Leadership And Change Management At Mcdonalds Commerce Essay

This report is conducted on McDonald’s. In 1st section focus on change and resistances to change, real examples of change process and its implementation, scope of change at McDonald’s and possible resistances and conflicts to change at McDonald’s. The last section provides management role for making effective plan and strategies to implementation of new change in this way minimise the resistance from employees resistances against this change.

Table of Contents

Section

Name of Contents

Page no.

1

McDonald Profile

4

2

Change and Resistance to Change.

6

3

Real example of change process and its implementation.

7

4

Scope of Change at McDonald’s.

8

5

Resistances and Conflicts to change at McDonald’s.

10

6

Recommendations

13

7

Conclusion

16

8

References

17

cDonald’s Profile:

“McDonald’s started his business in 1940 with 1st restaurant opened in San Bernardino, California by Richard. It was the result of the thoughts of two brothers, Dick and Mac McDonald’s who introduced a new revolutionary restaurant “Speedee Service System” in 1948 which was established on principles of the modern fast-food restaurant. Speedee completely replaced with Ronald McDonald’s by 1967. 1st time used as trademark on the name McDonald’s on May 4, 1961, with the description “Drive-In Restaurant Services which is still continues until end of June, 2010. The logo trademark on an overlapping, double arched “M” symbol was introduced in Sep 13 1961. The “M” double overlapped arched symbol logo was temporarily disfavoured by September 6, 1962. The modern double arched “M” symbol started in November 18, 1968. “(McDonalds , 25 August , 2010 ,http://www.mcdonalds.co.uk )

“The list of inventions, the Big Mac in 1968, the Egg McMuffin in 1973, the Happy Meal for children in 1979, or Chicken McNuggets in 1983 .At the present time, McDonald’s have more than 31,000 restaurants in 119 different countries of the world of which a lot are franchised”. (www.mcdonals.com.uk)

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“McDonald’s vision is to become world’s best and quick service experience restaurant for this purpose McDonald’s delivering outstanding quality, service, cleanliness, and value, so that we make every customer in every restaurant smile. In mission statements includes best employer or our people in each community around the world, excellent operational for delivery to customers and enduring profitable growth by expanding the brand and leveraging strength of McDonald’s through innovation and technology” McDonald Corporation ,2010)

Change and Resistance to Change:

“According to Rev. Sharon Patterson that which people want to changes are babies who have wet diapers. We can be explained that change is an effort that consists of actual physical changes to operations and different exciting incentive is really painful process in the workplace” (Bernerth, 2004)”

Change Process Model

“Though we all know and believe that progress means change, and we all want and need progress, but not even the prospect of attaining profit from change that everyone will ready and willing to hold change. On the other hand, it is widely believed and trust that most would resist change”, (Duck, 1993)” According to Duck (1993) bluntly he pointed out that “change is intensely personal”.” but according to Petersen (2002) reckons that “for many people, the spectre of change produces Factor of Fear, Uncertainty and Doubt”. (Peterson, 2002)”

“Since change is widely accepted all over the world as almost always from top management to down and its brings by the management, those people which are only being managed would also always show resist against change, before imposing change or before forward change its duty of manager to make a such type framework which should be overcome over all resistance before implementation”. (Peterson, 2002)

“Resistance to change can be defined as it’s a perceived behaviour of organization members which are refuse to accept any change within organization”. (Cheng & Petrovic-Lazarevic, 2004).James Hunt says “Resistance isn’t an indication that something is wrong with what you are trying to change. It is an indication that something is happening.” “Ansoff defined Resistance as its only cause of creation unexpected delays, costs and instabilities into the process of strategic change” (Ansoff, 1988). “Resistance is any employee behaviour trying to stop or delay in any change”. (Bemmels and Reshef 1991)

Real example of the change process and its implementation.

British Airways.

“Past in 1981, British Airways hired on board of Directors a new chairperson. When this chairperson joined, he noticed that the company was very unproductive and was wasting a lot of valuable resources in useless activities. To make the organization efficient and increasing the profit ratio he decided to restructure the entire organization. He realized that Change Methodology Management Plan is the best way to serve that purpose”. (Jean Scheid, 2010)

“Systematically, the British airways started reducing workforce. But, before started this, through his change management leadership, the chairman gave the all reasons for the restructuring and privatization of the company in order to prepare them for the future change. He directed his company through a hard time that could have been terrible without effective change management resistance communication just only through his Leadership & Communication” (Jean Scheid, 2010)

Scope of the Change at McDonald’s.

