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Change is the improvement of organisational structure and any others system. Effective changes may bring most benefit for an organisation. If there is something wrong with the change process, it may herm the organisation. Basically, changes are made to meet with the organisational goal at right time. External and internal environment of every organisation is changing every moment and ever changing. To meet with this change, we are looking for better way of doing things. Stakeholders want to get most benefit from the organisation. New technology is also changing the management process and structure of an organisation.
According to Stephen P. Robbins, Change is concerned with making thing different. Things must be different because they change constantly.
Company Profile of McDonald's Restaurant
In my assignment, I would like to discuss about managing change at McDonald's first food restaurant. McDonald's is the world largest and reputed first food restaurant chain. In 1973 the first restaurant was opened by the McDonald's brothers Richard and Maurice in America. Now it has more than 30000 restaurants in about 120 countries. McDonald's opened their first UK restaurant in October 1974. In the UK more than 60 percent of their branches are conducted by the company and rest of them are franchised. It has large scale of part-time and full-time hourly paid employees.
Background to Change
Significance of change
Change is very important for every organisation to achieve its goal on time. Everything, such as living style of people, globalisation, technology, demand of customers and employee, environment of business and so on, are changing very rapidly in the world with a hundred opportunities by every moment. Managers continuously try to achieve successful and significant changes. Some are successfully achieved, while others continually struggle and fail. Over all changes are necessary in an organisation. Example for McDonald's Restaurant, 23 Highgate hill, Archway, London, store number 1288 recently changed price of food to adapt with current Tax rate, because of 2.5% increased. If an organisation does not have ability to change fast with current change of internal and external environment of business, cannot survive in the market. It is seen that, newly arrived technology changes the organisation structure.
From my practical experience with a textile industry, when first time I joint as an executive ( Electrical and Electronics maintenance) at that time most of the machine were run by operator but when Programmable Logic Control system had been installed in that textile then number of operators was being reduced by PLC. This PLC can operate hundred of mechanical and electrical machines very efficiently. This electronics device (PLC) is very important for controlling machine rapidly and help to reduce direct production cost. To take the competitive advantage change is necessary within the organisation.
There are some internal and external factors which are responsible for organisational change.
Change in leadership style
Changes in member of staff profile
Actions of trade union
Turn down in profitability and so on.
Cost of raw materials
Legal requirements and so on.
The word Bureaucracy has been originated from the word 'Bureau' in the early 18th century in the Western Europe. Bureaucracy not only use in a writing desk but also to an office or work place. It includes the structure and set of rules and regulation to control the activities in an organisation and Government as well. It also includes hierarchy, formal division of responsibilities and impersonal relationship. Weber described the idea type of Bureaucracy in positive terms, consider it to be more vertical and efficient form of organisation than the alternatives that the preceded it, which he characterised as charismatic domination and traditional domination. According to his terminology, Bureaucracy is a part of legal domination. However, Bureaucracy becomes in efficient when a decisions must be adopted too an individual case.
Moreover, Bureaucracy is a form of organisation in which staffs of office have defined position and title. The importance of an organisation in the modern economy and development of large and new organisation, are fact that make the issues like efficiency and control on the centre attention. Basically, efficiency in an organisation depends on its structure.
Clarity in communication
Speed in work
Reduce the personal costs
Lots of levels of management
Structure is vertical
Much paper work and routine
Multiplication of administrative function
Employees are ranked at various levels in a hierarchical organisation. In the hierarchical organisation each level is one above others. Here one person has a number of staffs directly under them. There are two types of hierarchical organisation first one is tall and second one is flat hierarchical. Tall one includes lots of level and flat one includes few numbers of levels. The chain of command in hierarchy is like as a pyramid shape. Authorities are described at various levels. In the traditional hierarchy organisations, employee are defined their role and relation among others within the organisation. Also decisions are taken by top management. Anyway, in the twentieth century hierarchical organisation were very popular because manager could ensure the command and control of organisation. However, with the advent of technology and globalisation, tall hierarchical organisations began to flat and reduce their workforce. That means, with the help of technology human resources are being reduced in an organisation, as a result levels of hierarchical organisation is being changed continuously.
Authority and responsibility are clearly defined.
Member of staff can get clear path for promotion
Hierarchical organisation encourage the effective use of specialist managers
Hierarchical organisation responds slowly to customers' needs and the market within which the business operates.
Communication among various levels is very poor
Each department can make decision for their benefit rather than the business.
Two different forms of organisational change development
Transformational versus Incremental Change
Transformational change is difference from any other change in terms of philosophical nature of new vision of organisation, required level of involvement of stakeholders in the change process. Transformational change focuses about organisation's structure, traditional culture from top to down and hierarchical structure. In this change process culture of an organisation is changed. Business process reengineering is the example of the transformational change.
Incremental change means continuous improvement of organisational efficiency. Leaders do not recognise this kind of change process. It is as the process of adding something for development of organisation. If it is computer system, adding some program to do more work by using existing computer. Incremental change emphasize on the organisational goals and objectives, selects appropriate project to meet with this goal, provide training to the member of staff for improving team work and provide continuous support of each terms effort. Kaizen model for organisational change might be the best example of incremental change.
System for Understanding and Involving Others in the Process of Change
Stakeholders are that persons or group, who have interest to the organisation. It can affect the organisation's objectives, and policies. Every organisation has stakeholders such as customers, directors, employees, government, owners, suppliers, unions, and the community. In this section, I would like to discuss about the stakeholders of McDonald's restaurant and how they are involve with the change process. Different type of stakeholders play different role in the change process and organisational development. Some are internal and some are external stakeholders.
