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Human Resource Management

Human Resource Management


TABLE OF CONTENTS

• Introduction
• Recruiting Goals
 Factors that affect recruiting efforts
 Constraints on recruiting efforts
• Recruiting: a global perspective
• Recruiting sources
 Internal search
 External search
• Recruitment alternatives
RECRUITMENT

It refers to the process of screening and


selecting qualified people for a job at an
organization or firm. It is a linking activity
that brings together those with jobs to fill
and those seeking jobs.
HISTORY OF MCDONALDS

• The business began in 1940, with a restaurant


opened by brother Dick and Mac McDonald in San
Bernardino California.
•Their introduction of the “speedy service system” in
1948.
•McDonalds restaurants are found in 119 countries
and serve nearly 47 million customers each day.
•McDonalds operates over 31000 restaurants
worldwide, employing more than 1.5 million people.

Human Resource Management


WELCOME TO
MCDONALD’S PAKISTAN
• September 1998, Lahore
• Operating in 6 major cities
• Network of 20 restaurants

“when you are green you are growing”

Human Resource Management


McDonald's Pakistan

• McDonald’s Pakistan is part of the Lakson


Group of Companies, a leading business
house in Pakistan.
• With a head office in Karachi and regional
office in Lahore.

Human Resource Management


McDonald's Mission

…to be our customers favorite place and way to eat


with inspired people who delight each customer with
unmatched quality service, cleanliness and value every
time…

Human Resource Management


Recruiting goals
• Significant pool of candidates
• Diversity
• Encourage qualified candidates
• Discourage unqualified candidates
• Minimize the cost

Human Resource Management


…In McDonalds

• Quality recruitment
• Employees with core-competencies
• Addressing diversity in organization
Diversity

The varied personal characteristics that


makes the workplace heterogeneous. This
can be along the dimensions of race,
ethnicity, gender and sexual orientation.
…In McDonalds

• 100% diversity is followed in McDonalds


(ratio depends on market)
• No discrimination
• Worker diversity resulting in higher profits
Factors affecting recruiting efforts

• Size
• Employment conditions
• Working conditions
• Salary and benefit packages
• Skill shortages
…In McDonalds

• Culture (flexibility, opportunity, equality


and diversity)
• Its demographics and norms
Constraints on recruiting efforts

The factors that can limit recruiting outcomes.


Lets focus on five specific constraints:
• Organization image
• Job attractiveness
• Internal organizational policies
• Government employees
• Recruiting costs
Organizational image

Poor image may limit its attraction to


applicants. Engaging in practices that
result in polluted environment, poor quality
products and unsafe working conditions
…In McDonalds

Their overall image and local reputation as


an employer is shaped daily by many
factors:
• Benefits programs
• Compensation packages
• Fun working place
• Employee development programs
Job attractiveness

Jobs should not be


• Boring
• Hazardous
• Anxiety creating
• Low paying
• Lacking in promotion
…In McDonalds

• Respect and recognition


• Value and leadership behaviour
• Total compensation
• Learning, development and personal
growth
• Resources to get the job done
Internal organizational policies

“promote from within where ever possible”


…In McDonalds

McDonalds form policies according to the


fluctuations in market and availability of
applications.
Government influence

An employee can no longer seek out


preferred, individuals based on non-job
related factors such as physical
appearance, sex or religious background.
…In McDonalds

As per other MNC’S McDonalds is also


greatly affected by government
intervention. Thus it also follows minimum
wage law.
Recruiting cost

• Expensive
• Budget restrictions
…In McDonalds

Being a MNC McDonalds does not face


recruiting cost as a constraint
Recruiting: a global perspective

• Home-country nationals
• Host-country nationals
• expatriates
…In McDonalds

There are currently no expatriates and


home-country nationals working in
McDonalds. But there are many host-
country nationals serving McDonalds.
• McDonalds hire employees within the
country it is working in.
Recruiting sources

Some employers find it necessary to use


several recruiting sources in order to
generate a sufficient number of qualified
applicants.
• Internal search
• External search
…continue

…internal search:
It is when the business looks to fill the
vacancy from within its existing workforce.
• Employee referral
A recommendation from a current employee
regarding job applicant
…In McDonalds

Employee referrals lower level

Professional acquaintance higher level


…continue
…external search
It is when the business looks to fill the vacancy from
any suitable applicant outside the business
• Advertisements
• Employment agencies
• Schools, colleges and universities
• Professional organization
• Unsolicited applicants
• Cyberspace recruiting
Advertisement

To attract employees advertisements must


arouse hope or desire, they should have
• Prominent display
• Motivating content
• Proven outcomes

 Blind box-ads
Employment Agencies

It is an organization which matches


employers to employees. Three types of
agencies come under this heading:
1. Public or state employment agency
2. Private employment agency
3. Head hunters
Schools, Colleges and Universities

