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Table of contents

Sr. No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Contents Acknowledgement Executive Summary History & Introduction McDonalds Pakistan Vision, Mission & Objective Core Values, Structure & Department HR Department Of McDonalds HR Functions Of McDonalds Planning Recruitment & Selection Training & Development Career Development & Fair Treatment Performance Appraisal Compensation & Benefits Stress Management & Negotiation Techniques Conclusion Recommendations Page No. 2 3 4 5 6 7 9 10 11 13 18 21 22 23 25 26 27


In the name of Almighty Allah, the most beneficent and merciful to the mankind. This project would not be possible without the encouragement and guidance of number of people. We feel highly obliged and want to express our deepest gratitude to our respected teacher Sir Zargham 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.

This project is about Mc Donalds 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 percent 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.

About McDonalds:
Aiming to be the world's best quick service restaurant experience, McDonalds started its operations in Pakistan in 1998 and is a leading fast food service retailer for its valued customers. With a strong belief in the phrase when it's green its growing, McDonald's Pakistan is growing with the focus to provide friendly and quick service restaurant experience to their customers. Currently McDonalds Pakistan is operating in various cities of Pakistan I-e Lahore, Faisalabad, Karachi, Hyderabad, and Islamabad & Rawalpindi with the plans to cover the customer base in various other cities of the country.

McDonald's Pakistan is a part of the Lakson Group of Companies, with a regional office in Lahore and the main Head Office in Karachi. They are operating with a network of restaurants to reach our customers for providing friendly services in all different regions of the country.

McDonald's Pakistan
World Wide Strategies:
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 McNuggets and egg McMuffin are not only kids' favorites 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.

To achieve this mission Macdonald's is focused on three worldwide strategies:

Be the best employer for people in each community around the world. Deliver optional excellence to customers in each restaurant. Achieve enduring profitable growth by expanding the brand and leveraging the strengths of McDonalds system through innovation and technology.

McDonald's a Global Phenomenon:

Formed in 1954, McDonald's brand is the leading global foodservice retailer with more than 30,000 local restaurants serving nearly 50 million people in more than120 countries each day. Its rich history began with the founder Ray Kroc's vision and his commitment, transformed in their talented executives, and will keep the shine on McDonald's arches for years to come.

Vision Statement
To be the world's best quick service restaurant experience. Being the best means providing outstanding quality, service, cleanliness and value, so that their food makes every customer in every restaurant smile.

Mission Statement
McDonald's mission is to be their customers' favorite place and way to eat with inspired people who delight each customer with unmatched quality, service, cleanliness and value every time.

To satisfy the internal customers because they are the window to the External customers.

Core Values of McDonalds

Integrity and Honesty Open, Respectful and Supportive Prepared to take challenges and see them through Deep regards for Customers, Business partners and employees Quality in Product

McDonald's are structured along functional lines. Their Chief Executive oversees five major areas of activity:

1. Operations (equipment and franchising) 2. Development (property and construction) 3. Finance (supply chain and new product development) 4. Marketing (sales marketing) 5. Human Resources (customer services, personnel, hygiene)

Departments of the Organization:

Finance Department Human Resource Management Marketing Department

Operation Department IT Department

McDonalds Structure:
The structural hierarchy of McDonalds Pakistan is as follows Trainee Business Manager: The trainee business manager should have the right skills and qualities, in order to operate Mc Donalds.

2nd Assistant:
At this level the second assistant really begins to develop his/her management skills and learns what goes into running a shift.

1st Assistant:
At this level the first assistant brings together operations and management skills and gets grip with finance, human resource and training.

Restaurant Manager:
The restaurant manager has all responsibility for people, profitability and 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 to local marketing initiatives.

Operations consultant:
As operations consultant is an experienced manager, he will be involved 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 restaurants

McDonalds is very strict about the quality of services they provide. They dont compromise anything over quality. Quality is considered to be one of their foremost objectives. They want 100 % quality of service. Quality is checked on for:

High standard of food Services provided to the customers. Communication skills i.e. English speaking skills Appearance and grooming Ability to communicate with guests and handle versatile situations

HR Department of 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 somehow 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.

HR Introduction:
At McDonald's Pakistan, their people are their most important asset. They provide the best employment experience for their employees in order for McDonalds Pakistan to achieve their goal of providing their valued customers with the worlds best quick-service restaurant experience. They strive to recruit the best, hire the best, and provide the best place to work The commitment to their employees is shaped on the simple fact "We value you, your growth and your contributions" and this is they strive to achieve through their actions every day.

