Does McDonalds have optimized Human resources & Technology for effectiveness and efficiency?
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Yes. The McDonald’s of the past is just like any typical traditional fast food retailers – focusing on tangibles such as human resources and technology, while ignoring the intangibles such as customer care and service. While this traditional business approach had once its days in the sun, McDonald’s quickly realized that the whole fast food industry is changing as globalization peeks to everyone’s doorsteps. Truly, success breeds failure because companies such as McDonald’s started to see that the older methods will not work anymore. Drops in profits are becoming obvious and fast food companies have to do something about it. There are basically many factors to consider as mentioned above.
Based on records, McDonald’s managed to change its organization for the better as far as the issues mentioned above are concerned. However, one distinct and innovative move of the company was its decision to shift its focus on the intangibles or the optimization of their human resources and technology– a variable that had been ignored by the fast food industry for years. In 1990, McDonald’s built on its success by developing new technologies and new human resource-focused initiatives. Upon realizing that new strategy should be implemented to increase consumer support, the company kept on making efforts to optimize their human resources and upgrade their technologies.
Human resource development for McDonald’s is important because this helps them in adjusting to the constant developments in the fast food industry. For example, a distinct HRM change in the fast food market is that employees have virtually disappeared as channels for getting produce to the consumer. There are basically key drivers in the evolution of human resource development in McDonald’s: the competitive fast food market environment; consumer safety and supply chain integrity; and rationalization of the supply base. The first key driver – the fast food market environment – can be explained with the fact that in a relatively static market for fast foods, there is intense competition between the major multiples, of which McDonald’s and other fast food companies account for almost two thirds of sales.
On the other hand, the goal of technology optimization and development for McDonald’s is to restructure and improve their markets, include fresh and excellent products and prioritizing the industry. The industry’s fast emerging places and primary regions identified and highlighted the necessity to extend such economic growth in the internal areas. This is combined into the cultural aspect that conditions economic mechanics of territory having an impact on the activities of the company, the relational system and excellent ideas as well as the development procedure.
McDonald’s Official Website. Retrieved January 2, 2008 at http://www.mcdonalds.com/