May provide entry-level or experience


workers through their placement services.
May also help companies establish co-
operative education assignments and
internships.
Professional Organization

• Publish list of people for vacancies


• Placement services at meetings
• Control the supply of prospective applicant
Unsolicited Applicants

When the company has no current


openings, the applications can be kept on
file for later needs. The number of
unsolicited applicants depends on:
• Economic conditions
• The job seeker’s perception
Cyberspace Recruiting
By adding a recruitment section to their website to recruit
new employees which carries typical information such
as:
• Employment advertisement
• Qualification sought
• Experience required
• Benefits provided
• Organization products
• Organization services
• Corporate philosophy
• Mission statement
…In McDonalds

External recruitment totally depends on demand


of the organization
• Advertisement
• Cyberspace recruiting
• Schools, colleges and universities

70-75% employee hiring is done through online


search
Recruiting alternatives

• Temporary help services


• Employee leasing
• Independent contractors
…in McDonalds

The part time and temporary workers are do


hired by McDonalds as it saves money
and increase the worker flexibility.
McDonald's People
Promise

Mission Statement:
“We value you, your growth and your
contributions.”

Human Resource Management


Training Training
Consultant Coordinator

GM
Marketing

GM
Equipment FM
Op.
Consultant 2nd
Op. FM
Asst
GM Manager Op. Res. 1st

Operations Consultant Manager Asst


Op. 2nd FM
DO Manager Asst
CEO
Country FM
Production Manager

GM
Finance
HR
Asst. Coordinator
HR M
Country HR M
Karachi HR
HR Coordinator
Manager HR M
Lahore

GM
Real Estate
Human Resource Management
SWOT ANALYSIS
Strengths
•Brand Recognition

•Leader in Quick Service Food Industry


•World’s Largest Burger Chain
•Over 30,000 Stores, $41 billion in sales
•Strongest International Presence
•120 Countries
•Real-Estate Holdings
•Prime time high-traffic locations
•Have control over what to do with the land
•Easily Recognizable Product
•Big-Mac as Trademark

•Variety Sources of Income


•Franchise – Rent and %-of-Sales
•Company-owned Restaurants
•Brand Portfolio of Restaurants
•Franchise Business Model
Weaknesses
•Customer Service Level

•No Flexible Timings for employees


•Time hours
•Working environment

•Poor Marketing

•Not attentive to customer’s needs


•Failed of healthy menu/low fat products
•High Employee Turnover
•Nature of Industry at 300%
•Higher than Rivals
•Believed to be One of the Factors for Poor
Service Rankings
Opportunities

•Growth in Global Food Service Industry


•International Expansion
•Grow more than 200 billion

•Initial Public Offerings in Other Countries


•Success in US and Japan
•120 countries
•Acquisition of Other Restaurants
•Diversifying Brand Portfolio

•Retail Sales of Merchandises


•McDonald’s family characters
•License Agreements
Threats
•Increased Competition from Various Industries
•Quick Service Restaurants Industries
•Non-Traditional outlets
•Health Conscious Consumer Trend
•increased consumption of fried food, junk food, and
red meat
•Value-Conscious Consumer Trend
•Demand Quality for Good Value for Price

•Saturation of fast-food Market


•Aggressive Expansion no longer an option

•Price War Business Practices


•Weak Economy – attract value conscious
consumers
•Hurt Profitability
Benefits
Mission Statement:
“We know we can’t afford everything for every one but
neither do we deny to any one.”

When employee joins the McDonald's


management team, he will receive the following:
Profit Sharing:
Fully funded by McDonald's. Share in the profits of
the most successful quick service restaurant in the
world.
Vacation:
Increased vacation time per years of service.

Human Resource Management


Benefits
Leaves:
McDonald's employees can also apply and obtain
a leave of up to two months for personal reasons
or to study for examinations or school projects.
Company Car:
Restaurant managers are eligible for a company
vehicle after only three years of service.
Educational Assistance:
McDonald's offers an educational assistance
program for its employees.

Human Resource Management


Benefits
Social Activities: Enjoy a variety of activities with
his team which could include an annual Convention,
summer picnic or outing, Eid Party etc.

Human Resource Management


SUGGESTIONS AND
RECCOMENDATIONS
• Provision for part-time employees
• One female manager must be in every branch
• Recruitment must be conducted for higher posts
• Selection process should be clear and transperant
• There should be more than one feedback session for
improvement of performance of employees
COUNTRY HR EXECUTIVE
SHUMAILA HAMEED’S
MESSAGE
“People are hired on the basis of their
personality traits (i.e. education, family,
social class, style, experience, etc), but
are fired due to character traits (i.e.
dishonest, cheater, untruthful, corrupt,
etc.)”
THANKYOU……