Management Functions in a Company

Management Foundations

Submitted by: Abhineet Kumar Krishnan-K Siddhant Kapoor Vipul Garg

INTRODUCTION
McDonald's Corporation is the world's largest chain of hamburger fast food restaurants, serving around 64 million customers daily. Headquartered in the United States, the corporation was founded by businessman Ray Kroc in 1955 after he purchased the rights to a small hamburger chain operated by the eponymous Richard and Maurice McDonald.
A McDonald's restaurant is operated by either a franchisee, an affiliate, or the corporation itself. The corporation's revenues come from the rent, royalties and fees paid by the franchisees, as well as sales in company-operated restaurants.
McDonald's primarily sells hamburgers, cheeseburgers, chicken, French fries, breakfast items, soft drinks, shakes and desserts. In response to changing consumer tastes, the company has expanded its menu to include salads, wraps, smoothies and fruit.

Plans of McDonald’s
Currently, McDonald’s has around 180 restaurants spread across India and around 500,000 customers visit them on a daily basis. Their plans are: * To open 40 more restaurants across India this year. * To invest Rs 600 crore to launch 180-190 restaurants over a period of five years. This means they would be doubling the number of their restaurants by 2015.
To support this growth, they have developed a strong supply chain network which helps them to seamlessly serve the customers.

New flavours McDonald’s are adding to the menu to cater Indian customers
The mantra to McDonald’s success is globalisation -- a mixture of local and global menu. They have reengineered the menu for the Indian customers and have successfully introduced McVeggie Burger, Paneer Salsa Wrap, Chicken Mexican Wrap, Salad Sandwich and other savouries. Recently, they also introduced McAloo Tikki for their customers who want a different taste.
Plans for doubling the customer base in five years
Customers' convenience is of great importance to McDonald’s. The team strategically chooses the right location which will be able to serve the maximum customers throughout the operational timing.
From petrol pumps to kiosk to drive through to home delivery, they are present everywhere. Adding to the portfolio is the latest entrant -- web ordering, which they launched recently.
They are also working on introduction of a new menu for breakfast. Currently this is being tested and offered at selected restaurants.

Organising function of McDonald’s

Lobby:
This task involves cleaning the lobby and play place. Wiping the tables and chairs, mop up messes, sweeping the floor, changing the trash, restocking the condiments and napkins and lids, take in the trays.
Fries:
This task involves managing of the fries. Dropping fry baskets into the oil, putting fries that are done into the fry boxes to be given out to customers, make sure that there are always enough fries ready, cleaning the fry area and skimming the oil vats, making sure the fry hopper and the fridge is filled with fries, making sure the fry hopper is dispensing fries and not malfunctioning.
Window:
This task involves being on the cash register, but may also involve putting a part of orders together. Take customer orders and do transactions, sometimes you may also make the desserts and specialty drinks for a customer's order.
Runner:
This task involves gathering the food in order to put together an order. They also make sure that they have enough bags and sauces stocked for putting the order together. They also make the desserts and specialty drinks if no one else is available to make them. A runner for window also hands the tray or bag of food to the customers in the store, while the runner for drive thru hands it to the presenter to be handed out.
Presenter:
This task involves handing out food to the customers. Hand out the bags of food to the customer going through drive thru, put the lid on the drinks that the machine automatically dispenses according to the order and hand it out too. Makes sure that sauces, lids, cups, ice, straws, napkins, cupholders, and tea in their area are stocked and ready. Also presses the serve button on the screen in order to indicate that an order has been handed out.
Fried products:
Manages fried products like mcnuggets, filet, mcchiken, etc. Similar to the fries position.
Drive thru (back booth):
Take orders of customers going through drive through.
Crew Trainer:
They are responsible for training crew members.

Supply Chain Network
Cold Chain was one of the unique concepts of McDonalds supply chain in India, on which it had spent more than six years to get the system into place. This system brought about a veritable revolution, immensely benefiting the farmers at one end and enabling customers at retail counters get the highest quality food products, absolutely fresh and at great value.
The following are the list of suppliers, who build up the major supply chain of McDonalds
Dynamix Dairy Industries (Supplier of Cheese):
Dynamix has brought immense benefits to farmers in Baramati, Maharashtra by setting up a network of milk collection centres equipped with bulk coolers. Easy accessibility has enabled farmers augment their income by finding a new market for surplus milk. The factory has: * Fully automatic international standard processing facility. * Capability to convert milk into cheese, butter/ghee, skimmed milk powder, lactose, casein & whey protein and humanized baby food. * Stringent quality control measures and continuous Research & Development.

