INSTITUTE OF MANAGEMENT STUDIES

BUSINESS REPORT

ON

Mc Donalds:Employees Motivation

SUBMITTED TO: SUBMITTED BY:

Prof.Soumen Mukherjee Pawandeep
Singh(09275)
Akanksha
Srivastava (09250)
Amritanshu
Kumar (09253)
Anshita
Srivastava (09256)
Apoorv Singh
(09258)
Deepak
Yadav (09264)
Harish
Kumar (09267)
Khushboo
Prabha (09270)
Shalabh
Sharma (09284)
Shobhit
Dixit (09287)
Vatsal
Tripathi (09292)
Shubham
Sharma (09298)
Vishal Kumar
Gupta (09248)

SUB TITLE:

NAME OF THE AUTHOR:

Pawandeep Singh (09275)

Akanksha Srivastava (09250)
Amritanshu Kumar (09253)
Anshita Srivastava (09256)
Apoorv Singh (09258)
Deepak Yadav (09264)
Harish Kumar ( 09267)
Khushboo Prabha (09270)
Shalabh Sharma (09284)
Shobhit Dixit (09287)
Vatsal Tripathi (09292)
Shubham Sharma (09298)
Vishal Kumar Gupta (0948)

NAME OF THE AUTHORITY: Prof.Soumen Mukherjee

APPROVALS: IMS Ghaziabad

DISTRIBUTION LIST: NIL

PREFACE

This project aims to cover the motivation level of employees of Mc Donald. An

effort has been made to provide an extensive coverage of the latest method for
employee motivation that can aid a manager in decision making.

The highlight of this project is its simple style of presenting perceived complex
material.This project report is extremely reader friendly which explain how Mc
Donald motivates its employees. Another factor which distinguish this project is the
recommendation made by the author to Mac Donald.

From this project reader will come to about Mc Donald and also about its history.This
project will provide reader with also steps taken to motivate the employees which wre
working over there. This project is total reader friendly and reader will be able to
know about the Mc Donalds. This project is mostly focusing on the employees
motivation.And also this project tell about the growth of its in last 2 years.

Any recommendation from readers are welcome:

ACKNOWLEDGEMENT

We have a great pleasure in presenting our project entitled MC DONALD, We take

this an opportunity to express our deepest gratitude and ineptness to all those who
contributed indirectly their valuable time and assisted us in our project and we would
like to give our sincere thanks to “Mr Sanjay Singh “,manager of Mc Donalds who
gave their precious time to us and helped us a lot in doing our project.

We would like to thank our project guides and our faculty, Prof Soumen Mukherji, for
this approval and also for his valuable guidance and support in completing our project
of Mc DONALDS.

Last but not the least we would like to express our sincere thanks to those who
directly or indirectly helped in our project.

TEAM MEMBERS: SIGNATURE:

(09275) ____________
Akanksha Srivastava(09250) ____________
Amritanshu Kumar(09253) ____________
Anshita Srivastava(09256) ____________
Apoorv Singh (09258) ____________
Deepak Yadav (09264) ____________
Harish Kumar ( 09267) ____________
Khushboo Prabha (09270) ____________
Shalabh Sharma (09284) ____________
Shobhit Dixit (09287) ____________
Vatsal Tripathi (09292) ____________
Shubham Sharma (09298) ____________
Vishal Kumar Gupta (0948) ____________

TABLE OF CONTENTS

1. Summary……………………………………………6

2. Introduction………………………………………….11

3. About Mc Donalds…………………………………..15

4. Description…………………………………………..17

5. Conclusion………………………………………….45

6. Recommendation……………………………………..47

7. Questionnaire………………………………………..55

8. References…………………………………………….69

9. Bibliography…………………………………………70

10. Glossary………………………………………………71

11. Index…………………………………………………..72
SUMMARY

McDonalds India is a locally owned company managed by Indians. McDonalds is a

leader in convenient foods and beverages, with revenues of about $23 billion and over
1.6 million employees serving the customer’s world wide. The company consists of
the snack business of Beverages and Foods. This brands are available in nearly 115
countries having more than 24,500 restaurants in the world providing 24 hour service.
Having about 1 billon customers to be served all over the world.

McDonalds’s success is the result of superior products, high standards of

performance, distinctive competitive strategies and the high integrity of our people.
McDonalds is continuing to expand and introduce new alternative beverages in the
market. Approximately 85% of McDonald’s restaurant businesses worldwide are
owned and operated by franchisees. All franchisees are independent, full-time
operators. McDonald’s was named Entrepreneur’s Number-one franchise for 1997

It’s mission is to be the world's premier consumer Products Company focused

on convenient foods and beverages. It seek to produce healthy financial rewards to
investors as it provide opportunities for growth and enrichment to its employees, it’s
business partners and the communities in which it operate. And in everything it do, it
strive for honesty, fairness and integrity you could now join it’s team. Greater variety
and quality choices surprise and delight customers with the food and beverage they
desire.

McDonald’s corp. is currently one of the most successful consumer products

company in the world with annual revenues exceeding $23 million and has more than
1.6 million employees.

McDonald’s products are recognized and are most respected all around the
globe. Currently, its divisions operate in all over the world in beverages, snack foods,
and restaurants. The corporations increasing success has been based on high standards
of performance, marketing strategies, competitiveness, determination, commitment,
and the personal and professional integrity of their people, products and business
practices. McDonald’s believes their success depends upon the quality and value of
their products by providing a safe, whole some, economically efficient and a healthy
environment for their customers; and by providing a fair return to their investors
while maintaining the highest standards of integrity.
Mcdonald’s India

A locally Owned Company

McDonald’s has 132 restaurants in India of which 79 are in North & East
India and 53 in West & South India.
McDonalds India is a locally owned company managed by Indians. In
Delhi, McDonalds restaurants are owned and managed by Vikram Bakshis Connaught
Plaza restaurants Pvt. Ltd. This company is responsible for the running of
McDonalds India.
Local Sourcing is Key for Truly Indian Products around the world,
McDonald’s traditionally operates with local partners or local management. In India
too, McDonand’s purchases from local suppliers. McDonald’s constructs its
restaurants using local architects, contractors, labour and - where possible - local
materials. McDonald’s hires local personnel for all positions within the restaurants
and contributes a portion of its success to communities in the form of municipal taxes
and reinvestment. Its 98% of the inputs are obtaned domestically.
For three years before the opening of the first McDonald’s
restaurant in India, McDonald’s and its international supplier partners worked
together with local Indian companies to develop products that meet McDonald’s
vigorous quality standards. These standrds also strictly adhere to Indian Government
regulation on food, health and hygiene. Part of this development involves the transfer
of state-of-the-art food processing technology which has enabled Indian business to
grow by improving their ability to compete in today’s respect to the local culture.
McDonald’s has developed a menu specially for India with vegetarian selections to
suit Indian tastes and culture. Keeping in line with this McDonald’s does not offer any
beef or pork items in India. McDonald’s has also re-engineered its operations to
addres the special requirements of a vegatarian menu. Vegetable products are
prepared separately, using dedicated equipment and utensils. This separation of
vegetarian and non-vegetarian food products is maintained throughout the various
stages of procurement, cooking and serving.
McDonald’s India is an employer of opportunity, providing quality
employment and long-term careers to the Indian people. the average McDonald’s
restaurant employs more than 100 people in 25 different positions - from cashier to
restaurant manager. McDonald’s world-class training inputs to its employee could be
seen in the present close to 1000 employees currently in Mumbai and Delhi.
McDonald’s believes in giving back to the communities it serves. Wherever
McDonald’s goes it becomes a part of the community it operates in and contributes
towards the development of the locality. For example, McDonald’s has introduced the
concept of ‘Litter Patrol’ - McDondld’s employees go around the immediate vicinity
of the restaurant every day, packing up garbage left behind not only by customers
from McDonald’s restaurants but also by other visitors to the area. The result is a
cleaner neighborhood.

MOTIVATION AND SATISFACTION

Performance appraisal can have a profound effect on levels of employee motivation

and satisfaction - for better as well as for worse.

Performance appraisal provides employees with recognition for their work efforts.
The power of social recognition as an incentive has been long noted. In fact, there is
evidence that human beings will even prefer negative recognition in preference to no
recognition at all.

If nothing else, the existence of an appraisal program indicates to an employee that

the organization is genuinely interested in their individual performance and
development. This alone can have a positive influence on the individual's sense of
worth, commitment and belonging.
The strength and prevalence of this natural human desire for individual recognition
should not be overlooked. Absenteeism and turnover rates in some organizations
might be greatly reduced if more attention were paid to it. Regular performance
appraisal, at least, is a good start.

Training and Development

Performance appraisal offers an excellent opportunity - perhaps the best that will ever
occur - for a supervisor and subordinate to recognize and agree upon individual
training and development needs.
During the discussion of an employee's work performance, the presence or absence of
work skills can become very obvious - even to those who habitually reject the idea of
training for them!
Performance appraisal can make the need for training more pressing and relevant by
linking it clearly to performance outcomes and future career aspirations.

