McDonalds appraisal, remuneration and decisions relating to

McDonalds is a US based food chain company that mainly sells fast foods and hamburgers. The company begun in 1940 as a barbeque restaurant, originally run by two brothers, Richard and Maurice McDonalds. It was subsequently purchased by Ray Kroc (a prominent businessman) who led its worldwide expansion.

Globally, McDonald’s restaurants are available in 120 states. Additionally, these restaurants serve a total of fifty million customers in a day. The super chain operates over 30000 restaurants and provides employment to more than 1.5 million people. Restaurants are either counter service or drive-through service.

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The company earns revenue through property ownership, franchising of restaurants and operation of restaurants. The success of the company has largely been attributed to the high level of efficiency and expertise in their staff and good customer service.

Staffing at McDonalds

Staffing is the managerial function of employing and developing human resources to carry out the activities of the organization. It entails all the processes that involve staff. Such processes include determining the workforce requirement, methods of recruitment, actual recruitments as well as the training and development of personnel.

The function is indeed an important part of human resource management as it also deals with performance appraisal, remuneration and decisions relating to retaining or retrenching staff (Phillips, 2004). The stages below outline the procedures that are followed when staffing at McDonalds.

Manpower planning

This refers to the process of estimating the labor requirements of the company. Management, in so doing, has to consider the market and demand forces, availability of infrastructure, government policies and so on. McDonalds has a human resource department that lays out the overall staffing strategies and puts all the factors mentioned above into consideration when determining the level of manpower that is required. The level of manpower is usually determined by the number of customers in various parts of the world.

Assessment of jobs

This refers to the elementary determination of the responsibilities and the pre-requisites for a certain job. It also includes the relative importance of the specified job to the business. McDonalds has clearly outlined various job descriptions for different posts in the company. This ensures that the recruitment process of the members of staff is based on analysis of the workload and staff requirements. Clear job specifications are also laid out to outline the abilities and skills that are required for performing a particular job (Bechet, 2008).

Sources of recruitment

After determining the experience and qualifications required for particular jobs, the human resource department is charged with the task of searching for qualified persons. The source of recruitment has to be determined before asking the suitable persons to apply for the respective jobs. These sources of recruitment can either be internal or external.

Internal sources

It is a characteristic of most companies to consider the available staff for promotion to higher positions in a firm before looking for members outside the company. Management may therefore promote some of the in-house staff to fill the vacant positions. This recruitment strategy is beneficial in many ways, in that, the higher costs of training new members of staff are saved. On the other hand, the employees are already familiar with the culture and practices of the firm, thus, fitting into the system instantly.

However the major disadvantage of this strategy is that the company may not benefit from new ideas from outsiders. Most of the managerial staff members working at McDonalds have been those employees who had probably begun by grilling hamburgers and performing other menial jobs. Given the amount of training and employee the company has invested in, most of the former low level staff members have gained from the acquired knowledge to become skilled in their areas of expertise.

External sources

Seeing that not all vacant posts can be filled by in house capacity, managers tend to recruit from outside the organization. The major reason behind this is the lack of the required skills, motives and qualifications in the internal staff. External recruitment also provides a wide choice from which management can choose the most suitable person(s). It is with these benefits in mind that McDonalds also takes advantage of the external sources of recruitment. External sources of recruitment are outlined below:

Learning institutions

A certain trend has cropped up in many organizations whereby the companies employ college and university students who seem to have passed their interviews. McDonalds is an example of these companies. A large proportion of junior staff in the company comprises of college and university students. The company interviews the applicants in order to determine whether they are good enough to promote their already established entrepreneurial culture of good customer service (Phillips, 2004).

Unsolicited applications

Job seekers may at times apply for jobs without specific reference to a particular post but in the hope that the company may have a vacancy. Management staff at McDonalds keeps away such applications and contacts the applicants when there is a vacancy

Employment Agencies

These agencies register the names of applicants who are interested in particular jobs and organize for interviews within the companies. McDonalds works closely with such agencies and recruit staff who are competent enough to work for them.

Media advertisements

These are advertisements that are placed in various communication media tools such as newspapers, magazines or even on the internet. Detailed descriptions of the job, the qualifications as well as the required nature of the job and how to apply are contained in the advertisements. The company has used the media to advertise for jobs such as placing adverts on their internet sites to attract applicants.


After a satisfactory number of applications of interested candidates have been collected through the recruitment process, the process of selection begins. Selection refers to the process of choosing the most suitable candidate among the interested ones.

