McDonald’s Canada Employee’s Manual Orientation Shirley Kuo, Iman Hatamian, Phoenix Ren, Sarah Smith, Xiaoyu Ji 6/14/2010 Table of Contents History and Culture 3 Goal, Values, Principles and 5 People Principles 5 Privacy Policy and Employee Support 6 Management and Operations 7 Employee Self-Introduction 9 References 10 2 Background of McDonald’s History and Culture In the late 1940’s, Dick and Mac McDonald were looking for ways to improve their little drive-in restaurant in San Bernardino, California. In order to find the best solution to increase service speed and productivity with assembly-line procedure, the McDonald brothers redesigned the layout of their kitchen. They changed the original drive-in mode to self-service at the counter. Also, the McDonald brothers introduced a new concept to the fast food industry; they introduced speedy service, low prices, and large volume. The brothers also decide to narrow down their menu to only nine items: hamburgers, cheeseburgers, three soft-drink flavors, milk, coffee, potato chips, and pie. The new concept of re-designing Mc Donald’s became one of the most important key factors that started off their successful business. In the mid 1950’s McDonald’s revenue reached $350,000 per year. The success of the McDonald brothers spread far and quickly. In 1952, Neil Fox, opened the first franchised McDonald’s in Phoenix, Arizona. Simultaneously, a symbol of the industry was created-- red & white tile buildings with slanting roofs and now famous “Golden Arches” on the side. This is now the classic symbol for all McDonald’s restaurant around the world. In addition, the pioneered Basic Speedy Service System played a pivotal role for future prototypes of the expansion to national and international McDonald’s businesses. Then in 1954, Ray Kroc first stepped into the first franchised McDonald’s restaurant in Phoenix, Arizona, Kroc an experienced milkshake machines salesman was looking for ultimate product to sell. He finds his ultimate product buyers in the McDonalds brothers. Ray Kroc believed and supported the McDonald brothers’ management and the concept of the business. Kroc looks further to increase more franchises of the McDonald’s restaurant. Kroc said: “This will go anyplace!” Ray Kroc persuaded the McDonald brothers to expand their restaurants nationally. As a result, on March 2, 1955, Ray Kroc set up a new franchising agent under the name of McDonald’s System, Inc. Later, on April 15, 1955 the first prototype McDonald's begins in Des Plaines, Illinois. Ray Kroc desires to expand the prototype further and the franchising concept across the nation. Besides Ray Kroc’s wise strategic managerial plans, the key success factors of McDonald’s are its limited menu, quality food, assembly-line production, and fast and friendly service with a continuous insistence 3 on standards for cleanliness, which are well known in international McDonald’s restaurants; the value short for – QSC & V – today. Beginning Growth The growth of McDonald’s franchising restaurants in the US was increasing at a very surprising speed in the 1960’s. In 1963, there were one million hamburgers sold per day. In 1965, McDonald’s had become a public company and were selling market shares. The share price was $22.50 per share. However, within a few weeks that price sky-rocketed to $49.00. By the end of 1956, there were 228 restaurants and $37.6 million in sales revenue; they had sold 400million hamburgers in United States. Internationalization McDonald’s is also the pioneer of going into the international market. In 1967, the first McDonald’s restaurant opened outside the US in Richmond, BC Canada. Now there are more than 1,300 restaurants in Canada. In the 1970’s, the second expansion period started; McDonald’s went to Japan, Germany, Australia, France and England. Further in 1990, McDonald’s stepped into Moscow, Russia. Two years later, in April 1992, an expansion to Beijing, China had been decided. Later in 1993, oversea markets in Poland, Czech Republic, East Germany, Hungary, Slovenia, and Middle East were opened. Since the international expansion had become McDonald’s major strategic goal, a culture of inclusion and diversity was encouraged in 31,000restaurants in 118 countries. Until now McDonald’s was the leader of globalization of fast food industry, and the corporation is still looking for opportunities to enlarge its global markets. 4 McDonald’s Goal McDonald’s goal is to offer the best and most accurate service to every customer at every location. McDonald’s Values McDonald’s is committed to offering the best quick service restaurant. They are committed to giving exceptional service through quality cleanliness and value. A well trained team is the key to providing top service and continued success. All business is conducted in an honest fashion. McDonald’s strives to give back to all communities in which they do business. McDonald’s Principles McDonald’s is committed to always meeting customers’ needs at every location. McDonald’s believes in protecting and building the McDonald’s brand through all franchises and original restaurants. They will use every opportunity to help expand and better restaurants to better serve customers. McDonald’s