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McDonald¶s Corporation

McDonald¶s is one of the world's most well-known and valuable brands and holds a
leading share in the globally branded quick service restaurant segment of theinformal
eating-out market in virtually every country and the leading global foodservice retailer
with more than 30,000 local restaurants serving nearly 50 million people in more than
119 countries each day.

McDonald¶s Vision
McDonald¶s vision is to be the world¶s best quick service restaurant experience.

McDonald¶s Culture:-
McDonald¶s culture is the love towards McDonald¶s brand and the respecting the
company values imbibed in its rich history.

History of McDonald¶s:-

xm Útarted in 1940, when two brothers, Dick and Mac McDonald opened the first
McDonald¶s restaurant in California.
xm Õn 1954, an entrepreneur and milkshake-mixer salesman, Ray Kroc, acquired the
franchise of McDonald¶s
xm Õn 1961, Kroc convinced the McDonald brothers to sell the businessrights to him
for a sum $2.7milion.
xm Õn 1963, the mascot Ronald McDonald was born as a part of a marketing strategy
in UÚ. Happy Meal was introduced in UÚ in 1979.
xm he year 1984 was marked by the death of Ray Kroc.
xm Õn 1994, McDonald¶s bagged the Catalyst Award for its program for µfostering
leadership development in women¶.
xm Õn 1996, the first Õ DÕA Restaurant was opened.
xm Õn 2003, the company launched the µÕ¶m lovin¶ it¶ campaign.

Employment

xm otal employees = 1.5 million (398,000 company staff, 1.1 million franchisee staff)
xm otal 2500 employees across Õndia.
xm 57% of staff are male
xm 43% of staff are female
xm wo-thirds of hourly paid staff are aged between 16 and 20 years of age
xm 90% of staff work for 35 hours per week or less

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Restaurant Operations Leadership Practice:-

Õn McDonald¶s Restaurant Operations Leadership Practices training, participants learn

to:
a.m Use appropriate leadership approaches to develop high-performing teams and
individuals
b.m Recognize the importance of team building and use appropriate tools and
techniques to help teams reach their full potential
c.m Develop skills in leading teams
d.m Prioritize restaurant needs to improve people, QÚC&V, profit and sales
e.m Diagnose and correct factors leading to poor quality food
f.m Develop a Restaurant Õmprovement Plan
g.m Use tools and techniques to develop teams
h.m Õdentify strategies to build employee commitment
i.m Prepare and conduct performance reviews

raining forums
he various training forums applied under MA AGEME  DEVELOPME 
PROGRAMME:-

1.m Basic Úhift Management

a.m he BÚM takes place at the management trainee level.
b.m Addresses the why¶s and how to¶s of McDonald¶s procedures and standards
rather than µwhat-to-dos¶ and µwhat-to-knows¶.

2.m Advanced Úhift Management

a.m AÚM is intended for second asst. manager.
b.m Deploys the manager¶s ability to observe and gather facts, analyse
information and then act/communicate accordingly.

3.m Úystems Management Course

a.m ÚMC is an opportunity for first asst. managers.
b.m o gain knowledge of recognizing various real world problem within the
restaurant.

4.m Restaurant Leadership Programme

a.m RLP is designed for a promotable first asst. manager.
b.m Focuses on the skills and behaviors necessary to drive business results within
restaurant¶s environment.
c.m Õncludes focus on leadership skills, team-building, decision-making strategies
and problem solving

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5.m Operations Consultancy Course
a.m Designed to help the McDonald¶s consultants develop a strong business
relationship with managers.
b.m Use of effective communication, leadership, operations and consulting skills.
c.m Participants learn how to implement problem-solving techniques with their
restaurant managers, link restaurant support tools to restaurant system and
measure store and patch performance.
6.m raining Consultant Course
a.m How to present and facilitate training effectively
b.m Maximize learning and performance of participants
c.m Designed for training consultants.

REÚAURA  MA AGEME  ÚRUCURE

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AYLOR¶Ú PRÕ CÕPLE A MCDO ALD¶Ú

About Frederick W. aylor.& aylor heory

aylor was the first modern efficiency expert in world history. Around the wentieth
Century, he formalized the principles of Úcientific Management and developed a set of
ideas designed to get employees in manufacturing industries to produce more output.
aylor contracted with companies to rearrange their production processes to simplify
the tasks each employee performed. Õnstead of doing many different things, workers in
aylorized factories would execute the same simple tasks over and over. he principles
of Úcientific Management still have an important impact globally and some of the
world¶s biggest companies still apply the Úcientific Management principles in their
business operations.

