Case Study

SHRM

McDonald’s

Training and Development

Mc Donald’s

• McDonald’s is a leading global foodservice retailer with more than 30,000 local restaurants serving nearly 50 million people in more than 119 countries each day.

• It serves the world some of its favorite food-

French Fries, Big Mac, Chicken McNuggets and Egg McMuffin.

• First McDonald’s restaurant was opened by Ray Kroc at Illinois,USA in 1955. It is no longer functional and the building is now McDonald’s museum.

• McDonald’s went public in 1965 and in 1985, it was added on 30-company Dow Jones Industrial Average.

• Today it is one of the most well known, valuable and powerful brands of the world.

• Agenda- 100% total customer satisfaction.• Four golden words:

QUALITY

SERVICE

CLEANLINESS

VALUE

People

• Typical McDonalds’ restaurant employees about 60 people.

• Most employees are paid by the hour, and referred to as ‘Crew Members’.

• Other hourly-paid employees are training squad members, dinning area hosts, party entertainers, administrative assistants, security coordinators, night closers, floor managers and shift running floor managers.

• McDonald’s is representative of the wider growth in temporary and part time sector. 55% of the hourly paid staff are students.

• The remaining salaried employees are managers working in either corporate or regional departments. Responsibility is to manage operations, crew and business performance.

• 20 of 50 top managers started in McDonald’s

restaurant, including the CEO, Jim Skinner.

• Voted as the Best place to work for

minorities by Forbes in 2005.

Commitment to Training

• From the very early days, Ray Kroc (founder) wad prepared to invest a great deal of money in training staff.

• McDonald’s has a strong tradition of training

and it invests more than $ 1billion annually in

training.

• McDonald’s Hamburger University was first

opened in a restaurant in Chicago in the year 1961. It initially aimed at developing a learning process through which Kroc could assert control over his standards of QSCV.

• The graduates were awarded a Bachelor of Hamburgerology degree with minor in french fries. The University has more than 275,000 graduates worldwide.

• Initially Ray Kroc avoided employees with direct experience or

formal training in food preparation or restaurant

business. These people wanted to do the

business their own way.

• Instead, he saw a different mix of dedication,

entrepreneurship and wider skills in service and

quality as the right type of Skills Mix.

Orientation and Induction

• The first stage of learning is at the Welcome Meetings through which all the new employees are inducted into the business processes. These set out the company’s standards and expectations.

• Welcome Meetings are followed by a Structured Development Programme that provides training in all areas of business. Trainers learn the necessary operational skills for running each of the 11workstations in each restaurant.

• The majority of the training is floor-based or on-the-job training as people learn more while

practicing.

• They also attend classroom-based

training sessions where they

complete workbooks for quality,

service and cleanliness.

• The employees are rated after three

months on their performance and they

are either retained or have their employment terminated.

Training and Management Development

• McDonald's places great emphasis on employee training to ensure the highest standards of service across all outlets globally regardless of the restaurant or the continent.

• The tightly controlled process is called the ‘one best way’. It covers all areas of business, from meeting and greeting, to food preparation, to cleaning the floor. In order to relieve monotony, crew members are rotated through a number of different roles.

• Training is delivered and assessed through a variety of methods such as ‘shoulder to shoulder’, ‘classroom programs’ and ‘e-learning modules’. All the development plans at McDonald's stem from the same essential principles that Kroc introduced in the 1950s, i.e., quality, service, and cleanliness.

• Courses for management development include: 1. Employee relations training 2. Time management 3. Staff retention and discipline 4. Personal leadership and effective coaching 5. Employee communications 6. Learning to manage shifts 7. Community image 8. Managing staff development 9. Optimizing restaurant food cost 10. Accounting and Financial procedures

• The operations and training manual weighs just over 4kg and is more than 800 pages long. General Managers at McDonald’s are expected to complete further programmes, such as Diploma in Management from Nottingham Trent University (in UK outlets).

• The training approach at McDonald's is based on developing competencies using a Personal Development

Plan (PDP). Training is monitored by the use

of ‘Observation Checklists’ (OCLs) for the

station they are working at.

• The management development curriculum is

aimed at persons aged 21 or over, either

graduates or individuals with some previous management experience.

The management development curriculum is divided into four key programmes:

1. Shift Management

2. Systems Management

3. Restaurant Leadership

4. Business Leadership

McDonald’s Diversity Initiatives

• McDonald’s is the world’s community restaurant. Diversity at McDonald's is seen as understanding, recognizing, and valuing the differences that make each person unique.

• Some of the diversity initiatives at McDonald’s have resulted in it having the largest number of minority and female franchisees in the quick service industry, with more than 40.7% of all McDonald’s US owner/operators being women and minorities.

• The company has employee networks such as Women's Leadership Network, Asian Employee Network, McDonald's African American Council, etc. These networks help the company maintain a better connection with the diverse customer base.

• McDonald's is committed to diversity education and has developed a framework to provide it throughout the organization through formal presentations, workshops, and seminars.

• Seminars and workshops like Winning with

Diversity and Inclusion, GenderSpeak,

Asian Career Development, Black Career

Development, and Women: Enhancing

Personal and Professional Effectiveness,

serve as the cornerstone for bringing diversity

to life in the organization.

• Diversity education is an ongoing process,

creating awareness and building skills for managing an inclusive and diverse workforce.

Evaluation of Training• Training effectiveness is measured by unit managers based

on OCLs through a computerized log. The results are used

to track restaurant performance resulting in a ‘training grade’.

• To measure quality, service and cleanliness, McDonald’s uses mystery shoppers who pay a monthly visit to each site. The results indicate that restaurants in above average training category have higher scores, especially on ‘service’. This means that when staff are well trained and motivated, customer service improves.

• It has been observed that the restaurant where the manager takes a hands-on approach to training, the performance is good.

• Effective and regular training also brings benefits like employee satisfaction which in turn enhances customer ratings, and lower staff turnover.

Questions

Ques1. Do you think McDonald’s Training initiatives are aligned with business strategy? Explain the reasons for it. Why is it important to establish business strategy-training linkage?

Questions

Ques2. Discuss how McDonald’s strategic commitment to training has contributed to its position as a ‘leading global foodservice retailer’.

Questions

Ques3. Examine Ray Kroc’s training philosophy. How has McDonald’s gained from this philosophy?

Questions

Ques4. How relevant is training and development for a company like McDonald’s which is seen as ‘deskilled’?

Ques5. Describe the orientation training at McDonald’s. What purposes does it serve?

Ques6. Discuss the training and management development process at McDonald’s with respect to its design, purpose, methods and content. What organizational goals does it help McDonald’s achieve? Evaluate McDonald’s T&D process based on your understanding of the process of training.

Ques7. What purposes are served by diversity training for McDonald’s take for diversity inclusion in its workforce and with what benefits?

Ques8. What criteria are used to evaluate training effectiveness at McDonald’s?

Presented by:Ashu

HemantNeha GoomerRashmi PawarShravan GuptaSwarnav Dutta

THANK YOU ALL