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CHANGE MANAGEMENT is the process of project management where changes are formally introduced and approved by the organisation (Wardale, Dorothy, 2009).
Change is something which every organization has experienced in its life cycle, but successful sustainable change is not. Normally, organizations fail to realize the full potential of their intended change which causes loose of time, energy and money. Change can only be successful when the people in organization are willing, able and ready to adapt it. According to manage the successful change in any organization it is necessary that every individual be committed to doing whatever is required to succeed in today's economy. Building this level of commitment in your organization it is requires that you should be clearly on your intended outcomes and making the time to ensure that your people are ready to adapt that particular decision of change.
So, I decided to take McDonald as my organisation, which is world's chain of fast food restaurants, serving approximately 47 million customers daily. At one time it is supposed to be a largest chain in world but it has been surpassed by some of the multi-brand operator like KFC and Subway. McDonalds primary sells is basically depends upon hamburgers, cheese burgers, Chicken Burgers, beef burgers, French fries, soft drinks and deserts.
The purpose of this assignment to discussed McDonalds as a bureaucratic organization, what are the strengths and weaknesses of this bureaucratic structure in this organization. Which model of change is best appropriate model applied by McDonald and what changes should McDonald introduce in order to compete successfully with its competitor? Furthermore, it is also discussed that through which system will McDonald involve its appropriate stakeholders into that particular decision of change.
LO1: BACKGROUND TO CHANGE IN TODAY'S ECONOMY
1.1 The Background To Change In McDonalds:
"Change is the process of continually renewing an organisation's direction, structure and capabilities to serve the ever changing needs of the external and internal customers" (Moran and Brighton, 2001).
In order to look out how the changes that effected in today's economy with respect to McDonald which is working in the current environment. By keeping in mind that McDonalds is operating in the country like UK where the Muslim population grown by more than 500,000 to 2.4 million in just four years according to official research collated for The Times. The products which McDonalds operates are not very suitable for the community because these are not certified by Halal food and according to their religion the Muslim are restricted to eat these foods. So, by keeping in mind such a huge population of Muslims in Britain, I decided to make McDonald as Halal food provider which may attracts the Muslim to have taste of McDonald's fine quality fast food. The factors which may effects the organization in the process of change some of them areas follows.
Globalization can be defined as the closer contact in between the different parts of the world. Nowadays, corporations are looking to expand their business globally, same thing is done McDonalds, which join these corporation with restaurants in 119 countries in order to operate globally (McDonald, 2004). By considering that McDonalds is operate globally there is need to consider the amount of huge risk in order to operate foreign market and the strategic planning for the marketing has to be effective so that it can survive in the particular targeted market. For example in Pakistan if McDonalds offer the ham burger, this idea can not be successful because it is against the culture of Pakistani people, therefore in order to survive in Pakistan they offer halal beef and chicken burger to the customers and as result the strategic planning for marketing adapted by in Pakistan is very different as compare to UK and USA.
Means the difference among the people and their culture. McDonald's commitment to diversity is established on the foundational belief that diversity is not just a moral and ethical issue, but also a business issue. McDonalds has over 30,000 restaurants around the world which have employees, managers, and owners/franchisers, from almost all cultures, religions or ethnicity on earth. Furthermore, McDonald is promoting the usage of local suppliers into its policies of diversity, expects and retains suppliers that have similar diversity culture. Understanding between the local customers and the tradition of the communities where McDonalds is operating business, integrating people from these communities into a company, and adapting locally to the taste and cuisines of the community has made McDonald's the leader in fast food industries.
It is a set of principles of right conduct. As McDonalds is an equal opportunity employer which ensure that employees and job applicants are selected, trained and promoted without any discrimination of race, gender, sexual orientation, age or disability. It further promotes its employees based on the skills, talents and performance, on this basis McDonalds creates a working environment, which is free from unlawful discrimination, harassment and bullying. Employees are regarded as members of a team where everyone's opinion is valued and respected.
