Although outdated, it is accurate and there is a lot of comparisons to this and how McDonalds operate, for instance McDonalds will try to recruit friends of the family or relatives because it creates a sense of friendship amongst the workers, furthermore McDonalds take their staff on monthly outings to socialise such as going bowling or to the pub, this allows the staff to get to know each other better hence creating a bond between them all.
PEST factors are an important part of the recruitment process and has made the whole process more effective, politically changes in legislation, change in policies, may effect how McDonalds can recruit people, for instance there may be a change in the minimum age if it happened to rise, this means McDonalds would lose a large percentage of their employees and would have to spend a lot of money in hiring and recruiting new staff. Mirroring this the maximum age might increase, allowing McDonalds to take on more experienced workers. There may also be Trade restrictions and tariffs which limit how much the business is able to buy and sell, this may result in a reduction of staff if McDonalds have to lower their trading levels, furthermore McDonalds will have to adjust their recruitment process to the changes of the minimum wage, if this slowly increases then it may result in McDonalds recruiting a lower amount of staff, to make up for the money lost in the wage rise.
Economic factor effects the change in employment figures, change in disposable income, changes in lifestyle, for instance if a branch is in an area where the cost of hiving is high, they may have less money to spend on take away food, and opt for cooking at home, which is generally cheaper. Additionally if there is a brand new food store opening close by, McDonalds may face fierce competition from them, because the public in general enjoy trying new things, they may find themselves becoming “bored” of McDonalds and opt for going to the new store for lunch instead, this can then result if a loss of income for a branch which may result in a cut of staff, however to counteract this McDonalds regularly create new meals, to keep customer interest and provide the public with a verity, for instance recently health has been brought up as a concern for McDonalds with a documentary called “super size me” highlighting the effect of eating fast food on a regular basis, as a result McDonalds has increased the amount of salad’s and nutritional menu’s, and have scrapped the super size meal.
Additionally if Interest rates are increased in a certain area, it may mean result in short shortages, or McDonalds offer a lower basic wage to their staff, however in an area where the average household income is high, McDonalds may have to increase their basic wage to match other stores locally, to attract employees.
Social factor effects people’s trends, family, culture, demographics, qualifications, for example if people are looking for healthier food, because McDonalds burgers has been in the media getting stick, its likely people will avoid McDonalds, during this period McDonalds may need to create a menu with more healthier foods such as salad, to help get back the customers, if McDonalds are getting a lower income they may have to cut down on their employee numbers. McDonalds may also look to open a store in an area where there has been a sign of an increase in the Population growth rate; this will not only create jobs for locals, but also be profitable for McDonalds. They will also target area’s where there is a high proportion of their target audience which is generally younger people with a reasonable amount of disposable income.
Technological effects the advances in equipment, improved technology, news ways of working, this means when recruiting McDonalds may prefer taking on younger employees as in general they are able to work with and learn how to use computers and more technological equipment better then the older generation are. This technological revolution means a faster exchange of information beneficial for businesses as they can react quickly to changes within their operating environment. Those businesses, which are slow to react, will fall at the first few hurdles. Furthermore The Internet is having a profound impact on the strategy of organisations, no more so than McDonalds. McDonalds use their website to get the message across to their customers that they are healthy, all the nutritional values are available, as well as a section on how to stay healthy, their website is typically designed to attract their target audience.