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McDonald Case Essay

Updated April 19, 2022
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McDonald Case Essay essay

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McDonald’s (McD) experiences its largest turnover percentage in over twenty-three years. Kirk (2018) stated, “McDelivery, through Uber Eats, is also a priority for McDonald’s moving into 2018. It’s grown from a pilot program for 200 Florida restaurants to being offered in 10,000 restaurants in over 20 countries” (para. 7). This essay will discuss the purpose of Hamburger University (HU), their new skills training, and how managers are combating the high turnover rates and their impact. Technological advancement improves customer service experience and creates a faster turnaround worldwide

Hamburger University

Mr. Fred L. Turner, a former grill cooks in 1956 with a passion for service, became the chief executive who facilitated the process to transform the McDonald (McD) franchise into a worldwide giant. Turner founded HU in 1961 because he wanted to assist restaurant managers in developing confidence in the business process as leaders and those principles still stand true today. Tomar (2020) states, “There are seven Hamburger Universities around the world, including the newest in Shanghai, which opened in 2010. Numerous McDonald’s executives have taken courses at Hamburger University.” (para. 10). McD uses different methods to deliver their curricula, such as classroom instruction, hands-on lab activities, goal-based scenarios, and computer e-learning modules.

HU trains managers with the necessary skills they require to run multimillion-dollar restaurants. Their members associate the training with specific career paths courses at the regional training centers. The mid-managers training builds its consulting, coaching, and leadership skills and how to operate a business successfully. Arussy (2013) states, “Customer service improvements happen overtime via multiple activities and behaviors. Make sure to repeat and reinforce daily to ensure your employees stay sharp and committed” (para. 10).

Executives training reinforce continuing corporate and leadership skills for the highest management and crew managers training is the foundational professional support for staff. McD executives identify new techniques that automatically cure the workplace dissatisfaction and inadequacy of employees. McD trainers advise the managers to continue communicating with their employees and provide fair wages. Management acknowledges the relationship between a happy employee and a satisfied customer. McD implements new technology to provide greater and more personalized customer experience.

Technology includes an updated outdoor digital drive-thru menu presentation based on the time of day, type of weather, and traffic at that restaurant. Guiliano (2019) states, ‘Every time you interact with a customer and don’t offer them something highly customized and relevant to their personal interests, you are missing an opportunity” (para. 7). McD implemented this technology to overcome employees leaving money on the table by not suggesting additional items on the menu to customers. McD new improvements comprise of self-order kiosks, McD Global Mobile pay App.

As well as the indoor digital menu, and Mobile Order App. McD technology improved fifteen-second per customer service in the drive-thru. McD corporation is trailblazing digital training features that deliver personalization learning, as well as video transmission capabilities for their applicants. Klein (2019) states, “The order-taking process has proven quicker because workers don’t need to manually upsell items to guests—the tech does it for them” (para. 12). Technology allows McD franchise owners to share their journey, facts, and lessons learned as part of a continuous learning culture for employee mentorship and development.

New Skills Training

The U.S. fast-food revenue was a massive $200 billion in 2015, which indicates incredible growth since 1970 when the revenue was $6 billion. The United States has over 200,000 fast-food restaurants, and its estimated over 50 million people eat at one of them daily. Fast food consumers focus on quality, taste, and price. Restaurants concentrate on affordability, tempo and the regularity of experience. The United States fast-food workplace dominated by hamburger fast food restaurants over thirty percent of sales.

McD workplace expectation is that the environment is free of harassment to include sexual harassment, violence, racial jokes, and offensive comments. Managers persuade workers to report any misconduct without dread of retaliation and treat everyone positively and fairly. Dwilson (2018) states, “…employees shouldn’t use company computers to transmit illegal information or use the McDonald’s logo for personal gain” (para. 5). The corporation believes in creating ethical climates, ethnic diversity, and treating employees equally.

Combating High Turnover Rate

The high turnover rates across the franchise reduced steadily since 2007. Reduced turnover of the crew and hourly managers became primary success measures of enhanced training initiatives. However, with an effective strategy for staff management, the restaurant’s turnover rate has been made easier due to all the new complicated ingredients. Most employees are quitting when faced with the stress of dealing with unforgiving customers. The impact of high turnover in restaurants is stressful for managers who want to provide service at a high level regardless of staff count.

High turnover rates create pressures for the human resource department who is responsible for replacing members who leave. It takes time to train new employees to the right standard because new hires are less experienced and fruitful compared to the ones they replace. Many restaurants are facing elevated employee turnover report change in overall productivity and profitability. McD believes giving quick, and high-quality customer service is essential for its success. The recommended Solutions in reducing high turnover is to offer more incentives to younger employees’ populations.

The majority of McD workers are under 18 years old, and they want rewards such as life skill training and iPad for personal training and development. Craver (2016) states, “…the fast-food giant announced it would raise the pay rate for its lowest-paid workers in company-owned restaurants to at least $1 over the locally mandated minimum wage” (para. 4). McD should raise the minimum wages from $9.70 to $12 per hour and allow employees to take longer breaks because there’s production will be greater when rested.

Conclusion

HU was the greatest technology McD invented; it provides a standard operation procedure anywhere in the world. The organization offer mid-managers and executives a professional foundation to grow and develop their employees. The implementation of new technologies will continue to set the tempo and drive the hamburger fast food trend of McD franchises around the globe. The company creates an ethical standard in the workplace for workers to have a fair and positive climate in which to operate. McD goal for its managers is to develop a better working relationship with their employees, gain their loyalty, and reduce the high turnover rate of workers.

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