The Company that I am using as a base of research is the McDonalds Drive Thru branch at Newtownards Road, Belfast.
The Company that I am using as a base of research is the McDonalds Drive Thru branch at Newtownards Road, Belfast.
The franchisee acquired this business in 1998 and this is the only branch that he currently owns. His name is Paul Connan.
Types of Businesses
(a) Sole Trader
A sole trader is a business that has one owner. It can trade under the owner's name or under a business name. It is usually a family business. Many small businesses such as local shopkeepers, window cleaners and market traders operate as sole traders.
Partnership
A partnership must have at least two owners and can, in most cases, have up to a maximum of twenty. The partnership is often used as a form of organisation by professional people such as doctors, dentists and solicitors who find they can offer a wider service by operating together with colleagues who have different specialisms.
Private Limited Company (Ltd)
Private Limited Companies are formed by many small to medium-sized businesses.
These may not offer their shares to the general public. They tend to be smaller than public limited companies (PLCs) although many have substantially more share capital than some of the smaller PLCs. Examples of LTDs might be a local garage, or a farm. This is also the form of organisation used by most of the clubs in the football league.
Public Limited Company (Plc)
Most of the larger companies are public limited companies. These may offer their shares to the general public, often through the Stock Exchange. It is the share prices of these companies that are displayed in the daily press. They include household names such as Tesco, Marks & Spencer, ICI, the high street banks, some football clubs such as Tottenham Hotspur, as well as the recently privatised business such as British Airways and BT.
Franchise
The franchise is an increasingly popular form of business organisation. It is a particular example of decentralisation. Here the parent company, called the franchisor, will sell the right to use its name to an independent operator, called thee franchisee. The operator will buy an agreed amount of stock from the parent company, pay a percentage of annual profits over and agree to provide a certain standard of service. In return there will be help in setting up, the benefit of national promotion and a ready-made image. Examples of franchise include McDonalds, The Body Shop, KFC and British School of Motoring (BSM).
Voluntary/Charity
Non-profit-making organisations may range from small local clubs and societies to large organisations with huge annual turnovers such as the Co-operative Society, the trade unions, some building societies and charities. What these have in common is that they plough back any surplus they make to benefit their members in the future. In this respect, although they may make money on the year's activities it is not a profit, because no owner is entitled to take the money.
Constraints and benefits of McDonalds being a Franchise
McDonald's is the largest food service company in the world. As at December 2000, McDonald's and its franchisees operated over 28,700 restaurants worldwide in 120 countries and territories, serving food and drink to over 45 million people daily.
In 1974 McDonald's opened its first restaurant in the UK. By the end of 2000, 1,116 restaurants were operating in the UK. Every day more than 2.5 million people in this country visit McDonald's - trusting the company to provide them with food of a high standard, quick service and value for money.
The total cost of a McDonald's franchise ranges from £250,000 upwards. Applicants are required to have at least 25% of this sum in personally owned funds. For applicants without this level of initial capital there is a low cost earn-in scheme - the Business Facilities Lease (BFL).
The Constraints for McDonalds
* You still have to answer to the franchiser and must not change the layout of the restaurant without permission to do so
* You must use franchise supplies - this means that they cannot buy in supplies even if they are cheaper or of a higher quality
* Continuing fees - royalties every year means that Paul Connan must pay McDonalds to be able to have it as a franchise
* Local competition - as a franchise McDonalds do not have the scope to react to, for example, to price cuts or other marketing ploys like buy 1 get 1 free. (BOGOF)
* Lack of marketing - as an individual branch McDonalds cannot market their restaurant - marketing takes places on a province-wide, UK wide basis
* Renewing the franchise agreement every 20 years. This means that you will have to make a personal commitment to run the business, day in, day out, for at least 20 years. However under this agreement the real estate and buildings are owned by McDonald's (or McDonald's hold the head-lease), the restaurant equipment (Kitchen equipment, decor, seating, fixtures and fittings), are purchased by the franchisee.
