The University of Lahore

Subject:
Final project
(Mecdonalds corporation)
Submitted to:-
Prof.Irfan Saqi
Submitted by:-
Saher Khalid(Mit02123032)
Shumaila rasheed(Mit02123037)
Submission Date:-
May-20-2014
Signature:-





ACKNOWLEDGEMENT:-
In the name of Almighty Allah, the most beneficent and merciful to the
mankind.
Thi s pr oj ect woul d not be possi bl e wi t hout t he encour agement
and gui dance of number of people. We feel highly obliged and want to
express our deepest gratitude to our respected teacher Prof.Irfan Saqi for her
advice, help and guidance throughout this semester.We would like to express
our deepest gratitude to our parents and friends for their inspirations,love and
constant support.

EXECUTIVE SUMMARY :-
This project is about McDonalds Pakistan, which is one of the largest and the
best-known global food service retailer with more than 30,000 restaurants in 121
countries serving 47 million customers each day. First we have studied a brief
history of the company worldwide. Then we have introduced McDonalds
Pakistan, the organizations strategies and its structure. Basically, this project aims
to have an overview of the McDonalds human resource management.The
different functions at the disposal of HR include provision of different laws for
the protection of employees rights. Strategies for the development of the
organization, job analysis for the hiring of new employees, personnel recruiting,
employee testing and selection, performance appraisal are also integral parts of
HR.These all functions are described in context of McDonalds Pakistan. This
will help better understanding the different processes involved in HR
functionality.
History and introduction of McDonalds:

McDonald's has come a long way since Ray Kroc laid down the foundation of
the Company in 1954. Story goes that Ray Kroc mortgaged his home and
invested his entire life savings to become the exclusive distributor of a five-
spindled milk shake maker called the Multimixer. Hearing about the
McDonald's hamburger stand in California running eight Multimixers at a time,
he packed up his car and headed West. Ray Kroc pitched the idea of opening
up several restaurants to the brothers Dick and Mac McDonald (hence the
name), convinced that he could sell eight of his Multimixers to each and every
one.

McDonald's today is one of the largest and the best known global foodservice
retailer with more than 30,000 restaurants in 121 countries serving47 million
customers each day. McDonalds serves less than one person of the worlds
population. McDonalds outstanding brand recognition, experienced
management, high quality food, advanced operational systems and unique
global infrastructure ensure a position that enables them to capitalize on
global opportunities.
McDonald's Pakistan:

McDonalds is part of the Lakson group of companies, a leading business in
Pakistan. McDonalds first restaurant has opened its door to the people of
Pakistan in September 1998 in Lahore. Karachi opened its first restaurant after
one week. There are now 18 restaurants in four major cities of Pakistan: 7 in
Karachi, I in Hyderabad, 9 in Lahore and1 in Faisalabad since the company first
opened its doors to the people of Pakistan.This launch was met with
unprecedented enthusiasm form the citizens of Lahore who are known for
their liveliness, vigor and penchant for quality food. Today millions of
Pakistanis place their trust in McDonalds to provide them best quality food,
quick service and value for money. World famous French fries, Big Mac,
Quarter Pounder, Chicken McDonalds Nuggets and egg McDonalds Muffin
are not only kids' favourites but also lure in the customers of all ages.
McDonalds is firmly committed to give back to the community where it
operates. They are happy to become involved because they recognize that
organizations have a role to play in helping communities to work successfully.
Mission Statement:
Don't worry about making money Love what you are doing and always putthe
customer firstAnd success will be yours!
Vision:-
Being the best means providing outstanding quality service and cleanlinesss
that the company makes every customer in every restaurant happy
Objective:-
To achieve this mission Macdonald's is focused on three worldwide strategies:
Be the best employer for the people in each community around the
world.
Deliver optional excellence to the customers in each of the restaurants.
Achieve enduring profitable growth by expanding the brand and
leveraging the strengths of McDonalds system through innovation and
technology.
Structure:-
McDonald's are structured along functional lines. Their Chief Executive
oversees five major areas of activity:
Operations (equipment and franchising)
Development (property and construction)
Finance (supply chain and new product development)
Marketing (sales marketing)
Human Resources (customer services, personnel, hygiene and safety).
McDonalds Structure:

