Mcdonalds reward and practices Essay Example | Topics and Well Written Essays - 500 words

Mcdonalds reward and practices - Essay Example Its continued success in the food and service industry can be undoubtedly attributed, among other factors, to the right strategies it has devised in handling its human resources. This paper evaluates the reward structure and system that McDonald’s uses currently both monetary and non-monetary and relate their effect on employees’ motivation and eventual performance. McDonald’s understands how much effective monetary compensation is to an employee. This is the money employees are paid for the job they do and it is structured based on the pay rates in the industry for the same nature and rank of job. It is a motivational factor as workers who demonstrate great skills and perform highly receive pay rise making them strive to be the best. There is short term and long term incentives that are variedly offered based on one’s performance. Short term incentives are those that monetary ‘appreciations’ offered at the end of the year to reward exemplary performances while long term incentives are those offered at unknown future dates. These incentives have great influence as they maintain the employees focus on the future of the business; employees work for future rewards (Armstrong, 2007, p.100). Another strategy that McDonald’s uses to motivate workers for high performance is through offering car that they can use for official and personal needs. There is a laid down criteria through which these cars can be acquired (eligibility criteria). Captivating enough is the fact that maintenance and repair costs are all on the company. Worker’s stress of travelling has, therefore, been neutralized. The cars act as a tangible evidence of appreciation to the employees and this facilitates their commitment to work as they can relate their inputs to rewards. The business has non-monetary programs that aim at motivating the workers for their excellent performances. Recognition programs are basically certificate awards that