Mcdonald's Organizing Function of Management

1549 Words Aug 10th, 2010 7 Pages
McDonald’s Organizing Function of Management
Billie Holloway
Jack Geer
July 19, 2010

Organizing Function of Management This paper shows how McDonald’s like any other organization must use the organizing function of management to have a successful business. Management must always take action. It is important for management to organize and coordinate activities that relate to the establishments policies. Over the years management has developed from creating charts to identify business functions, creating reporting relationships, and having personnel departments that administer plans, programs and paperwork to having effective managers who use new forms of organizing. In today’s society it is important that management view their employees
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In 2009 McDonald’s was able to see an increase in sales that marked the sixth year in a row for positive sales in every geographic division of the business. The menu options give to customers helped to give a competitive advantage over McDonald competitors because the menu is within customers’ budget and conveniently the most purchased items are at the lowest prices. By McDonald’s creating a value meal menu and keeping their prices within the economy’s limits they increased their sales to reach an average of 60 million customers in one year. The previous year was around 2 million less and in 2002 there was an incredible difference of 14 million less customers served (McDonald’s 2009 Annual Report, 2010). In 2009 McDonald’s showed strong sales and an increase in market shares around the world. The comparable sales growth in 2009 was 3.8% and the earnings per share growth were at 9%. From 2007 through 2009 the cash return to shareholders was at $16.6 billion. Between the years of 2007 and 2009 McDonald’s Corporation was aiming for a return to shareholders to be anywhere around $15 to $17 billion and as reports have shown the return to shareholders was on the higher end at $16.6 billion by the year 2009.
Human Resources Human Resource Management (HRM) is also known as personnel management. HRM pertains to the formal systems for managing people in their workplace (Bateman & Snell, 2009). HRM is used