Mcdonalds Australia Human Resources Essay

Final Report| March 29 2010 | | | Strategy and Key HR Challenges Organisation’s Background One of our group members currently holds a position at a McDonalds franchise on the Gold Coast. As a team we have collectively decided to take full advantage of this connection, and establish a sponsorship agreement with the Coolangatta Store. This store is one of four that the owner Michelle and Peter Orton own and run; Marina Mirage, Burleigh Heads, Coolangatta and Tweed Centro these four stores currently make up the over 780 McDonalds franchises Australia wide employing around 85,000 people.

The Coolangatta store we will be focusing on consists of six fulltime managers, an area co-ordinator, six crew trainers and 28 crew members The McDonalds organisation is committed to QSC – quality, service and cleanliness. In doing this they are striving towards gaining trust and respect from their customers. The restaurant chain primarily sells fast and convenient foods such as hamburgers, fries, chicken products and desserts, but also caters for the health conscience by delivering heart tick approved meals and deli choice options.

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As part of their marketing mix they have differentiate themselves from competitors by placing an emphasis on customer satisfaction and the customer experience as whole. In comparison to Hungry Jacks “the burgers are better” slogan which stresses only the burgers are better. Organisational Culture The McDonalds organisation has a very distinctive culture. Their mission statement illustrates the importance the company holds in creating a happy and productive work force.

With statements such as “At McDonald’s, people are the key to our success”. McDonalds is also involved in numerous charities such as The Ronald McDonald house, Camp Quality, Queensland swimming and countless others. The atmosphere which the company wished to create is outlined best on their website “Your trust is a precious asset to our business. We strive to preserve and build on it every day. That’s why we work to do what is right in the community and integrate social and environmental priorities into our restaurants and relationships. All the additional causes the company is involved in helps to build create and sustain a corporate culture in which customer service and staff participation/development are integral parts. McDonald’s core values appear in everyday activities and are used as a guide for their strategic direction. They place the customer experience at the centre of everything they do. * They are committed to the people * They believe in the McDonald’s System * They operate their businesses ethically * They give back to the community * They grow the business profitably and; Strive continually to improve Human Resource Approach Employing such a vast number of people the McDonalds organisation places much emphasis on human resource management. Much of the human resource strategy overlaps and intertwines with the main strategy of the company. Employees are viewed as a major asset to the company and programs have been developed in line with this point of view. These include pathways to promotion, flexible work hours and additional training programs. Much of the stated aims are fulfilled and seem to be consistent with the written strategy.

Focal Job – Crew Member Within each franchise there are a number of positions that contribute to the operations of running a successful store. Basically the following positions listed from the top down are: * Store manager * 1st Assistant * 2nd Assistant * Shift Supervisor * Area Co-ordinator * Crew Training Coordinator * Chief Crew * Crew Trainer * Crew Member We have decided to focus on the basic crew member, despite being the first level of entry for employees nothing would happen without the crew. There are three divisions that the crew member can fall into: 1.

Front Counter 2. Back Area 3. McCafe All three divisions are equally important and do not operate independently of each other. They each have different roles and responsibilities but are linked together by the end result being to satisfy the customer with a 0% CSO – this means that we had no opportunities to satisfy the customer because we exploited every opportunity already. Crew members are provided with all the on-the-job training they require to fulfil their roles. Should they wish to and demonstrate a good understanding they are always offered promotion pathways.

This includes undertaking a crew trainer development program – otherwise known as a CTDP. This allows them to demonstrate to managers that they are willing and able to take on more responsibility and help managers run shift. Essentially they can grow and develop and even go as far as store manager if they wish to pursue that career path. Human Resource Challenges McDonalds has been operating for over 55 years so clearly without too much more information it is safe to say that it is a successful business.

In saying that even McDonalds is faced with human resource issues. With respect to the Coolangatta store the three main challenges that we could identify after speaking with our sponsor were the following: 1) Turnover: Generally within the first two months employees are quitting. Annually they are experiencing a 60% turnover and that’s too high. The store is located on Marine Parade straight across from the beach, which plays host to many surfing events and competitions; like the Quicksilver Pro.

During these busy periods it is crucial that we can count on staff turning up for shifts and be ready and willing to work longer hours and maintain a heavy workload. After speaking to some of the staff members and trying to ascertain reasons why they would quit We have come up with the following recommendations. There was agreement between staff that some of them weren’t receiving the correct training and managers were constantly pulling crew up on mistakes they were making when they simply knew no other way. We recommend a complete evaluation of current training techniques. From a trainee’s first shift to being identified as competent they need to go through the training process with the same trainer. This allows them to establish a rapport and feel comfortable enough to ask questions without fear of feeling stupid. * Allow trainees to have more than three training shifts. We don’t believe three training shifts to be enough. Up to five would be adequate this would give them enough time to be trained in an area and demonstrate their understanding before being left to work moderately unsupervised.