The Benefits for McDonalds
* Proven brand and product and you know that they are successful - there are definitely industries where there is a benefit to having solid brand recognition. A speaker recently said, "McDonalds isn't in the food business, they're in the marketing business. If they were in the food business, they'd die, because the food sucks". There is definitely something to that. McDonald thrives because people are comfortable and familiar with McDonalds. They know what to expect, and receive fairly consistent service. The customers also go back because they are constantly reminded of the McDonald's "experience"
* You get to run your own business and be your own boss - The McDonald's franchise represents a chance to run your own business without being alone. You will be supported by the world famous McDonald's system, in the areas of operations, training, advertising, marketing, real estate, construction, purchasing and equipment. McDonald's franchises restaurants to individuals only - never to companies, partnerships, family groups or passive investors. However, many of their franchisees operate their businesses as husband and wife teams
* Product and management support - Independent companies supply all raw materials, goods and services to each restaurant. McDonald's must approve all products used in the restaurant
* Purchasing power - There is also the potential for cost savings. If the franchiser is able to purchase goods and services for several hundred or thousand locations, they are in a stronger negotiating position than the independent operator. A franchise is often able to pass on these savings to their franchisees and that translates to lower costs of production. It is hard to ignore the buying power one gets as part of such a large group.
* Marketing power - The marketing power of a franchise is also a major benefit. The company essentially pools the funds of its owners and purchases more advertising. Advertising can be targeted nationally to customers via the television shows, radio programs and magazines that your customers enjoy. At the same time, their pre-prepared advertising can be plugged in to your local market, and can appear much more professional than that of your competition.
(b) Objectives of a Business
Businesses exist to provide goods and services. All businesses, whatever their objectives, have to make products and/or provide services that satisfy customers' wants or needs. Businesses set themselves objectives that govern the way they operate.
For McDonald's to achieve their goal of being the world's best quick service restaurant experience, they must have the best experience for all McDonald's employees. So they formalised their beliefs into their People Vision and their People Promise.
Their People Vision defines what they strive to be as an employer. Simply put, they aspire To" Be the Best Employer in Each Community Around the World".
McDonald's vision is to be the world's best quick service restaurant experience. Being the best means providing outstanding quality, service, cleanliness and value, so that they make every customer in every restaurant smile. To achieve this McDonalds has set objectives, these are:
* "Be the best employer for our people in each community around the world". It is difficult to gauge how successful it has been in this area at achieving this objective, but from a personal point of view there are employers locally who would treat their employees' better. An example of this would be the new state of the art Indian Ocean Restaurant at the Odyssey.
* Making a profit. This is basically just making money on their products and services. McDonalds still continue making a profit with new branches continuing to open throughout Northern Ireland. I know that McDonalds has successfully met this objective because it makes a profit of £30 billion on average every year.
* Faster drive thru times. McDonalds have taken action to increase their drive thru times by placing a tannoy in the drive thru lane. This speeds up the order taking and therefore more customers are served in a better time. The drive thru times should be ...
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* Making a profit. This is basically just making money on their products and services. McDonalds still continue making a profit with new branches continuing to open throughout Northern Ireland. I know that McDonalds has successfully met this objective because it makes a profit of £30 billion on average every year.
* Faster drive thru times. McDonalds have taken action to increase their drive thru times by placing a tannoy in the drive thru lane. This speeds up the order taking and therefore more customers are served in a better time. The drive thru times should be 90 seconds taking the order, 30 seconds receiving the payment and 60 seconds receiving their meal. Altogether each customer should on average spend no longer than 3 minutes in drive thru. Each McDonalds drive thru in Northern Ireland compete with one another to see which one can work the fastest with the best quality food. Each order and the time it takes to receive the order are recorded on the computer. The McDonalds with the most orders after a certain time are the winners. This encourages the employees to work harder. Without a tannoy this would not be possible. I feel that the drive thru times in McDonalds, Dundonald are decreasing, so therefore they have met this objective very well, by still pleasing their staff and also their customers'.
