreement compared to 6 respondents (11.11%) who disagreed that management,

supervisor and team leader offer great desired level of support. 13 respondents (24.07%) were

unable to voice their convictions either positively or negatively.

Right Use of Employee Talent

To the inquiry whether the organization is making use of employee‘s talent an

overwhelming 32 respondents (60.38%) expressed in positive agreement while only 4

66

respondents (7.55%) expressed their disagreements implying the employee has various other

talents but the management is not allowing him or her to initiate.

Employee Performance Appraisals and Performance Expectation Understanding

Whether the employees are able to understand performance appraisals which the

organization is carrying out every now and then, 33 respondents (61.11%) replied positively that

they are able to fully understand what the appraisals demand or expect from them. Only 4

respondents (7.41%) denied that employees are able to understand them and to expect them to

offer wholehearted collaborations to other employees.

68

Chapter 5 Conclusion and Recommendations

It is clear from the study that the employee‘s motivation has direct impact on productivity

and growth. A highly motivated employee invests his / her best efforts in carrying out each and

every element of his / her duties and responsibilities. Enhanced job performances of the

employee will add value to the organization itself and to the employee‘s productivity. The

empirical results of this study show that the motivation of the employee has advantages to the

employee and the organization and the organization will keep the loyalty of the employee at the

high peak. Also, the employee will trust his / her organization, supervisor and top management.

Form these observations of facts it is very clear that business organizations can survive and grow

by taking care of their employees. In the free market economy under today's globalization only

organizations which pursue high-performance focused on their employees can survive and

growth rapidly and safely.

Working with groups is something that the majority of people will come across at work.

Effective groups start from good leadership and good management that should translate into

happy workers that are productive and good for the company. Each individual should understand

their own role in the group and be a good member of the team that cooperates and works well

with others. The atmosphere and culture in the team is determined by the team members

themselves. The nature of the business will have a heavy influence on the way the team works

and which members are most influential. McDonald‘s believes that the success of the restaurants

and the company is achieved through their people. The company aims to recruit the best people,

to retain them by offering ongoing training relevant to their position and to promote them when

69

they are ready. The recruitment policies, procedures and practices reflect the company‘s

determination to fulfil its aim.

5.1 Recommendations

McDonalds to achieve its objectives over, it should develop performance management

processes through achieving system seems to be simple for the top management of McDonalds

powerful system, it will ever find for achieving goals and living their resolutions, so McDonalds

need to do The following:-

• McDonalds needs to deeply desire the goal or resolution. Goals should be smart and

challenging Weak desires bring weak results, and it should be well cascaded.

• A committee of executive managers should be structured to asses and audit the

department‘s performance and to compare between actual results against the plan, and to audit

the employees appraisals if there are any deviations between department average achievements

and employee average appraisal, the sales and marketing employees average appraisals should be

around 80%, so if there are any deviations between the department average achievements and

employees appraisals, the committee in this case will audit the employees appraisals to avoid any

subjectivity in the appraising.

• Awareness sessions should be conducted regularly by HR and top management in order

to avoid the occurrence of misunderstanding by the employees or even supervisors. And to

inform the staff by any development which may happened in the PMS.

70

• In the system there should be rooms to develop and modify the tools and process in

order to cope with any environmental changes or company objectives changes, since there may

be some objectives can‘t be smart enough to be measured, so the system should have the

capabilities to measure immeasurable objectives.

5.1.1 Motivation and Satisfaction

Performance appraisal can have an important impact on positions of staffs satisfaction

and motivation - for better with worse. Performance appraisal gives staffs with identification for

efforts of their work. The strength of social identification as an inducement has been long

observed. Actually, evidence is there is that people will even favour harmful identification in

preference to no identification whatsoever. If nothing else, the reality of an appraisal plan defines

to a staff that the company is actually focused in their personal development and performance.

This can have a constructive impact on the individual's feeling of worth, belonging and

commitment. The prevalence and strength of this natural human wish for personal identification

must not be ignored. Turnover and absenteeism rates in different companies might be decreased

if additional focus were given. Common performance appraisal, minimum, is an excellent

beginning.

