Organisation Structure And Communication Channels Commerce Essay

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McDonald is an International company, which fight with other fast food companies. McDonald is the fast food industry supplying burgers, fries and other items using standardization, heavy expansion and branding as the driving force. McDonald's operates in over 121 countries and has over 30,000 restaurants worldwide.

McDonald's utilized an intense, rapid expansion into foreign countries through three primary methods, franchising, company owned restaurants, and joint ventures. With the majority of international restaurants stemming from franchising agreements, McDonald's management relied on this method to aid in the acceptance of a new style of eating into unfamiliar markets. With minimal risk and maximum gains, franchising continues to contribute heavily to McDonald's international success.

With a centralized, international structure, McDonald's keeps a tight grasp on operations, cost and quality. With an ethnocentric management strategy, McDonald's relies on domestic based logic and attitudes and transfers them to their international outlets and restaurants.

In order to control its overseas operation, McDonald's uses a combination of two approaches. The majority of control would fall under the rules approach, meaning that control lies with headquarters creating procedures and policies for the subsidiaries to follow. However, there is also a little of the cultural approach that has surfaced and is being utilized judging by the adaptation that has occurred in some of the overseas restaurants. This has occurred even with the tight internalized norms that are constantly presented and enforced by headquarters.


Organisation structure and communication channels

McDonald's Organisation is the world's major company for burger & fast food.

There are two ways of owning McDonalds and that is franchisee or design own self. Franchisees make the payments and they get all the income from their mortgage and others. McDonald's revenues get 27% hike at the ending of 2007. (McDonald's Corporation, 2008)

In the initial days they sold burgers, cheeseburgers, chicken products, fries, breakfast items, soft drinks, shakes, and desserts. In response to obesity trends in Western nations and in the face of criticism over the healthiness of its products.

Yes all people understand their role and responsibility towards the company and they being very loyal. Every single role has their specification and people with different roles; they are doing work with perfection. Yes I found gatekeeper at ever different level. The existence of two practice models, top-down and bottom-up, used for communication.

Yes there are opportunities for both top-down & Bottom-up communication because and per the communication McDonald's use both way for communication. Sometime Bottom-up is moving as per system and some time Top-down. Bottom-up is used in several area like: Motivation teams, mounting knowledge opportunities, getting better local resource management, replicating human development, increasing communication.

There is less sign of grapevine in the organisation as staffs do not have uncertainty of employment as each staff is considered a part of the management team so this prevents employees from having informal channels. Also one of the other main factors is that McDonald's is very busy during weekends and weekdays which prohibits staff from having their personal conversation amongst them. This is proven to be one of the major plus point of the organisation.


In the organisation structure and communication channels are being followed step by step. Where as the Board of Director communicates with the president of the organisation and the president communicates with each of the departments such as the Purchasing Department, Financial Department and many other departments in the organisation. It is just to keep track of the organisation in a formal structure and to monitor the progress an processes for the benefit of the organisation.

Work teams and group dynamics

McDonald's working environment is very freely and everything is depending on line Manager in charge at present time. Manager can always use position power and shows he/she have the leadership skills by experience and some manager they real genuine person they done everything by their self .However, in the most cases, managers were relatively calm and sometimes were indistinguishable from the other employees. Work team is basically categorized in different field of specialization. Some people are having different experience and some have others so as per the requirement, manager creates a team and defines their roles and responsibilities. Simply they focus on what they have to deliver and what their final destination is. Every team has a team leader, who always creates or subdivides task for the team and manage his/her group members in helping them achieve their goal and create doorways by motivating them to get them to better success which will help in their promotion path.

There are processes which have to be followed to ensure productive team performance:

Develop goals and plans.

Enhance communication among members.

Solve problems and make decisions on a timely basis.

Develop and maintain positive relationships among members.

Successfully manage conflict.

Managers always initiate the task, whatever the task is, first step is taken by manager and he decides the allocation of teams and schedules. General Manager has the superior authority because Manager reports to the General manager and he given all the ideas about task maintenance and role performance, Once he allocate those then manager has the authority to distribute it. There are several ways to get the team output but generally McDonalds use audit tools to see the performance parameter and get the team resolutions. (T.J.Peters, 1987)

Yes there is lot of way to get rewarded like incentives, food coupons, free weekend trip. This is the way to keep the entire employee up to date and attentive. There is another way to create Employee of the month and team of the month.


In this organisation the team motivation is regarded as a prior to the organisation because with a simple smile customer service is adopted and performance of the team for each shift is mostly accountable by the manager, were as the team members are been rewarded like incentives, food coupons, free weekend trip. This is the way to keep the entire employee up to date and attentive and there are more other ways in which the employees benefit.

