McDonalds
Wentworthville
Staff turnover
As HRM issues
Prepared By
Ashma Upadhyay
Md Ifthakharul Alam
Nagendra Koirala
Praveen Bisht
Rohith Reddy
McDonalds Australia
• In 1971, 1st Mcdonald’s restaurant in a Sydney suburb
called Yagoona
• over 780 McDonald's across Australia,
• 85,000 people employed in restaurants and
management offices
• 2/3 restaurant businesses owned and operated by
franchisees.
Franchisees
An individual who purchases the rights to use a
company’s trademarked name and business model to do
business
Goal
• good food friendly and fun environ.
• socially responsible company
• good returns to its shareholders
provide customers
>food of a high standard,
>quick service
>value for money
McDonald’s Wenworthville
• Great Western Highway, western suburb of
Wentworthville
• Established in the year 1992
• Franchise restaurant of McDonalds' Australia
• The restaurant is open 24/7
Work station in Mc wenworthville
Front Area
• walk in and buy food.
• open from morning 5am to 11pm.
• facilities of eat-in/take away
Work station in Mc wenworthville
Drive through
• It is open 24/7.
• People drive through the lane. Their orders are taken,
processed and handed to them within a designated
period of time (2:45 seconds)
Work station in Mc wenworthville
Mc Café
Work station in Mc wenworthville
This section of the restaurant, the food is made.
Employees structure in
Wentworthville MacDonald’s
• 14 managers and 160 staffs.
• All the managers are full time employees
• The staffs are hired as full time, part time and casual
employees
• Majority of the staffs’ i.e. 85% of them are casuals.
Organizational structure of
Wenworthviille MacDonald’s
Problem Identified
• One of the main problem faced by the McDonalds at
Wentworthville is High Employee Turnover Rate.
•
What is Employee Turnover rate ?
– Employee turnover is a ratio comparison of the
number of employees a company must replace in a
given time period to the average number of total
employees.
•
It’s a huge concern to most companies as employee
turnover rate is a costly expense.
Employee Turnover
• Financial performance as well as the morale of the
employees is affected.
• High employee turnover rates cannot be solved easily or
swiftly.
• Turnover rates have an impact on profitability, and even
survival.
Employee Turnover Rate in Australia
• Cost Australian organizations more than $100 billion in
2008 (Source: Unisys)
• According to Mercer Human Resource Consulting in
Australia 25% employees were planning on looking for a
new job
• Rise in staff turnover is hitting business hard
Factors
•
•
•
•
•
•
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Demographics
The person
Unrealistic expectations
The characteristics of the job
The organizational culture
The performance of the organization
The economy
Reasons For McDonald’s High
Turnover Rate
• Poor Recruitment Process
• Lack of motivation/
• High workload
• Job instability
“Evaluate what you want – because
what gets measured, gets
produced”
Performance Appraisal
Aims of Performance Appraisal
•
•
•
•
Motivate employees
Feedback on performance
Identify employee training needs
Provide the opportunity for organizational diagnosis
and development
• Facilitate communication between employee and
administration
Raters and Method
Raters
• Shift Managers and Assistant managers
Method
• Balanced Score card
Performance management technique which evaluates organisational performance in
areas including people, internal operations, customer satisfaction and finance.
Existing Performance Appraisal
Proposed Performance Appraisal
• Discriminating on the basis of performance
“Employee of the Month”
• Rewarding performance
“Bonus”
• Developing employees
“Training”
• Giving feedback to employees
“Individual Feedback Session”
Recruitment
Solutions
• Changing Recruitment policy
• Enlightening Interviewing questionnaires
• Practical and open internal recruiting
process.
Recruitment policy
Current Framework
• Saving money by recruiting more under18 staff
• Giving casual positions instead of giving part-time or fulltime positions
Suggested Framework
• Recruit more matured and motivated staff regardless of
their age.
• Evenly distribute part-time and full-time positions as
required.
• Sufficient staffs should be available to avoid worklo0ad
Interview Questionnaires
•
•
•
What was your previous job and why did you leave it?
Where do you see yourself in 3 years of time in the
organization?
Are you interested in the management department of
the organization?
Recruitment Methods
• This helps to promote the motivation and
security in staff
• Internal recruitment should be made more
practical and open.
Exit interview
Exit Interview ?
Purpose of Exit interview
• Innovative way to reduce high staff turnover in Mc
Donald.
• Sample Questions
– What is your primary reason for leaving?
– Were you happy with your pay, benefits and other
incentives?
– What did you like most about this company?
– What did you like least about this company?
– What does your new company offer that this company doesn't?
Conclusion
Recruitment policy
• Age independent, motivated staffs should be recruited
• Job security should be enhanced.
Performance Appraisal
• Employee growth and development
• Performance feedback
• Rewarding performance
References