HR practices:
The field of HRM comes into existence in the result of these questions: How did people come to be employees in their organization? How were they selected? Why do they come to work on regular basis? How do they know what to do on their jobs? How does management know if the employees are performing adequately? And if they are not, what can be done about it? Will today employees be adequately prepared for the technologically advanced work the organization will require of them in the years ahead? What is the compensation process? The HR department of McDonalds fulfills all the requirement of these questions in the true sense of the meaning. As HR department deals with people McDonalds strongly believe in well being of people because it is a known quotation that If you take over the liabilities of your employees they will take yours

HR Functions Of McDonalds:
HR department of McDonalds Pakistan does certain functions: Planning Recruitment & selection Training Administration Company manuals

Performance management Decision procedures Define companys policy

HR Planning:

HR plannings purpose is to determine what HRM requirements exist for current& future supplies & demands of workers. To realize the McDonald's service vision, the organization believes in strengthening their team and ensures to deliver the right skills and knowledge to the right person for getting the right job done. The strength, for making the strong team players to shine under the Golden Arches lies in the People Practice and Development Program.

Job Analysis:
Job analysis is the procedure of determining the duties and skills required for a job and the kind of person who should hired for it. 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 Evaluation:

Job Evaluation means making decision about the wages and salaries of the employees on the basis of job analysis it can also be called as compensation. In McDonald There are two types of working hours employees: Part Time Employees

Full Time Employees In McDonalds they have predefined standards on which employees are

awarded on the basis of their skill, knowledge and experience. The Full Time Working Employees are given salary on monthly basis were as the part time employees are given salary on the basis of the total hours they have worked.

Job Description Job Analysis in McDonalds:

Position: Assistant Manager - Marketing Vacancy Location: Lahore

Candidate Profile:
MBA / PGDBA with specialization in Marketing must be willing to travel. 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 evaluate results for priority restaurants, map business opportunities and challenges for restaurant, event marketing, and assist with the development of mini-market marketing plans, provide input on marketing needs from customer viewpoint, monitors the proper execution and impact of all marketing activities. As job analysis is the process to understand the responsibilities of the job and in McDonalds it is done in these different ways:

Employees fill questionnaires in every 2nd month to know the performance of the restaurant so that information about duties, responsibilities and activities of a job can be gathered.

Observation is also a way to gather the information about a job and to achieve different satisfaction levels. Once the firm has determined its staffing needs, it takes every possible step to hire the best employees so as to fill the available positions.

The hiring:
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 Whereas manage the the working of the outlet, for so they are trained accordingly. service and






other restaurant jobs.

Recruitment & Selection Recruitment and Selection Process:

Recruitment is a phase that immediate precedes selection. Its purpose is to pave the way of the selection process by producing ideally, the smallest number if candidates who appear to be capable. The objective of recruitment procedure is to attract suitable candidates in order to produce a short list for future investigation in the selection process.

Recruitment process:
In McDonalds the recruiting and hiring process for selecting starts from the applications submitted by the individual. We provide their CVs along with the applications. These applications and CVs are screened out on the basis of:

Merit; Institute; and Experience etc.

After this, The Candidates who meet the criteria are selected for the further process. Then the H.R Department lists out the salient features of the CVs (only the accepted CVs). Then the H.R. Manager takes a test based on: English comprehension Basic mathematics I.Q. and Some questions about the particular job, for which the applicants have applied.

Types of Recruitment:
In McDonalds Recruitment is done on the demand of the Organization. There are two types of Recruitment is done

Internal Recruitment External Recruitment

Internal Recruitment:
McDonalds do internal recruiting i.e. they select the candidates from the inside by considering a specific number of internal potential candidates who have applied for the job on the basis of their past performances and qualifications for the required job. Any employee at a reasonable post can submit his /her application for the job. The management has all the information relating to the persons record about the job he/she is currently performing. On yearly basis, the summary of the employees is maintained in the form of records, which gives the organization maximum chance in selecting the potential employees as the heads of the departments. The HR manager and the Head Manager of the specific department interview the selected employees.

External Recruitment:

McDonalds often go for the external recruitment they mostly try to go for the internal recruitment or internal promotion of the employee to the high post but incase an employee leaves the organization They Organization have a bulk of application received through the .The organization advertise through newspapers or web.

Criteria Required For Employment:

The qualifications required for employment in McDonalds are as follows: Appearance and grooming Professional Qualifications Experience and knowledge Communication skill in English Leadership skills Potential for growth Reasoning and Judgment Computer skills

Types of Resources:
McDonalds corporation fills its positions by.

Internal sources External sources 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 intranets 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 every eligible 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.