Customers: customers are the persons, where to sell the product. They are the most important for every organisation, without customers McDonald's cannot sale any food finally business go down. Customers have interest to the McDonalds restaurant because they are getting quality full fast food with competitive price. People who are busy can get food within 2 or 3 munities and eat on the way as well. During the change process, customer's opinion should be taken so that they fell free in their mind.
Employees: person who work for the organisation. They are internally connected with organisation. Employees have interest in the organisation such as salaries, bonus, and holyday payment and so on. Manager of the McDonalds restaurant arrange meeting before changing any rules and management system. Employee's opinion is most valuable to the business manager in McDonald restaurant because they may be affected by any wrong change.
Supplier: an organisation or individuals who provide the raw material or any other things to the McDonalds restaurant. McDonalds UK has some suppliers they are Heinz, Cadbury, Tropicana UK Ltd, Coca Cola and so on. They are supplying their products to McDonald's restaurant timely and according to restaurants demand. Without communicating with them if McDonalds change any process, that change may affect the suppliers. Finally they may stop their supply to McDonald's restaurant.
Government: rules and regulation is very important for every business. It can be favour and disfavour to the business activities. Rules and regulation are changeable, it depend on the Government. Example for new Government of the UK changes some rules for international student, which may affect all colleges which are providing sponsorship for international students.
Pressure group: McDonalds is opening their new restaurant in different place also installing new technology in the existing restaurant. Before doing those kind f things McDonalds should consider that whether these changes are environmentally friendly or not.
Measures or Processes
Stakeholders are very important for every organisation and they have some responsibility to the organisation. They are internally or externally connected with the organisation and influence the organisational management system. They should consider for any kind of change or development within the organisation because business depends n them. Every moment stakeholders policy and mind changing, organisational changes are required t meet with stakeholders needs and want from business. There is some process to involve the stakeholders with the organisational change; these are effective communication with stakeholders, training and development, ability of employees and diagnosis.
Effectiveness of Communication
Communication with stakeholders is most important for managing change and development in an organisation. Communication can be done by meeting, interview, email, letter, networking and so on. Example for in McDonalds restaurant any change is required, manager arrange meeting with all member of staffs to take pinion how can be succeed by this change or developments. Also business manager take feedback directly from the existing customers.
Effectiveness of Training
Training and development is necessary to the employees to change the organisational system. Employees are most valuable stakeholders for an organisation. They work for organisation and get benefit from the organisation. For changing any system or developing any unit of an organisation, employees should be given effective training s that they can work with changed system.
Implement Models for Ensuring Ongoing Change
Two most important models for change
Business Process Re-engineering
Business process reengineering was first introduced by Michael hammer. He was a computer science professor at Massachusetts Institute of Technology. The concept of BPR has been clear around since 1990 by Michael Hammer and James. How, in terms of business, BPR includes a set of logical related Tasks. In today's world, everything is ever changing. All organisations look for new solution for their business problem. In the early, some organisations are following successful solution as BPR. An example: Wal-Mart decreases restocking time from six weeks to thirty hours.
Business Process Re-engineering as a process of redesign of business to achieve dramatic improvements in terms of quality, costs, service and speed. BPR is not applicable for those companies who want 10% improvement; it is for the ones that need ten folds increase. According to Hammer and Champly it has four key words, which are fundamental, radical, dramatic, and the last but most important is process. Process includes some steps of produce some product or service. It also includes all activities that deliver particular result to customers.
It is very popular and important model for ongoing change. This method support the continuous improvement of an organisation and it is a Japanese management concept for gradual and continuous change. The kaizen came from Japanese word, here kai means continuous and zen means improvement. Kaizen basically best fit for human life, where people continuously improve their professional skill. Kaizen model includes some key elements such as quality, effort and improvement with all the employees' willingness t change, and communication. Basically, Kaizen events are most important for that organisation, which are lean. Kaizen process helps to improve the lean organisation. To success the kaizen process need to implement effective planning. It has five main elements
Suggestions for improvement
Example: computer processor and any other peripheral devices are being improved day by day. Micro processor was used in the earlier computer, now it is upgraded to quad core processor. Still it is being improved.
Steps for the planning implementation
Business Process Reengineering implementation
The stage of implementation is where reengineering process faces a most difficulty. We should not think that environment will be friendly to reengineering effort and could expect to meet with all kinds of opposition. There are any other steps before implementation which is surest way to top of Business process reengineering. These are prepare for BPR, map and analyze as is process, design to be process benchmark, implementation and improve continuously. The identified steps of implementation which are
Evolve implementation plan
Prototype and simulate transition plan
Initiate training programs
Implement transition plan
The successful implementation of kaizen concept leads an organisation to
Greater customer's satisfaction
Improved employee morale and job satisfaction
There are some steps to implement the kaizen events:
Define problem and the goal of the event
Analyze the facts
Generate possible solution
Plan the solution
Implement the solution
Check and secure the solution
Hierarchy in McDonald's restaurant is better than the other organisation. The hierarchy is Business Manager, Assistant Manager, Shift manager, Training squad and Crew member. Yet, I would like t recommend that for changing hierarchy in McDonald's restaurant. Supervisor and team leader post might be added to get most performance from team work. Employees make any request to business manager through their supervisor. Work in McDonald's restaurant is team work but there is no team leader post to maintain the team work. Team leader post above the crew member might bring most benefit from team work.
Change is essential to survive and run the business in competitive world. Every organisation either small or big needs to change to adapt with current economic climate. Change brings the most benefit for an organisation but there are some resistance for changing the organisational system. Generally, top management and leadership within an organisation address what kind of changes necessary within an organisation.