CHAPTER-1

PERFORMANCE APPRISAL OF MACDONALDS

What Is Performance Appraisal?

Performance appraisal is an integral part of HRM and HRM deals with personnel is people.
People is the important and valuable resource that every organization or institution has in
the form of its employees. Dynamic people can build dynamic organization. Effective
employees can contribute to the effectiveness of the organization. HRM has multiple goals,
which include employees competency development, employee motivation development and
organization development. Employees require a variety of competencies, knowledge, attitude,
skills in technical area; Managerial areas, behavioral and human relations areas and
conceptual area to perform different tasks or functions required by their jobs.

HRM aim at constantly the competency requirements of different individual to perform the
job assigned to them, effectively and provides opportunities for developing these
competencies. As HRM deals with humans it is necessary to keep a check on their
performance after regular interval of time given jobs, it is necessary to corrective actions term
or there is need to appraisal their performance. The process of appraising for doing their work
effectively is known as performance appraisal system.

It is very essential to understand and improve the employees performance appraisal is the
basis for

HRD. It was viewed that performance appraisal was useful to decide upon employee
promotion/transfer, salary determination and the like. Its roots in the early 20th century can
be traced to Taylors pioneering Time and motion studies. As a distinct and formal
management procedure used in the evaluation of work performance, appraisal really dates
from the time of the Second World War - not more than 60years ago. Yet in a broader sense,
the practice of appraisal is a very ancient art. In the scale of things historical, it might well lay
claim to being the world's second oldest profession. Performance appraisal measures the
qualitative and quantitative aspects of job performance.
There is a basic human tendency to make judgments about those one is working with, as
well as about oneself." Appraisal, it seems, is both inevitable and universal. In the absence of
a carefully structured system of appraisal, people will tend to judge the work performance of
others, including subordinates, naturally, informally and arbitrarily. The human inclination to
judge can create serious motivational, ethical and legal problems in the workplace. Without a
structured appraisal system, there is little chance of ensuring that the judgments made will be
lawful, fair, defensible and accurate. Performance appraisal systems began as simple methods
of income justification. That is, appraisal was used to decide whether or not the salary or
wage of an individual employee was justified.

The process was firmly linked to material outcomes. If an employee's performance was found
to be less than ideal, a cut in pay would follow. On the other hand, if their performance was
better than the supervisor expected, a pay rise was in order. Little consideration, if any, was
given to the developmental possibilities of appraisal.

Performance appraisal, Includes the identification, measurement, and management of human

performance in organizations.

Identification
Measurement
Management

IDENTIFICATION

Determining what areas of work the manager should be examining when measuring
performance. Rational and legally defensible identification requires a measurement system
based on job analysis. The appraisal system, then, should focus on performance that affects
organizational success rather than performance-irrelevant characteristics such as race, age, or
sex.

MEASUREMENT

The centre piece of the appraisal system, entails making managerial judgments of how
good or bad employee performance was. Performance measurement must be consistent
throughout the organization. That is, all managers in the organization must maintain
comparable rating standards.2

MANAGEMENT
The overriding goal of any appraisal system appraisal should be more than a past-oriented
activity that criticizes or praises workers for their performance in the preceding year. Rather,
appraisal must take a future-oriented view of what workers can do to achieve their potential
in the organization. This means that managers must provide workers with feedback and coach
them to higher levels of performance.

Performance Management is concerned with people and the latter are the backbone of a
business, and thus performance management is an essential element in the organisation.
Today Performance Management is carried out but not in the right way. An example is the
organisational work for, managers do not really motivate employees, they are only concerned
about making sales; people are not trained well, especially new crew members and they are
not told what is expected from them and when they do not perform to the standard managers
shout at them which results in bitterness for the manager and the employee sometimes leaves
the job because he cannot cope. This is a big disadvantage for the company as it has to
recruit, and then train someone again. It is time consuming and costly as well. Hence I want
the retail industry to show appreciation and encouragement when their employees perform
well, I believe managers have the right knowledge and skills and they should support, guide,
advise and correctly coach their employees to extract good work from their people.

Performance appraisal process of McDonalds

The objectives of this Project work are to assess the significance performance appraisal and
assessment in the management of McDonalds. Particularly, this research focuses on getting
the following aims

Identify the basic idea of performance management system in McDonalds.

Recognise the view of the staffs about the performance management system.
Decide the methods implemented through management for performance
management.

Identifying Performance Dimensions in McDonalds

McDonald's Performance appraisal begins by identifying the dimensions of performance that

determine effective job performance. Obviously Job analysis is the mechanism by which
performance dimensions should be identified at McDonalds Corporation.
People have always been McDonalds legacy. I also appreciate the fact that, in an
organization like McDonalds, people and profitability are inexorably linked. You
cannot have one without the other