The structural hierarchy of McDonalds Pakistan is as follows:-
Trainee Business Manager:
The trainee business manager should have the right skills andqualities, in order to
operate Mc Donalds.
1
st
Assistant:
At this level the first assistant brings together operations andmanagement skills
and gets grip with finance, human resource andtraining.
2
nd
Assistant:
At this level the second assistant really begins to develop his/her management
skills and learns what goes into running a shift.
Restaurant Manager:
The restaurant manager has all responsibility for people, profitabilityand every
other aspect of running the restraint.
Area Supervisor:
A team of restaurant managers looks to the area supervisor for advice and
guidance for everything from the recruitment of staff tolocal marketing initiatives.
Operations consultant:
As operations consultant is an experienced manager, he will beinvolved in the
long term planning for the restaurants.
Operations manager:
Acting as a business consultant, the input of an operations manager plays a major
part in the performance of as many as 10 restaurant.
HRM in McDonalds:
McDonalds is divided in to five regions in the world, which are further divided
into sub regions. As this organization is internationally owned,so all its
decision is taken from the head office, but they are some how changed to suit
the different cultural backgrounds of the region.As an organization is known
by its well groomed and intelligent staff at to support and maintain its best
quality at every level, So McDonald is also very careful when hiring for an
employee. For that reason, its HR department is very efficiently working to
make sure the best is hired.Here 95%of the workforce is restaurant based
while 5%of it is in the official running of the organization.
Equal Employment Opportunity Laws:-
McDonalds is a responsible company, who believes on EEO laws and is an
equal opportunity employer committed to a diverse work force. McDonalds
might be a global business but it is made up of individuals, everyone of whom
brings their own unique skills and qualities to the team. There is no limit to
how far you can progress here without gender discrimination.
Job Analysis
As HR activities grow in scope and complexity, many duties, such as
recruitment and selection, performance appraisals, training, discovering
unassigned duties are delegating to the HR department. But HR specialist
does not know the details of job as well as operating managers do. Knowledge
about job and their requirement must be collected through a process known
as job analysis.
Job Description:-
Position :
Assistant Manager - Marketing
Vacancy Location:
Lahore
Candidate Profile:
MBA / PGDBA with specialization in Marketing must be willing totravel. Must
have 2-4 years of experience in the areas mentioned below preferably from the
retail industry.
Job description:
Identify priority restaurants, develop sales building plans and evaluateresults
for priority restaurants, map business opportunities andchallenges for
restaurant, event marketing, assist with the developmentof mini-market
marketing plans, provide input on marketing needs fromcustomer viewpoint,
monitors the proper execution and impact of all marketing activities.
Job Analysis in McDonalds:-
As job analysis is the process to understand the responsibilities of the job and
in McDonalds it is done in these different ways:
Questionnaire
Employees fill questionnaires in every 2
nd
month to know the performance of
the restaurant so that information about duties,responsibilities and activities
of a job can be gathered.
Observation
Observation is also a way to gather the information about a job and toachieve
different satisfaction levels.
The Hiring Process:
Once the firm has determined its staffing needs, it takes every possiblestep to
hire the best employees so as to fill the available positions.The hiring process
has two components:
Recruitment
Selection
Levels of Hiring:
At McDonald, Hiring is done at two levels:
Trainee Managers.
Crew Members.
The difference between both of these is that the training managers are
required to learn to smoothly manage the working of the outlet, so they are
trained accordingly.Whereas the crewmembers have shifts for cleaning,
counter service and other restaurant jobs.Recruitment is the process of
generating a pool of qualified candidates for a particular job. The firm
announces the jobs availability to the market and attracts qualified
candidates to apply.
Recruitment:-
There are two types of recruitment. McDonalds corporation fills its positions by.
Internal source
External sources
Types of recruitment
Internal sources
Filling open positions with current employees are often best source of candidates.
At Macdonalds job posting technique is used which means it publicizes an open
job to employees (often by literally posting it on in tranets and bulletin boards)
and listing the job attributes like qualification, work schedule and pay rates.