We also found out that reasons for quitting depended on the number of hours – for some crew too much is expected of them, while there are other crew more than willing to take on the extra work but not being recognised as competent and how flexible the working hours were with the current lifestyle, for example fitting in with school and university workload. * We spoke to Elise Hryniuk – the rostering manager, and understand that the rosters are brought out two to three weeks in advanced.

Crew need to understand this and in the event they are unable to work certain hours notify her by putting the availability in the N/A book which should be located in the office. 2) Productivity: Keeping employees productive, motivated and willing to use initiative is a seemingly growing problem. There is a growing trend that 14 year olds are the most common applicants which presents both good and bad outcomes. To the store it is good because hiring younger crew -17 years and under, are cheaper to employ therefore they could have two crew on instead of one 21 year old for the same price.

Unfortunately they don’t have the work ethic or experience that a more mature employee has been able to establish. Also majority of younger crew find it difficult to carry the heavy demand of busy work periods. Confidence is the main contributor to productivity, there needs to be means in play to endorse a happy friendly work environment that promotes friendships and willingness to take on more responsibility. * Confidence can be built through crew outings and social events. These will ensure team bonding and will establish a common interest between crew working throughout the store. ) High number of young applicants: When hiring isn’t essential and looking for someone specific it is difficult to distinguish between applicants. McDonald’s stores are open up to 24 hours a day and it is a requirement that younger employees cannot work past certain hours. According to their workplace agreement, under 16 years of age employees are unable to work before 6. 15am and after 9. 45pm. This can create a problem when McDonalds do not have enough crew that are old enough to work after those hours.

If they are predominately receiving applications from young applicants we recommend the following: * That you review your recruitment process so that potential new employees that are applying meet the requirements of the store. When hiring McCafe staff they advertise that barista training is very important, so there is no reason why you can’t state the positions available are primarily for those applicants able to work around the 6. 15am and after 9. 45pm cut off for under 16 years. Job Analysis of Focal Job * 2. 1 Methods of Data Collection Our main methods of data collection consisted of: An interview with Elise Hrynuik – in which we established a rapport and a good foundation of knowledge to begin our evaluation of the Coolangatta McDonalds Franchise. * Several Interviews with staff – Where they underwent a series of questions from our firm. From this we could gain an understanding of any Human Resource issues they may have had or think they might have in the future. Initially the team came together to outline and develop a series of questions that we took to our first meeting with our sponsor spokesperson Elise Hrynuik, the first assistant.

From this we obtained a substantial amount of information to commence the first part of our investigation. Ms Hrynuik also supplied us with some comprehensive literature on crew essentials handbook and initially joining the McDonalds family. This handbook was a key discovery that provided us with data on the company’s culture, mission and vision. Along with these main three sources we also viewed used the company’s website; although it is maintained from head office and doesn’t specifically give information about the Coolangatta Store it provided us with the company’s background, core values, and beliefs. 2. 2 Job Description McDonalds Job Description Organisation: McDonalds Location: Coolangatta Job Title: Crew Member Date: 18/2/10 Job Summary: To greet and farewell customers is fast and friendly manner, take payments through the use of cash handling methods and use eftpos facilities. Essentially prepare soft drinks, thickshakes and desert – including ice-creams and sundaes, box fries and arrange on tray or in a takeaway bag. Duties and Tasks Performed 1. The Back Area: ‘Crew Member’ in this position must hold basic cooking tasks and understanding how each product is prepared and wrapped.

They must be aware of food safety regulations and maintain tidiness to the kitchen/back area. The C. A. Y. G (Clean As You Go) system is implemented whereby if a mess is made it should be immediately cleaned up. As a back area crew the specific tasks will be undertaken: * Cooking meat on the grill * Seasoning meat once cooked * Deep fry chicken, filet and nuggets * Temp product * Initiate and assemble pre packaged bun on the wraps 2. Front Counter and McCafe: Employees in this area must be able to work the cash register and handle customer’s payments in methods of cash, credit card and eftpos.