From the point of view of the organization as a whole, consolidated appraisal data can
form a picture of the overall demand for training. This data may be analyzed by
variables such as sex, department, etc. In this respect, performance appraisal can
provide a regular and efficient training needs audit for the entire organization.

Recruitment and Induction

Appraisal data can be used to monitor the success of the organization's recruitment
and induction practices.
For example, how well are the employees performing who were hired in the past two
years?
Appraisal data can also be used to monitor the effectiveness of changes in recruitment
strategies. By following the yearly data related to new hires (and given sufficient
numbers on which to base the analysis) it is possible to assess whether the general
quality of the workforce is improving, staying steady, or declining.

Employee Evaluation

Though often understated or even denied, evaluation is a legitimate and major

objective of performance appraisal.
But the need to evaluate (i.e., to judge) is also an ongoing source of tension, since
evaluative and developmental priorities appear to frequently clash. Yet at its most
basic level, performance appraisal is the process of examining and evaluating the
performance of an individual.

Though organizations have a clear right - some would say a duty - to conduct such
evaluations of performance, many still recoil from the idea. To them, the explicit
process of judgment can be dehumanizing and demoralizing and a source of anxiety
and distress to employees.

It is been said by some that appraisal cannot serve the needs of evaluation and
development at the same time; it must be one or the other.

But there may be an acceptable middle ground, where the need to evaluate employees
objectively, and the need to encourage and develop them, can be balanced.

APPRAISAL PROCESS

Many organizations make every effort to approximate the ideal process, resulting in
first-rate appraisal systems.

Total Quality Management- To Energize and motivate the employees, Mac Donald
can Organised a Total Quality Management Programmee.
INTRODUCTION
THE INDIAN FAST FOOD MARKET - AN OVERVIEW
We can say that our team has depicted excellent performance , because when we are
continuously failing in getting an appointment , we never loose the hope with the
moral of the story. This reveals our outstanding performance & curiousity for the
report . From Moserbear to Edlewiss Capital & from Edlewiss Capital to Pantaloons
& from pantaloons to mc donald & our journey finished but not goal.
Upto the year 1995 Indian food market was predominantly dominated by the
traditional dhabas, potential restaurants in the customers colony and some restaurants
in a five star hotel. Having fast food i.e., burgers, pizzas etc., was considered to be an
option for eating out. It was not at all synonymous with the American concept of fast
food as a quick takeaway bite or a substitute for lunch.

Apart from fast food being available at the local colony restaurants and at some five
star restaurants, Nrulas was the only fast food chain existing in the country with its
restaurants expanding with every passing year since its inception. It has been almost
50 years now since its set up and there is hardly any one who doesn’t know that
Nirulas exists. Nirulas was the first one to bring fast food to India back in the 50’s
since then it has evolved into an eating place with a tremendous brand equity and
brand recognition. It proved to be a perfect eating place for an average middle class
who wants to eat out at an affordable price who cant afford the five-star restaurants
and would not want to go to the local dhabas.

Nirulas almost had a monopoly for decades due to the way it has been placed. It is a
place where a person from an average middle class group to upper class group can go
to eat out. Its popularity has increased over the decades. With the trends changing and
the incomes rising almost anybody who can afford to eat out could go for a snack at
Nirulas.

However the year 1995-96 witnessed a drastic change. 1996 is considered to be the
year of India’s entry into the world food market. International giants such as
McDonalds, KFC, TGIF, Dominos, Pizza Hut all bombarded the Indian food market.

Before these, UK-based joint called Wimpy’s had established its chain in the country
in 1990. By year 1996 it had about three to four joints established in Delhi. However
it did not pose much of a threat to Nirulas reason being lack of variety and that
wimpys was looked at more of a hang-out place rather than eating out with the family.
Its been the American international giants i.e., McDonalds, Pizza Hut etc., who have
targeted their restaurants to the families. Apart from the foreign and Indian fast food
chains setting up shop, there are a range of specialty restaurants offering varied fare
such as Chinese, Mexican, French, Italian etc. These places however offer range of
items different from burgers, pizzas etc, but they definitely are competition to both
foreign and Indian fast food chains.
However, restaurant business is such which is surrounded by threat from everywhere
be it Indian joints or foreign joints.
It is only these international joints and specialty restaurants which are gradually
coming up and some Indian restaurants which have made up the food market. Prior to
this it was only the local restaurant which became visible while passing by or through
local banners etc., and the five star restaurants were for the elite class out of reach by
the average middle class customer. There was hardly any awareness or promotion to
beat competition.
Each of the foreign food joints that have come into the country have their own
strategy lined up to differ from the rest. Each of these studied the Indian tastes and
style and thereby targeted the Indian customer. An average Indian restaurant goer is
no convenience eater, unlike the Americans.
If he is paying, he is paying for food that tastes good (Spicy, soft, savory etc.), not for
how pleasantly the stuff is served or how spotless the widows are. He wants food for
that can make him come back to the restaurant. An Indian food joint owner would
definitely understand this but an American company which comes and places itself
directly without knowing the customer is definitely in for trouble. Customer loyalty in
a restaurant business is essentially low. A customer when he comes to a restaurant
usually looks at the quality of food, variety, ambience, speed of delivery and the
location. The variety would influence the frequency of visits since taste is a
dominating factor to the Indian customers.
Almost all the fast food chains both Indian i.e., Nirulas and foreign i.e., McDonalds
etc., are targeting the families. This serves to be an advantage because the turnaround
time is short and family has higher propensity to spend because different members
order larger variety of dishes.
Each of these restaurants deliver quality, value and services in its own way through its
line of strategies. The emphasis is on the value that the restaurant is delivering to the
customers.
Companies profile:

McDonalds is a leader in convenient foods and beverages,with revenues of about $23

billion and over 1.6 million employees serving the customer’s worldwide .The
company consists of the snack business of Beverages and foods.
Mc Donald’s success is the result of superior products,high standards of
performance,distinctive competitive strategies and the integrity of our people.Mc
Donalds is continuing to expand and introduce new alternative beverages in the
market.Approximately 85% of Mc Donalds restaurant business worldwide are owned
and operated by franchisees.All franchisees are independent,full-time operators.Mc
Donalds was named Enterpreneur’s Number-one franchise for 1997.

Their mission is to be the world’s premier consumer Products Company focused on

convenient food and beverages.They seek to produce healthy financial rewards to
investors as they provide opportunities for growth and enrichment to their employees,
their business partners and the communities in which they operate.And in everything
they do,they strive for honesty,fairness and integrity they could now join their
team.Greater variety and quqlity choices surprise and delight customers with the food
and beverage they desire

Mc Donald’s corp.is currently one of the most successful consumer products

company in the world with annual revenues exceeding $23 million and has more tha
1.6 million employees.

Mc Donald’s products are recognized and are most respected all the globe.
Currently,its devisions operate in all over the world in beverages,snack foods, and
restaurants.The corporation increasing success has been based in high standards of
performance, marketing strategies, competitiveness, determination,commitment, and
the personal and professional integrity of their people,products and business practices.

They believe their success depends upon the quality and value of thei products by
providing a safe ,whole some,economically efficient and a healthy enviroment for
their customers, and by providing a fair return to their investors while maintaing the
highest standards of integrity.
McDONALD’S

The making of this project teach us a lot , we groom ourself . During preparing this
project we learn that “ life is not easy”. Inspite of working from day to noon we come
to know that we are standing in a same path as we were before. Before starting our
business report we have done a small meeting amongst our group. I, Pawandeep
Singh Bhandari, team coordinator, of the group, first decided to energize and motivate
entire group so that we can work as team and not as a group. To make business report
more lucrative we have decided to work as a team and remember the words given by
Honourable MR.ARINDAM CHODHARY he mostly demonstrate that “ TEAM
MEANS TOGETHER WE CAN ACHIEVE MORE “ . his words has shown us the
direction & due to that we mentor us competent group . The task to energize the
group has really become very easy for me because they are soo curious to complete
the task .

we propounded to my group members that the work assigned to us is not so easy so

it’s the correct time to wake up. But on the contrary the words spoken by our team
members MR. SOHBIT DIKSHIT & MISS. ANSHITA that “ HARDWORK HAS
NO SUBSTITUTE “ .Our whole team was really impressed with these words and in
the mean time we feel that now we are not a group we are a team .

As MAHATMA GANDHI propounded that “Failure and success are part of life “
and while preparing this BUSINESS REPORT we feel that :-

On a very first day we have decided to visit Moserbear which is located in greater
noida but after a short conversation with the responsible person of marketing
department we loose our confidence because he said that they are not open for
summer internship and perhaps we will not open also. We were very much
depressed .

