It is rather amazing, concerning and distressing that giant organizations are taking less interest in their own employees - Madhavan Gopalachary.
Our article the titled 'Business ethics - the case of McDonalds Coffee incident' is very popular and has become a classic case study in business ethics in regard to consumer rights and complaints. The incident happened long time ago and a few such incidents cannot be held against a company. McDonalds is top global brand. It is ranked 8 by Interbrands/Businessweek in 2007 by an estimated brand value of USD 29.398 Billion. The Canadian website www.cbc.ca in an article titled 'Customer complaints on the rise at McDonald's' - Last Updated: Tuesday, February 27, 2007 | 9:46 AM ET, had the following to say on the fast food giant.
The brand is doing exceedingly well financially.
The customer complaints have gone up to 20.1 per 100,000 in 2006 as against 18.5 in 2005 in company operated stores. In franchisee operations the complaints were less. It was only 12 complaints for every 100,000 customers. It is not alarming. Franchisees are doing better because of ownership of the business. In company run restaurants there is no ownership.
The total complaints received on accuracy of orders executed was 500,000. The complaints were typically about wrong items included in the order, condiments missing, inadequate portions, shortchanged or overcharged, items like straws or napkins or extra trays missing etc.
The second complaint was 'rude and unprofessional behavior of employees' which was at 15% of all customers patronizing it. This is high and an area of concern.
The third complaint was on speed of execution of orders. Speed and accuracy are both very important for all businesses.
Analysis of the above information.
Considering the millions of customers handled by the restaurant chain, it is not a case or cause for alarm. There are some habitual complainers. It is important to separate the wheat from the chaff.
The complaints on accuracy is serious. Accuracy is the very basic need of preventing customer dissatisfaction. Speed is also very important in fast food joints. Please see my article titled 'Customer satisfaction is preventing customer dissatisfaction'.
Most serious concern is bad employee behavior which is high at 15%.
Food industry needs a lot of imagination and innovation. Its founder Mr. Ray Kroc innovated and formed a great company in preparing fast food of uniform quality. Further innovation is missing. It is business as usual. No company can afford to take that approach in a highly competitive environment.
McDonalds were upset when the dictionaries listed McJobs as low paying and menial jobs. They know very well that a server or waiter's job is very difficult. It needs a lot of patience in handling customers, especially rude ones. All customers are not gentle and polite. But the problem is a customer is a customer, whether gentle or rude or polite. Their problem is because of 'Temps'. When an organizations depends to a large extent on temporary workers, the above problems are bound to be there and may even increase because of very high volumes of customers streaming in. There is no motivation to perform as temps and in such low paying jobs. Tips to waiters are generally low in fast food joints. Money at that level is very important. People are at the first level of Maslow's hierarchy of needs. In what way is a waiter different in a Disney restaurant as compared to McDonalds ? The answer lies there.
© Copyright, Aug 18-08 . Without prejudice. All rights reserved
Customer complaints handling at McDonalds - To learn more about this author, visit Madhavan T Gopalachary's Website.
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Madhavan T Gopalachary
(Visit Madhavan's Website)
Madhavan Gopalachary, nick name "madgopes"
(g pronounced as in go) given by IIT
classmates, is a Mechanical Engineer and
an alumnus of Indian Institute of
Technology, Madras having passed out
specializing in IC Engines &
Thermodynamics.
He has nearly 35 years of experience in
the Corporate World. He started off as a
trainee and handled sales, marketing,
manufacturing, product management, profit
center management, strategic planning and
corporate development including R & D in
various organizations and at various
levels before becoming a CEO. His last two
professional assignments were at CEO level
before embarking to start management
consultancy business on January 01, 1998.
He has worked for British, Swedish MNCs as
well as very large Indian business houses.
He has spent a large portion of his time
from June 1998 till date in East African
Countries practicing as an independent
Management Consultant.
More details can be obtained at the
following web sites:
mmg.name
/mtg.html;
mmgconsu
lting.biz/
Madhavan's articles can be accessed at www.madgopes.com
.
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