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McDonald’s Corporation | 1
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Organizational Reflection and Integration at
McDonald’s Corporation
1. Introduction
Beginning with Burgers in 1954, McDonald’s corporation is one of biggest chain
of fast food restaurants with its specialty of hamburger, operating in more than
58 (fifty eight) Million customer on daily basis (Mieth, H. 1999:3). Today,
McDonald has more than 32,000 branches in more than 117 countries with
more than 1.7 million of employees serving about sixty (60) million people
(McDonald, 2011). With its unique symbol of the “golden arches” McDonalds
operates through franchisee selected through very tough training procedure.
Further, commencement of business in foreign environment, corporation has to
focus on multiple dimension both in introducing its products and services and
engages people to work for them.
2. Organizational Reflection: Recruitment, Selection and Retention Modals
Employed at McDonalds
One of the major of reasons of such an enormous growth of McDonalds is that it
has attracted reliable and competent people in every country. In its recruiting
and selection process, McDonalds primarily focuses on engaging people with
‘customer skills’. Above all, with reliability and competency, McDonalds need

peoples who could be friendly and accommodating with the customers in almost
every situation.
i. Critical Evaluation of Employee Hired at McDonalds
In general practise, peoples at McDonalds are hired at probationary basis
whereby it is evaluated and accessed whether the person engaged is best fit
to represent the brand value of McDonalds at all levels. Further, it is
assessed whether such person would be able to work with other employees
as a cohort.
For managerial post, McDonalds employs different evaluation processes. The
foremost consideration of McDonalds while employing a person as store
managers comprise skills of leadership, appropriate work expectations, and
the ability to manage to fast paced environment of the store. Once such
managerial applicant is passed through such critical screening and testing
process, he or she is offered to work for a trial period of two (2) week
generally. During this time period, both the corporation and the recruited
have ample opportunity to see whether they are appropriate fit for each
other. This is usually done when McDonalds begins its operation in a new
country, thereafter, it keeps an ongoing process of selecting assisting
managers to prepare them as future managers and internal promotion based
on their respective performance.
ii. Legal, Regulatory and Ethical Consideration
While operating across the globe, McDonald’s has to face different and
sometime quite difficult legal and regulatory regimes. Human resource
management sector of McDonalds thus, adapts its menus and services
according to the given legal, regulatory, political, cultural and economic
arena. For instance, in much of the Middle Eastern economies, McDonalds
has to comply with legal as well as ethical consideration of unique halls to
eating for men and women. Before commencement of its operation in a
country, McDonalds is reported to have conducted in depth surveys through
its human resource department. This gives them idea how to handle the
legal provisions and ethical consideration of a specific country. Further, legal

norms of employment and all relevant factors are carefully studied and
reported so as to handle any absurdity in future. Furthermore, corporate
regulatory regime of the country is specifically studied and approvals are
sought for operation. Once the aforesaid studies are complete and relevant
approvals are confirmed in a new country, McDonalds looks for employment
process (Dash & Aswathappa 2008:192).
3. The Process of Building Winning Teams through Integration at McDonalds
Once recruitment process is done, and restaurant is adequately staffed,
McDonald engages its employees in certain training courses to ensure the
consistency in its level of service and quality across the globe.
i. Evaluation of Knowledge, Skill and Experience of Employees
Based on critical evaluation of knowledge, skill and experience of employees,
especially the trained staff, McDonalds develops training centers both from
the trained employees and trainers engaged in leader and success
management. Usually, such trainings are managed for higher hierarchy of
employees like managers who are enabled further to conduct training of
other employees at McDonalds (Dash & Aswathappa 2008:192). This way
McDonalds also reaps the benefits of cost advantage in production,
marketing and research and development activities overall.
ii. Source of Motivation for Employees
The regional managers at McDonalds are endowed with a duty to select
employees on trial basis for several trainings. These trainings are based on
management style books and are aimed to equip the employees with less
theory and more practical exposure in the workplace. This methodology
assumes that employees shall be getting a real time experience, for instance,
dealing with “live stock control, managing people, health and safety, payroll,
staff training, human resource management and so on” (Roodhouse &
Mumford, 2010:164). This way McDonald provides a worthy foundation edge
for learners and further motivate them to pursue higher knowledge and