About McDonalds:-
McDonald¶s is one of the world's most well-known and valuable brands and holds a
leading share in the globally branded quick service restaurant segment of the informal
eating-out market in virtually every country and the leading global foodservice retailer
with more than 30,000 local restaurants serving nearly 50 million people in more than
119 countries each day.

Úcientific Management at McDonalds:-

Úcientific Management principles in McDonald¶s business operations are implemented
from three perspectives:-
1. Úystems of rewards for meeting the goals
2. Úcientific education and development of the workman
3. Útandard method of performing each job.

McDonalds¶s apply the Úcientific Management principles in their business operations

because the company establishes systems of rewards for meeting the goals.aylor stated
that the non-incentive wage systems encourage low productivity if the employee will
receive the same pay regardless of how much is produced. aylor's concept of
motivation is to institute a system of inequitable pay for workers and a bonus system
will create monetary incentives.

McDonalds Employee Encouragement strategy using aylor¶s principles:-

McDonald's employs a wide variety of techniques to keep its employees motivated. As

the job is intense, and requires a lot of traits such as punctuality, precision & long
working hours. McDonalds encourages employees through many effective ways which
are given below:-

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Employee Of the month Útrategy:-

Except for the base pay paid to each employee, McDonald's establish competitive wage
and promotion programs, hard work, dedication, motivation and results are recognized
and rewarded at McDonald's. Appreciation comes in many forms - from a simple
encouragement for a job well done, to restaurant-wide recognition through programs
such as the 'Employee of the Month.

Õncentive Programs:-

McDonald's also offers great incentive programs with access to gift certificates,
merchandise, free food, etc. Õn addition, McDonald¶s also establish an incentive pay
system and provide employees with the opportunity to earn competitive total
compensation when performance meets and exceeds goals. he company pays a bonus
on top of employees' base salaries based on business performance and their individual
performance.

Long erm Õncentives:-

Long term incentives are granted to eligible employees to both reward and retain key
employees who have shown sustained performance and can impact long-term creation
at McDonald's. ot only they establish the bonus system for the employees to perform
efficiently, but also they institute other kinds of systems to increase monetary incentives
such as recognition programs and company car program.

Úcientific raining:-

Úcientific training is one of the most important principles of Úcientific Management.

aylor states that each company should train the workers scientifically rather than
passively leave them to train themselves. Õt aims to unearth and cultivate workmen¶s
endowment, let them have the best performance in their work and obtain the highest
efficiency farthest. McDonald¶s have a strong tradition of, and belief in, training, they
know its value to the bottom line of their business. At crew level there is considerable
initial and ongoing training that is consistently applied to everybody in the business,
whether part, full time, hourly paid staff or salaried managers undergoing their
compulsory restaurant training.

Moreover, a new employee will accept training as soon as he joins McDonald's and
starts his first working day. He must pass tests of three posts in the first month.
herefore, high requirements create high quality food.

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Útandardized Method to Õmprove Employee Efficiency:-

Lastly, a company should develop a standard method of performing each job efficiently.
aylor taught that there was one and only one method of work that maximized
efficiency. And this one best method and best implementation can only be discovered or
developed through scientific study and analysis. his involves the gradual substitution
of science for 'rule of thumb' throughout the mechanical arts. aylor was not really
concerned with other organizational or management issues. His focus was on efficiency,
and he suggested that people had to follow what his method.

McDonald's establishes a series of detailed and strict working standards which ensure
that every product from any chain restaurant has high quality. o matter people is a
cook, a counter person or a hall cleaner, each kind of works has normative operational
standards and written regulations. he cook time and the amounts of materials are
prescribed with accurate numerical value and controlled by machines. Õn addition, they
also establish a computer system that transmits orders to the kitchen, where in the
kitchen; the holding bins will regulate the temperature to keep the food hot and fresh.

Útress on Production Procedure (Effectiveness & Efficient):-

McDonald¶s staff is specialized in different production procedure. he counter person

accepts the order and typically uses a suggestive sell-up to add a missing item such as
dessert. hen they use the register display to confirm, assemble, and check the order.
he order is assembled by collecting food from the appropriate machines and bins.
Besides, some of the staffs play a role in the burger production and some others perform
in the production of French fries. McDonald¶s has developed a standard method of
performing each job and the employees can perform effectively and in a lot more
efficient manner.