Stakeholder Communication

Stakeholder is that people who has an interest in, and can concern a business process or outcomes. Owners are stakeholders. They can invest anywhere, but as per customer, they need to get money and have to buy food. 

McDonald's administration and work strength are two others. Both groups have a stake in the processes and outcomes but they are not necessarily the same interests. Management wants to deliver a sellable product at the lowest possible price. Employees will want to get paid as much as possible for their work, and maybe advance in the company. 

There are more. Lately, a lot of cities have banned the use of trans-fats in foods prepared within their city limits. This affects McDonalds' processes and outcomes. They must decide whether they want to stay and operate within those cities, or move out and abandon the market to their competitors. Health care professionals, especially nutritionists, could be said to be stakeholders because their analysis of fast food content affects public perceptions of whether McDonald's sells wholesome food, and could easily affect their sales.

There are dozens more that you can figure out. If I had to say which is the most powerful, I would argue that it is the customers. Without customers, there is no business.

These are the most obvious. But there are others. McDonald's management and work force are two others. Both groups have a stake in the processes and outcomes but they are not necessarily the same interests. Management wants to deliver a sellable product at the lowest possible price. Employees will want to get paid as much as possible for their work, and maybe advance in the company. 


In the Stake holder communication management wants to deliver a sellable product at the lowest possible price. Employees will want to get paid as much as possible for their work, and maybe advance in the company. So there is always a issue about this in the organisation and the board of directors are making a solution to the problems arose in this topic to fulfill the demand of the valued customers and their staff members.

Organisation culture & employee obligations

McDonald's culture is very passionate towards the manager in charge and its employees. The important thing is Manager is in that position where he can use his power any time and show his leadership quality because the other workers are new and inexperienced. Lot of times Manager looks clam and tension free and others are busy with their task.. One manager in particular used a selling approach, which indicates a higher readiness level of her team. She did not simply give orders, but accepted feedback and alternatives to her decisions. While it was obvious she was the manager, her team was obviously in the later stages of development and was comfortable outside of their predefined roles. (Northhouse, 2007)

 In general terms, the managers did not try to put any strong vertical barriers between themselves and their employees. Managers usually seemed to display real concern and interest in the emotions and well being of their employees, which was not expected in this environment. For example, one manager was observed asking an employee cleaning the floors about her weekend and her kids. There seems to be legitimate efforts in order to motivate employees even at the line worker level.

McDonald's corporate management believes in training and leadership at all levels through Hamburger University. On Hamburger University's website, they quote McDonald's founder Ray Kroc's training focused ideology: "If we are going to go anywhere, we've got to have talent. And, I'm going to put my money in talent". This ideology demonstrates that McDonald's does not believe its restaurants' crew members are just gears in a machine that can be easily replaced. Because training is not just offered to executives or managers, McDonald's is able to spread and reinforce its culture and values in all directions, not just downward. McDonald's corporate values also have "people" as one of its pillars. Corporate policy says that employees should be paid at or above the local market rate, and should also value both their pay and their benefits. By addressing employees higher needs by providing training they make employees feel important and valuable. Training also serves to reinforce the culture at all levels through education and fostering a positive image of the employees' importance to the company. 


In the topic Organisation culture, intercultural communication, ethical and legal issues McDonald's is able to spread and reinforce its culture and values in all directions, not just downward. McDonald's corporate values also have "people" as one of its pillars. Corporate policy says that employees should be paid at or above the local market rate, and should also value both their pay and their benefits. So that the ethical and legal issues are dealt fairly due to the economy is the source of the revenue for the organisation.

Communication Technologies and tools

McDonald's communication is not rare as it uses similar technologies like other competitors who also use emails, website and cordless handset to talk in the premises. This is a modern form of communication as these methods are proven effective for the organisation as each employee has got access to communication facility and are well trained during their training period and updation process, these are done with a very high priority as communication is most important in this organisation. Email is one way in which they get connected with each other and through website they got all information regarding their needs, like everything is uploaded day by day so they can check whatever is needed, e.g. if they want to check their job timing, just log into the website and all relevant information will be retrieved. McDonalds has increased its focus on employee communication, helping staff to bond with, and live the brand through initiatives such as the 'Voice of McDonald's'. This also helps motivate and engage with their talented employees. Video conferencing and other methods are used for external communication. (Mangan, 2009)

All internal and external guidelines are provided upon training to ensure standard is achieved. Each employee is supported in professional development and are rewarded through wage incentives (bonuses) other means are certificates etc.