5.1.2 Training and Development

Performance appraisal presents an important opportunity – may be the excellent that will

ever happen - for a subordinate or supervisor to identify and admit upon personal training and

improvement requirements. Throughout the debate for work performance of a staff, the absence

or presence of work abilities can become very clear - even to those who normally refuse the view

of raining for them! Performance appraisal can create the demand for training additional pressing

71

and related though connecting it apparently to performance results and future job motivations.

From the perception of the McDonalds as a whole, combined appraisal information can make an

image of the general requirement for training. This information can be reviewed through

variables like department, sex, etc. In this way, performance appraisal can give a common and

excellent training needs audit for the company.

5.1.3 Recruitment and Induction

Appraisal information can be implemented to observe the achievement for recruitment

and induction exercises of the company. For instance, how well are the staffs working who were

appointed in the last couple of years? Appraisal information can also be implemented to observe

the helpfulness of modifications in strategies of recruitment. Through pursuing the yearly

information about latest hires (and presented enough numbers on which to base the assessment)

it is probable to review whether the common value of the staff is developing, staying stable, or

reducing.

5.1.4 Employee Evaluation

Though normally recognised or even refused, assessment is a legal and important aim of

performance management. But the demand to review (i.e., to observe) is also a continuing source

of stress, since developmental and evaluative priorities emerge to normally difference. Still at its

most important position, performance management is the system of observing and assessing the

performance of a staff. Though companies have an apparent right - some would define a

responsibility - to perform these assessments of performance, some still withdraw from the view.

To them, the open procedure of observation can be demoralizing and dehumanizing and a source

72

of stress and distress to staffs. It is been defined through some that appraisal cannot serve the

demands of assessment and improvement at the equal period; it should be one or the other.

73

Appendix

Questionnaire

1. How long have you worked in the present organization:

Less than 1 year

1-3 years

3-5 years

5-10 years

2. State the department you work in

Finance and Accounting

Human Resource Management

Information Technology

Manufacturing

Research and Development

Sales and Marketing

Other (please specify)

74

3. Describe your job Responsibility

Operative Employee

Supervisor

Manager

Senior Management

4. Which of the following aptly describes your satisfaction level with the present

organization?

Very Satisfied

Satisfied

Neural

Dissatisfied

Very Dissatisfied

5. Inform about your supervisor / manager etc.

My supervisor listens to me.

b. My supervisor is knowledge about my work.

c. My supervisor is fair

75

d. My supervisor supports personal development

f. My supervisor has realistic expectations regarding my work

6. Rate your satisfaction with overall management

Your relationship with your boos.

b. Your boss / supervisor‘s management abilities.

c. Communication with general management.

d. Recognition from management.

f. Career development support from your supervisor or management.

7. Sate your satisfaction level with your supervisor, manager or management for

responses to suggestions proposed by you.

Very Satisfied

Satisfied

Neural

Dissatisfied

Very Dissatisfied

76

8. How would you rate your job satisfaction?

a. Recognition for your hard work

b. Development opportunities available

c. Your pay level as compared to similar position in the industry

d. Your performance feedback from management

9. How satisfied are you with the level of training and development received?

Initial training received when hired

b. Ongoing training necessary to perform your job well

c. Self development support

d. Preparation for career advancement.

10. Qualification of fellow employee

Workforce has job-relevant knowledge/Skills necessary for successful task completion

11. Skill improvement, support, performance enhancement training

Strongly Agree

77

Somewhat Agree

Neutral

Disagree

12. Employee development support

Strongly Agree

Somewhat Agree

Neutral

Disagree

13. Right use of employee talent

Organization uses my talent in the workforce

Strongly Agree

Somewhat Agree

Neutral

Disagree

14. Employee performance appraisals performance expectation understanding

78

In my most recent performance appraisal, I understood what I had to do to be rated at

different performance level

Strongly Agree

Somewhat Agree

Neutral

Disagree

79

References

Ackers, P.M., Marchington, M., Wilkinson, A. and Dundon, T. (2005) Partnership and

Voice, with it without trade unions: Changing UK management approaches to

organisational participation, in Stuart, M. and Lucio M. (eds), Partnership and

Modernisation In Employment Relations.