Conclusion of aylor¶s Principle strategies:-

Õn conclusion, Úcientific Management became a powerful force as it

contributed to increased efficiency in industrial establishments. McDonald¶s shows the
evidence of applying the principles of Úcientific Management. hey institute bonus
systems to encourage the employees to perform well to meet the goals. Also, they train
the workers scientifically rather than passively leaving them to train themselves. Õt aims
to bring everyone¶s production efficiency into full play to accomplish maximum profit.
Moreover, they cooperate with the workers to ensure that the scientifically developed
methods are being followed and it will be eligible to improve the production efficiency.
Úcientific Management has dramatically affected today¶s management approaches.. he
ideas generated by Frederick aylor still have a place in current management thinking.
Because of aylor, production efficiency has improved, products become more and
more plentiful. owadays people can have a rich and colourful life like a king in the
past. Much of core of Úcientific Management remains with us today, only been
modified, updated and given a human face.

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APPLÕCAÕO OF FAYOL¶Ú PRÕ CÕPLE A MCDO ALDÚ

About Henry Fayol & Fayol heory
Henry Fayol is considered to be the father of Modern Operational Management heory.
He was one of the most influential contributors to modern concepts of management,
having proposed that there are five primary functions of management:-

(1) Planning
(2) Organizing
(3) Commanding
(4) Coordinating
(5) Controlling

Application in the Modern Workplace

Fayol¶s elements of management are recognized as the main objectives of modern
managers.
Fayol believed management theories could be developed, then taught and suggested that
it is important to have unity of command: a concept that suggests there should be only
one supervisor for each person in an organization. Fayol suggested that management is
a universal human activity that applies equally well to the family as it does to the
corporation.

Application of Fayol¶s 14 principles of Administrative theory at

McDonald¶s

1.m Division of work-

he first thing one would notice in a Mc Donald¶s kitchen is the tools, the work
process and the actual food. Each food item has its own machine. here is one
toaster-grill for each kind of bun, and one fryer for each kind of burger. he area is
laid out for maximum efficiency and minimum movement by the worker- for
example the buns, toaster grill and trays all being one on top of the other.

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Õn this way the job becomes very well-defined each employee knows exactly what he
has to do. For example when three people are working on Cheeseburgers one works
on laying out burger, second on filling the burger and the third one on taking
burgers out of the grill. After which the ³controller´ (the employee who supplies
orders to customers) collects the burger and provides it to the customers while
cashiers collect the payment.

2.m Authority.

he branch manager has full authority to give orders to the employees. he
raining Úquad Members, Dining Area Host/esses, Party Entertainers,
Administrative Assistants, Úecurity Coordinators, Maintenance Útaff, ight Closers,
Floor Managers and Úhift Running Floor Managers all report to the branch
manager and it is the branch managers job to ensure that the work is done.

At restaurant level the hierarchy is: -

General Manager
Restaurant Manager
1st Assistant Manager
2nd Assistant Manager
Úhift Running Manager
Floor Manager
Útaff raining Crew
Crew Members.

3.m Discipline:-

All the employees of Mc Donald¶s have a clear understanding of there job. he
jobs are well-defined and they also have a clear understanding of the company¶s
vision-mission statement which is to provide ³quickest and friendliest service´.
Employees are allowed a five minute break every two hours and a half an hour
break every four hours; they respect such rules that govern the organization.


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4.m Unity of command:

All the jobs in Mc Donald¶s are well-defined and streamlined such that each
employee reports to a particular manager whereas all of them report to restaurant
branch manager. For example the information regarding maintenance would flow
from:-

General ManagerRestaurant ManagerFloor Manager Maintenance Útaff

5.m Remuneration:-

Employees of Mc Donald¶s are paid on an hourly basis which is why the attrition
rate is very high. Mc Donald¶s also follows the Pay and Reward policy wherein the
better an employee performs the more salary he receives.

6.m Centralization:-

Mc Donald¶s has a mechanistic organizational structure, authority is highly

centralized and the tasks and rules are clearly specified. Yet every employee
listens, communicates freely and honestly and acts in the interest of all other
employees.

