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Managing People and Organisations
Executive summary
McDonald's is additionally considered as one of the biggest and most noteworthy worldwide brands and it will in general offer the way of life which is incredibly adaptable, variety and furthermore fairness. Additionally, it has likewise perhaps the most different societies in the globe. The fundamental motivation behind the report is examining the current issue of this firm that is "high turnover rate" with legitimate ideas and speculations and afterward giving appropriate suggestion according to the issues. Different points that will be tended to in this specific task are: discovering the primary explanation for the worker turnover in this firm, discovering various difficulties that pioneers and senior administration faces in view of the representative turnover, and furthermore suggesting the manners in which McDonald's will have the option to hold representatives later on. However, it was found out that the main reasons for the turnover are attitudes of the managers, work environment and the lack of job satisfaction.
Table of Contents
Executive summary    2
Introduction    4
Body    5
Overview of the organisational issue (high turnover rate)    5
Detailed analysis of the problem with the help of relevant theories and concepts    6
Conclusion and recommendations    10
References    12
Introduction
The company that is selected for carrying out this particular task is world famous firm known as McDonald’s. This is an American fast food organisation that came into existence in the year 1940 and it is headquartered in California, United States. The company is present globally. The main products of the firm consists of chicken, hamburgers, milkshakes, wraps, coffee, French fries, soft drinks, etc. In the year 1954 an individual named Ray Kroc discovered in California there was a small burger restaurant, and hence wrote the first page of the company’s history. Almost 211,000 employees work for this firm from across the globe. This company realises the fact that workers can only perform well when they are given the right working environment and for this they tend to strive for providing various benefits and rewards which would suit each of them working in the company. McDonald’s is also considered as one of the largest and greatest global brands and it tend to offer the culture which is extremely flexible, diversity and also equality. Moreover, it has also one of the most diverse cultures in the globe. The main purpose of the report is investigating the present problem of this firm that is “high turnover rate” with proper concepts and theories and then providing proper recommendation as per the issues. Other topics that will be addressed in this particular assignment are: finding out the main reason behind the employee turnover in this firm, finding out different challenges that leaders and senior management faces because of the employee turnover, and also recommending the ways McDonald’s will be able to retain employees in the future.
Body
Overview of the organisational issue (high turnover rate)
As per some of the research work the fast-food chain worker turnover tend to run as high as 130%-160%. It has been observed that in the recent times, this fast food giant is experiencing immense amount of turnover rate and this can affect the entire profitability as well as productivity of the respective restaurants of this firm. It is also claimed by some of the employees of the senior management that worker turnover in this firm every year is around 45% (Langert, 2019). Furthermore, the attrition of the employees can be explained as the number of individuals can be explained as the number of individuals who have left the company over a particular period because of death, retirement, dismissal, redundancy, resignation or transfer. It is needless to say that this strives for attracting and hiring the best in the work environment that is required for being in the top. High turnover is one of the reasons due to which the quality of the service and product that is offered to the consumers gets extremely affected. For example, in case of the McDonald’s if the employee that is experienced leaves the company and a new employee is recruited in the kitchen, then it is quite evident that quality of food (burgers) will get affected. It is vital for the company to stem the attrition rate of the workers because finding a replacement may cost them huge costs. Furthermore, some of these costs tend to consist of administration, recruitment as well as the cost regarding the selection. Furthermore, generally this firm is believed to experience this particular problem every year however it mainly depends on the location of the restaurant (Jehanzeb, Hamid and Rasheed, 2015). Arguably, there are also some of the reasons why this organisation is experiencing highest turnover rates. The companies that are operating in the fast food industries have struggled a lot. It has been observed that beside the low wages, the workers working in the McDonald’s also tend to face longest shifts; at times they also have to work longer, without being paid extra money. On the other hand, although the workers of the McDonald’s tend to face some of the internal issues, for instance, the workers that are newly hired are still accustoming with their job role, which causes significant amount of stress. Hence, workers leave this company as they cannot endure this particular environment. It is the...