Overview of McDonald’s
Discuss about the Performance Management Process Of Mcdonald’s.
The report throws light on analysis of performance appraisal method that is used in a respective organization. The company that has been analysed in this report is McDonald’s and proper evaluation of the performance management process has to be done in order to understand and evaluate the various outcomes of performance management process.
The understanding of the different complexities faced by the business has to be identified and analysed in an effective manner and solve such issues with proper implementation of the performance management process. The various application of the theories is required to be analysed and identified in order to understand the importance of the performance appraisal in different organizations effectively and appropriately as well.
McDonald’s is the American fast food organization that was founded in the year 1940 as the restaurant that operated in San Bernardino, California, United States (Mcdonalds.com, 2018). The founder of McDonald’s were Richard and Maurice McDonald and the respective restaurant serves the entire worldwide as well. The revenue earned by the company is US$24.622 billion till the year 2017 and this is one of the best fast food chain restaurants in the world and there are more than 375,000 employees who are employed in McDonald’s. The restaurant has different franchises in different parts of the world and this has helped them in attracting more customers in the entire world (Mcdonalds.com, 2018).
Performance Management is defined as the different kind of activities that helps in ensuring that the goals are being met in a consistent manner that is effective and appropriate in nature. Performance Management helps in focusing on performance of the organization and this process includes the different employees and employer of the organization in improving the overall efficiency of the organization along with accomplishment of the goals and objectives as well. It is one of the concepts of the human resource management and this is one of the continuous process of identifying along with developing performance of the different individuals with accomplishing the strategic goals of the organization (Sharma and Agarwal 2016).
Performance Management is essential in nature in different organizations as this helps in setting and revising the goals effectively. It is mandatory in nature as this provides the different employees with different expectations for the work performed by them. The different practices of the performance appraisal process include that it creates a positive influence on the loyalty of the employees along with providing open and transparent job feedbacks to the different employees (Behery, Jabeen and Parakandi 2014).
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Benefits gained by Organization |
It helps in improving the performance of the entire organization along with retaining the different employees. Furthermore, the performance management process improves the productivity along with overcoming the different barriers that is related to communication as well. |
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Benefits gained by Managers |
It helps in saving time along with reducing the conflicts. It ensures efficiency and brings consistency in the performance of the tasks that is performed by them. |
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Benefits gained by Employees |
It helps in clarifying the employee’s expectations along with providing them with the scope of self-assessment and promotes the entire job satisfaction as well. |
Performance Management : Definition
Previously, there were different issues that were faced by the respective restaurant named McDonald’s and this affected the entire productivity of the organization as well. It was noticed that there was lack of strategic focus as it was noticed that the overall strategy of McDonald’s was not up to the standard and this affected the entire performance management process as well. It was noticed that the respective restaurant was not being able to concentrate on the performance of the employees in an equal manner and this created huge chaos in the management system as well (Sharma and Agarwal 2016).
Furthermore, it was noticed that there was lack of meaningful and timely feedback that was provided to the employees. It was seen that McDonald’s human resource department did not incorporate any such kind of feedback process for analysing the hard work of the different employees effectively. No proper training was provided to the managers and therefore there was lack of proper ascertainment of the different kind of reviews that was required to be provided to the different employees who worked with McDonald’s (Chandler 2016).
It was seen that previously, there was lack of appropriate recognition and rewards in McDonald’s and this negatively affected the morale of the different employees in the organization as well. McDonald’s previously did not follow the basic norms that were required to generate an appropriate performance management process and start with the performance appraisal of the different employees (Katane and Dube 2017). The communication process was weak and this affected the entire productivity of the organization that affected the entire profitability of the company as there was lack of proper support from the higher authorities for gaining competitive advantage and provide support to the employees by motivating them with monetary and non-monetary rewards as well.