Trikaya Agriculture (Supplier of Iceberg Lettuce):

Implementation of advanced agricultural practices has enabled Trikaya to successfully grow specialty crops like iceberg lettuce, special herbs and many oriental vegetables. Farm infrastructure features:

A specialized nursery with a team of agricultural experts.

* Drip and sprinkler irrigation in raised farm beds with fertilizer mixing plant. * Pre-cooling room and a large cold room for post harvest handling. * Refrigerated truck for transportation.

Vista Processed Foods Pvt. Ltd. (Supplier of Chicken and Vegetable range of products including Fruit Pies):

A joint venture with OSI Industries Inc., USA, McDonald's India Pvt. Ltd. and Vista Processed Foods Pvt. Ltd., produces a range of frozen chicken and vegetable foods. A world class infrastructure at their plant at Taloja, Maharashtra, has:

* Separate processing lines for chicken and vegetable foods. * Capability to produce frozen foods at temperature as low as -35 Degree Celsius to retain total freshness. * International standards, procedures and support services.

Radhakrishna Foodland (Distribution Centres for Delhi and Mumbai):

An integral part of the Radhakrishna Group, Foodland specializes in handling large volumes, providing the entire range of services including procurement, quality inspection, storage, inventory management, deliveries, data collection, recording and reporting. Salient strengths are :

* A one-stop shop for all distribution management services. * Dry and cold storage facility to store and transport perishable products at temperatures upto -22 Degree Celsius. * Effective process control for minimum distribution cost.

Amrit Food (Supplier of long life UHT Milk and Milk Products for Frozen Desserts):

Amrit Food, an ISO 9000 company, manufactures widely popular brands – Gagan Milk and Nandan Ghee at its factory at Ghaziabad, Uttar Pradesh.

The factory has:

* State-of-the-art fully automatic machinery requiring no human contact with product, for total hygiene. * Installed capacity of 6000 ltrs/hr for producing homogenized UHT (Ultra High Temperature) processed milk and milk products. * Strict quality control supported by a fully equipped quality control laboratory.

The relationship between McDonald's and its Indian suppliers is mutually beneficial. As McDonald's expands in India, the supplier gets the opportunity to expand his business, have access to the latest in food technology, exposure to advanced agricultural practices and the ability to grow or to export. There are many cases of local suppliers operating out of small towns who have benefited from their association with McDonald's India.

Staffing

McDonald's vision is to be the world's best Quick Service Restaurant experience. The culture and heritage of the McDonald's' business - the brand, behaviours and values - are the foundation for achieving the McDonald's vision. Together, they define who we are and how we are at McDonald's. McDonald's provides the door to limitless career opportunities. The average McDonald's restaurant employs 40 to 60 people - from crewmembers to the restaurant manager. As of today, McDonald's employs more than 2,500 people across India.

Says, Smita Jatia, Managing Director, Hard Castle Restaurants Pvt. Ltd (HRPL), "We are an equal opportunity employer, providing not only [local] employment but long-term careers as well. The world-class training that we impart enables us to provide our customers the ultimate McDonald's experience.
"When a new employee joins the organisation, he is taken through a systematic induction programme. This is done through one-on-one interactions as well as exposure to the customer through operations training in the restaurants for a specified period of time. Crewmembers are trained extensively on all food safety and food handling processes. The crew trainees work shoulder-to-shoulder with their trainers while they learn the operational skills necessary for running the restaurant - from the front counter to the kitchen areas.”
At McDonald's, the selection process is very systematic and comprises of 3 stages

1. Aptitude Testing and Initial Interview after screening the applicants' resumes, the short-listed candidates are called for a psychometric evaluation [a written aptitude test] and initial interview. The aptitude test gives insights into the applicants' verbal reasoning and critical reasoning amongst other important aptitude measures.

2. On the Job Evaluation [OJE] Short-listed candidates undergo a 2-day OJE at a McDonald's restaurant, which provides the candidate with an opportunity to look at McDonald's as a potential employer. It also gives McDonald's a chance to observe and assess the candidate's performance.