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 inexperienced 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 Employment 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. Every big organization in the world uses a test for the hiring of people, from inside as well as outside. These companies use many types of tests to judge the people we are hiring and to have utmost guarantee that the people we are hiring are perfect from every point of view. These test judge the candidate according to his mental and cognitive abilities. McDonalds take tests as far as their candidates are concerned to check there full abilities. The tests are of different nature like: Test of Cognitive Abilities Tests

These kind of tests include IQ tests, general and intellectual abilities, verbal fluency, vocabulary etc. These tests are generally conducted while recruiting executives and supervisors. Motor and Physical Ability Tests

These tests include checking the performance of the employee usually working on the machines in operation department to check their reflexes and while working at their work place. Measuring Personality Interests Tests

Involves taking into consideration the personal interests and motivations of the person in his field. Candidates ratio:

Within the pool of candidates, if the demand is for 1 employee then the ratio for selecting is the employees is1:5, and if the demand is for 2 employees then the ratio becomes2:10 and so on. 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

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.

Training & Development in McDonalds:

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 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 or10-15 days.


Training involves;
Direct Trainings 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 programs at are arranged levels so that other so qualified that they people can can train

Different employees




different standards and can improve their own capabilities.

Methods of Training:
The different methods of Training used by McDonalds are:

This is a way of direct training which provides new employees with basic background information they need to perform their job satisfactorily. New employees get a handbook. Working hour Performance reviews Vacations Employee benefits Personnel policies Safety measures and regulations

The orientation is performed by the HRD Manager and the employees are introduced to their supervisors. There is a different orientation process for every type of employee. But the common orientation for all the employees is McDonald's People Promise: We value you, your growth and your contributions.


On-the-Job Training

On-the-job training is to train a person to learn a job by actually doing it. Every day, around the world; restaurant members receive on-the-job training and coaching in skills and procedures essential to their work.

Classroom Training

Classroom courses, developed and led by training experts, prepare outstanding restaurant employees for advancement.

Computer-Based Training:

A new computer-based training system is bringing interactive learning experiences to crew members and managers right in the restaurants.

Levels of Training:
There are two levels of training at McDonalds:

Crew Members Training:

At McDonald's, training never stops. Crew members are trained extensively on all food safety and food handling processes. Trainees work while they learn the operational skills necessary for running each of the 25 positions in restaurant - from front counter to the grill area.

Managers Training:

McDonald's is dedicated to professional training and development. The average McDonald's restaurant manager spends more than 2,000 hours over four years in training of one kind or another. This is about the same amount of time that a typical four-year college student spends in the classroom.

Specific Training Courses:

Floor Management Course (FMC): The FMC is geared towards improving the trainee's ability to deliver Q,S,C & V as a Floor Manager.


Management Development Program (MDP): The MDP series is designed to help you become the most effective manager that you can be. Operations Consultant Course (OCC) Training Consultant Course (TCC)

McDonalds is a large organization with many employees working in different departments of the company. Every year the company hires many people for it executive as well as managerial posts. In McDonalds there are different types of development plans for management for eg MDP 1, MDP 2 , MDP 3 and CLDC (Crew Leader Development Course).There are also development programs for the low level jobs for enhancing the skills of the employees.

Career Development and Fair Treatment:

McDonalds provides facilities to employees for career development during their employment. Different training courses are offered to their employees such as summer crash courses arranged. Transfers of the employees are carried out with the consent of the employees. The communication of employees is directly with their head of the department. There is a vital concept of two-way communication. At McDonald's, employment is at will. This means that employees are free to terminate their employment at any time, for any reason, with or without cause, and McDonalds retains the same rights. . The Management career in McDonalds Operations starts from the position of Trainee Manager, and follow the path like the one outlined below. Trainee Manager Second Assistant Manager First Assistant Manager Restaurant Manager Beyond Manager


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. An OJE (on- job-evaluation) is performed in order to evaluate the employees. If an employee does not perform well then feedback is provided to them so they can improve. 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

Performance Appraisal Method:

Employees in McDonalds have a race to win based on their efforts. The employees do their best to give the best performance through their skills and knowledge. A kind of competition is among the employees to become the best employee. The appraisal methods used are of two types, i.e. Graphical Rating Scale 360 degree Feedback

Appraisal interview is taken by the department head only. Progress report is in the hands of the department head. Yearly appraisals of employees are done with in June-July. Appraisals are done


yearly but they can also be done at any time of the year by the department head on the basis of employees marvelous performance. Through the graphical rating scale the head of the department rate the person according to the performance of its work, skill, knowledge, experience and also on the performance in the training programs and after the assessment according to the rating scale rate the employee is appraised. Upward feedback is done by 360 degrees i.e. information is collected all around an employee from his or her supervisors, subordinates, peers and customers. This term is also known as multi source assessment. Subordinates can appraise their seniors. With the help of the Employee Satisfaction Survey the heads get to know which employee is giving what type of output. Raise in salary is done by 10%and if performance is also counted then 20% increment is given at any time of the year.

