McDonalds Corporation Human Resource Management Essay

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Human Resource Management

McDonald’s Corporation is one of America’s biggest fast food and burger chains, involved in franchising and operating restaurant chains all over the world. Given its immense operational base, the company has been subdivided into four segments, which are as follows: the U.S. segment; High Growth Market segment; Lead global market segment; and Corporate and Foundational Market segment. The first division is in charge of handling fast food outlets and delivers smartphone apps for orders and promotions. The second division is responsible for operations in the following countries: Britain, Australia, France, Canada, and Germany. The third is tasked with franchise expansion and outlet operation within China, Korea, the Netherlands, Italy, Poland, Switzerland, Spain and Russia. Finally, the last corporate division handles the company’s administration function. First launched on the 15th of April, 1955 by Raymond Albert “Ray” Kroc, the company’s current headquarters is located in Illinois’s Oak Brook village. The company’s primary offering is cheeseburgers, hamburgers, fries, carbonated drinks, chicken-based foods, breakfast foods, milkshakes, desserts and wraps (Forbes, 2017).

The company operates using a corporate approach which is grounded in functional excellence as well as business development. Rigorous development plans are applied for fostering continuous expansion and innovation. Associated strategic goals shape McDonald’s’ functional activities, particularly when it comes to reacting to economic shifts and rival companies’ activities. Market shifts pressurize McDonald’s (as well as all other companies) into adjusting or changing their approaches. Thus, the company alters its general as well as concentrated development plans with time for guaranteeing long-run sustainability for the company (Hess, 2010).

Cost leadership represents the chief general approach and objective of McDonald’s. Porter reveals that the above broad strategy entails cost minimization for providing one’s offering at affordable rates. McDonald’s is one example of an inexpensive fast food service provider whose offering is comparatively less expensive than Arby’s and other rivals’. But it banks on extensive differentiation, which forms its auxiliary generic policy; this approach entails product and business development in a way that affords the company distinctiveness when compared with rivals. One example of this is its McCafé range, where the company has effectively implemented broad differentiation (Gregory, 2017).

The second tactical goal connected with the aforementioned cost leadership approach is ‘vertical integration’. The company, for instance, runs manufacturing units which manufacture homogenous ingredient mixes. Additionally, product innovation has been associated with broad differentiation (Gregory, 2017).

McDonald’s’ workforce reports the company’s effective adoption of schemes, including benefits and rewards, that increase worker engagement and motivation. The workforce expresses satisfaction with compensation as well as other elements of the company. By maintaining consistency between its corporate approach and reward scheme, McDonald’s has increased both productivity and performance. This corporate shift was affected thanks to workforce direction towards five personnel involvement rules or five key components of an enriched client experience; the firm has brought its recognition approach in line with these rules (Crawford, 2015).

Any firm which offers personnel development and training initiatives profits in the following ways. First and foremost, team as well as individual competencies get enhanced. Secondly, training facilitates the transmission of corporate knowledge which aids tactical goal accomplishment. Training has the following additional advantages: Personnel are more satisfied with their jobs and, thus, more motivated to give their best; cost-effectiveness increases; workforce is in a better position to adjust to change; inventiveness and initiative are promoted; and personnel turnover decreases through employer brand reinforcement and organizational value proliferation (Latukha, 2016).

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Companies pay great emphasis to motivation. McDonald’s incentivizes and promotes desirable behavior as well, with the use of a couple of bonus schemes within its company-owned fast food outlets. Mystery shopping results are used to award a 50p/work hour (over a fortnight) bonus every month to every individual working in its top ten-percent of outlets. Competitive goals are attained via the company’s benefits structure. While it has a malleable benefits program, the company doesn’t run a rigid yearly enrolment plan (Crawford, 2015).

The company has formulated a client-focused ‘Plan to Win’ strategy, concentrating on being both bigger and better; this offers McDonald’s outlets a shared framework whilst still enabling local adaptation. This approach helps implement several initiatives centered on the five outstanding client experience elements listed as follows: people, product, price, promotion and place. Clients across the globe have reported a rich experience, within the past 5 years, by this strategy’s implementation, and the company has witnessed a growth in client base and sales. Financial discipline and the plan combined have effectively given sound shareholder results. Functional performance is driven by constant devotion to, and capacity of, offering a superior quality restaurant experience where clients can avail themselves of a wide gamut of high-quality foods and unparalleled convenience at reasonable rates. In 2008’s 1st quarter, outcomes were guided by robust comparable sales over every geographic division in spite of being short of a trading day (McDonald’s Corporation, 2010).

The American market share for McDonald’s has been witnessing constant growth with increased frequency of client visits to get the characteristic taste of its key offering, convenient operational hours and outlet locations, and convincing menu-wide value. The above elements, together with a growth in breakfast item, chicken and soft drink sales, ensured comparable 1st-quarter sales growth (4.7 percent). Established franchisees add to McDonald’s’ income flow by paying sales percentage-based royalties and rent (fixed minimum), besides initial fees that are collected when launching a novel outlet or franchise term. Normally, such a franchise plan is contracted for two decades, with franchising practices mostly homogenous worldwide. Locally-pertinent European approaches carry on guiding performance, with this division anticipated to emerge stronger with time (McDonald’s Corporation, 2010).

McDonald’s is one of the leading multinational firms whose human resource division has contributed to maintaining an edge over competition by means of its strong international Leadership at McDonald’s Program (LAMP). By 2007, the initiative was effectively implemented in the following nations: USA, Australia, Canada, Ireland, Latin America, and Indonesia (Williams-Lee and Broz). Other initiatives designed and implemented by the company include: European LDP (Leadership Development Program), China LDP, Germany LDP and Asia-Pacific, Africa, and Middle East LDP (Williams-Lee and Broz). The above mix of regionally-focused international growth initiatives has helped the company develop an international leadership standard whilst offering its workforce practical knowledge and skills development opportunities based on region (Hess, 2010). 

By applying total corporate outcomes and talent management measures, the company has, with its internationally-integrated strategy of leader development, demonstrated superior investment returns rates. The company’s human resources practices are focused on personnel, transparent hiring practices, effective job….....

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