McDonald’s is one of the biggest companies in the world with restaurants in 119 countries and it has accomplished this extraordinary global presence through its effective management practices. McDonald’s uses a combination of Fredrik Taylor’s scientific management, Max Weber’s hierarchical structure, and Henri Fayol’s administrative principles to run its restaurants. McDonald’s has become a mechanistic organization by making its restaurant environment predictable. McDonald’s has developed set management structure and a predetermined set of procedures for running its restaurants. As a result, McDonald’s has come to resemble a machine where employees are like components of the big McDonald’s machine. McDonald’s has combined Taylor’s, Weber’s, and Fayol’s theories picking out some of the components that best fit their mission. These components include Taylor’s supervision practices, emphasis on efficient specific tasks, and employee placement practices, which represent the mechanistic organization theory. Weber’s hierarchical authority structure, merit based promotion principles, and impersonal management practices. In addition to, Fayol’s bureaucratic management style that stresses planning, organizing and coordinating. Common principles among these three theories like the shared belief in the division of labor, order, and extensive policies are part of McDonald’s management style. In essence, McDonald’s has gathered the components it believed would allow them to accomplish
For McDonalds to achieve their mission statement they will have to create some internal strategies to help push for perfection. Strong training is one strategy that McDonald’s uses for overall success. McDonald’s has one of the Worlds best training with hands on skills development, teaching employees time management, teamwork, and customer service/ communication skills. McDonald’s ability to offer opportunity is another internal strategy they produce. McDonalds allows for many opportunities within the company for advancement. A large percentage of managers and franchisees within McDonalds all started at one point or another as McDonald’s Crewmembers. “67% of managers and 50% of franchisees” (McDonald’s Canada, 2015) started in entry-level jobs and worked their way up; this shows McDonald’s can offer plenty of opportunity. The last strategy is McDonald’s likes
McDonald's has successfully met the demands of its customers by gradually adding to their menus. Breakfast meals, hamburgers, chicken, salads, salads and even desserts are provided by the restaurants which aids in the success of McDonald's. The organizational structure for McDonald's
The corporation I chose to discuss is McDonald’s. McDonald’s is a publicly traded corporation that includes the following domestic companies, McDonald’s, Chipotle Mexican Grill, and Boston Market. This paper will discuss the following:
Firstly, there is application of Peters and Waterman theory that reflects on the common themes that are argued and believed to be behind success and excellence (Peter and Waterman,54). The themes have aided McDonald in the aspects of making improvements thereby achieving success and job satisfaction of the employees in general. Moreover, McDonald is involved in the business that requires high quality, service, and hygiene and customer satisfaction. In order to fulfill this, the human resource management at the McDonald has made sure that it has identified a workforce with the capability of satisfying all the above requirements. As a result, there has been creation of a team that has enabled the McDonald to achieve its goals and objectives.
McDonald’s is a drive thru restaurant where customers need to wait in line to order as well as pick up their food. This is likely the most dehumanising aspect of the company since they treated people as parts of an assembly line. Moreover, routinization such as maximising managerial control can be found in McDonald’s and it is related to the idea of Taylorism. Where Max Weber used bureaucratic model to describe the movement of the shifting society, George Ritzer believed the operation of fast food restaurants have become a more suitable contemporary paradigm in modern community. Therefore, Ritzer introduced his idea of McDonaldization in 1993 and it comprises four key dimensions: efficiency, calculability, predictability, and control. Among these components, ‘control’ represents workers become standardized and nonhuman technologies would substitute for them. He declared that the principles of fast food restaurant would dominate more and more regions of American society and throughout the world. In fact, apart from food industry, McDonaldization expands all over the world which include bookstores (B.Dalton’s) and toy stores (Toys R Us) (Ritzer, 1993:1).
Its three main characteristics are that it has a division of labour, hierarchy of authority, and an impartial and impersonal application of rules and policies (www.faculty.rsu.edu/Theorists/Weber/Whome.htm). Thus, from that definition of a bureaucracy, one would conclude that McDonald's is a bureaucracy. The fact that it is bureaucracy is supported by the fact that each assigns workers to a specific job where each worker individually contributes to the overall success of the restaurant by doing his or her job. For example, McDonalds workers are assigned to work at the grill, register, or drive-through window. The restaurant also has ranks while on the job such as worker, shift manager, crew chief, and franchise owner. These ranks demonstrate the hierarchy of authority. Furthermore, the restaurant enforces the impartial and impersonal application of rules and policies.
