TTTTTTTT Comparative Study of HR Activities Between KFC and McDonald
TTTTTTTT Comparative Study of HR Activities Between KFC and McDonald
TTTTTTTT Comparative Study of HR Activities Between KFC and McDonald
Abstract
Human resource is the core asset of any organization and its training and development will
mutually benefits to organization and individual to achieve its mutual goals. So every modern
management has to develop the organization through human resource development. Employee
training and development is important function for human resource management. The objective
of this research paper is to study the theoretical aspects of training and development process as
well as to understand the practical aspects with the help of case study on training process within
McDonalds and KFC. The McDonalds and KFC both are the leading organizations in the fast
food segment. The process of training and Development at McDonalds and KFC has been
studied in the report. Food segment is one of the growing segments in India.
Technology keeps on changing and therefore the investment in training and the training methods
is expected to increase and change at a very rapid rate in this segment to meet the international
standards.
As a student of Human Resource management course, you and your team are going to do a
research analysis on the HR department and its function of the chosen organizations in the UAE.
You and your team will investigate and do (primary/ secondary) research (qualitative /
quantitative) to investigate the core human resource management functions of the business of the
organization to develop a deeper understanding of: 1. How to evaluate staff recruitment and
selection process. 2. Discuss the concepts of orientation, training, and compensation. 3. Describe
fast food segment views training and how they design their training programs. After studying the
training and development process of KFC and McDonalds, analysis is made on the basis of
certain parameters as to which company’s training and development practices is better than the
other on those same parameters. Also a few recommendations have been made for the other to
Introduction
Human resource for any organization in the UAE and elsewhere globally is a fundamental asset
and creative skills, employee benefits for motivation, training and development, and knowledge
shared play an important role. In the modern organizations, the HR functions remain at the core
of strategies aimed at establishing a formidable human resource base in the competitive business
world. Human resource managers monitor the most essential elements of successful and
progressive workforce as a tool for strategic value addition to the business organization. The
knowledgeable, motivated and skilled workforce in order for the employees and the organization
to accomplish their objectives in the short and long run. This aspect in organizations globally is
achieved through training and development. Human Resource Management (HRM) in business
and compensating employees, and creating appropriate policies concerning them, and as well
formulating strategies for retaining them. The modern business organizations exploit the HRM
for more than just administrative functions to include strategic roles essential for the
organization’s success.
The aim of this paper is to conduct a comparative study of HR department’s activities performed
at McDonald’s and KFC in the UAE. These companies were selected considering their success
in the fast food industry and the availability of secondary information. In order to meet the aim
recruitment and selection procedures and processes, training, compensation, and orientation of
employees at the selected companies. The role of performance appraisal is also explored based
McDonalds
McDonald’s is notably one of the most successful multinational fast food restaurant
organizations across the globe established in 1955 in the US. The organization was first founded
in the UAE’s Al Ghurair City on 21 st Dec 1994. Until the end of 2021, McDonald's UAE had
operated over 145 restaurants and employees exceeding 3000 from diverse backgrounds. The
employees are recruited from the divergent backgrounds using robust mechanisms as a
competitive tool. The company is recognized for upholding social responsibility agenda in the
KFC was founded in 1952 in Louisville, the US, and has now become one of the leading
restaurant organizations in the fast food restaurant. The restaurant brand first came into existence
in the UAE in 1973, and until the end of 2021 operated 151 outlets. There are over 2,500
employees at the KFC in the UAE from diverse backgrounds. The company equally values its
and address the various issues that affect them. A competent skilled knowledgeable and
because of their unique problems solving skills which others in rival organizations cannot solve.
According to Hickson (1971) who coined the theory, organizations are best defined as a
conglomeration of functions or departments aligned together with the purpose of coping with
resources.
One of the functions of the HR department is HR planning, which involves evaluation of the
available human resources at the organization to ensure timely acquisition on time. Planning
plays an important role considering that human resource management is one of the core
Another important function of the HR department is job description evaluation and design. Prior
skills, qualifications, the working relationships, etc., needed for effective working at the position.
Recruitment and selection activities are another important function of the HR department.
Recruitment and selection in many organizations are continuous, and procedures may involve
both internal and external procedures. This role ensures the employees are best fitted for the job,
hence making them not substitutable, giving the company a competitive advantage over rival
firms.
