Challenges Faced By The McDonalds Essay

Question:

Discuss about the Challenges which are faced by the McDonalds Food Industry.

Answer:

Introduction

The report presents briefly overview on key challenges which are faced by the company during recruitment processes. In every organization, employees play a significant role in the success of the company. It explains the key issues and challenges which are faced by the McDonalds. McDonald's is a food industry which was founded in 1940 by Richard and Maurice McDonald. The report explains that how McDonald's face the key challenges in recruiting workforce and how the company overcomes these challenges and issues. It should make an attractive strategy for reducing issues and problems in recruiting workforce. So recruitment plays a significant role in every organization.

Recruitment

It is the process of selecting, attracting and appointing a candidate for employment and jobs within an organization. It is an important function of human resource management and it is the first step of appointment. Every company wants to expand its business so it requires separate human resource department. McDonalds Company has selected for this report so the company also do have human resource department which helps in recruitment of employees. The recruitment process in McDonald's is divided into two steps. In the first step, a candidate needs to apply online for a job and if he is selected then in next Step Company call to a candidate for interview and evaluate his abilities. Employees who are appointed in McDonald's are called crew members. When the crew members are appointed in the company then they need to attend the welcome meeting which is conducted in a restaurant by the company. In this meeting, employer explains the norms and condition of the company and gives information about the company to person. McDonald's ensures that the candidate is suitable for the job. The company provides various kinds of training to new employees (Willis-Shattuck, Bidwell, Thomas, Wyness, Blaauw & Ditlopo, 2008).

Source: businessjargons, 2017)

Organization image of McDonald's

It is one of the biggest hamburger fast food company and its headquarter is located in the United States. The main objective of McDonald's to give best services and experience to their customers and it is one of the largest universal brand in the world (Elbel, Gyamfi & Kersh, 2011). It provides flexibility in culture, equal opportunities and diversity to people. It is a fast food company which is founded in 1940 by Richard and Maurice McDonald. There are approx 375,000 employees working in this company. It serves more than 69 million customers in over 100 countries and it has approx 36,900 outlets. In recruitment, Process Company appoints a suitable person for doing work. The various types of hamburger such as chicken, French fries, chicken sandwiches, soft drinks and breakfast items are sold by McDonald's. In India, McDonald's started its operation in 1996. The revenue of this company is increasing day by day. The revenue of McDonald's is showing in below diagram (Swartz, Braxton & Viera, 2011).

(Source: Statista: 2017)

Key challenges for recruiting the workforce

McDonald's faces many difficulties in the recruitment process. Below some points show what are the key challenges faced by the company and it also describes that how the company is overcoming these challenges. There are some strategies which should be followed by McDonald's to overcome these challenges (O’Donnell, Hoerr, Mendoza & Goh, 2008). They are discussed as below.

Labor supply

It is the total working hours in which employees want to work in given wage rate. The salary and wages depend on the employees work in McDonald's. If the company appoints an employee in food industry then it evaluates the employee skills and behavior. McDonald's analyzes that how the workers communicate and handle to customers (Hanratty, Milton, Ashton & Whitehead, 2012). In recruiting process, team members of McDonald's ensure and examine either labor is able to do work or not. The company appoints that person who is eligible for work. The students apply in the food industry for part time job. The company appoints a person on the basis of language, skills, feasibility, past experience and working hours. McDonald's try to appoint employees at very less salary and wage. McDonald's should pay a good salary to employees but it should depend on skills and abilities. But it creates problems and it will become a very big challenge for workers (Dumanovsky, Huang, Nonas, Matte, Bassett & Silver, 2011).

Strategy recommendation for labor supply

McDonald's should hire workers who have skills and competencies to work in the company. There are many labors who are experienced in the food industry so they demand high salary to work in that industry. So the company should analyze employee skills and potentials and it should pay salary according to their skills and abilities. It should hire employees for the full-time period. McDonald's should provide some extra benefits such as medical, insurance, dental, bonus, and incentives to employees so they perform work very effectively. It will motivate employees and increase the retention, stability of labors. In this way, the company can reduce challenges in the recruitment process of employees.

Labor demand

Labor demand is the relationship between the wages of labor and number of hour’s employee is working. This will create problems in recruitment of employees. McDonald's does not pay to employees if they do overtime and extra work. So employees will get disappointed and demotivate and it will affect the working capacity of employees. It will also create a problem in the stability of employees. As per labor law, a person should not work more than 48hours in a week and 9 hours in a day. Generally, McDonald's shift timing is 60 hours in a week that is too much for employees. The company should keep general shift timings (48 hours in a week) to workers for doing work. If the company keeps huge shift timing for employees then it should pay a good salary to workers (Thornton, Bentley & Kavanagh, 2009).

Strategy recommendation for labor demand

The company should give wages and salary to employees according to their working hours as well as work. If an employee who is doing extra work and overtime then the company should pay the amount for the extra work and overtime. In such way, employees will get motivate and they will perform their work very efficiently. Apart from this company should provide incentives, bonus, and other facilities to employees for doing work more effectively. McDonald's should keep flexible shift timings (8-9 hours in a day) for employees. If the company keeps 8-9 hours shift timings in a day then it can increase the productivity of employees and they can give their best performance in the company (Crane & Matten, 2016).