Management has to match the skills and qualifications of the candidates with the requirements of the job then choose the most suitable individuals (Grote, 1996). McDonalds has a detailed selection procedure whereby the candidates have to go through a number of steps in a selection procedure.

Screening of applications

The management of McDonalds evaluates all the applications received and then prepares a list of candidates who are to be evaluated further. The process involves checking for the minimum requirements in terms of qualifications, age, skills and experience. Candidates who do not pass this stage are eliminated and excluded from further consideration.

Holding tests

Immediately after screening of applications, a list of candidates is obtained. The shortlisted candidates are called to the workstations or offices to prove their abilities or skills as mentioned in their applications. An example of how this is done in McDonalds is whereby candidates are called to the workstation and given a little task to perform such as welcoming customers in a friendly manner.

All candidates who pass the test are eligible for further evaluation whereas those who do not qualify are eliminated. The company gives out various tests depending on the requirements of the explicit jobs. For instance, if the test was to be carried out on management then the tests would place more emphasis on the personality of the individual and his/her ability to motivate staff members.

Selection Interview

This is a means of checking the information given by the candidate in their application and making an overall assessment on whether the candidate is suitable for the job or not. In the interview the candidate is expected to have a face to face interaction with the employer or the recruitment committee. This will be aimed at judging the ability of the candidate. In McDonalds they even go a step further to find out the motives and background of the candidate which greatly assists in assessing the suitability of the candidate.

Checking of references

Apart from the educational qualifications, skills and expertise, the company usually ensures that the qualified candidates have other qualities such as punctuality, friendliness and the ability to manage their temperament. This information cannot be verified through tests, hence, it is normally obtained from the candidate’s former learning institutions such a colleges and high school. Former employers can also be a helpful source of such information.

Management considers that, for certain jobs such as cashiers and security officials, reliability is a very important virtue. For experienced employees, details from previous employers are usually of great assistance. References cited in resumes and applications may also be contacted to provide such information so as to prove whether the candidate is trustworthy.

Medical examination

Since McDonalds is a food chain, the health status of the employees is very important. A sick employee with a contagious condition poses great risk to both other employees and customers of the company. Candidates who are finally selected for the job undergo medical examination to verify whether they are physically fit for the job.

These examinations are aimed at ensuring that injuries are minimized in the working environment and that high standards of health for the employees are maintained. This move also ensures that the labor turnover, the cases of accidents and the rates of absenteeism are highly reduced. These tests also reveal the suffering of the candidate from any curable ailments since most jobs require physical fitness.

Issue of appointment letter

When all the shortlisted candidates are finally deemed qualified for the jobs, they are offered an official letter of appointment that clearly outlines the nature of the job, the hours of work, payment amounts and methods among other details. A considerable amount of time is then given for the successful candidate to join the organization.


In the event that the candidate decides to join the organization, he or she has to give the consent in writing to the McDonalds officials after which he/she is formally placed to perform the specific job. The appointment of every candidate is then followed by a record of particulars of employment known as an employment record. It is this record that is used by the company when making decisions regarding issues such as promotions, need for training, staff cuts and increments.


This is the introduction of new employees to the organization. The employees of McDonalds are usually given a chance to adjust to the new working environment as well as the company’s structural organization. Rules and regulations, working conditions are also made known to the new employee (Kemske, 1995). The major purpose of this procedure is to reduce the tension and create a warm and welcoming atmosphere. Eventually, most of the employees acquire a positive attitude towards the new job.

Staff training and Development

McDonalds is one of the companies that believe in training of its labor workforce. Each year, it trains about 55000 employees hence dedicating large amounts of revenue for this purpose. This strategy is beneficial to both the company and the employees in that the company benefits in terms of customer satisfaction. The company also benefits from increased revenue due to better service from a skilled workforce. The employee gains advantage from the development of their career.

The company has a staff training program that trains staff to be all rounder’s and competent enough to work in all situations. Reference materials such as videos and guides are offered to trainees to depict the performances of certain tasks. Emphasis is placed on offering good customer care which is the basis of their huge success over the years.

The company has also gone a step further in employee development by having leadership practices. This is a training program that aims at improving the skills of every employee at every level so as to improve their ability to provide comprehensive customer service, proficiency in mathematics and financial training.

In their move to comply with corporate governance and ethics requirements, the company has established an integrated corporate social responsibility department that provides corporate staff leadership, support and coordination for the global social responsibility policies, programs and reporting.