Training and development is another core function of the HR department. For the workforce to
remain motivated, skilled, and knowledgeable about their job and services delivery, the HR
department is tasked with the duty of creating programs and mechanisms to enhances the
qualifications of employees, and increase their knowledge and skills. This aspect of the
department plays a major role in achieving the personal and organizational goals.
Compensation and management of performance including appraisal duties also fall on the duties
tasked with the HR department. Offering compensations for employees maintain the good
working relationship with employees and work. The HR department manages the human
resources by appraising their performance and granting compensations where it is due in order to
HR department at McDonald’s
position in almost all the main business of the organization. All managers are responsible for
human resources. Employees are the most important resource for McDonald's, especially to
Evaluating employee performance in terms of their ability to meet customer expectations and/or
shape their experience helps to develop change at the appropriate time. This plan guarantees that
the organization does not lose its loyal customers to the competitors. Through remuneration,
reward systems, and promotions, McDonald’s human resource strategy ensures staff retention.
requirements exist in the current and future needs of workers and workers. To achieve
McDonald's service vision, the organization believes to strengthen their team and ensure that the
right people are provided with the right skills and knowledge to complete the right job. And they
will align with the vision of the company which is To become the best quick service restaurant,
Human Resources Functional Job Analysis McDonald's annual job analysis for new employees.
knowledge and experience. For example, the franchisee that use the McDonald’s brand name for
operate that need to have knowledge about the standard of do the burger and the ways to serve
the customers as well. And, the process of produce the standard food to customers. And of
course, the franchisor will be provided the proper training for the franchisee as well before they
For McDonald's, people are its most important asset. This is because customer satisfaction
begins with the attitudes and abilities of employees and effective workers are the best route to
independently by each branch. Often employees in McDonald's are hired in the form of badges.
In addition, McDonald's franchise within the scope of the staff transformation is also carried out
to recruit staff. The typical McDonald's restaurant can employ about 60 people, including
management and floor staff. McDonald's Recruitment Method McDonald's follows two basic
McDonalds uses the following two basic methods to locate work in the job location, and
McDonald's selects candidates from the inside by considering past performance. MCDONALDS
on their website to promote their public work, employees can apply for work, they are also
publicity in the bulletin board restaurant. Let the staff inform and apply from the vacancy.
techniques and includes hiring managers or senior staff at the executive level based on their
performance.
External recruitment McDonald's often participates in external recruitment, even though they
McDonald's recruiting through the Internet is now recruiting through the Internet every day is
becoming very common. McDonald's has its own website, they advertise the work and provide
people through online processes to send their resumes and often recruit staff from advertising.
Advertising is the most commonly used way of hiring. McDonald's is close to newspapers or
After the final interview, the manager will evaluate the applicant's response. A successful
applicant will show the skills and behavior that have been identified as key positions. Selection
process written process initial interview competency test reference check final interview . The
successful of the applicant will be go through this several steps before becoming the employees
of the McDonalds.
KFC HR functions at
KFC the responsibility of the human resource department, the actual management of human
resources is the responsibility of all the managers in an organization. It is therefore necessary for
all managers to understand and give due importance to the different human resource policies and
For the human resources planning of KFC, peoples are most important asset of any organization.
Many organizations are using this phrase important role that employee plays in organization
success. In the organization, the HR manager active in various human resource management
actions, and in big organization that have a HRM department. Human resource management is
the important strategic tool for any organization. For the KFC it use the forecasting demand and
forecasting supply.
While KFC is working in different countries all over the world, he has set up his own
management team based on cultural concepts. International operations must have an organization
that they use to ensure the implementation of human resources in accordance with relevant
2.2.1.1. Forecasting demand: In the organization, the impotent factor of human resource planning
is predicting the figure and types of people, compulsory to get collectively decision making aims.
For the reason that it is an open structure that we stay in, a combination of administrative issues,
as well as prepared for action plan, ability, arrangement, and production can force the demand
2.2.1.2 Forecasting Supply: The organization has forecast its upcoming needs for workers, it then
goes on to the subsequently investigate that is from everywhere can it fulfilled its wants. It
therefore 4 requirements to decide if there are enough figures and types of workers and how
many are qualified for the reasonable position. Supply examination thus, involves arrangement
for procurement: who, from where, how and when of staffing. It scans the inside and outside
Job analysis
In the company the job analysis is the process to assembling the responsibility of each day
situation which is known equally to single employees. KFC will be assign the each employees
task per day. So the HR will plan each of the day work for the each employee.