“The scope of this change for McDonald’s is limited to the application of the Integrated marketing Communication (IMC) as part of the marketing strategy of the McDonald’s. In this change, the most important area that had been given attention is the advertising and promotional campaign of the company”.  “Usually, advertisement or promotional activities are concerned as an open sponsorship of offering products, services and any ideas through the use of any mode of communication. In this purpose, there are different kinds of mode of communication or media which are use for advertising and promotional campaign”. “Basically, in this new Integrated marketing Communication (IMC) theme will be major focus on advertising and sales promotion activities”. “Particularly this change will give importance to the Integrated Marketing Campaign (IMC) as part of the marketing strategy of the McDonald’s.” (McDonald Corporation , 2009)

“Basic aims of Integrated Marketing Campaign to take on a new health-conscious rule that would be constant with the latest trend of health awareness and the growing concern in corpulence among children and target market”. “In addition, its aim is to introduce the implementation of a new and separate menu of low fat for children, planned to counter the rising bad publicity being thrown at McDonald’s”. “The company is well known that this new strategy which most concerns with the health of consumer would effectively inform both children and parents regarding the nutritional value of new, “McKids” Meals, and how these meals are different from the traditional McDonald’s meals”. “In addition, the implementation of the new innovation namely Integrated Marketing Communication might be able to provide an effective advertising and public relations campaign that would successfully introduce the new McDonald’s change to the world”. “For implementation of this new change in the organization, the company has been able to create a team that would be responsible for all essential matters related this change.”(McDonald Corporation, 2009)

“The major focus of this change would be on the sale promotion and advertising, not only to mention other marketing mix which would be included and participated to make successful this innovation or change”. “Today McDonald’s different kinds of menu for kids had faced different criticism, mostly in terms of its nutritional contents”. “The Integrated Marketing Communication has been implemented only changing public image towards the McDonald’s”. “We can say Integrated Marketing Communication is a technique for ensuring that a company’s mission and vision is included and promoted in every advertisement or promotion that will be happened” (McDonald Corporation,2009)

“According to Forgeson and Green Basically there are three major categories of change resistances are organizational, group and individual”. “The following are resistance or conflicts faced by McDonald’s during implementation of this change: McDonald’s employees and customers, McDonald’s organizational culture and behaviour”. (Mabin, Forgeson & Green, 2001)

Resistances and Conflicts to change at McDonald’s:

 1st resistances due to reactions of the McDonald’s staff and customers of the company , some employees are in favour of this new change and some are against this new change mean using the Integrated Marketing communication. Managers and some employees only against this change due to fear, they think might be this change instead of resolving problem it will increase the problems of the company.

There are not only employees have negative reaction towards this change but also customers are not showing positive reaction towards this campaign so it lead o another conflict in the shape of not positive attitude of customers towards this new change in this way McDonald’s cant achieve benefit from this change as whole of the company. 

One more resistance against this new change of the company the shortage of qualified personnel in company who assigned the maintaining these tasks to maintaining crew and application of this new marketing change but they are not much professional so this is the conflict in the way of new change.

“In strategic implementation of the change there are lot of barriers and enablers which are attributed as the main factors for the success or failure of the implemented changes. Barriers may include different resources which are not may be available for the innovation process. These include insufficient financial budget, organizational or stakeholder resistance to change and ineffective used of communication media. One more of the conflicts or resistances that may arise in the implementation of change in an organisation are the absence of support in sustaining the success that can be achieved in the change process”. (Cheng & Petrovic-Lazarevic, 2004) According to Carlopio “Innovation is a social process that should be undertaken in a regular phases and not just a decision event so within McDonald’s these forces are the ones attributed which may hinder strategic implementation of the innovation. The company may not be able to implement the Integrated Marketing Communication as part of its marketing strategy lacking of one of these hurdles, or incapability to handle these hurdles effectively, the company may not be able to implement the Integrated Marketing Communication as part of its marketing strategy”.(Carlopio, 1998)

The difference in culture between the different employees of the organization is another inner conflict. Due to difference in cultures in McDonald in different members of the company so in this way they unable to do work in pleasant environment and in good way and also this cultural leads to create difficulties in the way of implementation of new change in organization. “According to Wilkins & Dyer the administration and management of the management of McDonald’s must be identify and understand those subcultures that might provoke a work environment more or less empowering than the larger organizational system at the time of assessing the interaction between culture and empowerment”. (Wilkins & Dyer, 1988).

