Staff turnover As HRM issues

2. McDonalds Wentworthville Staff turnover As HRM issues Prepared By Ashma Upadhyay Md Ifthakharul Alam Nagendra Koirala Praveen Bisht Rohith Reddy

3. McDonalds Australia • In 1971, 1st Mcdonald’s restaurant in a Sydney suburb called Yagoona • over 780 McDonald's across Australia, • 85,000 people employed in restaurants and management offices • 2/3 restaurant businesses owned and operated by franchisees.

4. Franchisees An individual who purchases the rights to use a company’s trademarked name and business model to do business

5. Goal • good food friendly and fun environ. • socially responsible company • good returns to its shareholders provide customers >food of a high standard, >quick service >value for money

6. McDonald’s Wenworthville • Great Western Highway, western suburb of Wentworthville • Established in the year 1992 • Franchise restaurant of McDonalds' Australia • The restaurant is open 24/7

7. Work station in Mc wenworthville Front Area • walk in and buy food. • open from morning 5am to 11pm. • facilities of eat-in/take away

8. Work station in Mc wenworthville Drive through • It is open 24/7. • People drive through the lane. Their orders are taken, processed and handed to them within a designated period of time (2:45 seconds)

9. Work station in Mc wenworthville Mc Café

10. Work station in Mc wenworthville This section of the restaurant, the food is made.

11. Employees structure in Wentworthville MacDonald’s • 14 managers and 160 staffs. • All the managers are full time employees • The staffs are hired as full time, part time and casual employees • Majority of the staffs’ i.e. 85% of them are casuals.

12. Organizational structure of Wenworthviille MacDonald’s

13. Problem Identified • One of the main problem faced by the McDonalds at Wentworthville is High Employee Turnover Rate. • What is Employee Turnover rate ? • Employee turnover is a ratio comparison of the number of employees a company must replace in a given time period to the average number of total employees. • It’s a huge concern to most companies as employee turnover rate is a costly expense.

14. Employee Turnover • Financial performance as well as the morale of the employees is affected. • High employee turnover rates cannot be solved easily or swiftly. • Turnover rates have an impact on profitability, and even survival.

15. Employee Turnover Rate in Australia • Cost Australian organizations more than $100 billion in 2008 (Source: Unisys) • According to Mercer Human Resource Consulting in Australia25% employees were planning on looking for a new job • Rise in staff turnover is hitting business hard

16. Factors • Demographics • The person • Unrealistic expectations • The characteristics of the job • The organizational culture • The performance of the organization • The economy

18. Reasons For McDonald’s High Turnover Rate • Poor Recruitment Process • Lack of motivation/ • High workload • Job instability

19. “Evaluate what you want – because what gets measured, gets produced” Performance Appraisal

20. Aims of Performance Appraisal • Motivate employees • Feedback on performance • Identify employee training needs • Provide the opportunity for organizational diagnosis and development • Facilitate communication between employee and administration

21. Raters and Method Raters • Shift Managers and Assistant managers Method • Balanced Score card Performance management technique which evaluates organisational performance in areas including people, internal operations, customer satisfaction and finance.

22. Existing Performance Appraisal

23. Proposed Performance Appraisal • Discriminating on the basis of performance “Employee of the Month” • Rewarding performance “Bonus” • Developing employees “Training” • Giving feedback to employees “Individual Feedback Session”

24. Recruitment

25. Solutions • Changing Recruitment policy • Enlightening Interviewing questionnaires • Practical and open internal recruiting process.

26. Recruitment policy Current Framework • Saving money by recruiting more under18 staff • Giving casual positions instead of giving part-time or full-time positions Suggested Framework • Recruit more matured and motivated staff regardless of their age. • Evenly distribute part-time and full-time positions as required. • Sufficient staffs should be available to avoid worklo0ad

27. Interview Questionnaires • What was your previous job and why did you leave it? • Where do you see yourself in 3 years of time in the organization? • Are you interested in the management department of the organization?

28. Recruitment Methods • This helps to promote the motivation and security in staff • Internal recruitment should be made more practical and open.

29. Exit interview Exit Interview ?

30. Purpose of Exit interview • Innovative way to reduce high staff turnover in Mc Donald. • Sample Questions • What is your primary reason for leaving? • Were you happy with your pay, benefits and other incentives? • What did you like most about this company? • What did you like least about this company? • What does your new company offer that this company doesn't?

31. Conclusion Recruitment policy • Age independent, motivated staffs should be recruited • Job security should be enhanced. Performance Appraisal • Employee growth and development • Performance feedback • Rewarding performance

32. References