Demographic issues

The demographic issues are related to the socio-economic culture of the country and they affect the business of the company. The various demographic factors are such as age, education level, income level, marital status, religion, the average size of family and gender. All these issues also arise in the recruitment process and these issues create problems in the recruitment process (Johnson, Angell, Lederer, Dumanovsky, Huang, Bassett & Silver 2010).

Strategy recommendation for demographic issues

The environment factors play a significant role in an organization. They also affect the business of the company. So the company should focus on these factors and analyze them very carefully. It should identify all these factors and make a strategy to control the demographic factors in the organization. McDonald's should make a strategy for retention and stability of employees.

Some other issues are also faced by the company such as lack of flexibility, inaccurate services, and price sensitivity. All these issues are faced by the McDonalds and they also affect recruitment process of this company (Schlosser, 2012).

Recommendations

  • McDonald's should focus on the services and it should make a strategy for providing better services to customers.
  • The company should provide training to employees for delivery of high quality of services to customers. It should conduct training and learning programs for the company to achieve long term growth in organization and it also helps in to reduce staff turnover.
  • It should implement integrated promotional mix strategy for the success of the company and brand promotions. The company should use digital marketing to handle the online customers.
  • It should analyze the internal and external market of the company and it should reduce risk by developing new products and services.
  • Employees who are giving a good performance then the company should give a reward to those employees. It should also provide some additional benefits like medical, insurance, health care services.
  • The company should make a strategy for effective recruitment process and expansion of the business.
  • McDonald's should maintain collaboration and cooperation with customers and it should provide the best quality of services to them (Bernhardt, Wilking, Adachi-Mejia, Bergamini, Marijnissen & Sargent, 2013).

Conclusion

The report analyzes the recruitment process of McDonald's. For the success of the organization, each company should make recruitment strategy and policies. The company can expand its business through manpower planning. So it should hire many employees for the development of the company. There are some factors like demographic, socio-cultural and economic factors, labor and supply demand which affect the business of the company. Some recommendations have been given to McDonald's for improving the performance of employees. It tells that how McDonald's company use strategy for eliminating the key issues. The company should analyze the skills and potentials of the company (Harnack, French, Oakes, Story, Jeffery & Rydell, 2008).

Now it is concluded that McDonald's should provide additional benefits to employees. In such way, it can increase the productivity of the company and it can enhance and increase motivation, the satisfaction of employees. McDonald's should aware and make some strategies to solve environmental issues. The company should reduce the impact of global warming and unnecessary packing.

References

Bernhardt, A. M., Wilking, C., Adachi-Mejia, A. M., Bergamini, E., Marijnissen, J., & Sargent, J. D. (2013). How television fast food marketing aimed at children compares with adult advertisements. PloS one, 8(8), e72479.

Crane, A., & Matten, D. (2016). Business ethics: Managing corporate citizenship and sustainability in the age of globalization. Oxford University Press.

Dumanovsky, T., Huang, C. Y., Nonas, C. A., Matte, T. D., Bassett, M. T., & Silver, L. D. (2011). Changes in energy content of lunchtime purchases from fast food restaurants after introduction of calorie labelling: cross sectional customer surveys. Bmj, 343, d4464.

Elbel, B., Gyamfi, J., & Kersh, R. (2011). Child and adolescent fast-food choice and the influence of calorie labeling: a natural experiment. International journal of obesity (2005), 35(4), 493.

Hanratty, B., Milton, B., Ashton, M., & Whitehead, M. (2012). ‘McDonalds and KFC, it's never going to happen’: the challenges of working with food outlets to tackle the obesogenic environment. Journal of Public Health, 34(4), 548-554.

Harnack, L. J., French, S. A., Oakes, J. M., Story, M. T., Jeffery, R. W., & Rydell, S. A. (2008). Effects of calorie labeling and value size pricing on fast food meal choices: results from an experimental trial. International Journal of Behavioral Nutrition and Physical Activity, 5(1), 63.

Johnson, C. M., Angell, S. Y., Lederer, A., Dumanovsky, T., Huang, C., Bassett, M. T., & Silver, L. D. (2010). Sodium content of lunchtime fast food purchases at major US chains. Archives of internal medicine, 170(8), 732-734.

O'donnell, S. I., Hoerr, S. L., Mendoza, J. A., & Goh, E. T. (2008). Nutrient quality of fast food kids meals. The American journal of clinical nutrition, 88(5), 1388-1395.

Schlosser, E. (2012). Fast food nation: The dark side of the all-American meal. Houghton Mifflin Harcourt.

Swartz, J. J., Braxton, D., & Viera, A. J. (2011). Calorie menu labeling on quick-service restaurant menus: an updated systematic review of the literature. International Journal of Behavioral Nutrition and Physical Activity, 8(1), 135.

Thornton, L. E., Bentley, R. J., & Kavanagh, A. M. (2009). Fast food purchasing and access to fast food restaurants: a multilevel analysis of VicLANES. International journal of behavioral nutrition and physical activity, 6(1), 28.

Willis-Shattuck, M., Bidwell, P., Thomas, S., Wyness, L., Blaauw, D., & Ditlopo, P. (2008). Motivation and retention of health workers in developing countries: a systematic review. BMC health services research, 8(1), 247.

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