But on the contrary our another team member like Mr.shalabh sharma come with a
good news that he has taken the appointment from WIPL &
SHRIRAM PISTON WHICH WERE ONE OF THE MOST COMPETENT
COMPANY .Even we are so curious after listening that
according to FORTUNE MAGAZINE shriram piston stands in an apex position. But
unfortunately because of hectic schedule in our college we miss the appointment and
again we felt that we have lost everything instead of words. Now no options left with
us rather to keep patience & decide what to do during this mean time we feel that we
are burnout and nothing is left in the hand .
Then our team decided to go for a movie “ 3 IDIOTS” and the movie was awesome
after coming out from the multiplex we were rejuvinate & in a one tone & in one
word we say “ WE ARE STILL FIRED UP & READY TO GO”.LESSON FROM
THE MOVIE BECOMES FRUITFULL- We learn from the movie that how to cope
up with the worst situations . KNOWLEDGE IS WISDOM we learnt from the movie.

The speech given by our chairperson Mrs. Urvashi Makkar MOTIVATED &
ENERGIZE ua a lot . THE most pivotal thing in the entire batch of IMS-
GHAZIABAD which you will see in our team is LEADERS. The lecture given by
Mrs. Urvashi Makkar & faculty member Mrs.Sonia has teached us that “ LEADERS
ARE NOT MERELY BORN BUT MADE”. We can say that because the leadeship
quality is precisely visual in our team. Every member has given there heart , there
full interest for making a good report.

Again the day started with a good news because I Pawandeep singh Bhandari and my
team had done a short conversation with MR. JATIN who is the AREA SALES
MANAGER OF EDLEWISS CAPITAL . We Have taken an appointment with him
and even in this short conversation We persuade him that he has become ready to
introduce me with the “ HR & head of department OF EDLEWISS CAPITAL MR .
GAUTAM CHOPRA.
Before my visit We have done my homework and learned about the history & growth
of Edlewiss capital . As We are getting the opportuninty to meet the head of
department of EDLEWISS CAPITAL , We want to prove ourself because we
remember the first lecture given by MR. SOUMEN MUKHERJEE that “ THERE IS
NO SADDER SIDE THAN BEING PESSIMIST” . So the day come and We went to
EDLEWISS CAPITAL & WE GOT AN APPOINTMENT but on the contrary they
have said that we have to prepare a BUSINESS REPORT of EDLEWISS CAPITAL
OF GURGAON BRANCH & at the mean time We cant say him anything . After that
We plead the authority for summer internship & We have been selected at a stipend of
Rs 5000. Its really a triumph for ous.

Now again we held a meeting & decided what to do now we all are so tensed & still
our team is saying “ALL IS WELL “ . We decided to move to a MC DONALD & we
we are success over here .We meet to the store manager of macdonald MR. SUNIL
BANGA who is the store manager of Mc Donald which is located in Silver city at
Ghaziabad.
A). AN OVERVIEW

History and Background

In 1955, Ray Kroc, a 52-year old salesman of milkshake mixing machines, became
interested in a string of seven restaurants owned by Richard and Maurice McDonald.
These two founded the quick service restaurant industry when they converted their
barbecue drive in with car hops into the world’s first McDonand’s limited menu, self
service drive-in in 1958, in California. Kroc liked their fast-food restaurant concept
and bought the Chain for $2.7 million.
He opened his first McDonalds in Illinois in April 1955 and founded the company
that evolved into McDonalds corporation. He decided to expand the chain by selling
Franchises, and the number of restaurants grew rapidly.

Worldwide Operations

There are more than 23,000 McDonalds restaurants in III Countries (as of Jan. 1998).
McDonalds 1997 year end system wide sales were $ 33,368.3 billion.
McDonalds is the largest and the best known global food service retailer. Its global
market potential is enormous seeing the member of restaurants it has. On any day
McDonald’s serves less than one percent of the worlds population. Its outstanding
brand recognition. (It is one of the most recognised brand all over the world),
experienced management, high quality food, site development, high quality food, site
development expertise, advanced operational systems and unique global in
frastructure position it to capitalise on global opportunities.
McDonalds Vision is to dominate the global food service industry. Global dominance
means setting the performance standard for customer satisfaction and increasing
market share and profitability through successfully implementing convenience value
and exception strategies.
In order to expand its operation McDonalds goes by a simple thumbrule to estimate
haw many outlets it wants: One restaurant for every 25,000 people with new markets
sprouting in so many parts of the would, the chain is expanding at a breathtaking pace
of one restaurant every three hours. This can be known from the following:

Period No. of outlets Countries Sales

Jan. 2008 30567 113 $ 60 billion
Jan 2009 31,000 120 $ 67 billion

McDonalds franchises restaurants in many international markets, and decisions

relating to the selection of candidates are made local by the management in the
country where the restaurant is located.

McDONALD’s India

A locally Owned Company

McDonalds India is a locally owned company managed by Indians. In Mumbai Amit
Jatias company, Hard castle restaurants Pvt. Ltd., owns and manages McDonalds
restaurants. In Delhi, McDonalds restaurants are owned and managed by Vikram
Bakshis Connaught Plaza restaurants Pvt. Ltd. Both these individuals are responsible
for the running of McDonalds India.

Local Sourcing is Key for Truly Indian Products

Around the world, McDonald’s traditionally operates with local partners or local
management. In India too, McDonand’s purchases from local suppliers. McDonald’s
constructs its restaurants using local architects, contractors, labour and - where
possible - local materials. McDonald’s hires local personnel for all positions within
the restaurants and contributes a portion of its succes to communities in the form of
municipal taxes and reinvestment. Its 98% of the inputs are obtaned domestically.
McDonald’s sources food products from local companies. mutton patties are supplied
by Al-Kabeer, Hyderabad, Andhra Pradesh; fresh lettuce comes from Pune, Ooty,
Maharashtra nd Dehradun; cheese from Dynamix Dairies, Baramati, Maharashtra;
sesame seed buns and sauces from Cremica Industries Phillaur, Punjab, and pickles
from VST Natural Foods, Hyderabad, Andhra Pradesh.

Setting Up of an Extensive Food Chain

For three years before the opening of the first McDonald’s restaurant in India,
McDonald’s and its international supplier partners worked together with local Indian
companies to develop products that meet McDonald’s vigorous quality standards.
These standrds also strictly adhere to Indian Government regulation on food, health
and hygiene. Part of of this development involves the transfer of state-of-the-art
food processing technology which has enabled Indian business to grow by improving
their ability to compete in today’s international markets.
For instance, Cremica Industries worked with another McDonald’s supplier fropm
Europe to develop technology and expertise which allowed Cremica to expand it
business from baking to also providing breading and batters to McDonand’s Indian
and other companies. Another benefit is expertise in the areas of agriculture which
allowed McDonald’s and its suppliers to work with farmers in Ooty, Pune and
Dehradun and other regions to cultivate high quality lettuce. This includes sharing
advanced agricultural technology and expertise like utilisation of drip irrigation
systems which reduce overall water consumption and agricultural management
practices which result in greater yields.
In some cases, these Indian suppliers had the technology - but no market for the
products they produced. For exampole, Dynamix Dairies -- through its relationship
with McDonald’s was introduced to a large customer of milk casein and other milk
derivatives. The two companies entered into a business relationship resulting in an
initial export order of aproximately US $ 12 million per year - with the potential to
increase. McDonald’s local supply networks through Radhakrishna Foodland, to get
products from the various suppliers to restaurants in Delhi and Mumbai.

Respect for the Indian Customes and Culture

McDonald’s worldwide is well known for the high degree of respect to the local
culture. McDonald’s has developed a menu specially for India with vegetarian
selections to suit Indian tastes and culture. Keeping in line with this McDonald’s does
not offer any beef or pork items in India. McDonald’s has also re-engineered its
operations to addres the special requirements of a vegatarian menu. Vegetable
products are prepared separately, using dedicated equipment and utensils. This
separation of vegetarian and non-vegetarian food products is maintained throughout
the various stages of procurement, cooking and serving.

An Employer of Opportunity

McDonald’s India is an employer of opportunity, providing quality employment and

long-term careers to the Indian people. the average McDonald’s restaurant employs
more than 100 people in 25 different positions - from cashier to restaurant manager.
McDonald’s world-class training inputs to its employee could be seen in the present
close to 1000 employees currently in Mumbai and Delhi.
recipients of McDonald’s support - either through the use of the restaurants for
meetings or for fund-raising activities. McDonald’s International charitable
foundation, Ronabld McDonald House Charities supports charities around the world.
In fact, in 1993, RMHC donated to the Indian Prime Minister’s Relief Fund following
the devastating earthquake in Maharashtra.