McDonald’s and Google are two of the biggest well known companies that I have decided to research and write about. Why are they so successful and how did they manage to stay in business for such a long period of time? Management, is definitely one of the key points to their success. The purpose of this essay is to show the similarities and the differences between two management perspectives in which both companies are using and that has been around for generations. In this essay, I will describe how and and why my examples illustrate the classical and humanistic approach. This essay will begin with an overview of the importance of classical and humanistic
Due to globalization and increased competition in the fast food industry, a very complex environment is created for McDonald’s. There are various internal and external environmental factors affecting the functions of McDonald’s corporation and demands for new innovations. The factors are as follows:
The central thesis of this paper examines the organizational structures of McDonalds, Burger King, and Wendy’s food restaurants. It will examine the comparison and contrast of the organizational structure of McDonalds with Burger King, and Wendy’s Corporations. What functions influence McDonalds, and explains how the organizational design helps determine the structure that best suits McDonalds needs, as a business.
To begin, McDonalds uses the Classical method scientific management method, this method allows work to be compartmentalized. Fredrick Taylor, the one who worked on the scientific management wanted to improve productivity, therefore, his approach was used in the McDonalds enterprise as work is compartmentalized to make work efficient. For example, McDonalds labour force has specific tasks such as; some workers on the line making the meals, a worker making the fries, a worker working the cash register etc. The classical method works well in this aspect of working as it is easy and inexpensive to train workers and is easy for observation by supervisors and managing staff. McDonalds however does not motivate the workers well as they are paid minimum wage, since money is the only motivator, and compensation must be assessed to performance.
The McDonaldization theory defines the process of which the principles of the fast-food restaurant are coming to dominate more and more sectors of American society as well as the rest of the world (Ritzer 1). Within McDonaldization there are five different concepts embedded into this theory, which are efficiency, calculability, predictability, control and lastly irrationality of rationality. These concepts are not just used in fast-food restaurants, but are becoming more
Technology with McDonald’s plays a very important role in the everyday corporation of McDonald’s and all of its stores. Technology is changing every day and has an impact on McDonald’s corporation. Technology affects planning and organizing in the same ways as the function of globalization’s impact. The organizational plans of development are sent down from the top level managers, to the store managers, all the way down to the shareholders through technology. This also opens up a weakness to competitors by being open for them to see their plans. This can be affected by internal forces. With technologies improvements on day to day basis managers are able to communicate with their employees on a less frequent basis. This means the leadership would be a less amount and managing effectively would become worse. McDonald’s counteracts this by using technology to make the training courses more convenient and available to managers.
McDonalds Corporation had developed to become the leading fast-food chain of restaurants since its inception to the extent that it serves more than 47 million customers across the globe on a daily basis. The corporation is the largest global food-service retailer since it has over 30,000 local restaurants that serve approximately 52 million people in over 100 countries every day. One of the critical factors attributed to the success of McDonald's global business is operations management, which focuses on the careful control of processes that are used in manufacturing and distribution of goods and/or services.
The definition of ‘management’ is controversial and subject to much debate. There have been many contradictory views on what the term ‘management’ means and accordingly how one should correctly manage an organisation. These theories have been put forward by several highly regarded management scholars over time. By taking into account past knowledge and contemporary views on management, we are able to ‘’explore how thinking has changed through time’’. (Brooks, 2006). Moreover, businesses have, and can continue to be able to adapt these theories and put them into practice. Successfully applying correct management practices is especially vital in a global business environment which is becoming very competitive. ‘’Most management theories, even those that do not resonate comfortably with the prevailing mood, have attractive and valid elements to them.’’ (Robinson, 2005). For example, some of these theories can be seen flourishing in fast food chains like McDonalds.
Organizational structure and design also has a direct impact on a company’s success, no one does this better than McDonalds. “4 key forces shaping today 's organizations—buyer power, variety, change, and speed—and shows how to design a state-of-the-art organization that responds effectively and rapidly to customer demands”. (Galbraith, J. R. (1995). McDonalds has buying power due to its sheer size. Variety is definitely a tool used by McDonalds as there are many menu items to choose from. Meeting customers’ demands, is also something that McDonald’s adapts to easily, when something sales they provide when it does not they remove the item from the menu item, the speed in which they do this would not allow you to believe that this was a mechanistic company structure.