expertise in their field of interests, while keeping their relation with the
corporation intact.
Other source of motivation of McDonald’s employee includes:
a) In most of the countries, McDonalds provides for the provisions relating
to health insurance which include:
• Medical
• Vision supplement plan
• Dental
• Flexible spending accounts
• Short and long term disability
• Employee and dependent life insurance
• Accidental death & dismemberment (AD&D)
• Travel and business travel accident insurance
b) As to Pay and Rewards McDonald’s system basic compensations as well
as recognition awards for outstanding performance, these include:
• Base pay
• Incentive pay
• Company car program
• Recognition programs
c) Another lucrative feature of McDonalds Corporation is investment in
future of the employees through:
• Profit Sharing and Savings Plan
• MCDirect Shares
• Mc$ave
• Credit union
• Financial planning services
d) Last but not the least McDonalds help to balance the work and life of its
people through:
• Vacation
• Holidays
• Anniversary Splash
• Sabbatical program
• Summer Hours

• Leave of absence
• Alternative Work Approach
• Adoption assistance
• Child care discount
• Educational assistance
• Matching gifts program
• Employee Resource Connection
• Auto and home insurance group discount program
• International Fitness Club Network
• Beyond Work Internet discount program
Though McDonalds constantly pursue to expand the areas of its benefits and
its valuable compelling packages, however, currently these benefit policies
are for U.S. staff employee only. (McDonalds, Employee Benefits 2011).
4. Organization’s Current Situation- Leadership Perspectives at McDonalds
Through its research and development mechanism, McDonalds constantly
applies best practices in leader development and talent management in its
borderless business. McDonald keeps on revising its leader programs and
trainings related thereof. These include “expanding participants’ mindset from
local to regional to global, enhancing participants’ ability to maximize business
performance through strengthening financial acumen and enhancing
participants’ innovative “out of boss” thinking” (Harkins, et al. 2006: 162).
i. Leadership Management at McDonalds
The Global Leadership at McDonalds Program (“LAMP”) is a specifically
designed program for development of new leadership for the future. From
organization perspective of McDonalds Corporation the LAMP program aims
to:
a. “Building deeper benchmarks for key managerial and executive
positions.”
b. “Shortening the ramp-up time required for newly promoted officers and
getting quicker business results.”
c. “Becoming more effective at develop and retaining top talent”, and

d. “Continuing to improve the diversity profile at the officer level (Harkins,
et al. 2006: 162).”
This integrated acceleration of leadership management improves
performance of employees and overall business results by:
• Enhance participant’s knowledge at management.
• Providing deeper insights to the leaders to further development their
abilities themselves.
• Development of strong peering among leaders across the globe and
robust exchange of ideas.
Summarily, these work-based learning activities help the participants to have
best support from tutors and mentors, from peer network, and from
administration and other facilities specifically designed to understand and
employ work-based learning methodologies and certain levels of
commitments.
ii. Communication and Delegation of Objectives within the Team and Role
of Team Leader
One of most critical factor for the success of an organization is the effective
ways of communication of necessary information. McDonalds’ team and role
of the team leader are integrated system of development to utilize potential
talent as the most appropriate. LAMP program is not just meant to develop
leadership at individual level, but it also provides the most suitable platform
to development the capabilities as team leader to run the team’s members
as well.
The corporate leadership strategy through LAMP also enables the managers
to communicate and delegate their objectives better in the given set up.
Communication at managerial level involves giving instructions, sending and
receiving messages and responses respectively. Unlike other employees