There are different methods of performance appraisal that are based on both traditional and modern techniques. The methods of performance appraisal are as follows:
- Paired Comparison
- Ranking Method
- Check List Method
- Essay Method
- Confidential Report
- Graphic Scale Rating Method
- Management by Objectives
- Human Resource Accounting
- 360-Degree Appraisal
- Behaviourally Anchored Rating Scales
- Assessment Centres
These are the different kind of performance appraisal methods that are used by the big organizations as to analyse the performance of the different employees in an appropriate manner. In the present scenario, the organizations such as Nestle along with Woolworths follow the different modern performance appraisal techniques in order to improve the performance of the entire organization along with the individual performance that will be suitable for the entire organization and solve such issues in an effective manner (Sukumar Rao 2017).
Importance
Performance Appraisal Methods are essential that has to be analysed in the organizations to identify the common goals and use such measures as the guide for operating the entire unit and assessing the entire contribution of each of the members in the respective organizations. However, there are different companies that uses the different other traditional performance appraisal methods that helps them in evaluating the performance of the employees individually along with the entire organization as well (Kraiger 2014).
In McDonald’s, the performance appraisal methods are utilised in an effective manner in the present scenario and this helped them in managing the different activities in an effectual manner as well. The performance appraisal is based on various parameters such as:
- Ethics
- Team Work
- Skills
- Confidence and Motivation
At McDonald’s, all the employees are on race to give the perfect performance through their particular knowledge, skills along with abilities. Proper appraisal session is arranged for the different employees who are employed in McDonald’s and the interview is taken by the head of the department and the performance appraisals generally takes place in the month of June to July (Blanchard & Muchnick 2013).
- To provide feedback to the different employees and this helps in improving the overall performance of the employees and organization
- To identify the needs of training of the different employees in the organization
- To validate the techniques of selection along with human resource policies as to meet the different equal opportunity requirements
There are two main methods of performance appraisal used in McDonald’s that includes:
- Graphical Rating Scale
- 360-Degree Feedback
McDonald’s utilises the graphic rating scale as this assists them in evaluating the entire performance appraisal of the different employees. With the help of the graphic rating scale, the head of the respective department rate the employees as per the performance of the work, knowledge, experience and skills. After the assessment is done as per the rating scale, the employees are being rated as appraised (Saha & Goyal 2017).
With the help of the assessment done by the graphic rating scale, this helps the head of the department in arranging the different training needs and this helps them in managing the entire appraisal process effectively as well. The graphic rating scale method includes the following traits:
- Communication
- Personal Effectiveness
- Work Quality
- Reliability
The 360-degree feedback is utilized in order to evaluate the output of the different employees of the organizations through the multiple kind of sources. The raise in the salary is done by more than 10% and if the performance is counted then more than 21% increment is required to be provided to the employees at any time of the year. McDonald’s utilises the graphic rating scale method for evaluation of the entire performance of the different employees and through the help of the respective appraisal method, the head of the respective department rates the different individuals as per their performance along with the skills of the employees effectively (Lawrie, Kalff and Andersen 2015).
Complexities Faced by McDonald’s
Furthermore, in McDonald’s the 360-degree appraisal system is followed in an appropriate manner and it is different in nature as the feedbacks is obtained from the different co employees and subordinates instead of directly from the supervisor of the organization (Bianchi 2015). With the help of the 360-degree appraisal system, it has helped and assisted McDonald’s by helping the different employees in participating and it is made compulsory. The managers of the respective restaurant provide training to the employees effectually that assists in providing feedback and the outcome becomes a development plan as well (Mone and London 2018).
In McDonald’s, 360-degree appraisal system has helped the entire company in personal and team development. The changes that are required to be made in the team has incorporated the change and improved the entire managerial effectiveness of the different individuals effectively and efficiently (Hammer 2015). It has been noticed in McDonald’s, the managers, customers, suppliers along with the employees are involved in the process and this is the self-appraisal that is provided to the company in managing the weaknesses effectually as well.
With the help of the above diagram, it can be analysed that proper planning is required and is essential in nature as well to understand the piloting and reviewing the different business-specific and managerial competencies to analyse the tasks performed by the employees and the feedback is provided on self-appraisal basis. It has been seen that the feedback that has been generated from the 360-degree appraisal system is based on feedback from the employees, colleagues along with the different higher authorities as well. The implementation is required to ascertain the competencies of the employees appropriately (Van Dooren, Bouckaert and Halligan 2015).