* Increased market share. The market share is the fraction or part of the market, which a business controls. Generally, a bigger share of the market gives more power and influence to a business. If the business abuses this power by acting against the public interest, for example by charging high prices, it could be investigated by the Competition Commission. Whilst McDonalds international operations still display a healthy growth and profitability, the vital US market is flat, and they have, for the first time ever, lost market share to arch-rival Burger King. Franchisees are worried, also because for some time now no new product has thrilled the market. Shares have not grown in value for two years; in fact they are kept just stable by the good performance of foreign markets. Amid all these signs of malaise, the top managers seem to have lost their way: they appear unable to devise a strategy to tackle the stalemate. Attempts to restructure operations, review marketing, revise the structure seem only able to nibble at the edges of the problem: they fail to provide a stable strategy and a willingness to make it work. Burger King seems to have an edge on McDonalds in product innovation, but McDonalds is more widespread, and very successful internationally, thus remaining the number one spot. Burger King says they focus on revenue per store, as opposed to number of restaurants
* Reduced complaints. McDonalds get a lot of complaints. These can vary from a table that hasn't been cleaned to complaints about hygiene and food quality. However, whatever the complaint McDonalds should take each one very seriously. It is very difficult to access this because the managers do not always keep the correct records of these. I feel that if McDonalds was more responsive and listened to the customer's complaints then they could use them as a positive change and improvement towards McDonalds. If McDonalds have fewer complaints then it means that they are pleasing their customers. This would give the employees and also the managers a greater job satisfaction. It would also help to gain more market share. I feel that all business should have this as an objective.
* Reduced crew turnover. This is simply the rate in which people leave and are replaced.
* Achieve enduring profitable growth by expanding the brand and leveraging the strengths of the McDonald's system through innovation and technology
Through marketing strategies McDonald's increases their market share by making the public more aware of their products and services. Their strategies vary from television and radio advertising to getting involved in sponsorship of football teams. McDonald's also get involved in community projects, environmental issues, and also has its own charity - this all raised awareness of McDonald's name, therefore getting more people to visit McDonalds.
"In today's world a business leader must be an environmental leader as well." - Jack Greenberg, McDonalds Chairman & CEO
McDonald's believes it has a special responsibility to protect our environment for future generations. This responsibility is derived from their unique relationship with millions of consumers worldwide, whose quality of life tomorrow will be affected by their stewardship of the environment today. They share their belief that the right to exist in an environment of clean air, clean earth and clean water is fundamental and unwavering.
They realise that, in today's world, a business leader must be an environmental leader as well. Hence their determination is to analyse every aspect of their business in terms of its impact on the environment and to take actions beyond what is expected if they hold the prospect of leaving future generations an environmentally sound world. They will lead both in word and in deed.
McDonald's objectives with animal welfare are to provide leadership and innovation in order to create an industry-changing impact, and to provide transferability to others in the industry as well.
"McDonald's animal welfare decisions are unprecedented in the retail industry. McDonald's is the first to factor animal welfare guidelines into the procurement process, addressing an issue that is complex and multi-dimensional, consisting of many stakeholders, and successfully engaging its suppliers, scientists, academics, non-profit organisations, and other stakeholders to forge very meaningful solutions. McDonald's used its purchasing power and influence with suppliers to address and eliminate certain animal welfare problems. McDonald's programs can be adopted by others, and likely will be over time. Thus, the impact goes beyond McDonald's and its own set of suppliers".
Marketing strategies can come from head office, or individual store managers. Promotions are constantly held in conjunction with Disney films, which appeals to younger members of the public.
