Root cause for McDonald’s failed employee financial training tips

The assumptions on which the McDonalds based their hypothetical budgeting were not realistic. The employees are supposed to make small expenses and save more money but most of the expenses were not just hypothetical and the actual figures are not as low as McDonalds assume for employees. One of the individuals made a comment that the insurance cost for an employee earning $25000 a year is considered to be $20 per month. However, there is no such insurance available to provide this low insurance. To revamp the service, McDonalds should provide some reasonable amounts for the actual employees of the company. To revamp the financing tips McDonalds must include reasonable amounts, because putting in low costs would not help employees at all.

Approach to revise and revamp the program

McDonalds said that the insurance payment is $20 but it may not be that low. McDonalds can initiate its own insurance program for its employees to have themselves insured at as low as 20 USD. This insurance program may also lead company to initiate a different business and may benefit with diversification; till it is not started for outside world the company can have itself advertised to be an employee welfare firm in perspective of social responsibility. Corporate social responsibility can produce a lot for the company as the outsiders assume it to be a social company customers will consider as they as contributing to welfare by buying McDonalds’ product.

Alternative that McDonald’s could use to benefit employees

Though a number of management experts grade increase in pay as hygiene factor but it is necessary to have increments in salary in such inflationary times. McDonalds can increase salary of the employees to deliver something to employees. Employees may be motivated with the increase and produce more output for the company.

Measures and outcome to evaluate the proposal

The measures to evaluate whether the employees are more satisfied or not will be judged from their results. McDonalds is a food providing company, which means that the things are perishable and the employees need to have a keen eye over the products. The raw material must be of a certain quality and the burgers and other products they prepare must be in a standardized manner. Furthermore, the increased salaries must motivate them to make more final products for the company. In addition to this there should be minimum conflicts among the employees and between employees and employers. So, if the activities in McDonalds are moving towards such improvements, it can be concluded that the company’s proposal of increased salaries is paying off, rather than just wastage of resources through a finance tips website.