They must also have an understanding of the various products to serve after prepared by the back area. In addition, they must have good social interaction skills to manage customer relations and complaints. Ideally crew are too: * Pour drinks (soft drinks and thickshakes) * Prepare dessert (ice-cream cones and sundaes) * Dispense fries into deep fryer and season with salt * Box French fries Skills and abilities * Required to understand and speak the English language * Must be atleast 14 years old Must identify a minimum of 12 available hours to work throughout the week * Clean shaven for men and hair neatly pulled back off the face for girls – take pride in presentation and wear the uniform as required. * Ability to work quickly under pressure when executing simple tasks * Willing to learn and follow precise safety procedures * Prefer working as part of a team * Basic math skills required and ability to calculate change and notice if the register says something leading to a possible input error. Customer service skills (Bubbly have to be inviting, Provide Customer service and satisfaction through quality, service and cleanliness) * Friendly greetings and fast service. Take payments through the use of cash handling methods and use of eftpos facilities Supervision Given: This position does not require the individual to supervise others but will be called upon to back up and help their fellow colleagues, usually during peak hours. Supervision Received: There will always be a crew trainer and shift supervisor on duty. Relationship to other positions:

The ‘Crew Member’ position does not require any previous training or any experience within the fast-food field. All necessary training and information is presented on site prior to starting the job. This position does present with promotion possibilities. ‘Crew Members’ have the opportunity to take on the role of ‘Crew Trainer’, ‘Chief Crew’, ‘Area coordinator’, ‘shift supervisor’ and ‘higher management. ’ Additionally, ‘Crew Members’ who work front counter can take on the responsibility of being cross trained to the McCafe area after two months.

The organisation operates in the following manner: * Crew Member * Crew trainer * Crew Chief * Crew Training coordinator * Area Coordinator * Shift Supervisor * 2nd Assistant * 1st Assistant * Store Manager No education or certificates are required for a ‘Crew Member’. Nonetheless, a ‘Crew Member’ who aspires to take on higher roles as mentioned above will need to acquire the following throughout their time: * CTDP – Crew trainer development Program * Cert II or III in retail and hospitality * MDP 1 – Shift Supervisor MDP2 – Systems (Scheduling, inventory, people practices, managing workplace safety, managing food safety, managing plan maintenance) * MDP3- Restaurant Manager * MDP4 – Advance diploma in Business Planning Machines, Tools and Equipment used: BACK AREA: * High temperature grills * Fry vats * Universal holding cabinets– where the product is held for an allocated amount of time. * Heating loading zone – where the made burgers and salads are placed. FRONT COUNTER: * Soda drink machines * Espresso pronto machines * McFlurry machines * Frozen drink machines Shake and sundae machines * Apple pie warmer * Fry dispensing machine McCAFE * All front counter equipment including * Blender * Toaster * Cafina machines * Automated ovens * Microwave Language Skills: ‘Crew Member’ is required to understand and speak the English language to interact with customers in this region. Physical Demands: This fast food restaurant requires ‘Crew Members’ to take orders, prepare and serve food at a rapid speed of one order after the other so a person with high energy levels would be recommended. Working Conditions: McDonalds promote flexible working hours (It can fit to your commitments such as school, sport or family, exam periods and other important activities) * Work environment where everyone of the same role is treated equally with dignity and respect. * 50% discount on McDonalds meals before, during and after employee’s shift * Will be trained on money handling skills, quality control and equipment maintenance * Risk involved with the use of high temperature deep fryers and grills low risk of possibilities of burns * Awards a number of sports grants and crew scholarships to support studies and sports * * 2. 3 Job Specification General requirements: * Must be 14 years of age minimum * Ability to communicate well with the public, co-workers and all levels of staff * Ability to work in a potentially stressful and fast-paced environment * Ability and readiness to accept change and acquire new skills * Demonstrate excellent personal hygiene as working with food * Clean Shaven (Especially back area) * Available to work at least 12 hours per week * Able to work nights and weekends if over 16 years old Knowledge: * Customer Relations/Complaints * Cash Handling * C. A. Y. G – Clean as you go! Cooking Food – Basic Kitchen Hands * Food Safety – Temperatures of food are meeting minimum requirements * General Safety Work Place Health and Safety Skills and abilities * Customer service skills (friendly and quick and accurate) * Have a sound understanding of safety procedures for both themselves and patrons of the restaurant * Ability to work with team members Physical requirements: * Basic physical abilities * On your feet for the duration of your shift * Working with equipment that reaches temperatures of up to 110 Degrees Celsius * Needs to be able to lift and carry weights of up to 20kgs Educational Basic level of literacy * No educational or certificate requirements Experience * No experience required for the back area * No experience required for the front counter * McCafe – Have worked on Front Counter for two months before receiving cafe training and/or Barista experience Recruitment * 3. 1 Current Recruitment Practices Currently at McDonalds Coolangatta the recruitment practices that are used for the focal job of a crew member are in place consist of: * Employee Referrals * Advertising * Online Recruitment A current employee is encouraged to recommend people they know by means of family, friend or acquaintance.