In order to measure how well McDonalds is meeting its objectives the following information or statistics are needed:
Qualitative Type Information
* Mystery Diner Reports - these explain how good McDonalds services are to the customer. The mystery diners visit the store three times per month. The staff and the rest of McDonalds customers have no idea who this mystery customer is
* Audit Grades - these tell Paul Connan (the franchisee) whether his store is on an A/B/C grade. A lot of crewmembers in McDonalds do not know who Paul Connan is, so he may either drive through McDonalds and place his order or he may go inside the store to place his order either way he is really assessing the food quality and the friendliness of his staff.
Quantitative Type Information
* Performance of OCL's - This shows McDonalds how well their staff are trained within the store. Without this they would not know how well their staff were trained and therefore their customers may not get the best service available. If less people are satisfied with the service of McDonalds then less people will want to visit the store therefore their market share will decrease. This will also lead to profit loss
Businesses set themselves objectives that affect the way they operate. Every organisation will have a mission. This is really about what business they are in and what they are trying to achieve. Their objectives flow from its mission and are the criteria against which its performance needs to be judged.
The starting point for an investigation into organisation's objectives is its mission statement. A mission statement is a written document setting out the organisation's purpose.
MCDONALDS MISSION STATEMENT
McDonald's vision is to be the UK's best quick service restaurant experience. They achieve this through five strategies: Development, Our People, Restaurant Excellence, Operating Structure, and The Brand.
* "Development: Lead the Quick Service Restaurant market by a programme of site development and profitable restaurant openings.
* Our People: Achieve a competitive advantage through people who are high calibre, effective, well motivated and feel part of the McDonald's team in delivering the company's goals.
* Restaurant Excellence: Focus on consistent delivery of quality, service and cleanliness through excellence in our restaurants.
* Operating Structure: Optimise restaurant performance through the selection of the most appropriate operating, management and ownership structures.
* The Brand: Continue to build the relationship between McDonald's and our customers in order to be a genuine part of the fabric of British society".
(c)
All businesses combine 'factors of production' to produce their products and/or services. Combining these factors means that the business has to carry out a range of functions. The following functions are used in McDonalds:
* Finance
* Production
* Human Resources
* Marketing
* Administration
* Research and Development
Finance
The main activities in the finance function in McDonalds are:
* To record all business transactions
* Measure the financial performance of the business
* Control the finances and cash flow so the business does not go bankrupt
* Take timely financial decisions by comparing the predicted performance with actual performance
Production
Production is the economic activity needed to manufacture or create McDonald's products (goods or services). The function of production is to change inputs of McDonalds into outputs, i.e. produce the goods and services that are to be bought by customers.
Production will be responsible for:
* Providing sufficient goods to meet customer demand
* Maintaining and improving quality
* Maintenance and control of machinery and equipment
* Ensuring adequate stocks of their raw materials and finished goods
* Meeting the specific needs of customers
* Controlling production methods and planning the scale or amount of production
* Controlling costs and working efficiently.
Human Resources
The main purpose of the human resources function is to recruit new crew members, select, train and develop staff.
This means finding the right people, training and developing them so they can achieve their maximum potential and creating systems that achieve high levels of morale and motivation.
The personnel records that are kept by the personnel department cater for the needs of McDonalds.
Although every business has its own special requirements, they are all faced with the same choice - to adopt a manual or computer record system. There are many advantages for McDonalds because of its computerised personnel system. These include:
* Confidentially - All personnel packages have a facility called 'password protection' this means that only managers with the password to enter the system will be able to access it
* The high quality of analysis the computer is able to carry out - very large databases can be interrogated quickly and easily
* The specific payroll facility included in many packages - allowing the computer to calculate all the details needed to pay employees their wages or salaries. Additionally McDonalds are able to output a computerised pay slip. This has resulted in considerable cost reduction. This has helped McDonalds to achieve its objective of making a profit
Marketing
McDonalds sales and marketing department are responsible for:
* Marketing research - data collection, analysis and presentation
* Customer care and service, dealing with customer complaints and problems, however the managers of McDonalds also do this
* Sales promotion and advertising
* Preparing sales budgets and forecasts
* Providing support services to sales staff, credit clearance and credit control
* Sales administration, this would include, processing orders and preparing quotations and invoices, much like the finance department
* Identifying and implementing the marketing mix.