A challenge that the company faces in some of its markets is the negativity that is associated with the term McJob, therefore it tries to distinguish itself as a great place to work both at the restaurants and at the staff level which is a great motivation for current and potential employees (Phillips & Gully, 2011).

McDonald’s corporate staff is also offered the opportunity to invest in their future in the McDonald’s profit sharing and savings plan. The company has taken measures to ensure that corporate and restaurant staff are enrolled in the program as it feels that the scheme is a viable retirement plan for its employees. The plan has been growing with the introduction of new investment plans over the years.

A wide range of choices is offered to the employees including investments in commercial assets such as real estate investments, a global fund and a small company index fund. For participants who are confused as to how much to save and in what areas to invest, the company offers advice from guided choice. There is even an option of having the employee’s accounts managed at a fee.

McDonalds, in its move to offer better training to its staff worldwide, has more than six hamburger universities around the world. These institutions act as art training centers for restaurant staff and corporate staff. Internationally, hamburger institutions of higher education have emerged to be the corporation’s merit center especially in personnel training and managerial development.

The training has emphasized consistent service, restaurant operation procedures, good quality and cleanliness. Trainees from these institutions hold valid credits that can be applied towards a college degree (Sims, 2007).

A national vocational qualification to the crew development program is one of the initiatives of McDonalds UK. Another program is the mathematics online that was introduced by McDonalds Australia. The program offers mathematics and English instructions online on their employee’s online community.

The company became an awarding body, allowing them to develop and award their own qualifications. This means that the company can therefore provide nationally recognized and industry approved qualifications to its staff which has the positive effect of improving the training systems and standards at McDonalds.

In addition, McDonald franchises, restaurants and staff members are offered the opportunity to participate in charities and donations for public good. Such fundraising events and programs include donations to needy children and child education funds all over the world.

Performance appraisal

This means judging the performance and relative abilities of employees at work in a systematic manner. Managers are therefore able to identify employees who are either performing or not performing their assigned duties. This duty is delegated to supervisors who appraise the performance of their subordinates using similar and uniform methods for fair purpose. The supervisor may also have to determine the causes of the change in performance especially if it has fallen short of what is expected.


McDonalds Corporation is widely recognized for its attractive payment criteria and fair compensation for work done. Due to this, the company has a very high retention of qualified employees. Both financial and non-financial rewards are offered to their employees around the globe. Staffing at McDonalds involves the use of both internal and external sources.

Promotion and transfer

Based on the employee’s performance and interest, the company also gives promotions to their employees. This translates to greater responsibilities, more pay and prestige for the employee. The employee is thus advanced to a higher level or position in the organization.

The basis of promotion at McDonalds is mainly performance among others in order to make full use of the abilities of an employee whose performance is satisfactory. Transfers to different workstations may also be carried out for many reasons such as enabling an employee to gain more experience from a different working environment (Bohlander & Snell, 2009).


It is without doubt that McDonalds has a very comprehensive international human resource unit. The company is a global leader in terms of its staffing function as it has so far achieved great accomplishments.

This has translated to a very efficient staff that is committed towards the achievement of the organization’s objectives of offering world class customer service, high performance standards, commitment, professional integrity, professionalism and customer care (Noe, 2000). The corporation is currently one of the most successful consumer products company in the world. Its products are recognized and among the most respected around the world.

These actions have assisted the company to achieve positive financial performance and achievement of their environmental and social goals. However large controversy has risen over the business practices of the company by keeping employee wages low and refraining from hiring full time workers. The last half of the twentieth century witnessed the development of many fast food chains but none were as successful as McDonalds which was thriving at minimizing cost and maximizing profit

List of References

Bechet, T. (2008). Strategic staffing: a comprehensive system for effective workforce planning. New York: AMACOM Div American Mgmt Assn.

Bohlander, G. & Snell, S. (2009). Managing Human Resources. Stamford, Connecticut: Cengage Learning.

Grote, R. (1996). The complete guide to performance appraisal. New York: AMACOM Div American Mgmt Assn.

Kemske, F. (1995). Human Resources. Queensland: Catbird Press.

Noe, R. (2000). Human resource management: gaining a competitive advantage. New York: Irwin/McGraw-Hill.

Phillips, J. (2004). IT Project Management. New York: McGraw-Hill Professional.

Phillips, J. & Gully, S. (2011). Strategic Staffing. Harlow: Pearson Education Limited.

Sims, R. (2007). Human resource management: contemporary issues, challenges, and opportunities. Gurgaon Delhi: IAP.