This dynamism requires a holistic approach to the problem so that a stable solution is found. Examples of these companies are Burger King, Yum! Brands, Darden Restaurants, Starbucks Corporation, Autogrill S.p.A.Private, Brinker International, and KFC.
The problem facing McDonald’s is dynamic in the sense that it involves other companies in the food services industry that are competing with it. One reason why Checkland’s Soft Systems Methodology is apt for providing a solution to McDonald’s situation is that it allows for a holistic approach to the problem in question. This paper will view McDonald’s as a system with a high rate of employee turnover, which it desires to bring down. The solution to this problem is the result of Checkland’s Soft Systems analysis of employee turnover at McDonald’s. This paper attempts to offer a feasible and practical solution to the question “how can McDonald’s deal with its worrying annual rate of employee turnover?” So, what exactly is the problem? The problem is the high rate of employee turnover in McDonald’s, which is associated with increased costs of operations and reduced profits. Indirect costs with respect to employee turnover mainly result from reduced productivity arising from the phenomenon (, 2011, p. The expenses include advertisement, administrative, interviewing, hiring and training costs.
Direct costs with respect to employee turnover are the expenses on logistical mechanisms put up for releasing and replacing the affected personnel and managing the resultant transition (, 2011, p. The costs an employer incurs to employee turnover are both direct and indirect (, 2011, p. The employee turnover rate for a given organization is the percentage of the number of employees making a turnover to the total number of employees in the organization (, 2011, pp. This has proven a challenge for organizations’ human resource experts as well as industrial psychologists (Sigma Assessment Systems Inc., 2011, p. It is proper management of an organization to ensure that the employee turnover rate is as low as possible during any given period. An acceptable way to interpret this metric is it tells an organization how long its employees tend or intend to stay with it. By default, it tracks the employee turnover for an organization on a per annum basis. The metric that tracks employee turnover in a given organization is the employee turnover rate (, 2011, 2). Notice that, in this document, the problem to be analyzed using Checkland’s Soft System methodology is voluntary external employee turnover. Employers are among the main causes of involuntary employee turnover (, 2011, p.
Therefore, employee turnover can be voluntary or involuntary with respect to an employee (, 2011, p.
Mcdonalds turnover rate free#
An employee turnover can be out of the employee’s free will or it might be a necessity due to circumstance(s). The employee turnover, in this case, is external since it involves more than a single organization (, 2011, 5). In the second, and which is more common, an employee abandons his/her current employer to work for a different employer. The employee turnover, in this case, is internal as it involves only a single organization (, 2011, p. In the first, an employee in an organization abandons his or her current position for a new position that is available to him/her in the same organization. The human resource phenomenon that is employee turnover occurs in two ways. So, how can McDonald’s deal with these worrying rates of employee turnover? Overview of employee turnover The company’s annual employee turnover rate is a worrying 44% (fistful of talent, n.d., p.4). In only 3 hours we’ll deliver a custom McDonald’s and Rates of Employee Turnover essay written 100% from scratch Get helpĮven with this success, one management and business problem has been perennial for McDonald’s and this is the high rate of employee turnover in the company. The company’s Chief executive Officer (CEO) at the moment is Jim Skinner. Worldwide, the total number of employees in the company stands at 1.7 million. These restaurants, more than 80% of which are franchised, are distributed in 118 countries and serve an approximate 64 million people and above (McDonald’s, 2011, p.1). Currently, the company’s number of global restaurants stands at 33000. McDonald’s, headquartered in the US, is the leading global retailer of food services (McDonald’s, 2011, p.1).
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