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Examining The Corporate Culture And Values Of McDonalds Corporation

Introduction

McDonalds corporation is the world’s most recognised and largest provider of foodservice serving millions of customers daily around the world and operates more than 30,000 restaurants in more than 120 countries. It was initiated in 1940 with a restaurant opened by brothers Mac and Dick Donald’s in California. After since its incorporation in 1955, McDonalds has sold more than 100 billion hamburgers. McDonalds team of experienced managers, high ranking operating system, global infrastructure and one of the well recognized brand names in the world. It is the biggest fast food retailer capturing the whole world. It has initiated Hamburger University where the assistant managers and the mangers are trained. McDonald’s corporate culture is based on shared value system and maintains standardised quality process to ensure same quality and reduction in lead time. McDonalds has the vision to be the best employer in each community in the world. The restaurants are run either by franchise, or as corporate itself. This paper attempts to define the organisational structure and shortcomings in its operations. The operational structure is the system of the operation of an organisation i.e. the values, beliefs and policies. There are some shortcomings which poise as a thread to achieve its goal and work effectively. The organisational problems of McDonalds have been disturbing the activities to be carried out by the organisation effectively. The policy of McDonalds is to promote an working environments which is free from unlawful discriminations. The study will include the causes underlying the problem and the alternatives available to the organisation along with the recommendation for the future.

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Corporate culture and values of McDonalds Corporation

McDonalds corporate strategy is to do the right things and provide the best to the customers and community they serve, and the employees of the organisation. McDonalds has a strong corporate culture and supportive about the global youth employment. In McDonalds every procedure has a very particular rules and regulations of how it should be carried out. It tries to provide best support to its employees. It is dedicated to provide the customers unique level of quality, cleanliness, value and service. They are in the believe that well trained team will serve the best by working together and , so they are committed with people and encourages team building and team work. McDonalds sets out all aspects of business with integrity and honesty. They believe in celebrating the achievement and are strived for new higher goals and its accomplishments. They are highly committed to customer’s expectation and satisfaction. They are directed to convert awareness into action. The Goal of McDonalds is to have people within the organisation to work to better performance and living to reach their full potential. They have performance based rewards for the employees which provide a platform for the workers to deliver the best to the day to day activities. They believe in balance of work as higher burden of time and work pressure will deteriorate the performance of the employees. They have proper and specific roles and responsibly mentioned for each employees of the workforce. McDonalds have systematic

Nick Hopkings,www.docstoc.com, organisational structure of McDonalds(2006)

Retrieved from: improving customer focus through organisational structure

rules to follow and are inclined towards good health. The following are experienced in the organisation:-

Fast customer service.

Free from error occurrence.

Decision making is simple.

Facilities are well maintained.

The premises of the restaurants are clean.

Well built teams and effective team work with specified work.

Standards are based on value, quality and cleanliness.

Full control on the every link of the supply chain

Food safety is the important consideration of the company

Performance based rewards and better scope for promotions on the basis of performance.

Organisational problems and causes underlying the problems:

McDonalds has also some organisational problems which led it to criticism in its operations. Organisational problems provide a thread to operate smoothly in its activities and poise a difficulty in maintaining quality and performances. The following are the organisational problems and the underlying causes –

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McDonalds is blamed for excessive packaging waste. The main cause of this is due to unplanned packaging design and in accurate way of handling it.

Centralised authority is maintained in McDonalds. All the decisions are made by the higher level management and the lower level and crew members have to follow it which created a bridge of gap among various level of management.

Strict procedure and employees must focus on how things to be carried out which discouraged many employees as they were unable to communicate their feedback and difficulties.

The team lacks motivation to the performance due to strict rules and no feedback process.

The team lacks ability as they are allowed to work under fixed guidelines as skills and capabilities all differs.

McDonalds is often blamed for obesity and high in calories food.

Horizontal division of labour as each task of the employees is specified and the more compliance on the final product which creates boredom among the employees which will lead to decrease in performance.

Interiors and the look should be changed as it has been quite a long they have not uninitiated any new look.

www.bized.com,mcdonalds/mcindex, Retrieved from :

Business source complete database

Alternatives and recommendations for the problems arising in the organisation

Vertical decision making should be facilitate in the organization which will encourage communication among the various levels in the organisation

Decentralised organisational structure should be maintained so that the lower level management should be able to communicate and express their ideas freely. The crew members will feel their importance to the organisation and will play a vital role in improving the performance.

The organisation should follow work hard and play hard culture. This will lead to more employee participation through more involvement and decrement in risk taking.

Increase in delegation of responsibility to subordinates must be initiated which will encourage higher performance by the employees

Negative attention should be stopped to attract i.e. no hormones , no chemicals etc

Should be more focused into customer care

Should not be associated with globalisation and corporate greed

Make the interiors more attractive by introducing more attractive uniforms for employees, new themes etc.

Better and improvements in community relations should be started. Each restaurants should be allowed to adapt to its own local area which will encourage better selling and attractions from the locality

Take more risk by adding new food items in the menu

Rotation of employees works tasks so that they get trained in various sections like finance and accounting.

Should try to go organic and provide more healthy food i.e. less in calories etc

Conclusion

McDonalds has strong corporate values and the industry where it is operating is highly competitive. To maintain the customer value and satisfaction it must improve on the products they are offering. McDonalds should initiate with new product line or new items in the menu so customers are not bored with same items and also maintain the quality of the products it has been serving. The interiors and design should be given a new look to attract new generation and new customers also the old customers feel the speciality about it.

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