Quality, Service, Cleanliness and Value

The McDonald’s philosophy of QSC & V is the guiding foce behind its service to the
customers.
McDonald’s India serves only the highest quality products. All McDonald’s suppliers
adhere to Indian government regulations on food, health and hygiene while
continuously maintaining McDonald’s own reccognized standards. All McDonald’s
products are prepared using the most current, state-of-the-art cooking equipment to
ensure quality and safety.
At McDonald’s the customr always comes first. McDonald’s India provides fast,
friendly service - the hallmark of McDonald’s which sets its restaurants apart from
others.
McDonald’s restaurants provide a clean, comfortable environment especialy suited
for families. this is achieved through McDonald’s stringent cleaning standards,
carefully adhered to.
McDonald’s menu is priced at a value that the largest segment of Indian consumers
can afford. McDonald’s does not sacrifice quality for price - rather McDonald’s
leverages economies of scale to minimise costs while maximising value to customers.
McDonalds has a 20-year profitability plan for India and it intends having at least 50
restaurants here by the year 2000. The company has already invested Rs. 50 crore in
its Indian operations, and each of the two joint venture partners.

Community Partnership

McDonald’s believes in giving back to the communities it serves. Wherever

McDonald’s goes it becoes a part of the community it operates in and contributes
towards the development of the locality. For example, McDonald’s has introduced the
concept of ‘Litter Patrol’ - McDondld’s employees go around the immediate vicinity
of the restaurant every day, packing up garbage left behind not only by customers
from McDonald’s restaurants but also by other visitors to the area. The result is a
cleaner neighbourhood.
To commemorate 50 years of Indian independence, on 15 August, 1997, McDonald’s
Mumbai organised a ‘No Grabage Drive’, in association with the ‘Brihan Mumbai
Municipal Corporation’ and five schools in Bandra. Inaugurated by the Municipal
Commissioner, this was in support of BMCs ‘Zero Garbage, initiative. Other
community activities undertaken by McDonald’s in India includes the adoption of
local public parks for restoration and beautification, thereby providing a play area for
children. In fact in Dlehi, McDonald’s has even addressed the security issues relevant
to a particular residential colony.

Organizational Culture

The overall image and local reputation of McDonald’s as an employer is shaped daily
by many factors, including the benefits programs, compensation package, fun
working place coupled with numerous enthusiasm activities, employee development
programs, and other world renowned best people practices.

Employees, the key ingredient play a vital role each day in shaping our McDonald’s
all employment image through their performance behavior. Realizing its people
strength it provides the best employment experience to employees in order to achieve
the goal of giving the worlds best quick-service restaurant experience to our valued
customers. It strives to recruit the best, hire the best, and provide the best place to
work.
Who are the best employees for McDonald’s? Best employees are those who
can befit themselves in the culture of McDonald’s. The outlook of its organizational
culture is congruent with what happens internally. McDonald’s is a place where
people of all ages love to go to while hanging out, having hunger or during their
leisure hours. McDonald’s is not only a fun place for its customers but also for its
employees.

The commitment to its employees is shaped on the simple fact “We value you, your
growth and your contributions and this is what we strive to achieve through our
actions every day.” Five principles guide the commitment.

Respect and Recognition: Every employee is consistently treated with

dignity and respect. All employees are valued and recognized for their contribution to
the organization.

• Values and Leadership Behaviors: Every employee is a leader who listens

and communicates openly and honestly and every employee acts in the interest
of all other people who contribute to the success of the business, including
customers, owner, and suppliers.
• Total Compensation: To recognize the people part in the business success,
the Pay and Rewards program follows a Pay-for-Performance philosophy, the
better results produced by employees, the greater pay opportunities.
• Learning, Development and Personal Growth: Employees has the
opportunity to advance in skill, contribution and career level through high-
quality training, coaching and feedback.
• Resources to Get the Job Done: It is ensured that a comfortable place to
work with access to the materials, equipment and information has been
provided to do the job.
Characteristics of McDonald’s Culture

First, the culture is valuable; it enables the firm to do things and behave in ways that
lead to high sales, low costs, high margins, or in other ways add financial value to the

firm. Because superior financial performance is an economic concept, culture, to

generate such performance, must have positive economic consequences.
Second, the culture is rare; it has attributes and characteristics that are not common to
the cultures of a large number of other competitors firms.
Finally, its culture is imperfectly imitable; firms without these cultures cannot engage
in activities that will change their cultures to include the required characteristics, and
if they try to imitate these cultures, they will be at some disadvantage (reputational,
experience, etc.) compared to McDonald’s as they try to imitate.
Management Hierarchy

Managing Director

Head of Marketing Director of Finance Human Resource head

Accounts Manager
Senior marketing executive Finance manager Employees

Marketing executive Brand Manager Research & Development officer

Assistant Brand Manager
Customer service manager Product Development
Sales manager Market research Team
Compensation officer
Branch manager Recruitment& Selection
Training& Development
Branch employees

Management’s Role in sustaining Competitive

Advantage

The managerial and organizational process should share a good integration and
coordination. The much needed ‘value’ is created thereby as everyone strives to work
for a common goal. The organization should learn and bring about changes according
to the need of the hour and should always be flexible to changes in the environment
such as customer trends, legal or government restriction and developments in the
technology. McDonald’s management is presently concentrating on this advantage by
concentrating on organizational behavior and managerial expertise. Previously this
advantage was ignored as the organization was more into expansion of its outlets over
the globe than strengthening its core advantage. As the result the revenue did not see
much of a change while newer outlets were open. The company suffered a massive
loss first time since their inceptions which further lead to the change in the managerial
heads.
Technological, structural and financial assets of a company are excellent market
position which helps in the SCA. McDonalds no doubt is abundant with such aspects
like structure, technology and finance. To identify and implement these assets in the
proper direction towards the improvement of the company is all that is needed. After
2003 the company’s management has really started to concentrate on its greatest
advantages.

Most of all the greatest advantage is the vision or the dream with which the company
was started. Sustaining this dream over the years is any companies’ greatest
advantage. A brand usually revolves around this vision sustaining this vision and
working in lieu with it is a great SCA. McDonalds was started out to help people who
had very little time to cook or was too busy to get into a proper restaurant. The vision
was to provide quick service, cheap products and quality satisfaction. Keeping this
vision in mind the company which slackened a bit because of incompetent franchise
holders is being weeded and new and better people are put in this place as the torch
bearers of the company sustaining and living the vision.

Today everything is outsourced from employee appointment to finance and customer

care. No organization is best enough to handle all kinds of work. Moreover
concentrating on every detail is not possible with a big concern especially like
McDonalds. But great care should be taken not to outsource the core competences of
the company. General advantages of outsourcing are cheap service, knowledge of
markets offshore, flexible resources, speedy operations, expansion in supplier
relationship etc. most of all the company can concentrate on its core competencies
and outsource rest of its operation. Recently McDonald has tested its drive through
order facility. Wherein it makes sure that the order placed with the outlet is accurate.
The order taken by the outsourced company is reverted back to the home restaurant.
These call center has a digital camera which clicks the vehicle you drive through and
the delivery man back home can integrate the order and the person who placed it
using the image of the car. Outsourcing thus helps in the increase of the external
suppliers and fills up the difficulties faced because of the lack of the latest
technologies and other innovations.
What started of as a success story with McDonalds had to face a number of risks,
competitions and major set backs. What makes it still strong and ranked among the
top business concerns is its core competences and the sustainable competitive
advantages both internal and external. Of course keeping up with the changing times
the company has also set foot in outsourcing but the point to keep in mind here is not
to be driven away by this outsourcing mania. The management has to be good at
pointing out the needs of outsourcing and implementing an appropriate plan for the
purpose. This company has started to revert back to its golden glory recently because
of large scale revamping of its organizational and structural changes being
implemented.
STEPS TAKEN BY MC DONALDS TO MOTIVATE AND
RETAIN EMPLOYEES

When we had meeting with the manager we came

to know about the steps which are taken by Mc
Donalds to motivate employees which are as
follows:

1: Operating Systems

The foundation of an efficient and effective workplace is the structure, discipline and
consistency provided by well-conceived systematic operating methods. World-class
companies like McDonalds have well defined operating methods. A policies and
procedures (P&P) manual is critical to ensure that employees understand what is
expected of them and know how they should handle the myriad of duties and
responsibilities in the day-to-day operations of the business.

2: Employment Agreements and Job Descriptions

Legal agreements are often a “necessary evil” to ensure there is a “meeting of the
minds” as to exactly what the parties agree to when they enter into an employer-
employee relationship. The agreement should specify the term, termination, duties,
responsibilities and compensation.

3: Training

New employees will need orientation before going to work in your business and then
on-the-job training. Training should include a review of your policies and procedures,
with special emphasis on key subjects, such as customer service and your company
philosophy and culture. Retraining should be done each year.

4: Tools to do the Job

Employee costs constitute a major expense in most businesses. Not giving your
employees adequate tools to do the job is “penny wise and pound foolish.” Employing
current technology can greatly improve efficiency and employee morale. Don’t forget
to provide the little things that make employees’ jobs easier. Providing adequate tools
to do the job will increase employee productivity and satisfaction.