External sources
Eternal sources used by McDonalds are
Advertisement in Newspapers
Advertisements are done in all the leading papers so that everyeligible
candidate can apply for the job.
Advertisement on Web Site
Sometimes advertisement is also done on website so that the opportunity
cant be missed by anyone.
Internships
Sometimes students get jobs while doing internship in McDonald.
Selection:
At McDonalds, people are the most important factor. They seek only those
people, who can think, feel, express themselves, learn, teach and hence grow.
Their growth is the companys growth.
Fresh People
McDonalds provides thorough In-house training to fresh people
relatively in experience people. Hiring people having no previous work
experience also helps them greatly in adjusting to the distinct culture of
the organization.
Justified Selection
The selection is entirely based on merit, which conform the selection criteria
without any bias towards gender, religion, race, color, nationality, age.


Selection Process:-
After advertising for the job in the papers or in any other way when applications
are received, these steps are followed:

Screening of Applicants
After building a pool of candidates applications, short listing of selective
applications is done by the HR manager.
Written Test
The reason for the written test is to assess that whether the recruits are able
enough to fulfill the general practical requirements of the job. The HR
department designs and conducts the tests as and when hiring needs arises.
Initial Interview
The ONE to ONE structured interviews are conducted by Restaurant Manager
after the written test.
Aptitude Tests
These are those tests, which are done for the training managers.
Reference Checks
They are to make sure that references provided by the candidates are valid so
that no confusion remains.
Final Interview
Candidates who give the best results are called for the final interview. A panel of
five or six interviewers does interview.
Relocation
After final interview, it is decided which candidates to select for which job to
make sure who is the best so that the standard of McDonalds is maintained.
Training in McDonalds:
Training and development activities are supplemented with more traditional
education and training courses by HR department, universities and private
trainers. As more companies expand their international involvement,
experience abroad will becomes an even more important development
activity. These are concerned with assisting employees to develop up-to-date
skills, knowledge and abilities. The employees in McDonald, are provided with
training to achieve high standards in the organization. The training period for
a crewmember is three months and for others it is one month or 10-15 days.
Direct Training
This is that training which is given directly after the selection so that an
employee can understand the position he will be working for and its
responsibilities.
Training Abroad
Different programs are arranged so that other qualified people can train
employees at different levels abroad so that they can understand different
standards and can improve their own capabilities.
Performance Appraisals:
It is a process by which the performance of an employee is evaluated
.McDonalds conducts performance review semi-annually. Some standards are
made and defined according to which the employees have to perform. Then
after 6 months all the employees are evaluated that whether they come up to
our standards or not.
The appraisal process in McDonalds includes PA forms for every particular job
which involves:
International McDonalds standards.
Assessing the employees actual performance relative to these standards Providing
feedback to the employees.
Levels of Performance Appraisals:-
There are four levels to evaluate the performance of employees:
Out Standing
Excellent
Good
Need Improvement After giving the total grade to the employee the appraiser
writes down about the strength and the areas needing improvement of the
employee.
Incentives:-
Performance-based pay approach that is designed to increase output, based
on the performance of individuals or groups. Incentives in McDonalds are
given to employees on basis of performance.
Types of Incentives
1:-Cash Based
2:-Non Cash Based
Cash Based Incentives:-
Attendance Allowance
Annual Allowance
Medical Allowance
Hard Soft Furnishing [HSF]:
Once in every year certain categories of employees can furnish their houses
with the carpet, furniture, curtains etc at the McDonalds expense.
Leave Fair Assistance [LFA]:
Once in two year managerial level employees are allowed to choose any
area for tourism in Pakistan with family for 10 days.

Non Cash Based Incentives
Crew of the Year
Crew of the Month
Branch of the Year
Access to gift certificates