In order to fulfil these responsibilities, the marketing department will have to work closely with the finance, purchasing, production and transport departments. There needs to be mechanism for investigating and correcting failures in the administration system so that if a breakdown in communication/administration occurs.
Because McDonalds has sales and market share as its prime objective they would give top priority to this function, so improving the customer's impression of the business.
Administration
Every business needs to be organised in order to achieve its objectives. The purpose of the administration system in McDonalds is to create an ordered routine, which enables each day to function smoothly. It co-ordinates or brings together the various parts of the business so that they all work towards the same goals.
2(b) To be an effective manager, you need to understand the basic styles of management, and when they are or are not appropriate.
Managers lead in many different ways. There are three main ways of looking at what makes a good leader:
* Trait theories - Trait theories suggest a list of qualities (traits) that make an effective leader
* Style theories - McDonalds use this theory, it has a few different styles within it such as autocratic style, democratic style, consultative style and laissez-faire style
* Contingency theories - these theorists emphasise what is known as the 'best fit', that is, a different approach to management may be necessary to perform different tasks within the same organisation
The following are the main management styles in McDonalds:
* Democratic - these managers take great care to involve all members of the team in discussion. It is a 'we need to find out what everyone thinks' approach. McDonalds fulfil this by holding meetings with crew, to see if they have any problems within the store, crew are also given the opportunity to contribute ideas for improvements within the store. Although the style can work well with a small, highly motivated team, it can fail when the team cannot make a decision and needs real guidance and direction, this is when autocratic style may come in handy for McDonalds crew members. This will help to meet McDonalds objectives as it is "Be the best employer for our people in each community around the world". This would also make McDonalds more successful as the employees will enjoy working there.
* Consultative - this is similar to the democratic approach but instead of allowing the group to make the decision, managers do so themselves. McDonalds use this style through hierarchy, each person has a higher manager who can give them advice on any problems they feel unable to cope with or require a second opinion.
E.g 2nd Assistant Manager - 1st Assistant Manager - Store Manager - Operations consultant
This approach can create a high level of motivation with good quality output and results, therefore pleasing the staff as well as the customers. This can be good because the employee will receive more job satisfaction from this as he or she will feel needed within the business. Again McDonalds will benefit from this as the employee will be happier working in McDonalds so therefore do a better job.
The culture of an organisation can be summarised by the phrase 'it's the way we do things here'. The culture of an organisation is the set of customs, values, attitudes and behaviour adopted and shared by its members.
The culture of an organisation directly affects its structure - both have to work together for it to achieve its aims.
There are different types of cultures used within a business:
* Power or club culture - this type of culture relies on the personality of the owner or directors who make all the key decisions
* Role culture or bureaucracy - there are a few characteristics to this culture. Formal structure which is hierarchical, the organisation chart defines the role of every individual, the job or role tends to be more important than the person, most jobs can be done by many people, the limits of every job are strictly controlled and there is emphasis on rules, routine and procedures
* Task culture - this type of culture means that the organisation is structured so as to complete tasks or projects
* People centred culture - the aim of this culture is to satisfy the interests and motives of the owners. McDonalds uses this culture to run their business successfully
People Centred Culture
People culture is dealing with service to customers. McDonalds use the phrase "without our people we cannot serve, and without customers we wont serve"! This shows me that people are more important to McDonalds than the organisation itself. This style works best in relatively small, informal, flat organisations. It is found mostly in professional organisations, such as management consultancy where each consultant works on individual projects.
This can be good and bad for McDonalds objectives.