5: Workplace Atmosphere

How your employees feel about their jobs is greatly influenced by your workplace
atmosphere. Extravagance is not necessary, but you should provide a pleasant place to
work. Little things like a fresh coat of paint make a big difference. Don’t neglect the
break room and the rest room. The impression you make on your employees is just as
important as the image you project to your customers. Keeping the workplace clean
and uncluttered requires the cooperation of all employees. Employees’ attitudes are
affected by their work environment; make sure it is positive!

6: Support

Your employees need someone readily available to help when they have questions or
encounter problems. Adequate staffing to properly serve all customers is also
essential for employee morale. Your people should not feel like they are left on their
own.

7: Company Culture

World-class companies always have in common World-class cultures. Leaders of

such businesses recognize that profit is a byproduct of meeting the needs of customers
and employees. A business also has a responsibility to give back to the community
and most employees want to make meaningful contributions through their work. They
also like to take pride in their work and deliver quality products and services. And
they need to continue to learn and grow professionally. A good company culture
enables employees to combine their strengths to meet these mutual needs as part of a
dynamic team.

8: Compensation

A performance-based compensation plan should encourage employees to behave in

ways that will attain the company’s goals, while also meeting your employees’
personal objectives. Company goals usually include growth, profitability, quality
service, efficiency, effectiveness, image and reputation. To attract desirable
employees, your pay scale should be competitive. The pay plan must also be objective
and fair to all employees. Rewards should be commensurate with contributions.
9: Benefits

Even if your profit margins are thin, you can provide benefits that are not cost-
prohibitive, or even free. Providing more benefits puts you in a better competitive
position to attract and retain employees. A profit sharing plan based on growth in
profits is a win-win. You could offer a 401k plan or a pre-tax benefits savings plan.
Group life and disability insurance and other benefits can be provided through the
Greater Richmond Chamber. Group discounts on products and services are also
extended through the Chamber. Your company can become a member of a credit
union to enable employees to qualify for benefits. Little perks, like buying pizza for
the staff on a hectic day, help to make your employees appreciate their jobs. Be
creative!

10: Recognition

Numerous studies have documented the fact that money is not the primary motivator
for most workers. In fact, people who are motivated primarily by money may not be
good employees. Recognize your people frequently for their good work and they will
repeat the performance frequently. Praise must be sincere and should be distributed
equitably, if warranted. When possible, praise people publicly in meetings or
employee newsletters. Be sure to give credit and rewards for good ideas that benefit
the company. Reinforce the right behaviors. Avoid saying “Great, but.” Look for key
measures to recognize employees, such as production or customer retention. Come up
with contests to recognize your people. Give recognition certificates, plaques and
prizes other than money, such as tickets for movie rental or sports events, or gift
certificates for merchandise or dinner. A tangible reward makes a more lasting
impression. Praising your best performers (the top 10-20%) will raise the bar for your
weaker people. The goal is to encourage behaviors that build your business and
recognize your people for practicing those behaviors as often as possible.

11: Communication

Lack of effective communication from superiors is often the greatest cause for
employee dissatisfaction and premature departure. The best managers listen to and
communication frequently with all employees; and they make it easy for employees to
tell them about problems and concerns. Communication should include training,
group and individual meetings and, most important, daily dialogue with employees.
As the manager, you must make the time to regularly talk with everyone. E-mail is a
good communication vehicle, but the phone is more personal; and neither can replace
face-to-face meetings. Employee newsletters can enhance communication. Keep
communication simple, provide adequate information and give examples for clarity.
Show your trust in your people and make them feel included by sharing financial and
other inside information. Management can make much better decisions by getting
input from front-line employees. If your people know their voices are heard and feel
like they are part of the decision making process, they will be much happier, loyal and
more likely to support new programs.

12: Empowerment
Engage your employees to make decisions; give them the authority to act in the best
interests of the company. Provide training in resolving customer problems and then
trust them to make the right choices. Give your people some time to think and plan by
building in some slack time through adequate staffing and by providing support.
Don’t criticize employee mistakes. Recognize that making decisions naturally results
in making mistakes. If you criticize honest mistakes, your people will stop making
decisions. Failure is also OK, because it is a normal part of the road to success.
Nothing is more gratifying than to see your people develop the skills and confidence
necessary to act independently and make sound decisions that are in the best interests
of the company and your customers.

13: Leadership

Much has been written about leadership and you should make the time to learn how to
be a more effective leader. Here are ten basic keys: (1) Integrity: always tell the truth
and always keep your promise, even when it hurts. (2) Trust: You must first
demonstrate your trust in people by making yourself vulnerable before you can expect
them place their trust in you. (3) Respect: If you really don’t care about your people
they will sense your lack of concern and will not respect you. (4) Fairness: Treat all
employees fairly and equally (including family members) regardless of your personal
feelings. (5) Vision: To be a true leader, you must have an unfaltering vision, be able
to communicate it to your people, and get them to understand and share in your
vision. (6) Optimism: You must always be positive and confident that the company
will succeed; but you should also be realistic. (7) Decisive: A leader must make
decisions and stick with them as long as they make sense. Consensus is not always
better than an individual decision, particularly in a crisis situation. Remember, “The
buck stops with you!” Trust your intuition. Intuition draws upon your experience,
stored knowledge and information you may not even realize you have in your head.
( Example: You must “practice what you preach” or you will have little credibility.
(9) Teamwork: Insist on mutual respect, courtesy and cooperation among your people.
This fundamental attitude was crucial in shaping our nation and is also essential to
build your company. (10) Authority: Remember that authority is not vested in your
position as “the boss.” Authority resides with the people who report to you and they
have the power grant it to you or not.

14: Having Fun

People like to work in an environment that is enjoyable; they can get burned out if the
work environment is totally serious and strictly business. Great companies like
Southwest Airlines have come up with creative ways for employees to have fun. If
you’re not naturally good at getting people to have fun, designate a key employee to
assume this role and be your official or unofficial cheerleader.

===============================================

.
Staff Training and Motivation at McDonalds

After having discussion wth the manager of Mc Donalds we came to know about the
information related to staff training and motivation at Mc Donalds.

McDonald trains almost 55,000 employees each year. Each year, it also dedicates
over 10 million pounds to ongoing employee training, providing people with valuable
skills.

Employees learn how to train and supervise others. For the first time employed,
McDonald's is an important "mentor', teaching the interpersonal and organisational
skills necessary for functioning effectively on any job. McDonald's business demands
teamwork, discipline and responsibility; McDonald's experience results in enhanced
communications skills as well as greater self-confidence; and McDonald's stresses
"customer care", and attitude which industry experts recognise as an essential
ingredient for business success.

Management Development

Conducted at regional offices and corporate training centres across the country,
McDonald's Management Development Program (MDP) continues to develop the
potential leaders which the Crew Training Programme has nurtured. This is followed
by a series of training courses designed to back up what is learnt in the restaurant and
develop management, communication and leadership. The Basic Operations Course
(BOC) equips trainee management candidates with the skills to manage their people
and run successful restaurant shifts. The Advanced Operations Course (AOC) is
predominantly for new restaurant managers and department heads, It aims to enhance
the candidates leadership and management skills, enabling them to achieve results in
all areas of the business by working through and developing their people. The Mid-
Management Course (MMC) goes into further leadership skills and management
systems, helping these managers to effectively lead and develop their restaurant
managers. These three core courses are supported by courses and seminars run by the
Regional Training Centres. In addition, managers will work through the Management
Development Programme (MDP) back at the restaurant. MDP gives managers at all
levels the technical and functional management skills needed to maintain McDonald's
leadership role in the quick service restaurant industry.

Manager Trainee

As a Manager Trainee, you are responsible for learning and understanding

McDonald's policies and procedures in order to prepare for managing shifts in a
McDonald's restaurant. The responsibilities include, but are not limited to:

Learning the basics of restaurant operations through on-site training, area

management and floor management.

Gaining experience with attaining and maintaining customer satisfaction.

Developing an understanding of basic supervision, human relations, interpersonal

communication and follow-up skills.

Establishing an Individual Development Plan to help focus on personal career

development objectives.

Ensuring that a respectful workplace exists in the restaurant.

From Manager Trainee you will move to the Second Assistant Manager position
where you actually begin to apply the skills you have learned as a Manager Trainee.

Second Assistant Manager

As a Second Assistant Manager, you are responsible for managing people, products
and equipment to execute outstanding Quality, Service, Cleanliness and Value
(QSC&V) on all assigned shifts. The responsibilities include, but are not limited to:

Developing and training crew employees.

Maintaining critical standards for product quality, service speed & quality, cleanliness
& sanitation.

Managing shifts and/or areas without supervision .

Ensuring all safety, sanitation and security procedures are executed.

Controlling food components, labour, waste and cash while managing shifts and or
areas.

Completing all assigned shift paperwork.

Ensuring that a respectful workplace exists in the restaurant.

The next level of restaurant management is the First Assistant Manager. Herte you
will explore the business skills involved with managing a restaurant.