Recommendation:

In restaurant industry managers play vital role in any change so in this way what McDonald’s managers pay specific attention at the time of implementation and initiating change towards reducing possible resistances and achieve better organization performance.

Manager is the person who initiating and start the change and employees have to accept and adopt it. Through Effective communication, perception of manager’s actions, employee’s attitude and harmonious working situation can be overcome resistances to change and also play important role in attaining better organizational performance.

Implementation of Change in the Restaurant Industry

Effective communication is the most important components in restaurant industry and played a vital role in the success of organizational operations. Effective communication is very important among the managers and employees and among the employees to employees.Good listening skills are the essential for a successful manager of any organization specially in fast growing fast food industry. Before, after and during the change process managers should carefully listen to the employees opinion and should modify the new change according to the opinion of the employee.

For implementation of successful change in organization it is compulsory for manager he should always alert regarding employees reaction towards change. McDonald’s Managers should realize that if employees against that change and don’t want to cooperate with them so in this way customer service delivery will get worse. Conflict may arise amongst colleagues and managers when employees resist change. In this way employees may not perform well which directly effecting reputation of restaurant and might be it will also become cause of resignation of employees. So befre implementation of new change McDonald’s managers listen very carefully arguments of employees and change the situation according the time need and should avoid the create bad environment in which employees proved poor environment for work and end all go for resignation. Not only this but also they should encourage the employees for better service and development of performance of the company as well as the employees..

“So there should be a framework for possible improvement in efficient working system and better customer service within a working environment. This framework indicates and encourage to both parties managers and employees should look for a better technique of getting things done. We should clear one thing improvement always goes along with change. If there is no improvement, it means no change in this way restaurant will most likely become sluggish in particular when unforeseen circumstances or events occur restaurants and that time might be it will very difficult to keep pace with competitors. Managers should also provide a pleasant environment to employee for keeping happy to workers and cheerful staff will contribute to higher level of motivation and high performance. High-spirited employees would be able to creation and maintain harmonious working relationship with workmates. Managers should always maintain and keep a lovely pleasant environment for employees to keep them motivated because stressful environments always negatively impact the restaurant” (A Paton, R. and Maccalman, J. ,2008)

Further more, the success of the new change is still under process and difficult to convert the children attitude towards healthy fast food meals. But at the other hand, there are very strong chance for this success due to strong campaign and promotion activates for prompting the characteristics of the this new change. Furthermore, McDonald’s should assure the message has been reached to every child in 119 countries where McDonalds is serving for this purpose help from every type media is the best strategy. There should be a new theme for new advertisement “I love it even more!” and hopefully this new theme and way of advertisement will inspire the parents and also encourage the children’s towards healthy food. This campaign should be long lasting, strong concerned on healthy characteristics of this new change and should be in friendly way like ‘kiddie-friendly way.

If McDonald’s carefully make plan and use best strategy and good and effective method for implementation of this new change so there are bright chance of the success of this new change and in this way company can achieve very easily mission and objectives of the company. The most concerned of this company to give image of health conscious which is good match with the latest trend of health conscious measures for this world and also for the future world.

Conclusion:

“According to Beverage the management change leaders must be willing to keep their fingers on the pulse of the organization, by monitoring what is working and what is not working and in the change process.  The management must create s safe environment for changes, reassure, support, and commitment on the organization in order to application the strategy of change effectively and successfully” (Beverage (2003)

Therefore, it is concluded that, changes of management is not bad until they enhance the competitiveness and power of an industry. If any change implicated through proper planning and investigation so it will be very effective and will also increase the performance of the organization. So organizations should impose the any change at the right time when studies proved that no time of change. Because we don’s forget the change management system not only critical and complex but also very sensitive so only one wrong decision of any company in any change might be it push company to in under clouds and prove harmful for organization profit and inspite giving development instead company feel difficult to survive in perfect market.

This is strongly recommendation for McDonald’s that must see and again and again ensure that future changes are well very planned there implication is very carefully because these changes will be cause of the success /or failure of any company.