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Key elements are reflected in Human Resource Policies, using the same selection across the
world, providing training to improve efficiency, improve their ability to adapt to the market
culture and deliver quality customer qualifications. To ensure that people are employed in the
right place, the HR department has created a standard of the job description so that it can be
reparations, and compensation. HR operations (HRM Policy of KFC) are job picks and
selections and storage. The Ministry of Education is responsible for teaching new skills to
existing staff. The Department of Repairs and Maintenance maintains a proper record of the
employee regarding the wages of medical equipment, additional benefits. And so on. There are
also members hired and hired in these industries. They believe in teamwork and in the kitchen,
KFC performs both types of recruiting internal and external. Internal recruiting is done for all
levelsof management and external recruitment is rarely done for this level. The restaurant
managers andshift supervisors are never hired externally at the outlets. The employees already
working with thecompany are given training to develop their skills and knowledge needed for
such designations.Only team members and assistant restaurant managers are hired externally to
Internal recruitment is done in two ways:Employee recommendation – Employees are told about
the vacancy so that they can give refer-ence to the management team about the potential
candidate for the vacant designation.Word of mouth – E-mails are circulated throughout the
organisation so that a wide range ofprospective candidates can be reached. Therefore, there is
also a job opportunities page on the com-pany’s website which allows people to send their CVs
directly to the HR department. These re-sumes are stored in the company’s database for future
KFC uses it’s three keytests for the selection of candidates :Team Member Readiness Inventory
– these type of tests are for team members in which attitudeis kept and given priority for
assessing employee’s skills.Hiring Champions Inventory – these kind of tests are designed for
assistant restaurant managersand they are updated on yearly basis to take a note of the changing
IQ Test – this test is only held for the staff to be employed at support Centre
The recruitment for Support Centre is mostly done internally in which the head of the particular
de-partment who has identified that there is a need of new employee contacts the HR department.
HRdepartment then check their database and suggests candidates who seem to be relevant for the
job.If an employee consists all the required skills and fits the vacant job position, he/she is
suggestedfor that position and after approval and joint agreement of the CEO, departmental head
and HRhead, he/she is given further training and is improved for the relevant designation
If the company thinks that there is a need for external recruitment, then they place an
advertisementin the newspaper or they inform the employees about the job opening and are
developed and an interview withthem is organised. The primary level interview takes place
between the head of the particular de-partment and the applicants. Afterwards, entry level tests
Later, a more refined and filtered short list of the candidates is developed and second interview
ofthe candidates is organised with the CEO, HR head and relevant departmental head. Finally, in
theend the qualified candidate is given a job offer and an employment contract is signed by the
candi-date in which all the details and all the terms and conditions of the job are clearly
mentioned. Anorientation is done in the company’s premises so that the new staff member gets
In the business units they perform external recruitment only for front-end employees whereas
back-end employees are recruited internally. The minimum requirement for front-end employees
to be-come eligible for the job is to have basic high school education. Then the resumes of the
applicantsare short-listed and an aptitude test is conducted. The results of the test are given on
McDonald’s
The first phase of the training is a welcome meeting. These specify the company's standards and
are trained to meet the high standards of the organization. On-the-job training, sometimes called
direct instruction, is one of the earliest forms of training (observational learning is probably the
earliest). It is a one-on-one training located at the job site, where someone who knows how to do
a task shows another how to perform it. In antiquity, the work performed by most people did not
rely on abstract thinking or academic education. The senior of the McDonalds will directly teach
practice of training and learning material between an instructor and learners, either individuals or
groups. Instructors can also be referred to as a facilitator, who may be knowledgeable and
experienced in the learning material, but can also be used more for their facilitation skills and
ability to deliver material to learners. For example, the franchisor that it come out the seminar for
the franchisee for them learn somethings new. It could be the new menu, new policy and so on.
