Question

Based on the copied paragraphs from a previous mcdonalds case study;

1.Provide atleast two strategic options for mcdonalds to consider to help with the following criteria regarding LABOR.

2. Justify your reasonings

LABOR

McDonald’s has serious staffing issues that need to be addressed if it is to improve customer loy- alty. An internal report that found its way to the media showed that one out of every five customer complaints was about “rude or unprofessional employees.”152 According to a national survey of quick- service restaurants, McDonald’s ranks next to last in “friendliness,” beating only Burger King. Part of the problem is that too many restaurants are understaffed during peak breakfast and lunch hours. It is hard to be friendly while work piles up and customers grow increasingly irritated at how long it takes to place and get their orders. The annual turnover rate in the fast food industry is 60 percent, as frus- trated workers seek to move on to less stressful and higher-paying jobs.153

It is too soon to tell whether McDonald’s pledge to raise pay to at least $1 more per hour than the local minimum wage will be enough to attract and retain motivated workers. The company also granted employees the ability to accrue up to five days of paid vacation annually after one year of employment. However, this new HR policy applies only to the 90,000 employees of company-owned stores, and risks upsetting franchisees who are likely to feel pressured to match corporate’s offer with- out equivalent financial resources. Meanwhile, activists continue to lobby for an even larger pay raise (a $15-per-hour minimum) as well as the right to unionize without retaliation. In an effort to force McDonald’s to the negotiating table, the National Labor Relations Board’s general counsel has filed a suit claiming that the company has enough control over franchise operations to be considered a joint employer.154 If the case proves successful, McDonald’s could be held liable for working conditions at individual stores, making national-level labor bargaining (and increased concessions) more likely.155

Answer 1

1. McDonalds should gradually move into Automation

Automation for a fast food industry or restaurant would be bold move because customer interaction is very important in such Industry. But, full automation is not possible. McDonald's could start with the Kiosk for taking orders alone. By taking orders through Kiosks human errors could also be avoided and it in the long run it is cost efficient. Customers who want to experience the new feel of ordering through automated system would come back to the Restaurant and if the customer finds it very convenient, they could be retained .

2. Change in Pay and Benefits for employees.

Of course, the right candidate has to be selected who is positive and friendly towards the customer even during stressful situation. But also McDonalds should look into providing a higher pay and more benefits to attract and retain more staff .

Some HR practices to Retain employees are as follows:

1.Change in Bonus plans, quarterly performance review

2.improving in team building activities ,

3.good and promising career plan.

4. Training useful for the employee development also

In the end make them feel proud to be a staff of McDonalds.