1.2 Strengths And Weaknesses Of Bureaucratic Organizations
Donaldson's define bureaucratic organizations "as strong, coercive systems, a rule of following culture and remote leadership can be expected".
McDonalds is the world famous brand in the field of fast food industry. So, we can say that it does not contains the only single organizational structure but basically it looks like to be an bureaucratic organizational structure due to its hierarchical structure, strict rules, regulations and policies for the employers. The strengths and weaknesses of McDonalds as a bureaucratic organization are as follows:
Bureaucracy helps McDonalds to Improve in quality of product and services.
In McDonalds it allows economies of scale with in functional departments.
It helps McDonald to increase control and monitoring of upper level management because the success of the organizations depends upon the decision of the top management.
Buying and selling in one point
It helps McDonald to control over the employees by restricted rules and regulations and the jobs are clearly defined to the employees so that there is no confusion arise in between the members of the organization.
The organization expects to achieve rational systematic and structural coherence due to the designation of positions and delegation of tasks
Promotion and selection based on technical competence
Due to bureaucratic structure in McDonalds it is difficult for the employees to adapt any change in the organizational structure or policies.
In McDonalds lower management level is denied by the top management level in order to make decisions about the organization.
McDonalds does not allow individuals to develop their skills.
Due to Bureaucratic structure in McDonald there is lack of creative thinking and rigid communication between managers and employees which causes results in less innovation.
May cause decisions to pile on top, hierarchy overload.
Bureaucracy equals inefficiency and incompetence.
1.3 ALTERNATIVES FORMS OF OD
Organisational development is a process that applies a broad range of behavioural science, knowledge and practices to help organizations build their capacity to change and achieve greater effectiveness, including increased financial performance, customer satisfaction and organizations member engagement.(Thomas G. Cummings, Organizational development and Change, 2005). Following models are the models which may adapts by McDonald into its strategies are:
Total Quality Management: (TQM)
Total Quality Management (or TQM) is a management concept coined by W. Edwards Deming. The basis of TQM is to reduce the errors produced during the manufacturing or service process, increase customer satisfaction, streamline supply chain management, aim for modernization of equipment and ensure workers have the highest level of training.
The application of TQM can be vary tremendously from business to business, even across the same industry. In McDonalds this management system can easily be identified because it is adapt in almost all chain of McDonalds around the world. All the members from manager to low level staff are well trained by notifying the changes in technologies into current environment. In order to maintain the discipline with in the organization all rules and regulations should be strictly followed by the employees. All the managers are well trained in order to lookout whether the quality products are serving to customer or not. McDonalds loves to improve its product's quality and effectiveness in all process of business.
Business Processing Re-engineering: (BPR)
It is a management practice that aims to improve the efficiency of the business process. McDonalds always looking forward to improve its product quality and efficiency by searching and applying different methods which are helpful in this process. For example, McDonalds recently offering the fish burger meal which can be as a result of searching the market and its demand beside that the quality ad taste of McDonalds remains the same and it is the successful strategy adapt by McDonalds in order to compete with its competitors.
Six Sigma is a business management theory which is developed by Motorola, USA in 1981. It seeks to improve the quality of process outputs by identifying and removing the causes of defects (errors) and minimizing variability in manufacturing and business processes.
McDonalds use six sigma strategies that are McDonalds always searching and adapting the methods which are useful to improve the quality of foods and it is further allocated to reduce the errors or mistakes of the employees and try to minimize these mistakes and make completely sure that these mistakes should not be repeated again.
Kaizen Model Continuous Improvement
By improving standardized activities and processes, kaizen aims to eliminate waste. Kaizen was first implemented in several Japanese businesses after the Second World War, influenced in part by American business and quality management teachers who visited the country. It has since spread throughout the world.
