Impact of Training and Development in McDonalds - Research Paper Example

Impact of training and development in McDonalds of the Training and development plays an important role in the growth and development of an organization. Most big firms are seen to invest heavily in imparting training. The aim of this research is to study the training and development programs imparted by McDonalds and how it affects the organizations overall productivity. In the recent years the company has been failing to deliver superior services to the customers and as result the revenues have declined considerably. It has been analyzed that training and development can help organizations to improve their performance. The report analyses data that has been collected from different sources pertaining to the subject of study. Table of Contents Abstract 2 Background of the study 4 About the company 4 Training and development in McDonalds 4 Research proposal 5 Problem statements 5 Importance of the study 5 Limitations of the study 5 Literature review 5 Research methodology 7 Analysis 8 Age of the respondents 8 Work experience of the respondents 9 Quality of training 9 Training methods, equipments and materials 10 Post training evaluation 10 Training preference 11 Influence of training on performance 11 Effect of training upon motivation 12 Summary of findings 12 Conclusion 13 References 14 Background of the study About the company McDonalds is one of the largest fast food restaurant chains of the world serving almost 68 million customers across the globe in over 119 countries and having 35,000 outlets. The company has its headquarters in the US. The company operates in different countries in the form of an affiliate, a franchise or by the corporation itself. The company primary sells burgers, fried chicken, French fries and other snacks and dessert items. It also sells a range of hot and cold beverages. The company employs more than 1.7 million people across the globe. McDonalds had begun to acquire other food chain restaurants and consistently expand in size. The company has remained successful at providing high returns to its shareholders. The company is well managed which has resulted in its global expansion over the last few decades. The company has different operational strategies in different nations, so as to suit the local needs and preferences. This phenomenon is coined as McDonaldization by the company’s management and the society. The products of the company are sold at different prices in different nations. The McDonalds outlets in Norway serve the most expensive products of the company. The least expensive products of the company are sold in India (Kincheloe, 2002). Training and development in McDonalds Training and development is considered as one of the most effective ways to improve employee performance and enhance the productivity of a company. In the recent years McDonalds has been facing some considerable issues concerned with imparting training and development. Sales of the company were seen to be weak in Europe, Asia and in the Pacific regions. The company identified that weak economy, rising competition and saturation of the markets for the fast food industry as the chief reason behind the fall of revenue. The employees of the company were not being trained well so as perform in accordance with the market needs. Training and development needs are also required to be established in context of the company’s expansion plans. The company has sought to expand its operations to newer regions in order to escape the saturated markets of the western nations. This would generate adequate amount of employment. Unless the employees are trained well, it would be difficult for the company to deliver high performance and establish itself in these new markets (Kincheloe, 2002). Research proposal Problem statements The primary problems that the research aims to study are: 1) What are the main training and development issues in McDonalds? 2) How does McDonalds impart training and development? 3) Does training and development enhance employee productivity? Has this been observed in the context of McDonalds? 4) What are the main objectives that training and development aims to fulfill? Importance of the study The research primarily aims at identifying the relationship exiting between training and development and the performance of employees at McDonalds. Multinational firms are seen to spend highly upon the training (Wright & Geroy, 2001). The purpose of this study is to identify whether training plays any role in improving the organizational efficiency. The motivational factors which drive McDonalds for imparting training have also been studied in the paper. Limitations of the study Every research has its own parameters and contingencies are faced in respect of collection of information and analyzing the same. One of the major constrains faced in the study was the shortage of time. Due to constrain of time, the study could not include a large number of respondents or collection of information from a wide number of sources. Problems were also faced in respect of collecting data through questionnaire survey. Respondents were observed to answer in a biased manner favoring their organizations and superiors. In general it is observed that it is difficult for students to obtain first hand information from companies as they are not comfortable in revealing too many details. Majority of the research was based upon the information collected from secondary sources. Analyzing the viability and accuracy of such data was also a major challenge. However all possible efforts were taken to conduct the research successfully. Literature review “Training and Development impact on Organizational Performance: Empirical Evidence from Oil and Gas Sector of Pakistan”, written by Hassan Raza (2014), has been selected as the subject matter for critique analysis. The objective of the study conducted by Raza was to establish an empirical relationship between training and development (T&D) and employee performance. It was observed that the organization was benefitted immensely from the implementation of training and employee performance was significantly enhanced. The management had realized from the study that T&D played an important role in organizational