McDonald's Corporation

Paper Summary:

This paper explains that some of the human resource issues identified for the McDonald Corporation are: Low motivation and a high turnover rate within the lower tier of the workforce, balancing the needs of worker compensation and restaurant profit by the site manager, and training of the lower-tier workers on site. The author proposes a pilot project of 30 restaurants in different locations in the U.S. to test the effectiveness of using local managers and supervisors to train, motivate, and give guidance counseling. The paper stresses that, although all HR policies are the result of testing out a number of plans and strategies, it is important that management be wary of making the employees skeptical by constantly changing HR policies and agendas.

Table of Contents
Introduction
Existing Conditions in McDonald's Corporation
Issues Identified and Discussed
Recommendations
Timeline for Change and Financial Cost
Conclusion

From the Paper:

"Human resource management is becoming a strategic planning medium for many organizations. At McDonalds, "the corporate ethos and management system are rigidly imposed, detailed operating manuals followed to the letter and an extensive field organization checks on each store to enforce standards. Every foreign operator attends hamburger universities and international sessions with other members of "McDonald's Family"". The HR department at McDonald's, especially at the corporate level, is becoming a strategic partner for the organization, as it is a purveyor of the most important asset a company controls the human asset. The human element cost is the most variable for the McDonald Corporation worldwide and there are always serious analysis being conducted to ensure that this element is aggressively monitored."

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