Business Case of McDonalds in China - Essay Example

Firstly, when analyzing McDonald’s as a Holographic Organisation, it must be taken into consideration whether the knowledge or information is equally shared amongst the different parts or components of the company. Herein, it is found that McDonald in its endeavour to absorb the Chinese youths tends to propagate the idea of the concern’s vision and mission philosophy to the new entrants. This creates a sense of emotional attachment to the concern of people belonging to diverse communities (Morgan, 100).

Secondly, focusing on the principle of Redundancy related to the Holographic Organization, it is found that McDonald’s in its foreign operation base in China works to formulate policies that would help in reducing the level of attrition rates. The new policy set by the firm would involve people in several recreational activities, thereby creating an amicable and friendly relationship with the employee communities (Morgan, 100).

Thirdly, in relation to the Redundancy principle as practiced, it is observed that the production of new policy sets about human resources administration in the enterprise eventually matches the needs of the external environment. The management body of McDonald’s observed that retention rates in the service sector in the Chinese region are quite low, for which there is a potential lack of absorption and sustenance of the right talent force. Thus, a new set of human resource policies put in place is taken to enhance the relationship of the concern’s service sector with its potential employees (Morgan, 100).

Fourthly, working based on the principle of Minimum Specs, the management body of McDonald’s striving to enhance the operational potential of the employees that pertain to the Chinese province is found to reduce the constraints emanating from firm bureaucratic controls. The people in the concern were rather made to feel the organization was a people’s place, which in turn helped in generating due potentials and productivity for the concern. Thus, here the managers of McDonald’s worked as enablers, thereby enabling the people to render their potential.

Fifthly, it can be observed that McDonald’s as an international concern providing fast food service works on the principle of Deutero-Learning or Learning based on the Third Loop. The Third-Loop learning process reflects the business organization to posses brains, thereby focusing on changing its existent business policies and value sets while keeping in mind the changing external business environment. The business organization in the process of adapting to the changes in the external business environment through policy and structural changes focuses on bringing out or engaging the employees to deliver their best performance and potential. The management body of McDonald’s has also learnt from the dearth of its operation in the Chinese region that the power to engage employees by involving them in creative and innovative pursuits would result in enhancing their level of loyalty towards the concern. This increasing sense of loyalty would also augment their commitment levels regarding the fulfilment of tasks rendered (Brown, Kenney, and Zarkin, 6; Shams and Jackson, 248).

The Human Resources Management team at McDonald’s focused on recruiting the Chinese people on the ‘Lover’s Day’ when a tour of the canteen was organized for the potential workers, who were also shown a corporate movie and photos of the staff engaged in a badminton tournament. This type of friendly working environment was innovated in the concern, and improvements in the organizational policies were made; they made it possible to change the mindset of the people towards the concern, and thereby enhance their commitment to the company.

From the above analysis, it can be stated that McDonald’s as an organization possess Brains, thanks to which the company has the potential to successfully adapt or change its business and human resource policies, focusing on changes in the external environment. Thus, the managers of McDonald’s concentrated on creating a friendly and home-like working atmosphere in the concern to help reduce the attrition rates and enhance the commitment level of the people.