Adam, E. (1991) ‗Quality circle performance‘, Journal of Management, Vol. 17, No. 1,

pp. 25–39

Aijala, A., Walsh, B., Schwartz, J. (2007) Aligned at the Top. Deloitte Development

International.

Alchian, A.A. and Demsetz, H. (1972) ‗Production, information costs, and economic

organization‘, American Economic Review, Vol. 62, No. 5, pp. 777–95

Alimo-Metcalfe, B. et al (2007) The impact of leadership factors in implementing change

in complex health and social care environments: NHS Plan critical priority for

mental health crises resolution teams, Real World Group/Sainsbury Centre for

Mental Health.

Alimo-Metcalfe, B. and Bradley, M. (2008) Cast in a new light. People Management, 24

January 2008.

Armstrong, K. Ward, A. (2006) What makes for effective performance management? The

Work Foundation in the Corporate Partners Research Programme.

80

Axtell, C. M., Harrington, E., Holman, D. J., Unsworth, K. L., Wall, T. D. and Waterson,

P. E. (2000) Shopfloor innovation: facilitating the suggestion and implementation

of ideas, Journal of Occupational and Organisational Psychology, 73.

Baghai, Mehrdad; Coley, Stephen; White, David; The Alchemy of Growth: Practical

Insights for Building the Enduring Enterprise. Perseus Books. New York. 1999.

―Bag a McMeal.‖ Accessed online on October 26, 2004 at: http://www.findarticles.com/

p/articles/mi_m3190/is_50_35/ai_80748686

Bevan, S. Cowling, M. (July 2007) Job Matching in the UK and Europe. Research Report

RR25, Sector Skills Development Agency

Bourne, M., France-Santos, M., Pavlov, A., Lucianetti, L., Martinez, V. and Mura, M.

(2008) The impact of Investors in People on people management practices and

firm performance, Cranfield School of Management

Brewster, C., Higgs, M., Holley, N. and McBain, R. (2007) Employee engagement –

report from HR Centre of Excellence Research and members meeting, Henley

Brown, W. (2000) Putting participation into practice in Britain, British Journal of

Industrial Relations, 38: 299-316

Cantalupo, Jim. ―McDonald‘s Revitalization Plan.‖ October 29, 2003. Accessed online

on October 26, 2004 at < http://www.mcdonalds.com/corp/invest/pub/

revitalization.RowPar.0001.ContentPar.0001.ColumnPar.0004.File.tmp/mcd_revit

alization_plan.pdf>.

http://www.findarticles.com/

81

Cleland, A., Townend, A. and Mitchinson, W. (2008) Engagement Assertiveness and

Performance. White Paper, Ixia in partnership with Henley Management College.

Crabtree, S. (2005) Engagement keeps the Doctor Away, Gallup Management Journal

Davies, G. and Chun, R. (2007) To thine own staff be agreeable, Harvard Business

Review, June.

Fernie, S. and Metcalf, D. (1995) ‗Participation, contingent pay, representation and

workplace performance: evidence from Great Britain‘, British Journal of

Industrial Relations, Vol. 33, No. 3, pp. 379–431

Forth, J., Bewley, H., Bryson, A. (2006) ‘Small and Medium-sized Enterprises: Findings

from the 2004 Workplace Employment Relations Survey.

Fredrickson B.L. and Joiner T, (2002) Positive Emotions trigger upward spiral toward

emotional well-being‘ Psychological Science, Vol. 13 pp 172-175

Gyr, Herman; Friedman, Lisa; The Dynamic Enterprise: Tools for Turning Chaos into

Strategy and Strategy into Action. Jossey-Bass Publishers. San Francisco. 1998.