managers spend most of their time to control and management through
effective communication (Achua, FC & Lussier, RN 2010:195).
iii. Methods to Develop Leadership and Empowerment of Team
At McDonald, production and services are correlative with the team effort. In
such a scheme employer can not often judge output of a particular
employer. So McDonalds employ Team Leader formula to assess the output
each employee and evaluate their performance through interaction with
customers. For instance, employees who provide personal services, such as,
burger deliveries etc are better judged by customer as to their timelines and
quality of services and interaction.
5. Analysis and Assessment of Employees Performance through Change
Management
i. Objective-setting Techniques at McDonalds
Being a symbol of American system, the history of McDonalds witnessed
many interesting ups and downs. Though, American culture has its own
unique glamour, however, in many parts of the world it is not likely to be
accepted as elsewhere. There is most pertinent example worth mentioning:
a. In France, McDonald much hostility when in 1999 a mob literally
dismantled nearly half constructed McDonalds to prevent it from
undermining the local production with a semiotic theme and McDonalds
symbolic perspectives.
b. In Arab and Muslim countries which form about __percentage of the
world population McDonald was not apparently acceptable unless, the
religious factor of “Halal Meat” was catered for.

c. India, one of the biggest market in the world was another big challenge
to McDonald because of dietary preference in Hindu and Muslim cultures.
As Hindus do not eat any kind of meat which is an essential part of
hamburger of McDonalds. To keep in view cultural preferences of such a
country, the management of McDonald introduced modified menus to
cater to the preference of consumers. Thus, in India, McDonalds
introduced Vegetarian as well as Non-vegetarian menus.
Thus keeping in line with the basic aim of becoming the world’s largest
chain of fast food restaurants, McDonalds kept on devising suitable
strategies and objective settings suitable to other national needs as well. For
this purpose keeping reliability of its quality, brand name, quality of service,
McDonald introduced much affordable prices from country to country (Paul,
J. 367). Further, to capture more and more of the local market, research and
development network of McDonald kept on introduction innovative product
with effective promotional campaigns. In this way, McDonald also keeps on
innovative variations in its menu.
ii. Quality of Performance of Employees
It is often proclaimed that people at McDonalds are the key source of
difference. More than 1.6 million employees across the globe, both at
McDonalds and its Franchisee are thought to be the brand ambassador of
McDonalds. Therefore, McDonald focuses on three key areas in relation to
its employees:
a. Dignity and inclusion,
b. EVP: Employee Value Proposition, and
c. Talent Management overall.
This approach of employee’s priority can be reflected as:

Appendix (I)
This strategic human resource management at McDonalds has paved its
ways into future with sustained growth.
iii. Procedures Employed to Deal with Performance Issues through Change
Management
McDonald has show a commitment to inclusion of its people incorporating
their diversity at all levels in comparison to other organization dealing in fast
food chains. One of the most significant segment of handling with the
problem at the end of staff, most pertinently, the performance issues,
McDonalds put the problems in writing and set target timelines to cope with
them, ultimately closing with disciplinary actions. However, to handle like
this, the more important part to devise appropriate mechanism to diagnose
poor performance, as it may to unwanted results.
One of the basic procedures of dealing with performance issues at
McDonalds is customer has to follow are known as McRuels. These McRules
are 43, but some of the most important rules are reproduced herein under
for general consideration:
a. Don't confuse franchises! We don't Biggie size; we don't have onion rings
or nachos, and no...You may not "Have it your way."
b. If you ordered a burger without pickles and they somehow ended up
there anyway... just pick them off because that's all I'm going to do when
you bring it back to me to "fix it."