McDonald’s Compensation
coverage for eyeglasses and contact lenses, and discountson Lasik laser vision correction
surgery. ♥Dental - Dental plan allows employees to see the dentist of their choice andcovers a
wide range of dental services. ♥Short and long-term disability -. Short term disability provides
benefits if anemployee cannot work for more than 10 consecutive days. Long
termdisability coverage replaces 60% of the employee's monthly base salary whilehe or she is
disabled. ♥Employee and dependent life insurance - McDonald's provides basic lifeinsurance
of two times the employee's base salary at no cost to the employee.In addition, employees
can purchase additional life insurance coverage forthemselves ♥Accidental death and
ravel and business travel accident insurance - McDonald's provides travelaccident coverage of
two times an employee's base salary at no cost toemployees for employees traveling
on company business. Depending on theemployee's position, this coverage amount may vary.
Investing in future
Profit Sharing and Savings Pl,. Mc$aveMc$ave is a special money market fund for McDonald's
employees. MCDirect SharesMCDirect Shares is a direct stock purchase plan that lets employees
KFC
The elements of the training are web based and virtual reality classrooms that are used to develop
champions. After commencing employment team members continue to further their training
through a program called CHAMPS. CHAMPS stand for the six universal areas of customer
expectations: Cleanliness, Hospitality, Accuracy, Maintenance, Product quality, and Speed. The
training is both face to face and web based. The web based program provides consistent and up-
to-date information. The face to face program provides opportunity for crosstraining within the
restaurant so that employees continue to develop new skills. The blended training is estimated to
require 41% less hours per learner than in-restaurant training programs. (Human resources)
Through structured employee training and effective retention strategies the company can deliver
a more consistent customer experience. The training, development, and retention of the right
people are the key ingredients to the secret recipe that result in the long term success of KFC.
For the incentive of KFC the incentive Programmed allows team members and team leaders in
restaurants to share in the success of their restaurant. It is based on actual sales compared with
forecasted sales over a four-week period. In 2013, eligible team members received their personal
bonus in cash, in place of the previous voucher scheme. Restaurants performing well receive a
For the reward system of the KFC it is variety schemes. The program offers all employees
bonuses through a variety of schemes. The employees are rated in two performance measures,
customer satisfaction and operational basics. The bonuses are also based on sales made as a
restaurant and are paid in form of retail vouchers, with some vouchers valued at over $400.00 per
employee each quarter. The bonuses are meant to create energy and encourage employee
engagement with the goals of the restaurant. Managers and senior staffs can also earn cash
bonuses depending on how they score on a balance scorecard. Misty Reich, vice-president HR at
KFC UK and Ireland, says: "the aim is to use the bonuses to create an ownership mentality
among KFC employees" (KFC keeps staff). KFC also considers career progression within the
company to depend on the bonuses offered. By conducting in-depth review of the restaurants'
staffs twice a year, the company can decide which of them has the ability to move forward in the
organization.
Benefit from the KFC that we found it is the flexible benefits. They come out one flexible
benefits scheme called Pick & Mix for salaried employees including restaurant and assistant
restaurant managers – around 11% of our employees. This offers a selection of options, so
employees can choose the benefits that suit them from categories including Finance and
Protection, Health and Wellbeing, and Leisure and Lifestyle. The new package also includes a
McDonald’s
and evaluated. McDonald’s conducts performance review semi-annually. Some standards are
made and defined according to which the employees have to perform. Then after Six (6) months
all the employees are evaluated that whatever they come up to standards or not. If an employee
does not perform well then feedback is provided to them so they can improve. There are four
improvement.
The employees of McDonalds will be evaluated by this method to concern whether they need to
send for training and development. Performances appraisal also can be the tools to evaluate the
training and development outcomes. To appraisal the employees after the training and
development the performances. Whether the employees achieve the expectation of the top
management.
incentives cash based attendance allowance annual allowance medical allowance leave fair
assistance second non cash based crew of the year crew of the month branch of the year access to
gift certificates free food. The employees of the company can enjoy the foods at the restaurants
Reward awards are given based on performance. Salary rose 10%, if the performance is also
considered at any time in the year increased by 20%. The McDonalds will keep increase the
people who will produce superior business results and enhance their leadership position.
MacDonald provided health insurance benefit to its full-time employees. Benefit communication
planning team is designed to include a variety of people from various corporate departments to
KFC
The performance which is measured should be provided to the Chief HR Officer with the answer
of the questions. The HR's contribution in the firms performance is the cumulative effect of the
scorecard's HR deliverable measure should provide that answer. For example the officer will be
given the employees workers score and then accumulate it all elements. And give them the score.
clearly gives the full view of the performance to the HR managers and with this they can focus
that how exactly their decision affect to the successful implementation of the firm's strategy.