It will be good in the fact that their sales will increase as customers will benefit from this type of culture, however if the staff do not feel important within the business they will not work as well. This is defeating the purpose of:
"Be the best employer for our people in each community around the world"
2(a) Effective communication means effective marketing. Buyers' perceptions of market offerings are influenced by the amount and type of information they receive as well as their reaction to that information. There must be a good flow of information between seller and buyer to assist decision-making that precedes a purchase. An effective marketing communications system also allows feedback from the consumer to the seller.
McDonalds need to communicate with a range of individuals and organisations including their customers, their suppliers, as well as their own employees. I have compared different channels of communication including:
* Internal and external
* Formal and informal
* Upward and downward
* Open and restricted
Internal and External channels of McDonalds
McDonalds use the Internet/Intranet as a form of communication. They use the Internet/Intranet for a number of different reasons. These include:
* Emails to and from different managers. This is restricted information. The emails can only be opened within the Intranet, so therefore making it restricted.
* Information for the public to gain information on the company. This is an open form of communication as anyone outside the business can view different information on it.
* The managers would use the Intranet to gain information on the business.
They also use Fax as a form of communication. This would come in useful for:
* Receiving information from the franchisor without him having to travel to Dundonald
* Sending information to the franchisor about the business, again without having to travel
* Information can be received 24 hours a day
This is an open form of communication because anybody passing the machine is able to view the information sent.
The faxed information is downward communication.
McDonalds also have a notice board, which they use to share important information with the staff. This is an open and downward method of communicating. Information placed on the notice board could be:
* Health and safety requirements at work
* Terms and conditions of employment, for example, hours of work, rates of pay, period of notice needed when leaving
* Job description which sets out the requirements of the job
* Disciplinary procedures.
Another method of communication within McDonalds is the telephone. This can be used as a form of either formal or informal communication.
An example of formal communication would be to congratulate an applicant on receiving the job. This can also be done face to face.
An example of informal communication would be a manager phoning a staff member to see if they can work extra shifts. Again this can also be done face to face.
The impact of ICT has had huge effects on internal and external communications of McDonalds.
Communicating with customers
The internal customers of McDonalds are its employees. The external customers are the consumers.
Communication also takes place with potential customers. External customers require a different set of communication methods, sometimes called the communication mix. These will include advertising through the mass media, promotional and information literature and website selling, all of which require the use of ICT.
Without ICT all of the above would be impossible for McDonalds.
Communicating with suppliers
Developing long-term relationships with suppliers is better than chasing the lowest cost by continually changing. McDonalds work directly with suppliers on issues such as quality standards and environmental policies. Again without ICT with could not be possible for McDonalds.
Without ICT it would not be possible for McDonalds to advertise its goods to customers, so therefore would not be as successful.
The fax machine
The fax machine for McDonalds is a vital piece of office equipment. It is used to transmit and receive important documents. Without ICT McDonalds would not receive these documents.
E-mail
E-mail is the transfer of text, graphics and (other) information between computer users. Paul Connan would use e-mail to contact his franchisor if need be. Again this would not be possible without ICT.
The need for an IT strategy
A business should have an IT strategy. Many organisations have acquired computers (including McDonalds).
3(a) Quality is an important factor throughout the production process
The following quality control and assurance systems are used in McDonalds:
Total Quality Management (TQM)
This is an organisational culture, which is totally committed to the continuous improvement of quality at all levels within every function and department. Every member of the organisation must be involved from the highest executive to the crewmembers of McDonalds. The commitment to quality must be instilled into everyone from the moment they join McDonalds.
For McDonalds this means improving their business in every way possible. I.e. Operation, Finance, Marketing, Human Resources, Health and Safety and Food Safety
The basic principals of McDonalds are:
. Putting the customer first by:
* Making sure all customers are properly looked after and are fully satisfied with McDonalds
* Anticipating and fulfilling their needs
* Exceeding their expectations, by using market research to find out what they want, they aim to surprise you with their quality, choice and service
* Making sure that all service standards are met.
