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Almost of the company restaurants are operated by franchisees, which are bound to pay 4% of their revenue to McDonald, as well as the rent. In most of the cases, McDonald owns both the building and land which results in a stable flow of income making the franchisees bear most part of the risks. The remaining 15% of restaurants are owned and directly operated by McDonald. Considering the business model of other fast-food chains the business model of McDonald is different. Other than franchisee fee and the marketing fees that are calculated as sales,
McDonald do sometimes collect rents that are also considered as sales. Other than revenues generated from the franchise agreement, McDonald may also own or they can lease the property where McDonald’s franchises are located. According to the policy of McDonald, the business does not involve itself in making any direct sale of food or any other material to its franchisees but it organizes the food and materials required for the franchises through an approved third approved logistic operators. McDonald’s is also involved in identifying the locations, developing new products and quality.
Human resource management is an approach by which company’s most valued assets (people) are managed. For any company to achieve success its human resource has to individually and collectively contribute and this can only be achieved through proper management. Proper management of company human resource not only help the company to achieve its objective, but they achieve it with greater efficiency. Human Resource Management helps the organization to achieve its desired goals and success by the help of its people. Human Resource
Management, therefore, is utilized in the creation of decision on the plans of the organization. These plans are linked with employee relationships, recruitment, training and development, performance management and rewards for employees.