Beruflich Dokumente
Kultur Dokumente
Miree
22/11/2015
Aleksandar Garlanov
Todor Kolev
Seydi Abdishev
13/02/2015
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HRM project Prof. Miree
22/11/2015
Table of Contents
Abstract ........................................................................ 2
Introduction .................................................................. 3
Staffing practices and their implications for the
characteristics of the workforce ................................ 4
Training and development: What do fast food chains
do to increase the productivity of employees ........... 5
Hrm in the Fast food Industry
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Abstract
The purpose of this paper is to examine the most common human resource practices
in the fast food industry and to determine their implications for the characteristics of
the workforce of the industry. The paper comes to the conclusion that majority of the
companies in the industry adhere to predominantly traditional practices in the areas of
recruitment and selection, training and development, and compensation and benefits,
with less than one tenth of them using innovative human resource practices. In terms
Hrm in the Fast food Industry
The paper goes on to identify the best practices in the industry in terms of recruitment
and selection, and training and development by comparing the way they are used by
major players in the industry such as McDonalds, Starbucks, Yum! Brands, and
Dunkin Brands. It concludes that the practices employed by these competitors are
very similar and, because of the low-skilled nature of these jobs and the very basic
requirements for the applicants, they do not deviate a lot from the well-established in
the industry traditional staffing and training ones.
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has made the recruitment and retention organizations invest heavily in improving
of good employees difficult for the their staffing processes to make sure
companies in the sector. As a result, the employees they recruit and select
according to the US Bureau of Labor will eventually, if hired, perfectly match
Statistics, the annual industry turnover the requirements and needs of the
for both part- and full-time employees is organization. This is important because
among the highest in the economy, good human resource practices reduce
getting as high as 40 % (Bureau of turnover, which is always expensive for
Labor Statistics, 2015). organizations, and create a more stable
workforce. However, this is usually the
The prime aim of this paper is to case in industries that need highly
examine the existing human resource qualified employees that are difficult to
management practices in the fast food find and even more difficult to attract.
segment of the restaurant industry and Fast food workers, on the other hand,
ascertain their implications for the are considered easily disposable
HRM in the Fast Food Industry
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Although the fast food industry is the notorious for providing few, if any, non-
major contributor of new jobs to the wage benefits to employees (Figure
economy, it is also the industry with 2.10). Reasons here could include the
both the lowest average hourly wages part-time and often seasonal nature of
and with the highest income inequality those jobs, the high turnover and the
between management and non- low employee bargaining power of
management positions. According to the workers. These
the Bureau of Labour Statistics, the points are confirmed
average fast food worker makes $8.59 by a study recently CEO-to-worker
per hour, or approximately $20,000 per conducted by) compensation
year if working full-time. (Ruetschlin, students of
Catherine, 2013, p.6) This is below the economics at the
ratio reached
poverty threshold in the country and is University of 1200-to-1 in 2012
not sufficient to support a three-member 10
Illinois. Their and has since then
family. However, it is worth noting that findings show that
most of the employees in the industry clearly the most remained above
only work part-time hours, which means common benefit, 1000-to-1.
HRM in the Fast Food Industry
enroll in a public program that the behaviours that the ones who have
average American family (Figure 1). applied should be able to show. For
Table 5 also shows the participations every different position, the biggest fast
rates in assistance programs by
food chain has made specific job
average weekly hours of work. Findings
indicate that the participation rate of descriptions which outline the duties,
employees is a function of the average responsibilities, personal skills, and
number of hours they work per week. competences required for the applicant.
The more hours they work, the less
likely are they to enroll in such a At McDonalds each restaurant is
program. responsible individually for the
recruitment process. However, the
methods applying are very similar and
include advertising in the restaurant
Recruitment and selection itself, using local job fairs/career centers
in the Fast Food industry and, of course, online applications.
HRM in the Fast Food Industry
they are given an overview of their job positions in their website where only
role, as well as introduced to some current employees have access, staff
hygiene, safety measures and other meetings consisting of high level
policies. 11 12 13 Even though, managers or supervisors where they
McDonalds is a very good example of a discuss and select the right employee
company, which values its employees a for the unoccupied position or promoting
lot, puts efforts in hiring people from current employees when through
different cultures and ensuring equal recommendation. When it comes down
opportunity, we recommend that the to hiring people externally, the company
recruitment process should be a little bit uses ads in the newspapers, makes
less formal. What is more, our research posters in each store, provides
showed that there were issues with information about available positions on
people on management positions who its website or through social media. Of
did not have first degree education course, after an applicant is selected he
which, we believe is an unacceptable goes through an interview, conducted
HRM in the Fast Food Industry
HR practice for the biggest fast food by a store manager, which consists of
chain in the world. questions ranging from knowledge of
the company to past experience in the
industry. Many people who have
Starbucks Corporation: undergone the interviewing process say
their interviewers have made them feel
very enthusiastic about the position they
Starbucks recruitment and selection
are applying for. On top of that, the
process is very similar to the one that
formality of the interview is minimal, as
McDonalds uses. The company also
every interviewee is offered a cup of
uses job analysis and job description,
coffee when he/she arrives. A recent
but does not put so much emphasis on
milestone in Startbucks recruitment and
the applicants CV, work experience,
selection process is its plan to hire 10
achievements etc. Instead, Starbucks
000 veterans and military spouses, so
has a simple application form which can
far it has hired more than 5000. Based
be filled either online or in every
on our research, we can say that
Starbucks store where the stress is on
Starbucks is a very good example of
peoples qualities and personality. Every
how the recruitment and selection
employee is called a partner and
process should be made, as the
usually people who get hired are the
company focuses on the personality of
ones who share the same values as the
the applicant and not on his professional
ones Starbucks proposes in its mission
qualifications. Starbucks core value is
and values statement.