The performance appraisal system is required to be applied by the McDonald’s as this will assist them in analysing the performance of the employees and motivating them with different rewards both monetary and non-monetary in nature. The employees who are working as trainees or the permanent employees are always keen in knowing their performance and this will assist them in analysing their performance through conducting such performance appraisal methods.
The performance appraisal process is effective in nature in order to increase the morale of the employees effectively. The performance appraisal is the way of finding out the reasons wherein the employee should be provided and rewarded with promotion or provided with different incentives as well (Van Dooren, Bouckaert and Halligan 2015). Furthermore, the appraisal of the employees in the organization as to compensate the different employees by increasing their pay along with incentives. The career development is the other essential component that is enabled by the performance management and this enable the manager as to couch and counsel employees in the career development.
Performance Appraisal Methods
Conclusion
Therefore, it can be concluded that performance appraisal management process is essential in nature as this helped McDonald’s in managing the performance of the different employees effectively. Furthermore, it has been noticed that there are different objectives of the performance management process that has to be handled effectively and this has helped McDonald’s in analysing the needs of the individuals who are working in McDonald’s and solve their issues in an effective manner as well. Lastly, proper reasons has been stated that is required to improve the performance appraisal process.
References
Behery, M., Jabeen, F., and Parakandi, M. 2014. Adopting a contemporary performance management system: A fast-growth small-to-medium enterprise (FGSME) in the UAE. International Journal of Productivity and Performance Management, 63(1), 22-43.
Bianchi, C., 2015. Enhancing joined-Up government and outcome-based performance management through system dynamics modelling to deal with wicked problems: the case of societal ageing. Systems Research and Behavioral Science, 32(32), pp.502-505.
Blanchard, K. H., and Muchnick, M. 2013. The leadership pill: The missing ingredient in motivating people today. Simon and Schuster.
Chandler, M. T. 2016. How Performance Management Is Killing Performance—and What to Do About It: Rethink, Redesign, Reboot. Berrett-Koehler Publishers.
Hammer, M., 2015. What is business process management?. In Handbook on Business Process Management 1 (pp. 3-16). Springer, Berlin, Heidelberg.
Heinrich, C. J., and Cleveland, H. 2015. The Role of Performance Management in Good Governance. The Political Economy of Good Governance, 15.
Katane, J., and Dube, S. 2017. The influence of organizational culture and project management maturity in virtual project teams. Cell, 72(398), 4764.
Kraiger, K., Passmore, J., Dos Santos, N. R., and Malvezzi, S. (Eds.). 2014. The Wiley Blackwell handbook of the psychology of training, development, and performance improvement. John Wiley & Sons.
Lawrie, G., Kalff, D. and Andersen, H., 2015. Balanced scorecard and results-based management: Convergent performance management systems.
Maimela, E. M., and Samuel, M. O. 2016. Perception of performance management system by academic staff in an open distance learning higher education environment. SA Journal of Human Resource Management, 14(1), 1-11.
Mcdonalds.com. (2018). McDonald’s: Burgers, Fries & More. Quality Ingredients.. [online] Available at: https://www.mcdonalds.com/us/en-us.html [Accessed 30 May 2018].
Mone, E.M. and London, M., 2018. Employee engagement through effective performance management: A practical guide for managers. Routledge.
Saha, R. K., and Goyal, S. 2017. Performance Indicators for Benchmarking of Internal Supply Chain Management. World Academy of Science, Engineering and Technology, International Journal of Social, Behavioral, Educational, Economic, Business and Industrial Engineering, 11(7), 1967-1971.
Sharma, N. P., Sharma, T., and Agarwal, M. N. 2016. Measuring employee perception of performance management system effectiveness: Conceptualization and scale development. Employee Relations, 38(2), 224-247.
Sukumar Rao, M. S. 2017. Integrated Performance Management. The Journal of Government Financial Management, 66(2), 54.
Van Dooren, W., Bouckaert, G. and Halligan, J., 2015. Performance management in the public sector. Routledge.
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