Essays on Generation Y & McDonalds: The Challenge of Remaining an Attractive Global Employer Case Study

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The paper "Generation Y & McDonald’ s: The Challenge of Remaining an Attractive Global Employer" is a wonderful example of a case study on human resources. This report examines the international HRM platform of McDonald’ s Corporation, one of the world’ s largest companies and most iconic brands. While McDonald’ s has been extraordinarily successful in its 60+ years of growth, its traditional approaches to standardized globalization may require a considerable paradigm shift in order for the company to maintain its position and relevance as a global employer. A brief summary of the company’ s history is presented to establish the background for the analysis of McDonald’ s organizational strategy and HRM approach.

How McDonald’ s maintains a high degree of convergence and a strong corporate culture is examined in detail, and the most significant challenge to the continued success of the McDonald’ s approach – the coming-of-age of the globally-connected and socially-active Generation Y – is identified. Finally, a number of recommendations to help McDonald’ s remain a socially-relevant and attractive employer is offered. Company BackgroundMcDonald’ s, one of the world’ s most-recognisable brands, began as self-service drive-in restaurant in San Bernardino, California in 1948.

In 1954, Ray Kroc, at the time a kitchen appliance salesman, called on the McDonald’ s restaurant and was impressed with the concept; upon learning from the restaurant’ s owners Dick and Mac McDonald that they were looking for a nationwide franchising agent, Kroc took action and within a year had purchased the rights to the McDonald’ s name and opened a new restaurant in Des Plaines, Illinois. (McDonald’ s, 2011a) By 1958 McDonald’ s had sold its 100 millionth hamburger; by 1959, the chain had grown to 100 restaurants. The company went public on its 10th anniversary in 1965, with an initial stock price of $22.50 (the equivalent of approximately $158 today). McDonald’ s international presence was established in 1967 with the opening of restaurants in Puerto Rico and Canada, and it seems altogether fitting for such an internationally-recognised brand that the milestone of its 5,000th restaurant, was reached with the opening of a restaurant in Kanagawa, Japan.

By 1983, the chain had grown to nearly 7,800 restaurants in 32 countries, and today there are more than 32,000 McDonald’ s in 117 countries, more than 80% of which franchised rather than corporate-owned, and employing 1.7 million people.

(McDonald’ s, 2011b)

References

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McDonald’s 2011a, McDonald’s History, viewed 2 November 2011, http://www.aboutmcdonalds.com/mcd/our_company/mcd_history.html.

McDonald’s 2011b, 2010 Annual Report, McDonald’s Corporation, Oak Brook, Illinois.

‘McDonald’s and nPower Train to Retain’ 2008, Development and Learning in Organizations, Vol. 22, No. 2, pp. 31-34.

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Pollitt, D. 2007, ‘McDonald’s serves up better customer care and lower employee turnover’, Human Resource Management International Digest, Vol. 15, No. 1, pp. 23-26.

Pollitt, D. 2010, ‘Golden jobs under the McDonald’s arches’, Human Resource Management International Digest, Vol. 18, No. 1, pp. 36-38.

Royle, T. 1995, ‘Corporate versus societal culture: a comparative study of McDonald’s in Europe’, International Journal of Contemporary Hospitality Management, Vol. 7, No. 2/3, pp. 52-56.

Royle, T. 1999, ‘Recruiting the acquiescent workforce; A comparative analysis of McDonald's in Germany and the UK’. Employee Relations, Vol. 21, No. 6, pp. 540-555.

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