HR at McDonald's

In the year 2000, according to the company's 10K and annual report, McDonald's had sales revenues of $14,243,000,000. It is ranked # 132 in the Fortune 500, #146 in the Hoover's 500, # 100 in the FT Global 500, and is also in the Standard & Poors 500. McDonald's and its affiliated companies employ approximately 314,500 people full time, of which approximately 33,000 are full-time salaried employees (10-K, 2000, 4). Roughly 800,000 more part time employees around the world make up what has become known as the McDonald's team. This brings the total McDonald's employees worldwide to approximately 1.5 million (Fact File, 2001).

McDonald's opens a new restaurant somewhere in the world every 13 hours. 85% of the restaurants are independently owned and operated, with company-run stores making up the other 15%. McDonald's is the second-most recognized brand in the world - only Coke (which McDonald's serves) is more recognized (Horovitz & Strauss, 1998).

The outline of the story of the founding concerns kitchen appliance salesman Ray Kroc who discovered two black men, the McDonald's Brothers, who had a drive in restaurant in California that sold a simple menu of hamburgers and milk shakes. Every time Kroc called on this account, it was fantastically busy (Fierman, 1993). Kroc bought the brothers out and began duplicating the formula of simple menu and low price and turned his company into a worldwide success. As the cor

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its HR organization into sector groups, rather than the traditional HR organization of people assigned to the standard HR departments of oversights, training, hiring, motivation and so on (McDonald's, 1999). This is a necessary organizational step since few of the nations in which McDonald's operates have employment protection laws similar in fact or in philosophy to the broad code of regulations governing an American company when dealing with employees. When the company set up operations in France, Germany and Sweden, it was faced with making its employment and hiring policies seamlessly mesh with some 500 laws that regulate what the company has to do in terms of pay, on health and safety, working conditions(there are even controls concerning lighting, wall colors, temperature and so on). "A hands-off, laissez-faire attitude is the only way to handle HR in our foreign operations "(Cassandra, 1999). She added in the interview that the main purpose of the HR facilitators in the various overseas operations is to serve as "pre-damage control experts. We want to know ahead of time if there is going to be a problem of some sort -- a strike, a protest, a boycott, so we can alert the McDonald's legal team ahead of time" (Cassandra

Category: Business - H