It is a simply process of getting the potential employee to fill in an online application or application blank, attach a resume and hand it in to the 1st assistant manager or store manager. Their application is usually always processed first and with a recommendation of an existing employee that always is very appealing to the managers. The Coolangatta Store has a huge 1m X 1. 5m ‘NOW HIRING’ sign at the main counter which is generally displayed during all trading hours. This is very good at recruiting interested applicants as we are right on the beach and seek young enthusiastic employees that often are the most of our pedestrian traffic.

The current system in place works, the store currently attracts a minimum of 4-6 applications a week. The two main practices that McDonald’s Coolangatta uses the employee referrals and the in store advertising of positions available. This allows the store to have a pool of resumes on file to which they are able to commence selection from when and as positions become available. Currently it is hard to asses that there may be any downfalls in this system as they have an ample number of applicants varying in age and experience.

An advantage to Coolangatta McDonalds is the cost involved in acquiring these applicants is almost nil. Apart from the cost of the in store sign and printing of application blanks; employee referrals are free and there is a corporate careers website that is funded internally from head office. The Website is a step-by-step guide that allows applicants to easily send away their application and attach their resume. * 3. 2 Recruitment Plan * Selection * 4. 1 Current Selection Practices There is a two-step selection process involved with becoming a crew member at McDonalds.

The first step is a questionnaire included in the application. The questionnaire takes about thirty minutes and will access the applicant to see if they are compatible with the crew member job. If the applicant is successful in the questionnaire they are called into the restaurant to perform an On Job Evaluation (OJE) as well as an interview. The OJE takes about fifteen minutes and consists of the applicant being placed in one of the customer service areas and while they are being instructed what to do evaluation is done. After the OJE, the applicant will have a fifteen minute interview with the business manager.

This whole process allows McDonalds to ensure that the potential employee lives up to the customer service and high-energy skills needed to perform the job. McDonald’s selection process is a good one but could be improved. The OJE is a very productive test and great at predicting how the applicant may work if given the job. Although the selection process is already very beneficial, other procedures could be put into place such as a written test or a longer interview. * 4. 2 KSA’s and Attitudes Customer Service: The applicant must be able to interact and deal with customers to provide optimal satisfaction.

They must demonstrate friendliness and good communication skills. Cash Handling: The applicant must have basic math skills and be able to handle money and provide change in a timely and accurate manner. Working under Pressure: The applicant must understand that the environment of a crew member can sometimes be very fast paced and stressful. They must be able to adapt and cope while working under pressure. Understand Safety: The applicant must comply with current safety procedures and act as a cautious and responsible person. This includes the safety of themselves as well as other employees and customers.

Physical and Mental Demand: The applicant must have a decently sharp mind and basic physical abilities to maintain a fast and error free environment. * 4. 3 Characteristic Assessment Customer Service: There are many way to access whether an applicant has acceptable customer service skills or not. The OJE is a good measure but other evaluations could be performed as well. McDonalds could also create a verbal test that would assess the applicant’s communication skills. They could also ask references if the applicant has any past work experience.

Cash Handling: McDonalds could create a written math test for applicants that would require them to perform related math in a certain amount of time. Working under Pressure: The OJE test is a great way to measure the applicant’s ability to work under pressure. Other than that the only other way to access this trait would be to contact references. Understand Safety: McDonalds could create a safety manual that outlines all of the safety information related to the job of crew member. The applicant would then be forced to study the manual and pass a written test afterward.

Physical and Mental Demand: This trait can already easily be accessed based on the interview and OJE. 4. 4 Recommended Selection Process Step 1 Application Form and CV/Resume In this first process, applicants will be asked for their full name, education, age, time available for work and work history which is needed for STEP 3 ‘REFERENCE CHECKING’. These answers are needed for to see if applicants can move forward within the selection process based on these 3 primary things: 1. Time available for work: McDonalds needs staff who are available at for the time staff is lacking.

There is no use for hiring applicants who is available time is only that which it already has by several different staff. 2. Age and Education: There is a law present that employees who are currently in high school may not work afterhours or on school nights. McDonalds must take into consideration if these times are needed for potential applicants. Step 2 Screening Interview The 2nd step of the process entails questions asked to potential employees. This helps us determine if their knowledge, skills and abilities are sufficient or matches our requirements on five different dimensions: 1.