Compensation and Benefits:

Compensation means all forms of pay or rewards going to employee and arising from their employment .It has two main components, direct financial payments (wages, salaries, commission, and bonuses). And indirect payments (financial benefits like employer paid insurance and vacations).

Employee Benefits:
McDonald's benefits program is designed to attract, energize, reward and retain talented people who will produce superior business results and enhance their leadership position. They recognize the importance of a strong benefits program.

People Promise:
People Promise is a statement of commitment to every person in the McDonalds system. It is how they remind people what they can expect and how high their goal is: To be the best employer in each community around the world


McDonald's and its independent owner/operators have made a commitment to their employees that they strive to achieve with their actions every day. And to make sure they deliver on this promise, they have in place five people principles. These people principles reflect McDonald's values and describe the culture they embrace.

Respect and Recognition:

Managers treat employees, as they would want to be treated. Employees are respected and valued. Employees are recognized formally for good work performance, extra effort, and teamwork and customer service.

Values and Leadership Behaviors:

All of employees act in the best interest of the Company. They communicate openly, listening for understanding and valuing diverse opinions. They accept personal accountability. They coach and learn.

Competitive Pay and Benefits:

Pay is at or above local market. Employees value their pay and benefits.

Learning, Development and Personal Growth:

Employees receive work experience that teaches skills and values that last a lifetime. Employees are provided the tools they need to develop personally and professionally.

Resources to Get the Job Done:

Employees have the resources they need to serve the customer. Restaurants are adequately staffed to allow for a good customer experience as well as to provide schedule flexibility, worklife balance and time for training

Benefit Categories:
For McDonald's Corporation employees at corporate, division and region offices, many benefits those are: Medical and hospital facilities Free furnishing on having new home (managerial level) Provident fund (ESOP) Company vehicles are provided to employees

Choice to get new car after five years Umrah packages are offered to employees Leasing facilities are provided to buy cars, motorbikes, etc Picnics are arranged once every quarter McDonalds offer long-term benefits to its employees, like giving them multinational visas, etc.

Stress Management & Negotiation Techniques Stress Management:

Job Stress:
Job stress is a chronic disease caused by conditions in the workplace that negatively affect an individual's performance and/or overall well-being of his body and mind Organizational managers are interested in maintaining a low level of job stress for good reasons: high level of stress a result in low productivity, increased absenteeism and turnover, and an assortment of other employee problems including alcoholism, drug abuse and a host of cardiovascular problems. Job Related Stress has been associated with a vast array of diseases, such as coronary heart disease, hypertension, peptic ulcers, colitis and various psychological problems including anxiety and depression.

Causes of Job Stress:

The causes of Job Stress are: Role Conflict Work overload Job Insecurity High Demand for performance Technology

At McDonalds Job Stress is handled by conducting counseling sections in which the Counselor identifies the flaw of the employees. Their objective is if people are delivering and if they have any problem they solve it through counseling.

Negotiation Techniques:
Negotiation Techniques are the ways the employer communicates its expectation and goals of the organization to the employees. At McDonald the expectations of the employer are: On Time, Neat and Clean Skills and Training Standards Teamwork Clean Spotless... Tidy... Sparkling. Customers expect every McDonald's will be clean. Welcomed Guest crewmembers make each customer feel like a welcomed guest. Service depends on crewmembers to deliver accurate and friendly service with a smile. To communicate these expectations Crew meeting is conducted.

The operative philosophy of the McDonald's system is based on the Quality, Service, Cleaning and Value for 44 years. The company offers a standard menu, although it develops in each culture special products that are adjusted to the pleasure of the community. McDonald's is successful because it has a system of corporate norms and individual opportunities, to all the Franchises they are integrated in the same philosophy of values and clear expectations. McDonalds guides all the actions according: To organizational values as working in team, To feel passion for the work always offering the best of themselves, To be committed with the partners and with the mission of the company, To be entire in each one of the actions, to be leaders.


No doubt McDonald's is a huge giant size organization but it also needs some improvement which is; McDonald's must start its services for customers as well as product. Job enlargement and job enrichment should be applied for retention of employees. There should be more than one feedback session for improvement of performance of employees. Recruitment must be conducted for higher posts also to select more skilled persons. There should be proper and flexible arrangements for training of managerial level employees. Job enlargement and job enrichment should be applied for retention of employees. There should be more than one feedback session for improvement of performance of employees.