Assignment 1
By: Simon Ha

The organization that I chose to explain what recognition and reward plan they have for the employee’s is McDonald’s. McDonald’s is a fast food chain owned by different people because it’s a franchisee company. With it being a franchisee, it is one of the world’s biggest well known fast food restaurant. It has over 36,000 location worldwide, serving over 100 countries and with millions of employees (Mcdonald's, 2016), they offer a reward system to make their employees to stay and create more and more business each day.
McDonald’s offer a pay & rewards program to their employees. McDonald’s philosophy to this program is “The better your results, the greater your pay opportunities.” (McDonald's, 2016). The reward program offers: base pay, short-term incentives, long-term incentives, recognition program and company car program.
Base pay is the fixed amount of cash you receive for the work you do at McDonald’s. It is basically the starting wage and it’s determined on what skills, experience, contribution and performance you give to McDonald’s. Short-term incentives is a portion of cash rewarded to the employees that might earn every year based on how well their McDonald location is doing. The reward is based on the annual performance, both business and individual. Long-term incentives is when McDonald’s grant a LTI (long-term incentive) stock to eligible employees to create a better bond for future performance and hopefully the rewards for the employee will have a positive impact on the long-term business results. The recognition program is designed to reward hard working performers in the corporate, division and region offices, these rewards include the President’s award who are given to the top 1% of individual performers worldwide and the Circle of Excellence is given to the top teams worldwide. McDonald’s also offer the company car program which provides eligible employees with a company car for both business and personal use. If the employee is eligible, they can choose from a variety of vehicles depending on their position within the company. This car program, covers the cost of insurance, maintenance and repair on the vehicle (McDonald's, 2016).
The purpose of the base pay is to show the employee their work is recognized by how much they get hourly. The purpose of short-term incentives is to get the employees to perform better with customer service and generate more revenue for their McDonald’s location so they can earn bonus cash compensation each year. The purpose of long-term incentives is to show long term employees they matter by granting them a LTI stock in exchange for better future performance. The purpose of the recognition program is to recognize the hard working employees behind the restaurant, meaning the ones who create business deals around the world and making each restaurant successful. The purpose of the company car program is to help employees to commute to work better and helps them with their personal commute. The specific outcome the plan is designed to achieve is to keep the employees to stay longer and show even though McDonald’s is a fast food restaurant they can offer rewards to their employees just like other big companies. The type of rewards offered that will achieve the intended outcome(s) is the short-term incentives, recognition program and the car program. The short-term reward will achieve the intended outcomes because the employees are basically getting bonus pay on their pay cheque and who doesn’t like extra money? With the bonus cash compensation, the employee’s will likely stay longer and try to perform better so they can get more cash compensation. The recognition program will achieve the intended outcome because everyone wants to be recognized for their hard work they put into the company. Being recognized for one’s hard work is what everyone wants when working at any place. With the reward, it will look great on resume for future reference and maybe motivates the employee to even work harder and receive the award each year. The car program will achieve the intended outcome because it offers a vehicle to eligible employees to commute to work and personal uses. This program will attract the employees who are eligible for this program and make them stay longer, maybe forever since they will have a ride to work. Some recommendations I would improve on the reward plan is when recognizing the hard workers in corporate, division and region offices, they should also include those who work hard in the restaurant too. A new reward that I would like to add is awarding gifts such as plane tickets for high position people in the company and gift cards for employees of the month. With more valued rewards, it will make more people wanting to join the McDonald’s team. After reviewing the Wilson Bros case scenario, I would like to recommend some of the rewards McDonald’s has to them because Wilson Bros company is lacking on rewards and having short-term incentives, long-term incentives and recognition program would really help the company keep their employees happy so they can stay for a longer period of time. They didn’t even have bonuses for other employees, the only “bonus” the employees get is the commission they receive on sales target achievement and market share improvement.

References
McDonald's. (2016, June 6). http://www.aboutmcdonalds.com/mcd/corporate_careers/benefits/highlights_of_what_we_offer/pay_and_rewards.html. Retrieved from http://www.aboutmcdonalds.com/mcd/corporate_careers/benefits/highlights_of_what_we_offer/pay_and_rewards.html
Mcdonald's. (2016, June 6). http://www.aboutmcdonalds.com/mcd/our_company.html. Retrieved from http://www.aboutmcdonalds.com/content/mcd.html: http://www.aboutmcdonalds.com/mcd/our_company.html