believes in keeping an open collaborative relationship with all of its franchises helping those that are in need. McDonald’s Five People Principles Respect and Recognition Employees are treated equal Employees are respected, valued and empowered Employees are recognized and rewarded Values and Behaviors Employees act in the best interest of the company Employees communicate openly, listen for understanding and values diverse opinions Employees accept personal accountability Competitive Pay and Benefits All pays are at or above local quick service restaurant levels All benefits that employees values are included in the compensation packages Employees receive regular performance appraisal and wage reviews Training, Learning, Development and Personal Growth Employees receive work experiences that teaches skills and values that last a lifetime Employees are provided the tools they need to develop personally and professionally Resources to Get the Job Done MacDonald’s provides support and tools to help employees complete all tasks that are given 5 Privacy Policy All levels of employees of McDonald's strongly believe in protecting the privacy of personal information that we obtain for business purposes. Information about our customers, employees, franchisees, suppliers and other entities. We value the trust that is placed on us to responsibly manage the personal information that we obtain. McDonald’s has established its Privacy Guidelines to assist in protecting the privacy of all employees and non-employees personal information. We have also established a set of Employee Privacy Principles. These Principles provide guidance to us for our treatment of others personal information. Support for Employees McDonald’s provides an employee wellness program. This program is completely confidential. McDonald’s also provides a support program for employees who are feeling emotionally unbalanced. These programs educate employees about the problems they are facing and help them find the best solution. The support line to speak to a trained professional is: 1 MCD SUP PORT (1 622 787 7678) or E-mail mcdonaldsupport@mcdonald.com 6 Management Individual Dave J. Allen Role Chief Operating Officer Andrew Brough Chief Restaurant Support Officer Senior Vice President, People Resources and Chief People Officer Len Jillard Reporting Units Central Administration Procurement Transportation Communication Franchisees Human Resource Specialists Training Officers David J. Hederson Vice President and Chief Financial Officer Central Administration Accountants Brian O'Mara Vice President, Chief Marketing Officer Richard P. Ellis Senior Vice President, Communications and Public Affairs Brand Managers Assistant Brand Managers Web Development PR Specialists Operations All reports from every department of McDonald’s will be reviewed by their team leaders; then, the team leaders will report directly to the President of McDonald’s Canada John Betts. At McDonald’s, each of these senior roles represents a different functional group within the organization. Allen’s role is that which manages all corporate operations, namely how the company decides where to expand and what systems need to be in place for that to happen, such as production and supply of food products for each location. Brough’s job is to manage the company’s Franchisees. Because McDonald’s does not run its own stores, but rather sells the opportunity to those with Franchise potential. The onus is on Brough to organize and train Franchise Managers to help new partners get their business off the ground across the country. All Franchisees report to Brough, which means that any issues that they have with their own stores will be addressed with his team. Training happens with Jillard’s team, who are human resource specialists in charge of developing training 7 systems so that all customers in Canada will have the same experience as others worldwide. Hederson leads financial management challenges alongside with a team of accountants. O'Mara has a team which creates new marketing strategies for each product introduction and promotion; his team consists of Brand Managers and Assistant Brand Managers who specialize in specific parts of the McDonald’s menu such as children’s meals, fresh meals, combination meals and coffee. Finally Ellis’ team is generally a tactical response unit to deal with issues that come up in the public eye. Most recently, his PR Specialists helped to communicate their Shrek drinking glasses recall to customers in Canada. 8 Employee Self- Introduction Please answer the questions below. 1. Are you currently in school? 2. What are you future career goals? 3. Two interesting facts about yourself. If you have any questions for the team leaders or questions about the company please write them below. 9 Reference Official Board. (2010). Website. Retrieved 9 June 2010 from http://www.theofficialboard.com/. Erdogan, Berrin., Bauer, Tayla., and Carpenter, Mason., Principles of Management. (2009). Retrieved 9 June 2010 from http://www.flatworldknowledge.com/node/28982 Robbins Stephen P., Coulter, Mary., and Langdon, Nancy., Fundamentals of Management. (2008). p.138 McDonald’s Canada. Website. Retrieved 9 June 2010 from www.mcdonalds.ca 10