The five main elements of kaizen
Suggestions for improvement
McDonalds also applying some of the aspects of Kaizen model of continuous improvement. In this company the teamwork can always be appreciated and the discipline is very good with in the company environment. McDonalds also gives moral supports to its employees and can never be compromised in the quality of its products and always keep working on the suggestion which are helpful for the improvement of the company.
LO2: SYSTEMS TO INVOLVE STAKEHOLDERS IN PROCESS OF CHANGE
2.1 Stakeholders In The Process Of Change In McDonalds:
"Stakeholders are those which can affect the company or having interest in the company in any terms." The appropriate stakeholders in the case of the McDonalds to bring about this particular change which discussed above are: customers, shareholders, managers, directors, and employees, following by the suggested system to involve them in the process of change.
By arranging the meeting we can discussed the change that we are going to introduced the change in McDonalds that is to serve Halal product for the Muslims majority in UK. We can inform the mangers, directors and employees by mailing them about this particular change. In the meeting we discussed about the agenda that how can we able to implement the change, what are the advantages and disadvantages of this change, how profitable is this for the organization etc. We try to convince all the stakeholders who are inviting in this meeting and allow them to share their views and ideas about this change. Through the same system we can also manage to introduce the new delivery system in McDonalds by involving some of the employees and managers.
The three main sources of meeting
Agenda: Before calling the stakeholders for the meeting it is necessary to create the agenda or the purpose of that particular meeting. The agenda is here which is making McDonalds to be certified from HMC especially on those areas where mostly the Muslim majority lives around the UK.
Chairperson: It is the duty for the chairperson of the meeting to call or inform about all the aspects of the meeting through email, letters or any other media and then inform them about the agenda. This letter may include the some necessary information about the meeting i.e. what is the purpose of this meeting? How do we introduce our new product? What are the strategies adapted in order to get success into the market etc.
Time limit: The time limit is the duration of time in which the chairperson decides that how long will this meeting be? And should inform all the meeting attendees about the timing of the meeting.
Advertising is the very common strategy which are normally adapt by the companies in order to convey the messages to the customers. So, the plan is to advertise this new change in the McDonalds is order to involve the customers into this important decision of change. We can advertise this change in newspapers, internet to make the customers aware for this particular change in the McDonalds strategy. Within the same system we can advertise to make people getting aware about it that McDonald start delivery system into its strategy and it will attracts the customer to get food at home. Nowadays, people are living very tough life and they may not have the time to make food at home, even some of the people feeling very tired and not is able to go out for taken food so the new delivery system is for those people who love to take food at home.
Why do we need to Advertise? For advertising the product it is necessary for the company to know why there is a need for advertising and who are the target market customers? In this new change in McDonalds there is a need of advertising to make the people know about it that McDonalds introduces its product as Halal food and the target market would mostly be the Muslims majority live in UK. After this McDonalds should adapt the suitable media for advertising for example local newspaper like metro and evening special which is going through the eyes of every person with in London it could be the best source of advertising this product for McDonalds. Furthermore, McDonalds could also be advertise this in the popular websites like facebook.com and any other which is most commonly in use of peoples.
2.2 Analysing And Evaluation Of These Systems
Merits for Meeting: The introduction of this change in McDonalds by involving this system brings some good effects on the company which are:
All the professional group leaders were able to attend the meeting and sharing their views and ideas in order to bring or adapt the change.
Sharing some useful information which can be helpful to introduce this change in the company.
Face to face feedback can be taken.
Change can easily be implementing.
DEMERITS: On the other hand this system may not have any bad effect in the organization the only disadvantage of this system is that there may be some of the conflicts and restriction while adapting this change but this problem can be solved by discussing with the leaders, managers, stakeholders which are already invited with in the meeting.
Merits for Advertising: Advertising is plays an important role in the growth of the company and product. To bring the change in McDonald through advertisement could contain some good benefits for the company.
Muslims majority cannot be feeling unsecured while having the meal in McDonalds.
Profit increases without any change in quality of the food.
No need to change employees and management.