making the customer completely
Very often Starbucks refers to the satisfied with the services they offer,
internal recruitment process, as it is less which is almost an impossible task. Our
expensive, less time-consuming and all research showed that customer
the background checks on applicants complaints are often a reason to change
are skipped. Methods of recruiting the person at managing level staff,
internally include: announcing vacant which leads to other complications with
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operators . The curriculum consists for improvement, we would suggest that
classroom instruction, goal-based McDonalds should focus more on
scenarios, hands-on lab activities and spreading the corporate culture among
computer e-learning modules. Each their employees during the training
employee has his/her own specific process. Our concerns about this issue
career path: development paths for come from the fact that 20% of the
crew, restaurant managers, mid- complaints towards the company are
managers or executives. The Crew related to bad service or more
development curriculum is created and specifically- rude or unprofessional
supported at the Hamburger University employees.
but is facilitated in the restaurant. This
stage of the development of an Starbucks Corporation:
employee serves as a foundation for
management career path. Restaurant
Managers goes through Shift Starbucks Coffee Company has
Management and Systems developed four different programs for
Management courses which happen in training their employees. Barista Basic
1 of the 22 regional training centers. Training Program is for newly hired
Once these courses are finished, employees and stresses on essential
managers are sent to Hamburger skills and knowledge required for the
University where they train and learn the barista role at Starbucks. In this
additional knowledge and skills needed practice, each new employee is guided
in order to run a multi-million dollar by the store manager and learning
restaurant. The Mid-Management coach which serve as role models to the
program is for business consultants and newly hired. The store manager helps
department heads. The idea of this path the baristas to get acquainted with the
is to develop leadership and consulting store environment and the learning
skills by teaching employees how to coach is responsible for the one-on-one
operate a business and coach others to personal training process. This training
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which stress on building know how, Skillport which is the most popular LMS
retaining and developing talents, software technology. Dunkin Brands
practicing leadership skills. In Asia, skillport website is very advanced and
Pizza Hut took another course of consists of comprehensive corporate
training employees. They have training programs. The conglomerate
launched the Yum! Asia Internship relies on online education and training
Experience program which is in for their employees which could be
partnership with four universities in considered as the cheapest and fastest
Singapore. The program gives the way of training. The system can be
opportunity to develop career and accessed 24/7 as long as there is a
become Pizza Hut brand ambassador in training process and could be used by
the region. In Korea, Pizza Hut focused thousands simultaneously. Some of the
on store level and created the Rapid courses needed are preparation of food
Development Program which is for high and beverages, and customer service
potential Assistance General Managers and register operations. After each
HRM in the Fast Food Industry
and are on the way to become module, every employee can access
Restaurant General Managers. In his/her results so they can track their
addition, Yum! Inc. has built their own training progress. Managers and top
university in the U.S. and moreover they Executives can see the results of the
are in the process of creating a world training program as well, which helps in
class, integrated, global mobility comparing employees33. The whole
program to create and develop talents training lasts six weeks and instruct
worldwide32. Yum has developed individuals on every donut and
different strategies for each region since beverage as well as customer service,
they understand the importance of cross store operations etc. There is a specific
cultural differences but that could be course about corporate policy which
their problem in the long term. Regional introduce the Dunkin world to the
culture is important but that should not employees. The system is very efficient
prevent them from focusing on and relatively cheap but there are some
corporate culture in their training disadvantages. The personnel
programs. Corporate values are those relationship between employees is
which give identity to the brands and totally ignored by the company. Such
should not be underestimated, online education can train you how to be
especially in the training and perfect employee but cannot teach you
development process. how to be a good co-worker. As a
recommendation, we would suggest to
make the training process both
Dunkin Brands Group, Inc. theoretical and practical. There should
have live classes so employees can
meet their co-workers and managers in
Dunkin has developed different training
advance, to get acquainted with the in-
strategy for their Dunkin Donuts and
store environment and to have some
Baskin Robins brands. The Dunkin
real experience with customers.
Brands Online University operates with
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Conclusion:
The primary purpose of this paper was to review the HR strategies used in the fast
food industry and their impact over organizational performance. It came to the
conclusion that, because the industry has changed dramatically since its beginning
back in the 1960s due to the soaring demand for its products, the practices used in
this industry had to change as well. Recruitment processes had to take different
course since, the fast food industry became main factor in the workforce creation in
the world and more specifically U.S. The conglomerates in this industry keep the trend
of hiring low educated, underage and minority people in order to reduce expenses by
HRM in the Fast Food Industry
giving low salaries. Alongside with recruitment, other HR practices had to change as
well. Such practices are training and development, which turned from basic knowledge
needed for a certain job to specialization through universities. Even though fast food
industry offers employment opportunities, in this fast developing world this is not
enough. People are looking for places where they can feel belonging and more
concrete, companies with established corporate culture and values. This is another
factor which made this industry change its HR practices since corporate culture gives
identity to the brand names. The result of these changes seeks to increase employee
productivity and therefore, increase profits. We can conclude that the whole changing
process has been difficult, expensive and time costing but the success of it is
undeniable in terms of market share growth and profit growth of the industry.
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