First Assistant Manager

As a First Assistant Manager, you are responsible for assisting the Restaurant
Manager in executing virtually all aspects of the restaurant operations. The
responsibilities include, but are not limited to:

Demonstrating and reinforcing the leadership behaviours and basic people standards
necessary to gain commitment from crew and other shift managers.

Recruiting, staffing, scheduling and retaining employees.

Managing the development and training of crew and shift management employees.

Building sales and controlling costs to deliver optimum business results for all areas
of accountability.

Maintaining critical standards for product quality, service speed and quality,
cleanliness and sanitation.

Controlling assigned profit and loss line items.

Ensuring that a respectful workplace exists in the restaurant.

The next level of restaurant management is the Restaurant Manager. Your

performance and available positions will determine the time frame for progression
from First Assistant Manager to Restaurant Manager.

Restaurant Manager
As a Restaurant Manager, you are responsible for the entire operation of a single
McDonald's restaurant, including:

Developing and training Assistant Managers.

Measuring external customer satisfaction and executing plans to increase brand

loyalty.

Implementing and conducting in-restaurant new products and procedures.

Ensuring execution of all security, food safety and maintenance of the restaurant.

Projecting and controlling accurate profit & loss line items.

Administering all in-restaurant records and procedures including benefits, payroll,

inventories, security and employee personnel flies.

Ensuring that a respectful workplace exists in the restaurant.

Opportunities beyond the Restaurant Manager position are also available based on
interest and performance. These opportunities are as follows:

Operations Consultant

Provide leadership, coaching and direction to assigned restaurants.

Maximize long-term sales and profit potential of each restaurant.

Build a positive business relationship with Restaurant Managers and Restaurant

Leadership Team

Training Consultant

Conduct training that motivates and improves individual's performance and

contribution to restaurant results.

Serve as operations expert and consultant on McDonald's operation standards,

management tools and training systems.
Business Consultant

Consult to an assigned group of franchisees to optimize sales, QSC, profit,

and people development.

Assist with maximizing the business potential for the franchisee organization.

Human Resources Consultant

Provide leadership and support to the operations team, regional staff and franchisees
on Recruiting and Staffing Management/Crew Employees, Employee Relations,
Management Development, Diversity Development, Benefits/Compensation and
Management/Crew Retention systems.

Management Programs are also available for personal development, which will
prepare you for each step along the way. These opportunities are as follows:

 Shift Management Program

When you experience the Shift Management Program, you will receive instruction
through a combination of self-study modules and on-the-job coaching. You'll also
participate in the Basic Shift Management Course and the Advanced Shift
Management Course, which are offered by the Regional Training Department.

The Shift Management Program assists you in developing and sharpening

management skills in:

Area Managements

Food Safety

Basic People Skills

Respectful Workplace

Delivering QSC&V
Customer Satisfaction and Customer Recovery

Shift Management

Coaching and Counselling

Valuing Diversity

Understanding the Business

 McDonald's Internal Seminars

Seminars are designed to establish a common foundation of leadership and

management knowledge and skills for McDonald's officers. These seminars will focus
on key business issues identified by senior management and create a platform for
effective implementation of strategic business initiatives. A team of McDonald's
senior management and external providers lead the seminars sessions. The external
providers are recognized leaders in their area and have extensive experience
consulting with and teaching executives.

Types of Conflict Within the Business

By evaluating a conflict according to the five categories below -- relationship, data,

interest, structural and value -- we can begin to determine the causes of a conflict and
design resolution strategies that will have a higher probability of success.

There are many types of reasons why conflicts may happen between Human
Resources Functions, such as;

• Relationship Conflicts

Relationship conflicts occur because of the presence of strong negative emotions,

misperceptions or stereotypes, poor communication or miscommunication, or
repetitive negative behaviours. Relationship problems often fuel disputes and lead to
an unnecessary escalating spiral of destructive conflict. Supporting the safe and
balanced expression of perspectives and emotions for acknowledgment (not
agreement) is one effective approach to managing relational conflict.
 • Data Conflicts

Data conflicts occur when people lack information necessary to make wise decisions,
are misinformed, disagree on which data is relevant, interpret information differently,
or have competing assessment procedures. Some data conflicts may be unnecessary
since they are caused by poor communication between the people in conflict. Other
data conflicts may be genuine incompatibilities associated with data collection,
interpretation or communication. Most data conflicts will have "data solutions."

• Interest Conflicts

Interest conflicts are caused by competition over perceived incompatible needs.

Conflicts of interest result when one or more of the parties believe that in order to
satisfy his or her needs, the needs and interests of an opponent must be sacrificed.
Interest-based conflict will commonly be expressed in positional terms. A variety of
interests and intentions underlie and motivate positions in negotiation and must be
addressed for maximized resolution. Interest-based conflicts may occur over
substantive issues (such as money, physical resources, time, etc.); procedural issues
(the way the dispute is to be resolved); and psychological issues (perceptions of trust,
fairness, desire for participation, respect, etc.). For an interest-based dispute to be
resolved, parties must be assisted to define and express their individual interests so
that all of these interests may be jointly addressed. Interest-based conflict is best
resolved through the maximizing integration of the parties' respective interests,
positive intentions and desired experiential outcomes.

• Structural Conflicts

Forces external cause structural conflicts to the people in dispute. Limited physical
resources or authority, geographic constraints (distance or proximity), time (too little
or too much), organizational changes, and so forth can make structural conflict seem
like a crisis. It can be helpful to assist parties in conflict to appreciate the external
forces and constraints bearing upon them. Structural conflicts will often have
structural solutions. Parties' appreciation that a conflict has an external source can
have the effect of them coming to jointly address the imposed difficulties.

• Value Conflicts

Value conflicts are caused by perceived or actual incompatible belief systems.

Values are beliefs that people use to give meaning to their lives. Values explain what
is "good" or "bad," "right" or "wrong," "just" or "unjust." Differing values need not
cause conflict. People can live together in harmony with different value systems.
Value disputes arise only when people attempt to force one set of values on others or
lay claim to exclusive value systems that do not allow for divergent beliefs. It is of no
use to try to change value and belief systems during relatively short and strategic
mediation interventions. It can, however, be helpful to support each participant's
expression of their values and beliefs for acknowledgment by the other party.

• Working Hours

One functions working hours may be flexible than another functions working hours,
the employees are prone to complain as they want more flexible working hours as
well.

• Technology

Ther e may conflicts between different functions technology wise in a sense that one
function may get better technology than another function, e.g. one function within
human resources may get the newest state-of-the-art computers so they will be able to
work more efficiently, as opposed to another function who may have computers
which are 4 or 5 years old so they will not be able to work as efficiently, so the will
complain and the business as a whole will not work as efficiently.
 • Placement & Selection

Placement and selection are both important factors to be considered when assessing
conflicts between human resources. This can be caused by a many number of things
such as, if a new employee has been recruited into the business and as soon as he
starts work the business puts him as a manager, but there has been someone there
working with the business for 20 years and has worked his way up the hierarchy to
become assistant manager to the manager before and was looking to fill in the place
of manager but this new recruit has just filled that place, the business will expect them
to work together, but they will be conflicts between the two managers.

Wages

One-function employees might get paid more for the same job that another functions
employees are doing. This will cause friction between the functions as pay is a high
motivation factor in how efficiently the staff work.

Training/Costs

Training and costs are a major conflict factor as they contribute a lot to the efficiency
of the function, for example if a function has better training and training facilities they
will be able to work more efficiently. As apposed to a function who has little money
to spend on training and bad training facilities, this will result in poor training
throughout the function and poor efficiently.

Performance Management

Performance management is the systematic process by which an agency involves its

employees, as individuals and members of a group, in improving organizational
effectiveness in the accomplishment of agency mission and goals.

The revisions made in 1995 to the Government wide performance appraisal and
awards regulations support sound management principles. Great care was taken to
ensure that the requirements those regulations establish would complement and not
conflict with the kinds of activities and actions practiced in effective organisations
as a matter of course.

Planning

In an effective organization, work is planned out in advance. Planning means setting

performance expectations and goals for groups and individuals to channel their efforts
toward achieving organizational objectives. 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.

The regulatory requirements for planning employees' performance include

establishing the elements and standards of their performance appraisal plans.
Performance elements and standards should be measurable, understandable,
verifiable, equitable, and achievable. Through critical elements, employees are held
accountable as individuals for work assignments or responsibilities. Employee
performance plans should be flexible so that they can be adjusted for changing
program objectives and work requirements. When used effectively, these plans can be
beneficial working documents that are discussed often, and not merely paperwork that
is filed in a drawer and seen only when ratings of record are required.

Monitoring

In an effective organization, assignments and projects are monitored continually.

