In its quest to become a leading fast-food outlet globally, the McDonald's Corporation has realized the need to promote its human resource management to achieve better customer satisfaction. The company's mission is "to be our customers' favorite place and way to eat and drink." Founded in 1955 by Ray Kroc, McDonald's Corporation views its customers as the driving force behind its prosperity. Customer satisfaction is a critical element of business relations, and the company has focused its business model alongside customer satisfaction and outcomes. Simultaneously, the corporate vision statement is "to move with velocity to drive profitable growth and become an even better McDonald's serving more customers delicious food each day around the world." Despite focusing on its customers, the firm also focuses on its business model, implementing new processes and shaping its existing policies to achieve its goals. From human resource development, marking, and product development, McDonald's Corporation continues to envision itself as a leader in the food industry.
Leadership will play a significant role in propelling the vision and mission at McDonald's. Dermol & Širca (2018) believe that achieving the set goals mandates communicating the vision and mission to all members. Moreover, focusing on customer experience is aimed at making the company a favorite choice for all people. This requires implementing a plan that focuses on its employees, product, price, place, and promotion. For instance, the company is making strides to ensure its employees are well-trained and have the right skills to handle customer requests in all its restaurants. Additionally, the company's human resource management has implemented a series of strategies, such as a hospitality culture in ll its restaurants, geared towards revamping its business model and eliminating activities that do not improve the customer experience. Other strategies, such as the new e-learning system, employee training, and rewards programs, continue to help the company grow by aligning its vision and mission with its employees.
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Outlook and Approach
As earlier noted, McDonald's Corporation understands the role its employees play to achieve success. Therefore, the company has implemented several HR strategies that focus on recruitment and selection, employee training, and management performance. Additionally, the company understands how culture and diversity in the workplace can influence performance and overall productivity. However, diversity in the workplace can lead to many challenges, and the leaders must act quickly to resolve any cultural differences that can negatively affect the firm's vision and objectives (Cletus et al., 2018). Over the years, McDonald's Corporation has aimed to recruit skilled employees and ensuring that their well-being is maintained. This has been done through ongoing training and implementing reward systems such as promoting better positions within the company.
The ability of McDonald's to build cultural awareness and knowledge through employee training has been a testament to its progression and entry into other global markets. Global citizenship and training and development encompass its performance management system and the desire of the company to help its employees grow, both personally and professionally. Additionally, its recruitment policies and retention practices help bridge the culture gap within its global workforce. McDonald's market position stems from its ability to nurture talent, adapt to the changing consumer needs, embrace innovation, and remain competitive. In the long run, aligning its vision and mission towards promoting customer experience and employee satisfaction will depend on its business strategies in this ever-changing business environment.
Analysis and Decision-Making
Human resource managers face the challenge of implementing performance management systems and strategies to improve employee engagement. In its policy statement, McDonald's has a pay and rewards system that aims to build performance growth among all employees. In essence, best-performing employees are rewarded for their efforts on top of the basic pay they receive. Additionally, the company ensures that the basic pay is comparable to other competitors within the same food industry. The basic pay is also dependent on an employee's skills, position, and knowledge. The policy on rewards and incentives effectively communicates the expectations and performance objectives demanded from each employee (Khan, 2018). Short-term incentives and rewards largely depend on how the employee has performed and the company's profitability within a specified period.
McDonald's also offers its employees long-term financial incentives that help build their personal and professional goals. For instance, the company's policy statement offers long-serving performing employees stock to help them achieve more financial gains and feel part of the company. However, Khan (2018) notes that these incentives alone cannot guarantee success, and as such, the management should provide feedback to help their employees improve on their current performance. Additionally, the company has also implemented several other policy practices such as insurance and non-monetary rewards. These rewards complement excellent employee performance as well as show gratitude for the hard work they are demonstrating. Ultimately, the need to implement reward schemes to recognize excellent performance is crucial to the company's strategic business management.
Risk Management
McDonald's must evaluate how it will continue to safeguard the interests of its employees, business model, and practices through risk management practices. Engelbrecht et al. (2017) acknowledge the role of leadership in ensuring integrity, ethical, and legal compliance are instilled within an organizational framework. In a bid to hire more employees, McDonald's raised its minimum hourly wage for entry employees in its company-owned stores. However, while most of its business franchises are privately owned, there have been nationwide protests against this move. Implementing a risk management policy to protect the company from such challenges will be critical to improving its business operations and build strong relationships with its stakeholder.
Risk management also involves building trust and consistency in decision-making. Ethical practices at McDonald's must be embraced to prevent inflicting a bad reputation and destroying its brand image in public. Engelbrecht et al. (2017) encourage McDonald's management to promote its vision, mission, and values that integrate both collaboration and integrity into its business practices. Additionally, the company should identify and assess any potential risks impacting its human resource and overall business activities. In turn, this will help McDonald's mitigate any risks that could arise and plan for the recovery process.
Customer Service & Negotiation
Through its vision and mission statements, McDonald's is determined to ensure its customers receive better service delivery in all its stores. The success of the company and its recognition globally can be attributed to its ability to understand the changing customer needs and preferences. Therefore, the HR department should remain steadfast in promoting customer satisfaction and addressing any challenges that prevent effective service delivery. This will also involve creating a communication plan that builds trust and integrity between stakeholders and customers (Pang et al., 2016). Moreover, McDonald's should pay attention to customer preferences and what other similar companies are doing to attract more customers.
Data Analysis
McDonald's has endured pressure from rival companies to establish itself among the top fast-food franchises globally. Its HR management continues to implement new policies, procedures, and practices that ensure customer satisfaction is achieved and employees remain motivated to perform. While the current business environment is unpredictable, Pang et al. (2016) believe that HR managers should push the boundaries in managing human capital and customer experience. Using the above strategies at McDonald's will elevate the company to new heights and foster its competitiveness. Using software tools and applications to measure performance metrics will be essential in generating data for better decision-making.
References
Cletus, H. E., Mahmood, N. A., Umar, A., & Ibrahim, A. D. (2018). Prospects and challenges of workplace diversity in modern day organizations: A critical review. HOLISTICA – Journal of Business and Public Administration , 9 (2), 35-52. https://doi.org/10.2478/hjbpa-2018-0011
Dermol, V., & Širca, N. T. (2018). Communication, company mission, organizational values, and company performance. Procedia - Social and Behavioral Sciences , 238 , 542-551. https://doi.org/10.1016/j.sbspro.2018.04.034
Engelbrecht, A. S., Heine, G., & Mahembe, B. (2017). Integrity, ethical leadership, trust and work engagement. Leadership & Organization Development Journal , 38 (3), 368-379. https://doi.org/10.1108/lodj-11-2015-0237
Khan, M. Y. (2018). Strategic human resource practices and its impact on performance towards achieving organizational goals. Business Ethics and Leadership , 2 (2), 66-73. https://doi.org/10.21272/bel.2(2).66-73.2018
Pang, A., Shin, W., Lew, Z., & Walther, J. B. (2016). Building relationships through dialogic communication: Organizations, stakeholders, and computer-mediated communication. Journal of Marketing Communications , 24 (1), 68-82. https://doi.org/10.1080/13527266.2016.1269019