2. Making continuous improvements by:
* Reducing costs - McDonalds could do this by cutting out unnecessary steps in the production service process by reorganising the sequence of work
* Better ordering procedures - I feel that McDonalds could speed up lead times by moving to just-in-time ordering so that expensive stock is not lying idle
3. Aim for zero defects
Do it right first time, it can be very expensive putting it right afterwards. Prevention is better than cure. This requires rigorous quality testing and control so that defective products are spotted immediately. This is particularly important when there are a series of separate processes involved. The technique requires inspection at every stage. Any activities concerned with inspection during the production process are classed as prevention costs, whereas costs, which arise from defective products, are called failure costs.
The advantages for using this system are:
* Every individual in McDonalds is responsible for quality
* Quality becomes the focus for all activities
* Everything McDonalds does is designed to satisfy their customers. This can lead to a greater market share and also increased profit
The disadvantages for using this system are:
* Requires well-trained, responsible staff, this could cost more money for training each crewmember.
* The crewmembers in McDonalds may be resistant to change
* Needs a long time frame - TQM does not happen overnight
Quality Circles
A quality circle is a small group of people from the store who meet regularly to examine such workplace issues as quality, productivity, health and safety and food safety
There are around 5 - 8 people trained in quality control techniques such as decision making and problem solving etc.
In McDonalds the membership is voluntary and each person can choose their own issues or problems to examine.
The advantages for using this system in McDonalds are:
* Each member of staff feels more important as they have been given more power and responsibility therefore they should do their job better
* Each member of staff is able to share experience and make concrete proposals
* Uses the ideas of Maslow and McGregor in a positive way
* Can result in cost reductions and improvements in productivity
* Encourages team-building and co-operation
The disadvantages for using this system are:
* May be resented by quality department
* Managers believe they may lose some of their power
* Management may not listen to the crews ideas
Self-Checking or Inspection
During production, self-checking and direct inspection have traditionally been the main ways of achieving quality control. Whenever or wherever goods have been made there has been some form of inspection. In McDonalds there are audits on utilities, audits on health and safety, human resources and training, drive thru and front counter service - including times, cash control etc.
Advantages of this type of system:
* Gives responsibility to all staff
* It is an informal system. It is quick and easy to apply
* The workers consider quality inspection as part of their job
* The managers feel supported rather than threatened. This basically means that constant inspection makes them feel more confident about the finished product
Disadvantages of this type of system:
* This type of system requires well-trained and honest staff
* It needs to be monitored at all stages
* It tends to focus on production and ignores other aspects of the organisation
* It requires staff who are willing to take responsibility
Training and Development
CAREER DEVELOPMENT PLAN
The company's management philosophy echoes the words of its founder Ray Kroc, who said: "As long as you believe there are challenges ahead, there will always be an opportunity to grow both personally and professionally.
Thus, a crewmember will not always remain a crewmember. In the McDonald's system, each crewmember is given the opportunity to progress the management ladder. In fact, more than half of McDonald's management team started as crewmembers.
Crew
Crew Leader
Store Activities Representative (STAR)
Floor Manager
Store Activities Executive (SAE)
2nd Assistant
Community Relations Executive (CRE)
st Assistant
Store Manager
Becoming a restaurant manager, for some, is the ultimate goal. And why not? The manager is the pillar of the restaurant, and collectively, McDonald's managers determine the success of the business operations. A McDonald's restaurant manager is responsible for successfully running every aspect of his or her multi-million dollar restaurant business, making him or her a key member of the business community.
Of course, there are also many other restaurant managers who soon move on to become operations consultants where they supervise at least five restaurants.
"We're not just offering a progression of titles, though, " notes Mr. Lee. "We want our people to enjoy careers that appreciate, and grow more valuable every year they invest in McDonald's. Our philosophy of ongoing training and development helps expose people to more than one career path."