Customer Service 2. Cash Handling 3. Working Under Pressure 4. Understand Safety 5. Physical and Mental Demands Step 3 Reference Checking Applicants who satisfy the interview questions and maintain a good score will be preceded to the 3rd step of the selection process. This step indicates a list of questions we will ask to previous employers if the individual has prior work history. Please Refer to appendix A Step 4 On the Job Evaluation Prior to the OJE, applicants who have satisfied the previous steps will have a procedures booklet where they must study for to be tested on the OJE.

This differs to practical testing such as using the machinery and equipment as that will be thoroughly thought in the training process after offers have been made. After this step, interviewees will be given a short brief feedback on their performance and evaluation. Step 5 Medical Testing The last step in determining if valid applicants may go though is a simple medical test to find out if they have any contagious illness or diseases which could affect others or violate safety and cleanliness regulations. Step 6 Miscellaneous

After thoroughly discussing and assessing the candidate, either the store manager or 1st assistant decides who are applicable for the job based on their understanding of our 5 dimensions, their scores are determined using the selection criteria outlined in section 4. 2 and 4. 3. An offer is then made to the successful applicants. Reference Questions: Questions| Reasons for asking| When did he/she work for your company? Can you confirm start and end dates? | This is to confirm that the applicant’s information is not false and it could reflect his/her honesty within their personality| Why did he/she leave the company? To understand if we are making a mistake in hiring the applicant based on actions we do not want to be repeated in prior organizations| What was the starting and ending salary? | To configure the appropriate offer of pay for this applicant| What was the position? What was his/her responsibilities and duties? | To see if they already have further background experience in the same field which could lead to more efficiency as he/she is already experienced| Did he/she have a lot of absences? | To predict if this applicant will let down their responsibilities or take advantage of absences. Were there any issues you were aware of that resulted in poor job performance? | To ensure that applicants which are known to be hard to deal with and is a liability is not present in our environment| Did he/she get along well with colleagues? | A job of a ‘Crew Member’ requires colleagues to work with each other in preparing, serving and communicating. This is a very important aspect to have in an applicant. | How did he/she handle pressure and stress? | As the job may encounter fast paced environments and require high energy levels, employees are needed to cope with a reasonable level of pressure. Is there anything else you would like to state which I have not asked? | To confirm we are not skipping vital points about the certain applicant| Interview Questions: Questions and Area judged | Point Given| 1. Why are you looking for job? | | 2. Why do you want to work for McDonalds? | | 3. What can you offer to McDonalds? | | 4. Did you have a previous job? Why did you leave it? | | 5. Will you be able and flexible to work across shifts? | | 6. How would you expect your job’s scope to be? | | 7. How much do you expect your wages to be? | | 8. Have you had an experience in fast food before? | 9. Tell me about a time when you have eaten a lot of fast food? What kind? | | 10. What do you know about safety? | | 11. Tell me about a time when you followed a safety procedure and you avoided a bad situation that could have happened? | | 12. What will you do if there was a fire in the restaurant? | | 13. Have you ever stood up or walk for about 7 hours? | | 14. Have you ever exposed to heat? To what degree? For how long? | | 15. How much weight can you carry out? | | 16. Have you ever stolen food? | | 17. Have you ever stolen anything? | | 18.

What would you do or say if your friend asked you for a free ice cream? | | 19. What would you do if you see your colleague ate French fries for free? | | 20. Are you able to work in very fast paced and stressful environment? | | 21. Are you able to work under pressure? | | 22. Tell me about a time when you have to work under pressure? | | 23. How long do you expect your working hours? | | 24. Tell me about a time when you were asked by your supervisor to do something that you did not agree with? What happened? How did you deal with it? | | 25. Tell me about time when you have had conflict with team member?

What happened? How did you behave? | | 26. Tell me about time when your workload was heavy and how did you handle it? | | 27. What do you know about customer services and satisfaction? | | 28. Are you good with kids? | | 29. Describe a time when you made a decision that satisfied a customer? | | 30. What would you do if a customer complains to you? | | 31. What will you do if an angry customer yells at you? | | 32. How will you act if you see your supervisor is having a problem with a customer? | | 33. What would you do if you have to deliver food to customers’ cars? | | 34.

