2. Staff turnover As HRM issues
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 Australia 25% 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