TRAINING AND CAREER PROGRESS
McDonald's is dedicated to professional training and development - both on-the-job in the restaurants as well as at the Hamburger University in Singapore and USA. The average McDonald's restaurant manager spends more than 2,000 hours over four years in training of one kind or another. This is about the same amount of time that a typical four-year college student spends in the classroom.
Management recruits enter the McDonald's system as trainee managers and typically spend three to six months in this role learning the basics of restaurant operations ... and there's a lot to learn!
"Part of training focus ensures that every one of our employees, from regional managers to crew members, understands Ray Kroc's prescription of Q, S, C and V - quality, service, cleanliness and value," says Mr. Lee. "That's what brings people into our restaurants day-in and day-out. Our training also shows them how to serve one hamburger to one person at a time, thousands of times a day."
Once the management trainees master each position in the restaurant, the four-step accredited Management Development Programme is officially underway.
MANAGEMENT DEVELOPMENT PROGRAMME
Under this programme, each level of increasing management responsibility prepares the employees for their next promotion. At each level, they complete an extensive training sequence, combining knowledge learnt in the classroom and in the restaurant, with hands-on application of management skills.
The first of several intensive classroom-training experiences is the Basic Operations Course (BOC). In this one-week course, trainees get their first taste of ongoing management challenges such as inventory control, crew motivation and being a good communicator.
The next step is that of second assistant manager, a one to two-year assignment. Second assistant managers run "shifts" and manage crew during breakfast, lunch, or dinner periods. This phase of the programme, the Basic Management Course (BMC), allow second assistant managers to develop management skills such as leadership, goal setting, equipment maintenance, employee motivation, and time planning.
Their "on-the-floor" training is supplemented by another week of classroom training, the Intermediate Operations Course, or IOC. IOC builds on what was learnt in BOC and BMC, with added challenge and emphasis on "people skills". This course concentrates on leadership, recruitment and retention of crew, interviewing techniques, and overall decision-making. After mastering these skills and meeting the promotion criteria, the second assistant manager is eligible for promotion to first assistant manager.
As the restaurant manager's deputy, the first assistant managers are involved in virtually every facet of restaurant operations. Building on previous skills, they begin by:
* Conducting new employee orientation programmes and employee reviews;
* Participating in business planning and financial analysis for the restaurant;
* And learning preventive maintenance routines on the restaurant's equipment.
And yes, there's much more classroom training in this phase, in particular the two-week, intensive Advanced Operations Course at McDonald's famous Hamburger University in Oak Brook, Illinois.
Supplementing the Hamburger University experience is an Applied Equipment Course where they will receive a week of "hands-on" application training on all restaurant equipment - from heating and ventilation to refrigeration systems, grills and ice machines to ordering and cash register systems.
A promotion to restaurant manager after being in a first assistant position is the intermediate milestone of McDonald's Management Development Programme. In other words, there is always more room to grow - it only depends on the individual's goal.
BENEFITS
One of the benefits of working at McDonald's is the flexible hours. The restaurant opens for business 18 hours a day and that means work at McDonald's can fit into anyone's schedule. Schoolwork, family or personal activities can be scheduled around working hours.
McDonald's employees can also apply and obtain a leave of absence of up to two months for personal reasons or to study for examinations or school projects.
Restaurant managers too, enjoy a comprehensive salary and benefits package, as do all management personnel. At the end of the day, the personal satisfaction of a job well done in providing quality service to customers can never be measured.
Today, more than 40 years since the first McDonald's restaurant in the world was opened, McDonald's has more than 28,000 restaurants in 120 countries. This figure will continue to grow.
McDonald's is more than an operations-based company that provides everyone the experience of working in a restaurant and getting "ketchup in their veins". There is a myriad of opportunities, both in the restaurants and corporate office, for people with talents in finance, logistics, administration, marketing and information technology.
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