3. Final InterviewAll candidates who attend the OJE are called for the final interview. This is where the final and overall assessment of the candidate takes place and selection decisions are made.

Training Forums

Training is an important part of the McDonald's work experience and starts as soon as an employee joins the McDonald's team. These forums help improve public speaking and presentation skills as well as encourage mutual growth.
The MDP series is designed to help an employee to become the most effective manager. Given below are the various levels a candidate has to go through in order to effectively complete the MDP:

*Basic Shift Management [BSM]
The BSM takes place at the Trainee Manager level. It addresses the 'whys' and 'howtos' of McDonald's procedures and standards, rather than 'what-to-dos' or 'what-toknows'. It also deepens the candidates understanding of operational skills, standards and procedures.
* Systems Management Course [SMC]
The SMC is an opportunity for First Assistant Managers to gain knowledge of recognizing various real-world problems within the restaurant and the different approaches in analyzing and resolving them.

* Restaurant Leadership Programme [RLP]
RLP focuses on the skills and behaviours necessary to drive business results within a McDonald's restaurant environment. This includes a focus on leadership skills, team building, decision-making strategies, and problem solving. RLP is designed for the promotable First Assistant Manager.

* Operations Consultant Course [OCC]
The Operations Consultant course is designed to help the McDonald's consultants develop a strong business relationship with Restaurant Managers through the use of effective communication, leadership, operations and consulting skills. Participants learn how to prioritize and how to prepare for both scheduled and non-scheduled restaurant visits. They also learn appropriate data gathering techniques to use within their patch in order to analyze and diagnose needs and challenges for individual restaurants. They learn how to implement problem-solving techniques with their restaurant managers; link restaurant support tools to the restaurant system, and measure store and patch performance. They also get to conduct a restaurant visit for hands on operations training.
* Training Consultant Course [TCC]
TCC teaches consultants how to present and facilitate training more effectively in order to maximize learning and performance of participants. TCC is designed for regional/country Training Consultants.

Graduate Career Advancement Programme [GCAP]

At McDonald's, every employee is encouraged to grow by providing all the necessary support possible. The Graduate Career Advancement Programme is one of the ways in which we put our good intentions to practice. Several McDonald's managers across our restaurants and head office had started as crewmembers and have developed valuable career skills along the way. This development has been fostered by McDonald's' policy to actively promote from within the organisation. Employees are encouraged at all levels to invest in their studies even while they work. GCAP gets the crewmember directly to a Second Assistant Manager's level on successful completion of the programme. The eligible candidates are required to sit for written evaluation, personality assessments and personal interviews. After which they are put on a training programme and upon successful verification get promoted to Second Assistant Manager. Learning initiatives are continuously enhanced to match the requirement of developmental needs to see that employees are continually aiming at improving themselves, which ensures that McDonald's maintains the edge it enjoys over its competition.

Benefits
McDonald's offers a total compensation package that leads the quick service restaurant industry. Crewmembers enjoy flexible schedules, paid training and the chance to work with friends while learning valuable life skills. Additional benefits include:
* Competitive starting rates in addition to regular wage and performance reviews for continuous growth in skills and earning capacity
* Performance-linked pay
* Extracurricular Crew activities
* Free employee meals in the restaurant

Opportunities
* A Fun Team
Each person on the McDonald's team plays an important role. Crew and Managers work together, constantly communicating and supporting each other in a teamwork atmosphere that is busy and challenging, but which always strives to be cooperative and fun.
* Flexible Schedules
At McDonald's, flexible schedules help employees choose the hours that best suit their lifestyle.

Recognition and Rewards:
In addition to competitive wage and promotion programmes; hard work, dedication, motivation and results are recognised as well as rewarded at McDonald's. Appreciation comes in many forms - from a simple thank you for a job well done, to restaurant-wide recognition through programmes such as the Employee of the Month' and ‘Employee of the Quarter'. McDonald's also offers a centralised incentive programme, called MahaBucks, with access to McDonald's gift certificates and branded merchandise.

How Problems are solved in McDonald’s:

Employee has an ethics or compliance, questions or concern

Concerns
Questions
Employee makes an informed decision
Global Compliance Office provides guidance.
Issue is resolved
Global Compliance Office assigns ID# for confidentiality & initiates an investigation if necessary.
Employee calls the Business Integrity Line.

If not received
Employee speaks with the direct supervisor or other appropriate manager.