Guest, D. and Peccei, R. (2001) Partnership at work: mutuality and the balance of

advantage, British Journal of Industrial Relations, 39(2): p207-236

Heery, E., Keely, J. and Waddington, J. (2003) ‗Union revitalization in Britain‘,

European Journal of Industrial Relations, Vol. 9, No. 1, pp. 79–97

Hirsch, D. (2003) Crossroads after 50: Improving Choices in Work and Retirement.

York: Joseph Rowntree Foundation

82

Hyman, J. (2000) ‗Financial participation schemes‘, in G. White and J. Druker (eds)

Reward Management: A Critical Text. London: Routledge

Jensen, M.C. and Meckling, W.H. (1979) ‗Rights and production functions: an

application to labour-managed firms and co-determination‘, Journal of Business,

Vol. 4

Keep, E. and Rainbird, H. (2003) ‗Training‘, in P. Edwards (ed.) Industrial Relations:

Theory and Practice. Oxford: Blackwell

Kersley, B. and Martin, C. (1997) ‗Productivity growth, participation and

communication‘, Scottish Journal of Political Economy, Vol. 44, No. 5, pp. 485–

501

Kessler, I. and Purcell, J. (1992) ‗Performance related pay: objectives and application‘,

Human Resource Management Journal, Vol. 2, No. 3, pp. 16–33

Kessler, I. and Purcell, J. (2003) ‗Individualism and collectivism in industrial relations‘,

in P. Edwards (ed.) Industrial Relations: Theory and Practice. Oxford: Blackwell

Knights, D. and McCabe, D. (2000) ‗Bewitched, bothered and bewildered: the meaning

and experience of team working for employees in an automobile company‘,

Human Relations, Vol. 53, No. 11, pp. 1481–1517

Phillips, Eddie, Prior McDonald‘s Manager (1998 – 2003). Personal Interview, October

27, 2004.

83

Bibliography

Jones, D.C. (1987) ‗the productivity effects of worker directors and financial

participation by employees in the firm: the case of British retail co-operatives‘,

Industrial and Labour Relations Review, Vol. 41, No. 1, pp. 79–92

Jones, D.C. and Kato, T. (1993) ‗On the scope, nature and effects of Japanese ESOPs‘,

Industrial and Labour Relations Review, Vol. 46, No. 2, pp. 352–67

Jones, D.C. and Kato, T. (1995b) ‗The productivity effects of employee stockownership

plans and bonuses: evidence from Japanese panel data‘, American Economic

Review, Vol. 85, No. 3, pp. 391–414

Kochan, T. and Osterman, P. (1994) The Mutual Gains Enterprise. Cambridge, MA:

Harvard Business School Press

Kruse, D.L. and Blasi, J. (1997) ‗Employee ownership, employee attitudes, and firm

performance: a review of the evidence‘, in D. Lewin, D. Mitchell and M. Zaidi

(eds) The Human Resource Management Handbook. London: JAI Press

Labour Research Department (1995) European Works Councils. London: Labour

Research Department Booklets

MacInnes, J. (1987) Thatcherism at Work. Milton Keynes: Open University Press

Mackie, G. (1994) ‗Success and failure in an American workers‘ co-operative

movement‘, Politics and Society, Vol. 22, No. 2, pp. 215–35

84

McNabb, R. and Whitfield, K. (1998) ‗The impact of financial participation and

employee involvement on financial performance‘, Scottish Journal of Political

Economy, Vol. 45, No. 2, pp. 171–87

McNabb, R. and Whitfield, K. (2000) ‗Worth so appallingly little: a workplace-level

analysis of low pay‘, British Journal of Industrial Relations, Vol. 38, No. 4, pp.

585–610

Mahoney, T. and Watson, M. (1993) ‗Evolving modes of workforce governance: an

evaluation‘, in B. Kaufman and M. Kleiner (eds) Employee Representation:

Alternatives and Future Directions. Ithaca, NY: ILR Press

Nolan, P. and O‘Donnell, K. (2003) ‗Industrial relations, HRM and performance‘, in P.

Edwards (ed.) Industrial Relations: Theory and Practice Oxford: Blackwell

how can mcdonald's tackle performance related problems… · 7 how can mcdonald’s tackle...

Documents