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Mcdonald Case Study Essay example

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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 …show more content…

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

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