efficiency. Pakistan has been undergoing major changes in respect of trade. Oil and gas sector is one of the major contributors of the GDP of the nation. Globalization and increased competition has led to many firms to concentrate heavily on T&D. The data related to the study was collected from four different firms operating in the oil and gas sector. The first phase of the study involved analyzing the relationship between learning organizations and T&D. It was observed that employees belonging to learning organizations exhibited better performance and organizational revenue was seen to increase overtime. Learning organizations consistently update their management styles and operation modes along with modernization and globalization of economic activities. This facilitates employees to learn new skills. Employees who are provided with frequent training facilities are seen to be open to changes (Torrington & Hall, 2000). They can also easily adopt themselves in different environmental conditions. Organizations must therefore consider operating in a manner of a learning organization. The second phase of the research involved analyzing the importance of the involvement of line managers in Training Need Analysis (TNA). Line managers are in direct contact with the employees of the lower and middle level. It is possible for them to easily analyze the areas where training is required and the type of training that is required to be imparted (Bartram & Gibson, 2000). It was observed form the study that when line managers are involved in imparting T&D program, employee participation and motivation in the same is very high. All employees do not require similar type of training. Mangers are required to appraise employee performance in order to determine where they lack in skills and according take training initiatives. This makes employees realize that adequate attention is being paid by the management towards employee productivity. Hence they develop a greater sense of seriousness and there is a higher level of dedication observed (Quartey, 2012). The third phase of the study was aimed at analyzing the relationship existing between organizational performance and training implementation. The manners in which organizations formulate their training strategies were examined. The training tools and program structure is dependent upon the type of change the organization is about to implement and the desired objectives of the firm through such training. If an organization is establishing new human resource policies then it becomes essential to impart classroom training. On the other hand if an organization considers implementing new software, then under such circumstances class room training combined with on the job training is most suited. In this manner organizations can implement different types of training modules. On completion of the training employees are required to incorporate the newly acquired skills in their respective jobs. If employees perform well it can be stated that the training process was a success. Post training evaluation is important as it helps in judging the impact of training on employee performance. When employee performance is positively increased, the productivity of the organization is also seen to improve (Purcell, et al., 2003). Research methodology The research involves both primary and secondary data collection techniques. Primary data includes the information that was collected through questionnaire survey. Secondary data includes the information obtained from different publications, books, journals and web sources. Primary data refers to the information collected afresh and are original in character. Primary data sources used in this study are questionnaire survey, personal interviews and direct observation. This type of data collection method is also referred to as direct on field research. Primary data is considered to be a more reliable source of information for conducting a research study. The information collected through primary sources was analyzed quantitatively by using descriptive graphs and charts. Qualitative analysis was also conducted to develop theoretical knowledge about the subject matter (Ghauri & Gronhaug, 2005). Secondary data refers to the information collected from readily available sources. It includes the research and studies that were previously conducted upon the same subject matter. Quality manuals and journals; company reports and books written by different authors form important secondary sources of information. The analysis of information collected from secondary sources was done qualitatively (Ghauri & Gronhaug, 2005). The approach adopted towards the study was largely inductive. The inductive method involves careful examination of relevant theories so that it can be converted into suitable conclusions. It allows the researcher to incorporate their own ideas and understandings about the subject matter. The positivist research philosophy was implemented for conducting the study. The positivist approach supports both qualitative and quantitative examination which was deemed suitable for developing this research paper (Ghauri & Gronhaug, 2005). Analysis Below shown is the analysis of the information collected through questionnaire survey at selected McDonald’s outlet in the UK. The survey includes the responses collected from 50 respondents. Age of the respondents Figure 1: Age profile The above graph shows that majority of the employees working at McDonalds are young and belong to the age group of 21 to 30. Since the company is a fast food chain, it requires young employees who can work fast and adapt themselves with different work environments. Service industry is largely seen to be occupied with young working population (Nicholson, 2003). Work experience of the respondents Figure 2: Experience profile Majority of the respondents have an experience of one of five years in the organization. This states that the retention rate in the organization is very high. Employees do not work with the company for a long time. Lack of job satisfaction, poor pay scale and growth opportunities have been identified as the major causes behind the same (Niazi, 2011). Quality of training Figure 3: Training quality Only 20 % of the respondents feel that the quality of training imparted to them is of high standards. 