What would you do if you were asked to clean the tables and the flower? | | 35. What would you do if you were asked to work an extra hours to cover your fiend’s shift until he/she shows up? | | * 0=none, 1=minimal, 2=average, 3=above average, 4=outstanding Applicants Name:| Date: | Rating: 1= low 5= High| Appearance| 1| 2| 3| 4| 5| | Respectfulness| 1| 2| 3| 4| 5| | Punctuality| 1| 2| 3| 4| 5| | Work Readiness| 1| 2| 3| 4| 5| | Verbal Skills | 1| 2| 3| 4| 5| | Enthusiasm | 1| 2| 3| 4| 5| |

Integrity| 1| 2| 3| 4| 5| | Behaviour| 1| 2| 3| 4| 5| | Cooperation| 1| 2| 3| 4| 5| | Related work experience | 1| 2| 3| 4| 5| | Overall impression| 1| 2| 3| 4| 5| | COMMENTS:| The store manager and the 1st assistant will administer the interview. They will focus on hardworking, prompt reliable, pays attention to details, able to work with others, good people skills and communication skills persons. Training and Development * 5. 1 McDonalds Coolangatta-Current Training Practices There are an extensive number of training practices and programs currently implemented at the McDonalds Coolangatta store.

Training is widely regarded as fundamental and a key aspect to the business operations. As such the store operates on a culture of development and a belief that effective training can develop new resources, enhance culture, improves thinking and decision making and drives achievement orientation. * 5. 1-1 Front Counter Training Programs The focal job of crew member consists of two subsections front counter and back area staff. The following outlines front counter training practices. Once hired, employees are enrolled in a three month probation period.

This trial period is utilised for training in the essentials “need to knows” of working at Coolangatta. The first four shifts are three hours blocks and are allocated to intensive training. The training regime firstly instructs new hires in categories of drinks and desserts, and then is followed by fries and dinning training. This training is implemented by a crew training which each new hire is assigned. (See 5. 1-3 Crew Trainers for more details. ) In the second month of employment new hires are trained how to use the front register and on customer service protocols and techniques. 5. 1-2 Back Area Programs The final subsection to crew member employment is Back area staff. The training for back area staff is similar to front counter however there are a few key differences. Newly hired employees are also enrolled in a three month probation period where the first four shifts are three to five hour blocks and the majority of time is dedicated to learning how to cook the product which is referred to grill/fried and the “line” assembly of burgers and wrapping. * 5. 1-3 Crew Trainers Crew trainers are an essential part of the training program at Coolangatta.

Crew trainers teach new hires everything through from the McDonalds way to pick up a box to how to use registers to customer service. There is a formal 4 step training program that each trainer must follow to the detail. There are also detailed checklists that are followed throughout the training process these are known as SOC’s –Station observation checklists. This process is a kind of buddy program and trainees are encouraged to utilise their assigned member to answer any pending question throughout the orientation process. * 5. 1-4 Analysis of training programs

The training programs that are implemented at McDonalds Coolangatta are highly detailed. Every aspect of new hire training is outlined in great detail, via many resources. These include videos and operations and training manuals and crew training manager workshop guide and toolkit. There are also a number of other detailed guides available. These materials are allocated at the store for easy quick reference if any refreshment or greater detail is required. The buddy program is also a great process as it allows bonding between staff members and personalized training.

There is also a group approach to training at Coolangatta as suggested by the opening statement in the operations and training manual “Training at McDonalds-It’s everyone’s job every day. ” Such an attitude allows team building as well as the efficient training. In general McDonalds is world renowned for its training practices and the Coolangatta store seems to be no exception. However as the majority of procedures are set up from the head of McDonalds organisation, they may seem too formalised especially when taking into account the Australian culture.

According to Hofstadter Australian’s have low power distance orientation the implications of this may influence greatly the ability of managers/authoritative figures to formally implement training procedures. A less formalised process and approach may be more effective when training newly hired employees. * 5. 2 Training Recommendations Training is an essential part of any business operation and we have recognised this as a key aspect of the McDonalds Coolangatta as such it is our suggestion that a more locally responsive approach to training be implemented.

This would include a more casual approach to training via a less formalised buddy program. This would consist of a peer to peer training program where people at the same level of the organisation offer tips and a helping hand to new recruits. As a group we believe that such formal training and development programs may be a key contributing factor to the high staff turnover rate experience at Coolangatta. The peer to peer program is recommended in addition with a scaled back approach of the current formal procedures. 5. 3 Training improvements and Redesign As mentioned above we believe that a more casual approach to training would provide better results and lower turnover rate. The current system is very formalized and strict which tends to lead to an extreme amount of pressure for the new employees. This pressure can often cause them to become too stressed leading to bad productivity and sometimes self termination. We believe that a peer to peer training approach would be more beneficial as well as cost beneficial.