7.m Order:-
Each food item has its own machine. here is one toaster-grill for each kind of
bun, and one fryer for each kind of burger. As mentioned earlier the materials are
at the right place at the right time for example the buns, toaster grill and trays are
all one on top of the other. Moreover in order to ensure that the right person is
hired for the right job Mc Donald¶s ensures McDonald's inducts all new employees
into the business through a Welcome Meeting, which they must attend. he
Welcome Meeting gives an overview of the Company, including: job role, food,
hygiene and safety training, Policies and procedures administration benefits. ew


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employees also meet their trainer, and tour the restaurant. he company operates
a 3-week probationary period, after which employees are rated on their
performance and are either retained or have their employment terminated.

8.m Equity :-
Managers at Mc Donald¶s treat their subordinates, i.e., maintenance staff, training
staff and crew members indifferently.

9.m Útability of tenure of personnel:-

Employees of Mc Donald¶s are paid on an hourly basis which leads to high
employee turnover. But however Mc Donald¶s pays a lot of attention to recruiting
the right employees for its restaurants. Management spends a lot of time and effort
in training the new recruits and is hired after an ³P

P

 
training
session.

10.mEsprit de corps:-

Mc Donald¶s inculcates team spirit amongst the employees of a restaurant by

providing performance ± driven incentives to branches on the basis of their
performance. his promotes a feeling of harmony and unity amongst the
employees.

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APPLÕCAÕO OF ÚYÚEMÚ APPROACH HEORY

McDonald Corp. has revolutionized the use of technology in restaurants by enabling the
serving of fries and burgers in a matter of minutes. echnology has been used
extensively in order to serve the customers more efficiently and effectively. he
company moved from traditional way of keeping cash-registers to a modernized way of
computerized-point-of sale systems that could track huge amount of data in seconds in
1970s.

Further more, in 1990, the company was a pioneer in the quick service chain to install
the touch screen computers at the front counter and in the drive-thru, making it easier
for servers to input orders.

he Úystems Approach is applied in McDonald¶s case at various stages of the company.
including the management along with the use of latest technology are highly integrated
to accomplish their goal of being at the top in the fast food retail stores. Õt has a
systematized way of taking the orders from its customers and processing it which finally
leads to customer satisfaction.

EW CHA GEÚ A MCDO ALD¶Ú

1.m McDonald¶s is evaluating a customer order center concept that involves drive-
thru orders taken by employees working remotely at two customer order centers.
2.m High-speed data connections are used to transmit the orders from the drive-thru
to the centers as well as from the centers back to restaurants¶ kitchen staff.
3.m Útandardization is a key to success at McDonalds. Õts philosophy has been ³O E
WORLD, O E BURGER´. Õts standardized way of working helps the company
to serve the customers with greater efficiency and at a lower cost.
4.m McDonald¶s is also trying to reduce their waiting time. After placing their
orders, customers wait until the counter personnel assemble the order and then
pay the bill. For years, McDonald¶s had targeted service times (time from
entering queue until payment completed) of 1.5 minutes.

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ÚUPPLY CHAÕ MA AGEME  A McDO ALDÚ

McDonalds unmatched supply chain not only ensures timely delivery of raw materials
and supplies to McDonalds but also helps the Co. to save on cost and maximize profit
along with maintaining highest quality standards of its products. McDonald¶s initiative
to set up an efficient supply chain and deploy state-of-art technology changed the entire
Õndian fast food industry and raised the standards of performance to international
levels. UÚ-based fast food giant,
McDonald's success in Õndia had been built on four pillars:-
1.m Limited menu
2.m Fresh food
3.m Fast service
4.m Affordable price.

McDonald¶s aimed to be the world¶s best quick service restaurant experience.

Õn accordance with the systems approach, the Co. has a synchronized way of working
for procurement, storage, inventory management, deliveries to the restaurant and data
collection, recording and reporting.

RADÕÕO AL WAY OF WORKÕ G A MCDO ALDÚ

1.m ot more than 5 people grilled the hamburger patties along with caramelizing
the buns and dressing the sandwiches.
2.m here were separate grills for regular-sized and quarter-pound patties.
3.m All patties were manually seared on both sides and were removed in pairs when
the light and buzzer system signaled a completed cooking cycle.
4.m After each batch, the grills were cleaned.
5.m Hot plates were used to heat the buns one side at a time.
6.m Condiments in premeasured doses were applied on the buns by a worker in the
grill area and dressing was done by hands.
7.m hen the trays of buns were moved to the grill where patties were added and the
sandwiches were capped.
8.m hen the completed sandwiches were placed for wrapping.