Customers get aware about the product change in McDonalds.
I think beside this change that it may involve some of the risk factors i.e. the change in product is acceptable in the mind of the customers or not. This problem may be resolved by advertising the product features and through which people get aware about it and they should go for it.
LO3: PLAN AND IMPLEMENT MODELS FOR CHANGE
3.1 Models for Change in McDonalds:
TOTAL QUALITY MANAGEMENT (TQM)
McDonald's maintains its competitive advantage by constantly creating new items to add onto its menu. This shows us that McDonald's practices an analyzer type of strategy, introducing new items and defending its existing ones. McDonald's mission and vision: We serve people with good quality food, fast and at low cost. McDonald's vision is to dominate the global food-service industry. Global dominance means setting the performance standard for customer satisfaction and increases market share and profitability through successfully implementing our convenience, value and execution strategies.
McDonald's also realized the changing world we live in and the need for healthier food, since there is an ever changing demographic group, who demand fast, top quality food that is low n calories. McDonald's responded to this opportunity and introduced a new and innovative product. This new product was a regular hamburger that tasted like the real thing but was made of plant material like Soya beans. This same product also targets another demographic group, vegetarians.
So, in order to survive in this environment which is rapidly changing due to some innovation in technology and other aspects of the technological fields McDonalds plan to implement the change in its product that is to serve Halal foods product for the Muslim community live UK.
Business Processing Reengineering (BPR)
The primary focus of BPR is the process. Why focus process? There are several important reasons for being concerned about processes. First, it is important for us to
Understand that processes are central to every enterprise and every business endeavour. Firms are not defined by their products. The hamburger produced by McDonalds, for example, is not really that different from the hamburger made by one its major competitors (e.g., Wendy's or Burger King). What differentiates McDonald from its competitors is the process by which the hamburger was made and delivered to its customer. In other words, we can think of products as being bundles of attributes. These attributes which pertain to the four foundations of value: lead time, quality, cost and flexibility, are shaped by the processes designed and built into the firm. If we want to change the product, we must ultimately change the process by which the product is generated.
Second, every firm consists of at least eight major processes: (1) the strategic management process, (2) the innovation process, (3) the customer service process, (4) the resource management process (of which procedures such as MRP and shop floor control are part), (5) supply chain management process, (6) logistics management process, (7) measurement process and (8) other supporting processes. In short, firms are bundles of processes. Nearly everything that happens within the firm is the result of a process.
Third, customers themselves are becoming aware of the importance of processes. When customers ask the firm to show the process by which orders are accepted and filled,
what they are asking is that the firm show that it under stands its processes and that it has these processes under control. After all, a process that is understood documented and under control is by its very nature more predictable and reliable.
3.2 Implementation Process:
This change in McDonald could be implemented through Kurt Lewin model of Change, which has three steps:
In this step normally company prepare itself and employees before implementing the change. In this model we try create awareness among the employees and customers that we are going to introduce this change. McDonalds looking to make its food certified by HMC before bringing this change they should create awareness for the people and employees. So, that people know McDonalds is now serving the halal foods to its customers. The best way to create awareness into the market is advertising through Local newspaper, and websites like yahoo and facebook.com which is very famous nowadays.
It is the step where we implement the change. After planning for the steps which involved in implementing the change McDonalds could implement the change by involving all the stakeholders with in the organization.
As the name suggests this stage is about establishing stability once the changes have been made. After this it is very necessary to stabilize and establish this change for the organization by promoting the products features and awareness in the customer's mind.
- The market share increases by targeting the more 2.4 millions customers.
- Muslims customers don't be hesitating to purchase food from McDonalds.
- The way to target the new customers.
In this assignment it is discussed to introduce the change in the multinational organization, so I selected McDonalds as my organization and implement the change of making the Halal product while discussing the system to involve appropriate stakeholders, merits and demerits of these system and the models of change adapted by McDonalds in order to introduce this change.