Instead of devoting the four shifts to intensive training, we believe that the crew member should enter straight into working and learn from their peers as well as experience. This will relieve the new crew member of the stress that results from worrying about making a mistake in front of a trainer or person of greater power. The new peer to peer training program can also extend the training longer than four shifts and give the new member more time to learn the ropes. Since the new employee will no longer be under strict watch, we have developed some ideas on how analysis can take place.

Mystery shoppers are a great way to exam how employees are performing. We think that increasing mystery shoppers for new crew members would be a good way to test their knowledge and determine how much they have learned. Another approach to analysing the new crew members would be to interview their peers and figure out if they work well together with the rest of the team. Team chemistry is crucial for optimal performance so the other crew members opinions are important. We also believe that it is important for the new crew member to be tested on what they have learned.

The store manager should be the one to give this test and determine if the new employee has had enough training. We think that this new test should take place when the store is closed and the employee will be asked to perform certain tasks, identify equipment, and be able to provide an appropriate response when asked what to do in certain situations. This new training system will allow the new crew member to have more freedom and experience less pressure yet will also allow proper analysis of their performance. Performance Appraisal * 6. 1 Current Performance Practices

With regards to current performance appraisal systems McDonalds Coolangatta employees are appraised based on three major aspects customer service, accuracy and speed and cleanliness. The customer service aspect relates to friendly greetings and farewells, dealing with customer complaints and customer recovery. Accuracy and speed refers to the employees ability when serving the customer to ensuring the order is served correctly and in a timely manner; ideally under a total experience time of 210 seconds. Cleanliness refers to the employees ability to employee practices of McDonalds CAYG clean as you go concept.

Currently these three aspects are sufficient in determining an employee’s level of performance. As all aspects are crucial in achieving 0% CSO which means that there are zero opportunities in satisfying the customer because all have been met. Coolangatta has been able to achieve several CSO 0% over the past 6 months this just proves that the method of appraisal is currently working. With regards to feedback from managers and to employees there are a few methods that are used. 1. Immediate feedback: This means that with on the spot supervision feedback is given immediately as good work is noticed or a problem is identified and remedied. . Later Evaluation: A method of evaluating the employees work ethic and appearance over a period of time. The managers evaluate the employees over a period of about a month and write up a formal evaluation that is later shown to the employee in a quick interview to just update the crew member of the performance. This is very successful as it allows for the crew to talk to the managers about any problems they may have and vice versa. * * 6. 2 Key Aspects As a McDonalds ‘Crew Member’, their performance is often assessed to maintain acceptable standards of the job.

McDonald’s business strategy should focus on providing high quality products in a short time and a clean environment. This strategy should have a vertical fit on the dimensions of the performance appraisal system to compliment it. The performance appraisal should be based on these 3 dimensions of Quality, Service and Cleanliness (QSC). Firstly, the McDonalds Company solely revolves around their food products. The ‘Crew Members’ must make sure that everything being served to customers meets their high quality standards as promised.

In this category of the appraisal, employees should simply follow knowledge earned from their previous training program and follow instructions from supervisor’s they answered to. If a ‘Crew Member’ was to take several shortcuts or not follow direct instructions to preparing the meals, this should be a high concern in assessing their performance. For example, a ‘crew member’ working in the back area who grills meat quicker than instructed would result in an uncooked burger being served to a customer. Secondly, the Service dimension is also of the upmost importance as it reflects on McDonald’s guarantee on fast service.

Performance of a particular employee’s service skill should include their ability to perform their tasks and prepare meals to customers on a rapid on the go manner without diminishing quality. Interaction between customers should be in a friendly manner, key aspects should include smiling, maintaining eye contact and helpful towards customer’s needs as customer satisfaction is an essential factor for the business. Thirdly, ‘crew members’ should be assessed on their performance to maintain a clean and hygienic environment. This applies for back area cleanliness that includes frequently cleaning all the equipment and machinery used.

The current CAYG (Clean as you go) system should still apply as an occasional spill can lead to hazardous consequences as well as slowing down the rapid service performance promised in McDonalds’s business strategy. Furthermore, cleanliness should also be maintained in the front area and beyond the counter to ensure customers that there is nothing unhygienic to worry about and to meet the hygiene regulations standards. All above key aspects should help assess high performance for McDonald’s ‘crew members’ in order to maintain its business strategy. 6. 3 Assessment The current appraisal method McDonalds has in store is based on achieving a 0% CSO that means opportunities to satisfy the customers have all been met. This has been proved an effective method. However, some modifications towards assessing performance appraisal of ‘crew members’ can lead to more effectiveness and efficiency. The 3 dimensions of Quality, Service and Cleanliness should still be the focal factors. We want to assess if the employee’s traits and behaviours reflect to a high score on the 3 dimensions.