For the incentive of KFC the incentive Programmed allows team members and team leaders in
restaurants to share in the success of their restaurant. It is based on actual sales compared with
forecasted sales over a four-week period. In 2013, eligible team members received their personal
bonus in cash, in place of the previous voucher scheme. Restaurants performing well receive a
For the reward system of the KFC it is variety schemes. The program offers all employees
bonuses through a variety of schemes. The employees are rated in two performance measures,
customer satisfaction and operational basics. The bonuses are also based on sales made as a
restaurant and are paid in form of retail vouchers, with some vouchers valued at over $400.00 per
employee each quarter. The bonuses are meant to create energy and encourage employee
engagement with the goals of the restaurant. Managers and senior staffs can also earn cash
bonuses depending on how they score on a balance scorecard. Misty Reich, vice-president HR at
KFC UK and Ireland, says: "the aim is to use the bonuses to create an ownership mentality
among KFC employees" (KFC keeps staff). KFC also considers career progression within the
company to depend on the bonuses offered. By conducting in-depth review of the restaurants'
staffs twice a year, the company can decide which of them has the ability to move forward in the
organization.
Benefit from the KFC that we found it is the flexible benefits. They come out one flexible
benefits scheme called Pick & Mix for salaried employees including restaurant and assistant
restaurant managers – around 11% of our employees. This offers a selection of options, so
employees can choose the benefits that suit them from categories including Finance and
Protection, Health and Wellbeing, and Leisure and Lifestyle. The new package also includes a
Issues in Appraisal
Tip
Performance appraisals fall short when managers aren't trained to do them properly, and there are
no specific outcomes that can be tied to measurable results. Poorly Trained Managers
Effective performance appraisal doesn't just happen and organizations shouldn't assume that
managers know how to conduct them effectively, even if they have many years of experience as
managers.
Inconsistent Ratings
Inter-rater reliability is generally very low between managers at any organization. What one
expectations." This can be a challenge for any organization and is made more of a challenge in
situations where the criteria used are subjective and not based on any measurable performance
outcomes.
Performance appraisals that ask managers to rate employees on subjective criteria such as
"customer service skills" or "leadership ability" lack specific outcomes that can be tied to
measurable results.
The purpose of performance appraisal is not only to provide input to employees about how
they're doing, but also to provide the organization with an indication of areas of employee
strength and opportunities for improvement. Unfortunately, few companies actually aggregate
and use the results of performance appraisal for performance improvement efforts. By analyzing
results and taking advantage of both best practices in areas where employees are performing well
and opportunities for improvement in areas where they're not, organizations can receive
If companies are going to continue to do performance appraisals, they need to set criteria that all
managers can use objectively and that employees know will be used to appraise them.
ANALYSIS AND INTERPRETATION OF DATA OF THE STUDY
The information about the training and development practices at McDonalds and KFC was taken
in his form of personal interview with the respective designated person as mentioned in
acknowledgement. Also as the objective of the study is to understand how the frontline
employees at both the organizations view their training and development practices so in order to
understand that questionnaires have been filled by 5 frontline employees from each organization
and the analysis of the same is as under. The training and development practices is being analysis
The above analysis is done keeping in mind the following parameters Training methods
On the basis of above parameters and the complete case study and survey of the training and
development practices carried out at each organization I would like to conclude that the training
The following are the reasons for the same – KFC has a policy of training on everyday basis
The frequency of trainings conducted is daily basis and sometimes monthly also due to the
The employees are more contended with the training facilities and career opportunities provided
at KFC
The satisfaction level of employees at KFC is very high as compared to McDonalds
The training programs are structured and fixed in KFC which helps the employee to climb up to
CONCLUSION
The following suggestions can be useful for McDonalds in order to improve their training and
development practices:
1. Keeping the training programs as a part of everyday working would be the best in order to
improve efficiency
2. Involving employees to give their feedback or any valuable suggestions to improve the
3. Having any structured pattern of training and making some of the training courses
compulsory rather than associated courses will prove to give best results.
4. By working on the time limit given to employees to finish the training program needs a careful
attention.
6. Also more use of e learning will help to reduce time taken for classroom training and