McDonald's documents are safe and secure in the head office with the administrative staff as these documents prove helpful in major decision making which is mostly done by the managers of the organisation. These documents mainly consists of workers information on bank details and IRD, the suppliers list, pricing and physical contacts and other data document which are filed yearly or monthly for comparison of revenue and to check if their latest plan is working or not. I believe McDonald's are using correct strategies in their communication methods as it has been changing with time. Modern technologies are used so this saves time and money as IT Department is improving day by day. I strongly believe that proper staff training in communication with internal and external factors is appropriately dealt with during staff training and updation process. (Walker)


McDonald's is a multinational corporation, which is perceived as many different things to different people. Some people see McDonald's as a decent, fast and inexpensive meal. Others may view the company chain as a low quality restaurant that employs uneducated and unskilled people. Nevertheless, McDonald's has a cheery corporate image that prides itself on quality and cleanliness, as well as good food and good service. The company employs state-of-art technology to help its workers in their tasks and makes the production process faster, attending to the customers in a prompt manner. In terms of leadership, McDonald's makes a strong corporate effort to develop leaders. There are growth opportunities within the corporation for those who are willing to work hard and develop their leadership skills. There is a great upward mobility for Macdonald's employees. From what we observed in our field study, the work culture displayed in the McDonald's stores is aligned with the firm's corporate values.


Organisation Structure and Communication Channels

After researching this phase I have some recommendation and they are:

The international strategy of focusing on high profile cities along with high populated areas in some instances forming joint ventures with established companies in a particular country.

McDonald's also realizes that it needs to diversifying into others area of food industry would have the greatest potential for profitability.

The key is not to become involved in too many areas of the food industry, which would increase the potential for liability to the company

They need to be more focused towards the target.

Work teams and group dynamics

Some Recommendation for the work group

Team's needs to be more specific and result oriented.

1. Teach the food handlers how to use sanitary gloves to protect the health of customers.

2. Do not leave the floor wet after mopping when customers are still in the store.

3. Train new employees how to use the cash register.

4. Quit adding too much sodium to the food, especially, the French fries.

5. Make the employees eat the food every day to see how much weight they gain.

Stakeholder Communication

Recommendations for stakeholder's are:

a) Before authorising any project this list should be adopted

1. Type of application to be developed (e.g., marketing website,

self-service portal, etc.)

2. Objective (e.g., increase sales, reduce administrative costs,


3. Who will use the application (e.g., customers, employees, etc.)

4. Some basic details about the application (e.g., content,

interfaces, etc.)

5. How is the application supposed to function (e.g., security,

navigation, etc.)

6. Measurements for success (e.g., 10% increase in sales, 20%

reduction in administrative costs, etc.)

b) Secondly, stakeholders should be more goal oriented rather than looking at profit margins as success comes from hard work.

c) Stakeholders should consider health and

Organisation culture & employee obligations

Recommendations for Organization culture are:

Competition in the fast food industry is becoming incredibly saturated. When McDonald's first began expanding into international markets, their main focus was altering eating habits. This was primarily because there was an absence of major competitors overseas. However, over the last decade, the international market is beginning to mirror that of the heavily saturated United States market. Profits are shrinking, same store sales are down, and the overall market growth has slowed tremendously. This has prompted McDonald's to continue to cut costs by announcing the closing of 175 under performing outlets in 10 countries. As the international markets become more competitive and saturated, McDonald's must continue to analyze and make adjustments accordingly.

Communication Technologies and tools

Although saturation is a growing issue overseas, it was noted earlier that foreign operations are now more than ever, a major element of the McDonald's Corporation business. As a result there is a constant battle over autonomy. The franchises, especially the experienced outlets with over a decade of success, want more autonomy to adapt to local tastes and preferences. The franchises feel that as the market becomes more competitive, it will be vital for alterations and adaptations to occur faster and easier than they ever have in the past. However, McDonald's corporate is on the opposite side of the issue and is not budging. Corporate feels that control must be at an all time high because of the importance of the international division and the fact that if it fails, the whole company could suffer as a result. Corporate has tightened the reigns consistently the last few years and will continue to do so to stay afloat by turning the losses into gains.

Value to Organisation

At McDonald's performing organisations are characterised by what they call an adaptive culture. Where as managers care deeply about customers, stockholders and employees, they also strongly value people and processes that can create useful change in order to maintain their customer relationship and an to keep up their team performances in order to move the organisation forward. The staffs are giving values to the organisation because they find more flexible working with their team to provide service to the customers and as far as the community and customers are concerned they value McDonald's because the deals the organisation provides meets each and every individuals


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