Either the store manager or first assistant – to ensure consistency, will still conduct the assessment of each ‘crew member’s’ performance but in a different view every six months. We introduced a Graphic rating scale plus narrative method to assess performances on the 3 different dimensions. The scale is as follows: QUALITY:| 1| 2| 3| 4| 5| Follows cooking and preparing instructions thoroughly step by step| | | | | | Accuracy of orders| | | | | | Making sure food looks serve-worthy| | | | | | CLEANING:| | | | | | Thoroughly cleaning machinery| | | | | | Thoroughly conducting janitorial cleaning| | | | | |

Regularly washing hands| | | | | | SERVICE:| | | | | | Remembering the menu| | | | | | High degree of eagerness and friendliness towards customers| | | | | | Playful and friendly interaction towards children| | | | | | Handling special orders with no problems| | | | | | Reacting professionally and friendly towards customer complaints| | | | | | Reacting professionally and friendly towards peers and supervision complaints| | | | | | As we can see, the graphic rating scale has 3 different sections based on the respective 3 dimensions of Quality, Cleaning and Service.

For quality, the assessor focused on rating ‘crew members’ on cooking and preparing the meals according to given instructions prior in training to ensure the best quality. In addition, the assessor will rate when the employee believes that the food they have prepared looks acceptable to serve based on their own judgment. Another aspect is to make sure that the meals served are the correct one ordered and if the employee notices that. In the cleaning phase, the assessor rates each ‘crew member’s’ ability to clean machinery and environment and if it meets to the hygiene regulation standards.

Of course, it also rates on how often these detail cleans are done. In addition, each ‘crew member’ should already know that regularly washing his or her hands is of high importance to ensure a germ-free process. The current McDonalds performance appraisal method is highly revolved around customer service and we could not agree more. This is why; the Service section of the graphic rating scale has the most points to be rated on. This includes a friendly and eager to assist attitude when serving customers.

As a family environment, it is also important that ‘crew members’ who interact with children are friendly and playful whether if its serving them happy meals with toys or guiding them in the playground. It is also quite common that customers will place special orders on either altering meal plans or requesting a specific order. A ‘crew member’ would be rated highly in this aspect if they would handle such orders with no problems in the back area or the front. Obviously, the ability to remember the whole McDonalds menu is essential and they will be rated on it.

Finally, ‘crew members’ will be rated on their ability to handle customer and in-organization complaints professionally and friendly. We believe that all these factors rated highly contribute to an efficient and effective performance for the branch. Afterwards, the assessor may provide additional comments on a certain ‘crew member’ based on positive or negative aspects which is the same as the current method of immediate feedback. The current ‘later evaluation’ method still applies however it can lead to performing a Remedial Action Plan (RAP) for poor performers, which includes questioning hem, and advising them on what needs to be improved based on specific goals, which will be presented to the individual. Similarly, Development Action Plan will be executed for high performers that can lead to a chance for a promotion and a higher pay. Although we believe, McDonalds’ current performance appraisal system is already highly effective. We feel that with this method, supervisors can notice more detailed observations than before and therefore find faster solutions if certain aspect does not meet standards. This undoubtedly would lead to a higher performance environment with more efficiency. 6. 4 Frequency of Assessment Performance reviews are an important management tool and is an excellent opportunity to improve performance, as it improves future performance by evaluating past performance. Performance assessment shouldn’t be a surprise, as employees should be receiving regular verbal performance updates by their trainers. Crew members should be assessed every three months by certified crew trainers. On the other hand, the managers should also assess crew trainers every six months. Managing directors assess managers once annually.

When to do reviews: * Schedule quarterly performance reviews every three months * Conduct them whenever there is a problem or when an employee needs individual attention * Each employee should receive at least one performance review per year. Full time crew members should receive at least four times per year, crew trainers should receive twice a year, and managers should receive one per year. * 6. 5 Feedback Crew trainers watch crew members while they are performing the task and either appraise them, coach them on the spot, or inform them of their mistakes.

They also give feedback to employees as they go in real-time. Performance management should be handled by the use of a station observation checklist, which enables the manager to provide employees with feedback based on their performance. * Give feedback to reinforce a positive trend in an employee’s performance * All managers should be involved in giving feedback of a crew members performance * Managers meetings are a good opportunity to do this, however, the restaurant manager or first assistant manager should actually present the review.

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