c. Don't come into the lobby two minutes before we close. Chances are I've
already cleaned, and it will only cause me to do unspeakable things to
your (already stale) food.
d. Don't scream at me if I ask you to repeat your order... we're talking about
cheeseburgers, not missiles... so calm down!
e. Does this look like Toys-R-Us? Who cares if your kid's got 10 of the same
toy already? That's telling me you don't feed them at home enough!
f. When I hand you your food and say "Have a nice day," you better respond
with a smile, a "Thanks, you too," or at least acknowledge my existence.
Its called being polite people
Thus, apart from taking the corrective or expulsion measures, McDonalds
firstly tries to confront with the marginal performance of its employees by
introducing certain rule for the customers as well which may include:
a. Family difficulties or personal troubles as well as issues as workplace.
b. Workers may be under unreasonable pressures or harassment by
coworkers.
c. Other sensitive issue which may be quite personal to an employee,
especially, at workplace.
d. Workers may be suffering from certain mental illness, curable, with
general administration, for instance, psychological distress.
Therefore, very basic reason for this is that McDonald takes its employees
not just worker bees but as its assets and future investment. Thus to avoid

and eradicate the poor performing employees McDonald first focuses onto
resolve the issues which are hindering the efficiency of a worker.
6. Conclusion
According to Rensi, Ed, former president of McDonald’s USA “McDonald’s is built
on a chassis of growth opportunities, business opportunities, systems, trust,
and yes, fun (Genn, A. & Facella, P 2009:ix)” In the year 2009, McDonald also
introduced the concept of “Global Best of Green” a catalogue providing best
environmental practices from across the McDonald System, as a source of
innovation and sustainability of supply chains. The enormous accomplishments
of McDonalds around the globe are mainly attributed to its ability to harmonize
and fascinate the local business culture (Yu, L 52). Today, McDonald is in every
big city across the globe. However, McDonald is not only a global fast food
chain but also the corporation operates and supports many charitable causes
(Mieth, H. 1993:12). However, it is suggested that every product, customer, and
brand all around the world have their life cycle and there is a cut throat
competition in the market. Keeping in view these contention McDonalds must
keep on pursuing “unique sets of performance measures” (Ward, K 2004:321)
and contemporary business environment. In these given set of variable,
employee performance measures should be reviewed constantly and modified
accordingly.
References:
1. Achua, FC & Lussier, RN. 2010. Leadership: theory, application, & skill
development. South-Western Cengage Learning. USA.
2. Mieth, H. 1999. The History of McDonalds. Norderstedt, Germany.
3. Gilbert, S. The Story of McDonalds: built for success. Creative Education.
USA.

4. Facella, P & Genn, A. 2009. Everything I Know About Business: I Learned at
McDonald. McGraw Hills. USA.
5. Royle, T. 2000. Working for McDonald’s in Europe: the unique struggle.
Routledge, USA.
6. Harris, PS. 2009. None of Us is As Good As All of Us: How McDonald’s
Prospers by Embracing. John Willy & Sons, Inc. USA.
7. Harkins, et al. 2006. Leading Global Work Force: best practices from Linkage,
Inc. Linkage, Inc. USA.
8. Wasik, JF. 1997. Green Marketing & Management: a global perspective.
Blackwell Publishers, Inc.
9. Mukerjee, K. 2009. Product Management: Text and Cases. PHI Learning
Private Limited. India.
10.Paul, J. 2008. International Business. (4th
Ed.) PHI Learning Private Limited.
India.
11.Roodhouse, S. & Mumford, J. 2010. Undertaking Work Based Learning. Gower
Publishing Limited. UK.
12.Yu, L. The International Hospitality Business: management and operations.
13.McEacham, WA. 2009. Microeconomics: Public Market. Southwest Cengage
Learning. USA.

14.Dash, S. & Aswathappa, K. 2008. International Human Resource
Management: Text and Cases. Tata McGraw-Hill. India
15.Ward, K. 2004. Marketing Finance: turning marketing strategies into
shareholder value. Elsevier Butterworth-Heinemann. UK.
16.McDonald. 2011. Our Company. Available at:
http://www.aboutmcdonalds.com/mcd/our_company.html accessed on 11
April 2011.

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