McDonalds Corporation chief executive officer

McDonalds recognise that people do well when they feel good in their job, so they go all-out
to create the right working environment for everyone. Thats a lot of people to consider,
which is why we strive to provide a variety of rewards and benefits to suit all kinds of
lifestyles. In achieving the best working experience for their people, they aim to provide the
best restaurant experience for our customers. In working for McDonalds, employees not only
become part Recruitment & Training of one of the largest global brands, but a constantly
evolving organisation that offers a culture of flexibility, opportunity, equality and diversity.
Reflective of the society and communities in which we operate, we offer probably one of the
most diverse work cultures in the UK. While our people come from all walks of life, they
share a common approach: a positive one. When recruiting Crew Members, our policy is to
hire the smile. This helps to foster a workforce of people with a positive outlook and
approach, which in turn creates an upbeat and friendly atmosphere. Of course, its not just
about hiring happy people its about doing everything we can to keep them smiling. How?
By offering rewards and

Benefits that fit in with their lifestyle, whether theyre a part-time employee working to fund
their college education or a Trainee Business Manager straight out

Measuring performance in McDonalds

It is essential for people and the company they work in to calculate their performance and
observe how well they are working. A staff must recognise what is needed of him/her in the
corporation and what standard of output is needed of them to identify if they are pleasing this
demand. Some methods are there for

Motivation

Motivating is the work managers perform to motivate, support and impel individuals to take
action. To inspire the staffs, the staffs should be reached to reach him there should be a
completed consideration of the complication his make-up. Efforts of motivation should be
directed towards developing operations of company. To be successful, however they should
also be planned to demonstrate advantages to the staff. Actually, inspiration can best be
achieved when staffs are capable to combine their individual aims with those of the company.
According to Robin and DeCenzo (1995; 271) inspiration is described so the eagerness to
exert high standard of attempt to reach goals of company, conditioned through the ability of
attempt to please some individual demand. Campbell and Pritchard (1976) in describes
inspiration as a set of independents and dependant connections that defines the amplitude,
direction, and persistence of a staffs behaviour holding stable the impacts of approach,
abilities, considering of an aim and the constraints working in the work situation. Schrader
connected staffs need to inspire and it was consequently defined through Thomas et al. That
there is proof encouraging the existence of a connection between motivational level of a staff
and their personal performance. Atkinson described it as the modern immediate impact on the
vigour, direction, and persistence of activity. The connection between the company and staffs
should be one of consideration in order for the staff to recognise himself with his action and
with the company he is functioning for. Lack of inspiration in return impacts output. Several
signs can point to low morale: reducing output, high turnover of employee, enhancing several
grievances, higher occurrence of tardiness and absenteeism, enhancing number of
substandard products, higher number of incidents or a higher level of scrap and waste
materials (Brewster, Higgs, and McBain,. Inspired staffs are a faithful staff and to be loyal

Implies that the staffs help the objectives and actions of the company. The emergence of the
work as a whole has, actually a bearing on the eagerness and value for performance of a staff
(Fredrickson and Joiner, 2002). Considering what inspires staffs to perform can present the
platform and basis to observe the performance of staffs in McDonalds. Researchers have
observed the different inspiring aspects throughout the latest time and have an excellent
consideration of what inspires a staff in McDonalds. Their research can make the method for
calculating performance Frederic Herzberg proposed that there are two kinds of aspects that
impact a workers work satisfaction called motivators that present optimistic work
contentment and hygiene aspects that can impact a staff unenthusiastically. Motivators are the
inspiration for a staff to obtain contentment in their work and enjoy it; hygiene aspects have
to be pleased to avert the staff from being miserable but are not essentially going to cause
lasting satisfaction of job. The individuals performance is directly impacted through these
aspects and will develop and get worse accordingly. Here is a list of Herzbergs hygiene
 CHAPTER-2

INTRODUCTION TO MACDONALDS

McDonald's is an American hamburger and fast food restaurant chain. It was founded in 1940
as a barbecue restaurant operated by Richard and Maurice McDonald. In 1948, they
reorganized their business as a hamburger stand, using production line principles. The first
McDonald's franchise using the arches logo opened in Phoenix, Arizona in 1953.
Businessman Ray Kroc joined the company as a franchise agent in 1955 and subsequently
purchased the chain from the McDonald brothers. Based in Oak Brook, Illinois, McDonald's
confirmed plans to move its global headquarters to Chicago by early 2018.
Today, McDonald's is one of the world's largest restaurant chains, serving approximately 68
million customers daily in 120 countries across approximately 36,899 outlets.[5] McDonald's
primarily sells hamburgers, cheeseburgers, chicken products, French fries, breakfast items,
soft drinks, milkshakes, wraps, and desserts. In response to changing consumer tastes, the
company has expanded its menu to include salads, fish, wraps, smoothies, and fruit. A
McDonald's restaurant is operated By franchisee, an affiliate, or the corporation itself. The
McDonald's Corporation revenues come from the rent, royalties, and fees paid by the
franchisees, as well as sales in company-operated restaurants. According to a BBC report
published in 2012, McDonald's is the world's second largest private employer, 1.5 million of
whom work for franchises.
Working conditions

In March 2015, McDonald's workers in 19 US cities filed 28 health and safety complaints
with OSHA which allege that low staffing, lack of protective gear, poor training and pressure
to work fast has resulted in injuries. The complaints also allege that, because of a lack of first
aid supplies, workers were told by management to treat burn injuries with condiments such as
mayonnaise and mustard. The Fight for $15 labour organization aided the workers in filing
the complaints.