20% feel that the training quality is moderate. A large section of the respondents are dissatisfied with the training module. Training methods, equipments and materials Figure 4: Training tools The above graph shows that majority of the employees are unsatisfied with the training methods and equipments. The quality of the training process highly depends upon the types of materials used in the same (Harrison, 2000). Post training evaluation Figure 5: Evaluation system Majority of the respondents are seen to be unsatisfied with the post training evaluation process. The company is seen to concentrate less upon appraising employee performances once the training process has been completed. Training preference Figure 6: Preference of training type Off the job training sytems largely includes classroom training modules. It has been observed that employees are keener towards obtaining off the job training as it is possible to concentrate upon the training module exclusively without being distracted due to simultaneous work pressure (Ahuja, 2006). Influence of training on performance Figure 7: Training impact Majority of the respondents agree that their level of performance have improved due to training. This signifies that the respondents are positively inclined towards obtaining training. Effect of training upon motivation Figure 8: Effect upon motivation The above graph shows that majority of the employees feel motivated post training. They feel that their confidence levels are significantly raised due to training. Enhanced motivation helps employees to be more dedicated towards their work. Thus training proves to be an effective tool for developing employee motivation (Allen, et al., 2007). Summary of findings The questionnaire survey conducted on the employees of McDonalds UK shows that employees are not satisfied with the training facilities provided to them by the organization. Employees agree to the aspect that training is an essential contributing factor in improving employee productivity and performance. It is also accepted by them that training helps in motivating them. Training helps in removing different types of doubts and contingencies that employees experience at their jobs. They can perform in a better manner, thereby enhancing the productivity of the organization (Barney, 2001). McDonalds although realizes the significance of training, takes less effort for imparting the same. While expanding its operations into China, the company had taken adequate measures towards training and development. Many outlets of McDonalds in China have been successful at generating high revenues. The company should consider adopting similar strategies in its future expansion plans in East Asia, Africa and in the Middle East. McDonalds is seen to largely impart on the job training in most of its outlets in the US and the European nations. The company should consider adopting classroom and simulation training practices alongside of on the job training (Dessler, 2000). It has also been observed that McDonalds has been facing high rates of turnover and existing employees have low work experience in the company. When turnover rates are high, organizations are required to consistently invest in conducting interviews and hiring employees. The cost of human resource increases due to rapid turnover of employees. Training is considered to be one of the effective ways for retaining employees. When employees fail to perform well and are not satisfied with their work, they leave the organization in search of other suitable work opportunities. Through training employees can be properly educated about their roles in the organization and how they are expected to perform their duties. This helps them to understand their responsibilities and thereby perform well. Employees develop an increased level of job satisfaction and the tendency to leave the organization reduces considerably (Flynn, 2007). Training is generally imparted by an organization on occasions such as hiring new employees, job rotation of employees, implementation of new policies or technologies and lack of productivity. Organizations generally hire two kinds of candidates, fresher’s and experienced. Experienced candidates are familiar with different work scenarios and therefore can be trained faster. On the other hand fresher’s have no adequate exposure to work environment and therefore require a longer training duration. Conclusion The primary objectives of training are to achieve organizational objectives, meeting individual needs and to enhance productivity. Employees have a major role to play in increasing the productivity of the organization. Unless the skills and knowledge base of employees are enhanced, organizational goals cannot be met. Hence developing the employees is the primary step towards improving the organizations performance. TNA is also an important process in determining the areas where training is required in an organization and the type of skills employees are required to have to perform their work. TNA helps in formulating a training model that falls in place with the requirements of the organization. Through adequate training and development, it is expected that McDonalds can improve its performance. The fast food market is gradually becoming highly saturated. As a result organizations are in tough competition with each other to deliver high performance. Efficient performance can only be delivered when an organization’s employees contribute positively. McDonalds should consider altering its training structure to suit the needs of the employees in a better way. An improved training system will help the organization to increase employee retention rates, increase the job satisfaction and motivation level of employees and help them adapt to newer technologies. References Ahuja, K. (2006). Personnel management. New Delhi: Kalyani publishers. Allen, R.S., Dawson, G., Wheatlay, K. & White, S.C., 2007. Perceived diversity and organizational performance. Employee Relations, 30(1), 20-33. Barney, J. B. (2001). Is the resource-based view a useful perspective for strategic management research? Yes. Academy of Management Review, 26(1), 41-56. Bartram, S. & Gibson, B. (2000). 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