McDonald’s s business strategy is centered on both growth and operational excellence. The foundations of its competitive advantage are both its people and its processes. By carefully recruiting and selecting its people, McDonald’s ensures that customer service-oriented people are hired. McDonald’s then trains additional skills needed for good job performance. By identifying and tracking the people factors that affect business results, the company is able to evaluate and continually improve the alignment between its staffing and business strategies.
Pursuing both growth and operational excellence strategies requires a continual influx of employees with good customer service skills, providing ongoing training and development, and retaining talent. McDonald’s has a clear understanding of the skills and behaviors it needs in its new hires, and has developed a staffing strategy that produces these.
To execute its growth strategy, McDonald’s has identified people as one of its three global corporate strategies. McDonald’s claims that as an employer, it wants “to be the best employer in each community around the world”
It also makes a “people promise” to its employees that “we value you, your growth and your Contributions.”
Its five “people principles” reflected by its human resource strategy are: respect and recognition; values and leadership behaviors; competitive pay and benefits; learning, development, and personal growth; and ensuing that employees have the resources needed to get the job done.
McDonald’s has executed its operational excellence strategy well by tracking key indicators of product and service quality, speed, and accuracy. The company has also identified its people practices and approaches that substantially impact the firm’s turnover, productivity, customer satisfaction, sales, and profitability.
This has allowed it to develop a business model that emphasizes not only financial and operational factors but also people factors that improve the company’s results by improving employee commitment, retention, productivity, and customer loyalty.