ANALYZE THE STRATEGIES OF INTERNATIONAL

HCMC UNIVERSITY OF TECHNOLOGY AND EDUCATIONFACULTY FOR HIGH QUALITY TRAINING ANALYZE THE STRATEGIES OF INTERNATIONAL HUMAN RESOURCE MANAGEMENT ACTIVITIES AT MCDONALD’S CORPORATION Subje

HCMC UNIVERSITY OF TECHNOLOGY AND EDUCATION

FACULTY FOR HIGH QUALITY TRAINING

ANALYZE THE STRATEGIES OF INTERNATIONAL HUMAN RESOURCE MANAGEMENT ACTIVITIES

AT MCDONALD’S CORPORATION

Subject: Human Resource Management Instructor: MBA Le Thi Kim Khang

Ho Chi Minh City, 06/2022

TEAM MEMBER

TABLE OF CONTENTS

TABLE OF FIGURES

CHAPTER 1: OVERVIEW OF THE STUDY 1.1 Summary of the topic

Human resources are the determining factor for the success or failure of an enterprise (Marco Lajara et al., 2003) Whether the use of human resources is effective

or not dramatically affects enterprises’ production and business activities

Human resource management or HRM is an indispensable part of an enterprise’s management and sustainable development (Zhykharieva et al., 2021) Today, the issue of human resources and HRM is seriously posed for any socio-economic organization, any economy, and any development strategy of a country Some reports proved the quality of human resources that businesses own is a factor that creates competitive advantages (Nemanja, 2011) Therefore, each enterprise needs

to have the best solutions in human resource management

In the past, there have been many domestic studies on this issue (T M P Nguyen, 2021; T P Nguyen, 2021; Vu, 2020) However, there are very few studies on international human resource management activities in a multinational corporation or company The primary purpose of this study is to understand and analyze the strategies of international human resource management activities at McDonald’s Corporation

1.2 Reasons for choosing the topic

Human resource management is the department of employment management of

a company that is devoted to gaining a competitive edge via the planning, execution, and development of strategies for recruiting, training, assessing, and rewarding individuals within the firm’s workforce (M Shammot, 2014) Any organization’s human resource department plays a critical role in integrating the company's goals and objectives with the workforce's quality

McDonald’s is a large fast-food corporation originating in the United States With more than 80 years of operation and a wide presence worldwide, McDonald’s has achieved much-deserved success The authors firmly believe that McDonald’s must have effectively implemented solutions and strategies for international human resource management to have such a long-term development McDonald’s also has one of the best human resource departments responsible for the right people, proper jobs, right time and correct cost of the company and meeting the right skills of the employees in the right place Human resources at MacDonald’s is also responsible for

evaluating the employee’s performance, safety, benefits, motivation, and training for the ever-increasing organization’s development

1.3 Objectives of the topic

Based on the basic theory, the authors learned about human resource management combined by searching and researching books, newspapers, television, and especially journal articles

The authors have applied many different research methods, such as statistical, interpretive, and analytical methods, to understand the current state of international human resource management and how it works at McDonald’s Corporation

CHAPTER 2: INTRODUCTION TO MCDONALD’S CORPORATION 2.1 Overview of McDonald’s Corporation

McDonald’s is the world's biggest foodservice retailer, with over 35,000 local locations in over 118 countries serving approximately 70 million customers every day They are dedicated to offering high-quality cuisine and exceptional service at an attractive price in a clean and comfortable environment

McDonald’s strongly believes that consumer trends are essential for ensuring food safety and hygiene in fast meals, total nutrition, and a professional service attitude McDonald’s is committed to providing customers with products that satisfy them and meet quality standards, food safety and hygiene, service, and value

“Our mission is to make delicious feel-good moments easy for everyone.” (Culture Czars, 2022; McDonald’s, 2022) McDonald's delivers excellent meals that people like eating, with convenient locations, hours as well as reasonable pricing; working hard to provide the speed, variety, and personalization that customers demand Furthermore, they provide feel-good moments while maintaining the cheerful, unpretentious, welcome, and trustworthy nature that customers have come to expect from them

McDonald’s always ensures four international standards: Quality, Service, Hygiene, and Value

