Mcdonalds Case Study

2475 WordsFeb 21, 201310 Pages
McDonald’s Case Study Betty Foulkrod Tonya Moore HRM 532 January 27, 2013 In the content of this paper, I will strive to examine McDonald’s talent management program and how it led to a competitive advantage in the food industry. McDonald’s has a huge presence on a global scale, but needed to develop it’s sustainability by improving its talent management. This paper will also determine the strengths of the program and how they eventually created a success. The last two sections of the paper will discuss causes for improvement in the talent program process and ways to meet challenges in the future. Criteria #1 McDonald’s Inc. is obviously famous for its fare of burgers and fries, but they have also become synonymous with good service and consistent product that pleases the customer. However, the company had to instill five stages that eventually led to McDonald’s sustainability in its industry. The first step was to redesign the performance development system for the staff so that there was more of a reflection of accountability in the results of the reports. This included, “six key expected leadership behaviors termed ‘performance drivers’” (Goldsmith & Carter, 2010, p.161) so that the managers were being judged on how they performed certain competencies which essentially measured their capability. The redesign also introduced a four-point rating scale in comparison to the past five-point rating scale which seemed to produce inflated results of the managers. The third change that was included was an incentive compensation plan that would reward performance improvement and would recognize those “in the top 20 percent” (Goldsmith &Carter, 2010, p.161). There was also an assessment of promotion that had specific percentage (20 to 25 percent) that was set as the guideline for managers that were deemed ready for immediate promotions. The

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