Monitoring well means consistently measuring performance and providing ongoing
feedback to employees and work groups on their progress toward reaching their goals.
Regulatory requirements for monitoring performance include conducting progress
reviews with employees where their performance is compared against their elements
and standards. Ongoing monitoring provides the opportunity to check how well
employees are meeting predetermined standards and to make changes to unrealistic or
problematic standards. And by monitoring continually, unacceptable performance can
be identified at any time during the appraisal period and assistance provided to
address such performance rather than wait until the end of the period when summary
rating levels are assigned.
DEVELOPING

In an effective organization, employee developmental needs are evaluated and

addressed. Developing in this instance means increasing the capacity to perform
through training, giving assignments that introduce new skills or higher levels of
responsibility, improving work processes, or other methods. Providing employees
with training and developmental opportunities encourages good performance,
strengthens job-related skills and competencies, and helps employees keep up with
changes in the workplace, such as the introduction of new technology.

Carrying out the processes of performance management provides an excellent

opportunity to identify developmental needs. During planning and monitoring of
work, deficiencies in performance become evident and can be addressed. Areas for
improving good performance also stand out, and action can be taken to help
successful employees improve even further.

RATING

From time to time, organizations find it useful to summarize employee performance.

This can be helpful for looking at and comparing performance over time or among
various employees. Organizations need to know who their best performers are.

Within the context of formal performance appraisal requirements, rating means

evaluating employee or group performance against the elements and standards in an
employee's performance plan and assigning a summary rating of record. The rating of
record is assigned according to procedures included in the organization's appraisal
program. It is based on work performed during an entire appraisal period. The rating
of record has a bearing on various other personnel actions, such as granting within-
grade pay increases and determining additional retention service credit in a reduction
in force, although group performance may have an impact on an employee's summary
rating, a rating of record is assigned only to an individual, not to a group.
Rewarding

In an effective organization, rewards are used well. Rewarding means recognizing

employees, individually and as members of groups, for their performance and
acknowledging their contributions to the agency's mission. A basic principle of
effective management is that all behaviour is controlled by its consequences. Those
consequences can and should be both formal and informal and both positive and
negative.

Good performance is recognized without waiting for nominations for formal awards
to be solicited. Recognition is an ongoing, natural part of day-to-day experience. A lot
of the actions that reward good performance - like saying "Thank you" - don't require
a specific regulatory authority. Nonetheless, awards regulations provide a broad range
of forms that more formal rewards can take, such as cash, time off, and many no
monetary items. The regulations also cover a variety of contributions that can be
rewarded, from suggestions to group accomplishments.

Managing Performance Effectively

In effective organizations, managers and employees have been practicing good

performance management naturally all their lives, executing each key component
process well. Goals are set and work is planned routinely. Progress toward those goals
is measured and employees get feedback. High standards are set, but care is also taken
to develop the skills needed to reach them. Formal and informal rewards are used to
recognize the behaviour and results that accomplish the mission. All five-component
processes working together and supporting each other achieve natural, effective
performance management.

THEORIES OF MOTIVATION

Writers such as FW Taylor (1856 - 1915) believed workers would be motivated by

obtaining the highest possible wages through working in the most efficient /
productive way. In short, the more money you offer the worker, the more motivated
they will be to work. Taylor, identified as the Father of Scientific Management, was
obsessed with optimising efficiency and productivity in all areas of life. (Whilst out
walking he would attempt to ascertain the optimum length of stride required to cover
a distance!). His most well known research focused on scientifically analysing the
tasks performed by workers, and it is through these studies that we can understand
Taylor's approach to motivation of the worker.

Through the scientific study of work Taylor sought to enable the worker to achieve
the maximum level of output, and in return gain the maximum financial reward for
their labour. The best way to pay a worker according to Taylor was on a performance
related basis. In one study he looked at the work of steel workers, and by identifying
the optimum load of coal per shovel, which would enable the worker to lift the
maximum tonnage each day, the steel works plant reduced its workforce from 600 to
140. The reward for those workers lucky enough to keep their jobs - 60% higher
wages if they met their scientifically calculated targets for the week, by following the
instructions laid down by Taylor, on how to do their jobs.

Unfortunately, the way in which Taylor appeared to view the 'worker' as just a pair of
hands, and the job losses, which seemed to follow him round the companies he
advised, labelled Taylor as 'The Enemy of the Worker'. In truth, F.W.Taylor only
sought to enable the worker to reach their full earning potential, and honestly believed
his work was in the best interests of the worker.

Subsequent motivational theorists have pointed to Taylor's limited appreciation of the

fact that 'workers' are you and me - people, complex individuals, with heads and
hearts - and not just simple pairs of hands. This said, Taylor's ideas are just as
prevalent today as they were in the early 1900s, consider the current wave of dot.com
start-ups, which offer large share options to their staff, and thus the potential for huge
financial rewards in the future, if they work hard now. There is no escaping the fact
that money is still a central reason why people work, but is it the key to motivating
people.

Abraham.H.Maslow published 'A Theory of Human Motivation' in 1943. In this work

he argued that people are wanting / needing beings. As such we always want more,
and what we want depends on what we already have. Maslow suggested human needs
can be arranged into series of levels, a hierarchy of importance.
 CONCLUSIONS AND RECOMMENDATIONS

AFTER HAVING DISCUSSION WITH THE MANAGERS AND EMPLOYEES

WE CAME TO CERTAIN CONCLUSION WHICH ARE AS FOLLOWS:

CONCLUSIONS/IMPLICATIONS

Indian food market has witnessed several entrants into the country over the past few
years. Each of the established food chains and the ones entering the market pose a
threat to each other. In the food market each restaurant faces competition from 1000
other restuarants, it could be a 5-star restaurant or a roadside dhaba. In order to prove
itsef, the restaurant has to have a well-defined marketing strategy and famous brand
recognition to survive in the market.

To have a competent edge with its competetiors Mac Donald has recently merged
with coca cola Georgia brand to serve hot beverages.So that they can always known
for there uniqueness. The three fast food chains whose marketing strategies have
been compared and analysed also need to look on their marketing strategies to do
more than just survive in the market (Certain recommendations have been put forth
in the coming pages).

The atractiveness of the three restaurant chains in the fast food market can be judged
from the following factors :

• Existing Competition

The Indian food market today has many established global chains who have opened
their restaurants at major cities in the country. It is only those restaurants who have
built their image over many years in the country i.e., Nirulas and world famous brands
such as McDonald’s are the ones to sustain themselves in the market. Any other
restaurant below this calibure would not have the power to fight these joints. Nirulas
has the power to fight competition because it is not identical to the MNC chains and
has not duplicated their policies. Also as long as it continues to deliver value to its
customers it is unlikely to feel the heat of competition. McDonald’s however is new
to the market but in a short period of time it has built a place for itself in the market
by reaching the maximum number of audience in almost all income groups. Wimpy’s
however will have problems competing with the multinational burger chains come
into the market.

• Substitutes Available

There are end number of substitutes available to the customer for fast food in the
market. The customer can choose from traditional Indian cuisine to spciality cuisine
such as Chinese, Italian, Thai etc. For the three fast food joints there must be more
than a thousand restaurants to choose from as substitutes. Even Wimpy’s burger could
be a subtitute for Nirulas Pizza or vice versa. It all depends on the choice of the
customer of what he wants to have.

• Likely New Competition

Looking at the changing lifestyles and the disposable income of the middle class
increasing, the food market has enormous potential. Wimpy’s definately will have
problems in the future if new multinational burger chains enter into the market. With
this its market share will fall and it could even become a non-player in the near future.
McDonald’s with its “purchasing power pricing” policy however has dominated the
middle class segment in the market. Untill and unless some chain with the same
policy attacks the market, McDonald’s does not have any threat from new burger
chains entering the market. For Nirulas however it is the variety and the location
factor which can save the chain from new competition.
 RECOMMENDATIONS

THERE ARE CERTAIN RECOMMENDATION WHICH WE ARE PROVIDING

AND ARE GIVEN BELOW.

For the purpose and growth of Mc Donald fast food restaurant & Employees
satisfaction certain recommendation are significant. weTO achieve an apex
position few vital suggestions for higher level of employees satisfaction , are as
follows:-

McDONALD’S

1.MOTIVATION AND SATISFACTION

. Performance appraisal can have a profound effect on levels of employee motivation

and satisfaction - for better as well as for worse.

Performance appraisal provides employees with recognition for their work efforts.
The power of social recognition as an incentive has been long noted. In fact, there is
evidence that human beings will even prefer negative recognition in preference to no
recognition at all.

If nothing else, the existence of an appraisal program indicates to an employee that

the organization is genuinely interested in their individual performance and
development. This alone can have a positive influence on the individual's sense of
worth, commitment and belonging.

The strength and prevalence of this natural human desire for individual recognition
should not be overlooked. Absenteeism and turnover rates in some organizations
might be greatly reduced if more attention were paid to it. Regular performance
appraisal, at least, is a good start.

2. Training and Development

Performance appraisal offers an excellent opportunity - perhaps the best that will ever
occur - for a supervisor and subordinate to recognize and agree upon individual
training and development needs.
During the discussion of an employee's work performance, the presence or absence of
work skills can become very obvious - even to those who habitually reject the idea of
training for them!
Performance appraisal can make the need for training more pressing and relevant by
linking it clearly to performance outcomes and future career aspirations.