2.2 History of McDonald’s Corporation

McDonald's is an American fast-food corporation that was started in 1940 as a restaurant in San Bernardino, California, by Richard and Maurice McDonalds They began as a hamburger shop and eventually transformed that brand into a franchisee by adding the golden arches logo in 1953 Mc Donald's original offices were in Oak Brook, Illinois, but the company relocated its worldwide headquarters to Chicago in June 2018 Rent, royalties, and fees paid by franchisees, as well as sales of company-operated locations, generate income for the restaurant chain

Ray Kroc is a businessman who specializes in selling smoothies Out of curiosity, he traveled to California He observed how the two McDonald brothers operate and why they can buy so many smoothie machines more than stores in major cities When he arrived, he noticed that the business model of the two McDonald brothers was unique; the food-making process was organized very scientifically and logically, making the process of completing the food very quickly Furthermore, the number of customers is massive, with lines stretching 20 meters long

Ray Kroc proposed to the two McDonald brothers to develop and expand the model after seeing this, but the two McDonald brothers were afraid and hesitated As a result, Ray Kroc purchased the entire McDonald’s chain for $2.7 million and

Marketing Department

Country Head

Marketing Manager

Advertisement

Sales Department

Country Head

Regional Sales Manager

Finance Department

Country Head

Finance Manager

Account Manager

Restaurant Department

Country Head

Restaurant Manager

Staff Training

Crew Members

Supply Department

Country Head

Procurement

Logistics

Storehouse

Board of Directors

developed it Hot drinks (hot tea, hot chocolate), iced drinks (coca-cola, Sprite, Dr Pepper), iced fruit (strawberry banana, pineapple mango smoothie, Caramel Mocha), milk, etc

2.3 Organizational structure of McDonald’s Corporation

In McDonald’s, they divided the organizational structure into two different ways, the first one is based on geographic location, and the other is based on department functions (Org Charting, 2022)

Figure 1 − McDonald’s Organizational Structures (Org Charting, 2022)

Based on the department function, the structure includes The CEO (Board of Directors) and other executive departments such as the Marketing Department, Sales Department, Finance Department, Finance Department, Restaurant Department, Supply Department, and other departments

Executive Committee (CEO, Board of Directors)

Board of Directors and Support: Assist the Board of Directors in its

operation and management by advising and informing members of the Board of Directors, communicating between the Board of Directors and employees, and assisting the Board of Directors in evaluating executives

− Programs, Products, and Services

− Management of finances, taxes, risks, and facilities

− Human Resource Administration

− Public Relations and Community Relations

Marketing Department:

− Creating and enhancing the brand’s image through activities such as organizing social events, extraordinary customer care policies, etc

− Conduct product research and development, as well as market expansion

− Analyze and evaluate the information gathered to plan and decide how to improve existing products

− Coming up with new projects and product ideas The sales department serves

as a direct link between a company’s product or service and its customers On the other hand, a well-trained sales department does more than sell

− Your salespeople cultivate customer relationships Furthermore, a good salesperson assists in identifying a customer’s specific needs and ensuring that those needs are met

− Because salespeople are constantly in direct contact with your customers, they become secretive about personal information, making sales interactions smoother and friendlier

Finance Department: The activities of the finance department can have a

significant impact on the overall performance of a company In addition to overseeing cash inflows and outflows, the finance department performs the following functions:

− Provide information to the management board

− Equity management

− Cash flow management

− Risk management

− Tax administration

Restaurant Department:

− The restaurant department manages the company’s restaurant chain system, with positions such as restaurant manager and restaurant employee training manager

− The restaurant department’s management board must ensure the quality of service and products to customers

Supply Department:

− The supply department’s primary responsibility is to provide the organization and its partners with the goods and services they require from outside the organization, in the correct quantity, at the right time, and at the right price

− Purchasing, operations, logistics, resource management, and information workflow are the five main functions of the supply department

2.4 Products and services of McDonald’s Corporation

2.4.1 Product

McDonald’s product mix as a food service business consists primarily of ready-made food and beverage products McDonald’s product lineup consists of the following major product lines:

− Sandwiches and burgers

− Fish and chicken

− Salad

− Snacks and yogurt beverages

− Drinks

− Shakes and desserts

− Breakfast throughout the day

− McCafé

2.4.2 Service

24-hour service: McDonald’s is a top-of-mind 24-hour fast-food restaurant

that serves delicious meals to the customers

Drive-thru: McDonald’s was the first restaurant in the United States to serve

the drive-thru model, which allows customers to buy food without parking (Nate, 2021) Busy customers pull over to the sales window, order food, and receive the goods

Birthday celebration: Suppose customers are planning a party for their child.

