The McDonald’s Study Case
HRM 532
July 25th, 2012
Abstract
McDonalds declared its first profit lost in the history of its outstanding performance in the fourth quarter of 2002. This led the company to investigate the key components which caused this to happen. Upon review the company realized there was a need to improve its Talent Management to align with the company’s business goals and strategies. This process was needed to achieve long term growth and success for the company. This case study gives an overview of the initiatives that McDonalds implemented to strengthen the company. It discusses how and why the changes were made; how they were implemented; and the impact it had on the business future
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Identify strengths of the program and how they led to goal accomplishment. A major strength which McDonalds achieved was changing their culture of entitlement by the implementation of the new performance development system. This allowed creativity and new ideas and amplified performance dissimilarity. The difference in evaluating employees now allowed the top 20% of their performers to be rewarded for their contribution to the company. It also decreased the ratings of 50% of McDonald’s managers due to the previous fallacious measures of the employee’s success. McDonald kept the process simple and very effective by also getting input from their global organization before completing the performance development system causing consistency within the organization (Intagliata, 2001). To achieve continued success McDonalds focused on its employees and customers. Under the “plan to win” concept which are goals and measures based on important drivers of the customer experience such as people, price,product,place and promotion they aligned the company strategy to its employees by using customer service and experience levels as performance indicators. This focused on the commitment to quality, service, cleanliness and value. McDonalds for many years focused on promotion from within. It challenges its managers to create great working environments to encourage the employees to excel in their performance for their advancement and to make
The influence and most of McDonald’s success is the investment of significant in their employee’s growth and job satisfaction.
3. What aspects of McDonald’s management ensure that it was able to deliver a consistent
About everyone at some age, at some point or another, and in some country has gotten a sample of American's symbol for fast food through the golden arches of McDonald's. This report will attempt to analyze the external and internal sectors that affect the company's success. The external analysis will provide opportunities and threats while the internal analysis will show indicators of strength and weakness. It will then follow up with critical issues, strategic alternatives, recommendations and implementation. The case studied is found in Appendix 2 of Mary Coulter's "Strategic Management in Action" book.
Since Richard and Maurice McDonald founded in 1948, McDonald's has grown from a small restaurant in California into one of the most recognized brands in the world with a chain of outlets that spans the globe. For over 50 years, McDonald's defined the fast food industry while indelibly etching its golden arches logo on the face of both American and global culture through such icons as character Ronald McDonald and the Big Mac sandwich. Millions of people started their very first jobs at McDonalds while even more began to have their eating habits redefined by the chain. Concepts like the drive-thru window were introduced along with the Happy Meal for children in order to provide a fast, affordable, and enjoyable dining. Ray Kroc, saleman
McDonald’s has been in business since 1955. Through many years of great strategic and financial planning, it has become one of the most successful food chains in the world. In order to continue its great success, McDonald’s must continue to adapt to change. In this paper we will discuss the strategic and financial planning that would be necessary to keep McDonald’s on top of the food chain.
For this experiment, my roommate and I went to McDonald's to get some food. I decided that I was going to doing a jumping jack every time I got up and that I would clap above my head when I took a bite of food. I chose these actions because they aren't very common actions done by adults.
McDonald's has a menu for people with type one diabetes. If you are going to get food at McDonalds at least you can make better choices by looking their menu. But, most the carbs that are listed are Carbohydrate Choices and those can hurt you.To make various McDonald’s Menu items and get the Nutrition Facts you can go to their website. McDonald's actually isn't the worst place that a person could get diabetes.We continually update our Nutrition Facts and ingredient information. Nutrition information based on standard formulation; variations may occur(McDonald's.com).
George Ritzer describes McDonaldization as “the process by which the principles of the fast-food restaurant are coming to dominate more and more sectors of American society as well as the rest of the world”. McDonaldization is the idea that our society is becoming more efficient and more fast paced. Rational systems can be defined as “unreasonable, dehumanizing systems that deny the humanity, the human reason, of the people who work within them or are served by them”.1 Today there are many types of businesses that are increasingly adapting the same values and principles of the fast-food industry to their needs. Rational systems are dehumanizing our society and seem to be even more irrational than convenient. “Almost every aspect of
To what extent do you consider this concept of the McDonaldization of society disturbing, expected or inevitable, for employees in the twentifirst century. Also the possible consequences for theories of human motivation and whether the concept applies equally to all jobs.
McDonald's has been very successful with its global expansion. As of the end of year 2000, there were more restaurants outside the US than in the country of their origin. With comfortable and inviting restaurant atmosphere allows them to enhance their customer conveniences. They have remodelled over 5000 restaurants around the world creating more contemporary environments and strengthening perceptions for both adults and kids. Another reason why McDonald’s is very popular is that they are staying open longer and in some parts they provide 24 hr service, accepting debit and credit cards and enabling wireless connections in restaurants. They are providing more service with delivery and adding double drive thru lanes in restaurants.
McDonald’s is one of the biggest companies in the world with restaurants in 119 countries and it has accomplished this extraordinary global presence through its effective management practices. McDonald’s uses a combination of Fredrik Taylor’s scientific management, Max Weber’s hierarchical structure, and Henri Fayol’s administrative principles to run its restaurants. McDonald’s has become a mechanistic organization by making its restaurant environment predictable. McDonald’s has developed set management structure and a predetermined set of procedures for running its restaurants. As a result, McDonald’s has come to resemble a machine where employees are like components of the big McDonald’s machine.
In 1954 Ray Kroc became the first franchisee appointed by Mac and Dick McDonald in San
The idea of free McDonalds for life is a no brainer, right?! …. Wrong! but why?
The core concept of this composition is to address, and analyse the issues and benefits that encompass the idea of performance management. Performance management has been selected due to its ever-growing and ever-updating presence amongst the work force and organisational culture. Likewise, performance management is important for the sustainability of an organisation through the monitoring of employee growth, and the findings in this study will assist in clarifying why the organisation as a whole benefits from the use of a policy in performance management. In conjunction with this, McDonalds has been selected due to its ubiquitous, and familiar nature. It will consistently be used as an example to provide a discourse for the evaluations within this study. Founded in 1940, McDonalds is a global restaurant-based organisation that specialises in fast food. It is the world’s largest franchise chain that has a mixed specialisation in both speed of output, yet also consistent quality in all its stores.
The process in the back office can be seen as using ‘just-in-time’ system (JIT), which means all the foods are produced at exactly when they are needed with perfect quality and no waste (Slack at el., 2011). When orders are displayed on an electronic board, staffs begin to reprocess the processed foods like bread and beef to finished foods using specialized equipment and standard procedures immediately. This means maintaining quality while controlling the time in production and delivery (Davy et al., 1992). In the meantime, it is useful in eliminating the wastage, as a regulation set by McDonald’s that finished foods must be thrown away if they fail to be provided to customers within a specific period of time (because the taste of foods will have slight change). The application of JIT is efficient in minimizing work-in-progress inventory, reducing costs and saving space (Bowen and Youngdahl, 1998). The design of the process mentioned previously such as a good layout supports the possibility of JIT, then the use of JIT help McDonald’s has a better performance in cost, speed and quality, which add value to the organization and support strategies.