From the point of view of the organization as a whole, consolidated appraisal data can
form a picture of the overall demand for training. This data may be analyzed by
variables such as sex, department, etc. In this respect, performance appraisal can
provide a regular and efficient training needs audit for the entire organization.

3. Recruitment and Induction

Appraisal data can be used to monitor the success of the organization's recruitment
and induction practices.
For example, how well are the employees performing who were hired in the past two
years?
Appraisal data can also be used to monitor the effectiveness of changes in recruitment
strategies. By following the yearly data related to new hires (and given sufficient
numbers on which to base the analysis) it is possible to assess whether the general
quality of the workforce is improving, staying steady, or declining.

4. Employee Evaluation

Though often understated or even denied, evaluation is a legitimate and major

objective of performance appraisal
.
But the need to evaluate (i.e., to judge) is also an ongoing source of tension, since
evaluative and developmental priorities appear to frequently clash. Yet at its most
basic level, performance appraisal is the process of examining and evaluating the
performance of an individual.

Though organizations have a clear right - some would say a duty - to conduct such
evaluations of performance, many still recoil from the idea. To them, the explicit
process of judgment can be dehumanizing and demoralizing and a source of anxiety
and distress to employees.

It is been said by some that appraisal cannot serve the needs of evaluation and
development at the same time; it must be one or the other.

But there may be an acceptable middle ground, where the need to evaluate employees
objectively, and the need to encourage and develop them, can be balanced.
APPRAISAL PROCESS

Many organizations make every effort to approximate the ideal process, resulting in
first-rate appraisal systems.

PERFORMANCE APPRAISAL

An organization’s goal can be achieved only when people put in their best efforts.

How to ascertain whether an employee has shown his or her performance on a given

job? The answer is performance appraisal.

HISTORY OF PERFORMANCE APPRAISAL

The history of performance appraisal is quite brief. Its roots in the early 20th century

can be traced to Taylor's pioneering Time and Motion studies. But this is not very

helpful, for the same may be said about almost everything in the field of modern

human resources management appraisal.

There is, says, "... a basic human tendency to make judgments about those one is

working with, as well as about oneself."

Appraisal, it seems, is both inevitable and universal. In the absence of a carefully

structured system of appraisal, people will tend to judge the work performance of

others, including subordinates, naturally, informally and arbitrarily.

The human inclination to judge can create serious motivational, ethical and legal

problems in the workplace. Without a structured appraisal system, there is little

chance of ensuring that the judgments made will be lawful, fair, defensible and

accurate.

In simple terms, performance appraisal may be understood as the assessment of an

individual’s performance in a systematic way, the performance being measured

against such factors as job knowledge, quality and quantity of output, initiative,

leadership abilities, supervision, dependability, co-operation, judgment, versatility,

health, and the like. Assessment should not be confined to past performance alone.

Potentials of the employee for future performance must also be assessed.

DEFINITIONS OF PERFORMANCE APPRAISAL

A formal definition of performance appraisal is:

It is systematic evaluation of the individual with respect to his or her performance on

the job and his or her potential for development.

Performance appraisal is a formal, structured system of measuring and evaluating an

employee’s job related behaviors and outcomes to discover how and why the
employee is presently performing on the job and how the employee can perform more

effectively in the future so that the employee, organization, and society all benefits.

The other terms used for performance appraisal are: performance rating, employee

assessment, employee performance review, personnel appraisal, performance

evaluation, employee evaluation and merit rating.

In the formal sense, employee assessment is as old as the concept of management,

and, in an informal sense, it is probably as old as mankind.

RELATIONSHIP OF PERFORMANCE APPRAISAL AND JOB

ANALYSIS

Performance appraisal is not done in isolation. It is linked to job analysis as shown in

figure:

Job Performance Performance

analysis standards appraisal

Job analysis sets out requirements, which are translated into performance standards,

which in turn form the basis for performance appraisal.

 OBJECTIVES OF PERFORMANCE APPRAISAL

Data relating to performance assessment of employees are recorded, stored, and

several purposes. The main purposes of employee assessment are:

1. To effect promotions based on competence and performance.

2. To confirm the services of probationary employees upon their completing the
probationary period satisfactorily.
3. To assess the training and development needs of employees.
4. To decide upon a pay raise where (as in the unorganized sector) regular pay
scales have not been fixed.
5. To let the employees know where they stand insofar as their performance is
concerned and to assist them with constructive criticism and guidance for the
purpose of their development.
6. To improve communication. Performance appraisal provides a format for
dialogue between the superior and the subordinate, and improves
understanding of personal goals and concerns. This can also have the effect of
increasing the trust between the rater and the rate.
7. Finally, performance appraisal can be used to determine whether HR programs
such as selection, training, and transfers have been effective or not.

BENEFITS OF PERFORMANCE APPRAISAL

Perhaps the most significant benefit of appraisal is that, in the rush and bustle of daily

working life, it offers a rare chance for a supervisor and subordinate to have "time
out" for a one-on-one discussion of important work issues that might not otherwise be

addressed.

Almost universally, where performance appraisal is conducted properly, both

supervisors and subordinates have reported the experience as beneficial and positive.

Appraisal offers a valuable opportunity to focus on work activities and goals, to

identify and correct existing problems, and to encourage better future performance.

Thus the performance of the whole organization is enhanced.

For many employees, an "official" appraisal interview may be the only time they get

to have exclusive, uninterrupted access to their supervisor.

Said one employee of a large organization after his first formal performance appraisal,

"In twenty years of work, that's the first time anyone has ever bothered to sit down

and tell me how I'm doing."

The value of this intense and purposeful interaction between a supervisors and

subordinate should not be underestimated.

• Total Quality Management- To Energize and motivate the employees , Mac

Donald can Organised a Total Quality Management Programmee.
 APPENDIX

QUESTIONNAIRE:

1. What motivates you working in MC Donald.?

a) salaries
b) working conditions
c) Other
2. Are you satisfied with your salaries?

a) Yes
b) No

3. Given a chance in which company would you like to work?

a) Still at MC- Donalds
b) Yo China
c) Pizza Hut
4. Do you get incentives?

a) Yes
b) No

5. Which type of incentives do you get?

a) job assurance
b) different types of perks
c) cash incentives
6. Are you satisfied with the working environment?

a) Yes
b) No

7. How is your relationship with the manager?

a) Very good
b) Good
c) Average
8. How is your relationship with your peer group?
a) Very good
b) Good
c) Poor

9) Are you comfortable with the dress code ?

a) Yes
b) No
10. Do you want more leave in a year?

a) Yes
b) No

11. Are you satisfied with the working hours?

a) Yes
b) No

12. Do you want more staff with you?

a) Yes
b) No
13. Do you get any offer from Mc-Donalds during the festive season?

a) Yes
b) No

14. Did you tried to get the job somewhere else?

a) Yes
b) No

15. Have you ever think of switching over to any other company?
a) Yes
b) No

14. According to you which food item is mostly preferred by the

customers? Specify it.

_________________________________________________________
 We in Mc Donalds

Machines available in Mc Donalds

REFERENCES

• http://www.scribd.com/doc/21167331/Mcdonald
s-Project-Report

• http://www.scribd.com/doc/6881272/100marksp
roject

• http://en.wikipedia.org/wiki/McDonald's#Advert
ising

• www.aboutmcdonalds.com/
• http://www.mcspotlight.org/case/pretrial/factsh
eet.html

• www.mcdonaldsindia.com

• www.mcdonalds.com

• company’s annual report

BIBLIOGRAPHY

• Brand Practices

• Magazines:
Business world
100 top Brands
The valuable brands of India
 • Human Resource Management: C.B.Gupta
• Personnel Management: Monappa and Saiyadain

GLOSSARY:

Absenteeism
noun
the practice of regularly staying away from work or school without good reason

consolidated
make (something) physically stronger or more solid : the first phase of the project is
to consolidate the outside walls.
 Legitimate
adjective
conforming to the law or to rules : his claims to legitimate authority.

Appraisal
noun
an act of assessing something or someone : treatment begins with a thorough appraisal
of the patient's condition | the report has been subject to appraisal

INDEX:

1. Title Page
2. Preface
3. Acknowledgement
 4. Table of Contents
5. Introduction
6. An Overview

 History and Background

 Worldwide Operations
7. About Mc Donalds India
 A Locally Owned Company

 Local Sourcing is key for truly Indian Products

 Setting up of an exclusive food chain

 Respect for the Indian customers and culture

 An employer of opportunity

 Quality, Services, Cleanliness and Value

 Community Partnership
8.Organisational Culture
9.Charactersticks of McDonalds Culture
10.Management Hierarchy
11.Management role in sustaining competitive advantage
12.Steps taken by McDonald to motivate and retain employees
13.Conclusions
14.Recommendations
15.Appendix