In that case, McDonald’s professional organizing team will do everything for the customer, from planning to decorating to preparing food and games, so the customer can relax and enjoy their baby’s big day

CHAPTER 3: INTERNATIONAL HUMAN RESOURCES

MANAGEMENT ACTIVITIES 3.1 Overview of international human resources management strategy at McDonald’s Corporation

McDonald’s global operations were developed and incorporated into the intended victory strategy This strategy focuses on the desire to create an extraordinary customer experience

A winning strategy focuses on product, price, place, promotion, and people (5P) (Johnson, 2021) The organization believes that combining these 5Ps would be possible to achieve continual improvement in user experience Employee mobilization, selection, training, performance, rewards, and retention are all part of the McDonald’s people strategy

McDonald’s develops suitable employment strategies as part of a strategic plan

to improve customer experience They use employees as the primary source of customer happiness by ensuring the firm hires the proper personnel based on their skills

This strategy ensures that it does not lack the staff necessary to deliver not only the company’s products and services but also values to the customers McDonald’s realizes that if there are not enough people who can utilize the services as quickly as possible, there will not be a full selection of products Customers may consider enjoying meals at rival restaurants that have reduced wait times in the market

3.1.1.Resources strategy

McDonald’s began a recruitment strategy in the United Kingdom in 2006 There are many posters from 1.225 restaurants and 18 different billboards for the first step of the strategy These posters demonstrated McDonald’s working conditions, promotions, salary, and medical benefits In addition, these posters contradict McDonald’s job belief in “low-wage, low-skilled, low-growth possibilities.” The advertising had a considerable impact on the company’s appeal rate for open positions McDonald’s asset acquisition strategy prioritizes the company’s working environment and employee development

McDonald’s has always fostered a welcoming, open, and contemporary work atmosphere in which employees may be creative and contribute to the firm’s success Furthermore, the significant potential for growth and development is one of the reasons McDonald’s might attract individuals Employees are not only trained and developed but they are also rewarded

3.1.2 Recruitment strategy

McDonald’s is the world’s largest family restaurant (Nathan, 2020) McDonald’s provides delicious feel-good moments for the entire family To achieve this, McDonald’s puts people at the center of everything they do, and that brings benefits to employees as well as customers

In order for people to perform better when they feel happy at work (Bataineh, 2019), McDonald’s makes every effort to create a suitable and good working environment for everyone That makes many people consider other work environments, which is why McDonald’s strives to offer a variety of rewards and benefits to suit every lifestyle

McDonald’s succeeds in achieving the best work experience for their employees; they aim to provide customers with a great restaurant experience Employees at McDonald’s not only become part of one of the largest global brands, but also an ever-evolving organization that offers an environment of flexibility, equality, diversity and opportunity Reflects the society and communities in which McDonald’s operates

In the UK, McDonald’s offers perhaps the most culturally diverse offering

Different types of people from different levels of society come to McDonald’s and they share the same approach, i.e a positive approach “Hire the smile” is McDonald’s policy when it hires crew members and this helps foster a staff with a positive approach and outlook, in return we get a fun atmosphere looks and is friendly McDonald’s believes it's not just about hiring happy people, but about making them smile by doing everything McDonald’s offers rewards and benefits that fit their lifestyle, whether they're part-time employees working to fund their school and college education or Managing Internships right out of college

McDonald’s advertises vacancies on their website and by connecting with other online job search sites They use their own personal department to recruit talent to ensure their recruitment and selection goals, including

To identify the right candidate for the vacancy:

− Keeping options costs low

− Ensuring skills and qualities are met and developing a process to identify them

in candidates

− Ensuring that the candidate is highly motivated to match with the job and determine their capacity to continue for the job role offered

− Ensuring that recruitment and selection practices take place as efficiently as

possible