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Pay For Performance - Mcdonalds


The topic of this project is Pay For Performance and the company which we have adopted is McDonald's (McD). This company is an American fast food company and it is now the world's largest restaurant chain by revenue (Forbes, 2017).  In this project, we will understand how McD pays their employees based on their performance and later analyze how we can further improve their performance system.  The paper will begin with the history of McD.

Background of Mcdonald

Mcdonald's is a fast food chain restaurant business, it was started in the year 1940 by brothers Richard and Maurice McDonald in California. At present time, there are approx 32000 restaurants in 117 countries serving around 68 million people on daily basis. This large chain restaurant business employs around 1.7 million people worldwide.

The company McDonald's invests much in their employees to motivate them by increasing wages and salaries and by providing training to them. The restaurant has successfully implemented strategies that make the employees feel motivated and engaged with its benefits and reward provisions(Tonkin et.al., 2016). And it also offers some benefits to its employees, such as healthcare and well-being to employees are provided in form of medical insurance, life insurance, dental care, eye care vouchers, etc. Mcdonald's also provides company cars to its employees to restaurant managers, staff of high level authority, and to employees as well of senior positions.

Mcdonald's uses the pay for performance model which means employees are paid according to their productivity and performance(Berenson et.al., 2016). And it helps in motivating the employees towards improving their work. This program enables the employees to work better and it helps them to earn more which brings satisfaction and retention. The company Mcdonald's uses this strategy so that it can motivate its employees and improve skills and knowledge in managing customers.

The largest restaurant chain revenue business Mcdonalds can improve the performance system by implementing and innovating the performance strategies(McDonald and Wilson, 2016). It can use qualitative or quantitative performance systems to measure performance. Qualitative measure refers to activities related to customer experience, satisfaction, retention, and sales. Quantitative measures include activities involving different operations of the business. By using innovative strategies, the company McDonald's can improve its performance system.

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  • Berenson, R.A. and et.al., 2016. Pay-for-Performance.
  • McDonald, M. and Wilson, H., 2016. Marketing Plans: How to prepare them, how to profit from them. John Wiley & Sons.
  • Tonkin, E., et.al., 2016. History and ethnicity. Routledge.

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