Mc Donald's performance management practices

Mc Donald’s

The first McDonald’s restaurant was started in 1948 by brothers Maurice (“Mac”) and Richard McDonald in San Bernardino, California. They bought appliances for their small hamburger restaurant from salesman Ray Kroc, who was intrigued by their need for eight malt and shake mixers. When Kroc visited the brothers in 1954 to see how a small shop could sell so many milk shakes, he discovered a simple, efficient format that permitted the brothers to produce huge quantities of food at low prices. A basic hamburger cost 15 cents, about half the price charged by competing restaurants. The self-service counter eliminated the need for waiters and waitresses; customers received their food quickly because hamburgers were cooked ahead of time, wrapped, and warmed under heat lamps.

The company provides competitive wages and they also focus on developing key competencies to reach high performance. They are the best people and the best employer whole around the world due to their best and significant HR policies and the employee have greater responsibilities. They believe in generating values to the customer which is very important part of company’s polices the company is carrying great operation services and providing great excellence to its customers.

·         They have more than millions of people working for McDonald’s company recognizes great performance and hard work of its employees which is necessary and attain the high opportunity for the career growth and also for the development of the employees.

·          The company also deals with attractive incentives and handsome salary packages for their staff and employees which makes them motivated and also satisfies them (Batra, 2009). When the company provides them certain benefits such as flexible working hours, awards and recognitions, equal opportunities for career growth and its development,

·         employee performance evaluation and high responsibilities of work then the company itself gets lots of benefit through this because then the company is able to create the right candidate for right and for the specific job which is necessary and important.

·          Every employee looks for flexible working hours because they have to manage both the personal as well as professional front to sustain successfully

·          The company has redesigned their performance development systems which are based on annual performance and annual objectives of the employees and this also include the leadership behavior

·          Performance management is also achieved by fivepoint rating scale from outstanding to unsatisfactory and there are three level of career assessments which the employee need to demonstrate.

·         McDonald’s performance system helps in increasing the performance differentiation and also enhances openness to innovation and uniqueness. Its performance also ensures effective motivation. The company also involves high standards for performance and this business performance and business growth.

·         Promotion : The company promotes employees on the basis of their performance which is really great and the company also is able to achieve high targets due to this option which is available for them on monthly basis which is a great human resource practice done by HR department in this company.

·         There is an increase in the benefits of employee performance which helps the company to reach the level of success and to get the best people for the best position which is very important and necessary for the organization (Batra, 2009).

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Recommendations

Some of the recommendations based upon the weaknesses identified could be as under. The three aspects should be kept in mind:

Þ    Resource Management: The various resources in the organization should be managed in the most effective as well as efficient manner. Additional funds should; be utilized by Mc Donald’s in the best manner

Þ    Effective use of human resource: It would be recommended that, proper use of the human resource should be done. Each & every employee at Mc Donald’s should be allocated work according to his or her capability

Þ    Strategic approach: A strategic approach should be adopted at Mc Donald’s. This would help in order to formulate an outline by making sure that, the limited resources available with the organization should be used in the most effective manner.