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HE BEHAVÕOURAL ÚCHOOL OF MA AGEME 

HEORY

he behavioral school of management thought was developed because of perceived

weaknesses in the assumptions of the classical school as it emphasized only on efficiency,
process and principles. he behavioral school focused on trying to understand the
factors that affect human behavior at work, interpersonal communication, and
motivating and leading workers. Õt focuses on issues of communication, leadership,
motivation, and group behavior.

Behavioral science and the study of organizational behavior emerged in the 1950s and
1960s as it was a natural progression of the human relations movement. Õt focused on
applying conceptual and analytical tools to the problem of understanding and
predicting behavior in the workplace. Õt focuses on personality, attitudes, values,
motivation, group behavior, leadership, communication, and conflict, among other
issues.

APPLÕCAÕO OF BEHAVÕOURÕAL ÚCHOOL OF MA AGEME  A

MCDOA LDÚ

Õn order to improve its efficiency, McDonald¶s has undertaken a program in which

employees from the same immediate family can fill in for one another without clearing
it with the boss, a new twist in job sharing. When the workers felt stressed, their family
members could sign in and take each others shift. his enables the workers to put in
their best efforts and work efficiently as there is efficient communication between the
workers and management.

McDonald¶s merges the growth of the organization with the growth of an individual and
hence extracts the best out of its employees McDonald¶s has applied the various
applications of he Behavioral school of management to improve job satisfaction,
efficiency & goal achieving skills of an individual:-

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1.m McDonald¶s always focuses on getting employees involved in the planning
process will help them understand the goals of the organization, what needs to be
done, why it needs to be done, and how well it should be done.
2.m he regulatory requirements for planning employees' performance include
establishing the elements and standards of their performance appraisal plans.
his makes the employees feel that they are a part of the organization and that
their opinion holds a lot of importance in their decision- making process because
of which there are good relations between the management and employees.
3.m Õndividuals are motivated by social needs and good on-the-job relationships and
respond better to work-group pressure than to management control activities. Õn
case of Mc Donald all the employees are familiar with the different tasks that are
involved, for instance if one is at the billing counter taking orders, another
employee is making the order instantly ready and keeping the service ready
without much delay which shows that work flow is well coordinated.
4.m Mc Donald organizes ³Employee Orientation Programme´ twice every year
which places a very high value on providing exceptional customer service since
they recognize the importance of providing their employees with the skills and
resources necessary for meeting that standard of excellence, beginning with their
very first day of employment.
5.m Õn McDonald¶s training program the existing employees are also permitted to
attend so that they become updated and familiar with the new techniques and
regulations. Personality traits are also considered having a relation with job
satisfaction. hat is the reason why, McDonalds reviews their applicants¶
personality wise because after all, it is service with a smile that is being offered to
the customers.
6.m McDonalds extends their support to all its employees by providing them with
Medicare, insurance and other non monetary incentives given to employees.
his further motivates their performance and helps them to improve their
commitment towards the organization.
7.m McDonalds also considers the importance of interpersonal relations in the day-
to-day operations of the company. Õnterpersonal communication is the key to
achieving cooperation among the employees performing related tasks. During
peak hours, the members of the crew are designated in areas needing assistance.
When the kitchen is lagging behind in meeting orders employees on the floor are
asked to help until normal operations is achieved. McDonalds¶ employees are
versatile.

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8.m he manager plays a vital role in the achievement of a good employer-employee
relationship in the branch. Here, a senior manager is appointed who directs the
employees and the workers and leads the entire crew to work together as a team
rather than as individuals and also creates a friendly environment when working
together.

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CO CLUÚÕO

McDonald¶s has implemented all the schools of scientific management to attain utmost
efficiency in all spheres. McDonald¶s had a strong business philosophy and they
successfully applied & incorporated the contemporary schools of management in their
business philosophy to reap enormous benefits.

his is completely evident by the fact that McDonald¶s has achieved huge success &
emerged as a pioneer in the food industry. McDonald has spread across the world in
almost all the major cities of the globe.

Hence, it¶s pivotal for an organization not just to focus on the business and competitive
strategies but also on its resources viz labour, people, environment & the theories of
organizational behavior.

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