Review McDonald's Organizational Chart - Assignment Example

In the case of McDonald’s organizational chart, the top management is headed by the chief executive officer called James A Skinner (Narapareddy, 2009). Just below the Chief executive there are vice presidents who are also the heads of the company’s different functional units. These functional units are managed from the head office and divided into smaller group managers in different markets where the company operates. These include group president – McDonalds Canada, president – MacDonald’s Asia/pacific, Middle East and Canada; Chief Operating officer – McDonald’s USA and the president of McDonald’s USA (Narapareddy, 2009).

The group leaders in different markets are then divided into different divisions e.g. President – central division for McDonald’s USA, East Division for McDonald’s USA, West Division for McDonald’s USA etc. The company’s multidivisional structure therefore represents a geographical structure with four important segments: McDonald’s – USA, McDonald’s – Europe, McDonald’s – Asia/pacific, Middle East and Africa; and McDonald’s – other countries and corporate (Narapareddy, 2009).

This structure is a typical example of a multidivisional structure where divisions are managed geographically; each divisional manager managing a given geographical region. This is because theory suggests that multidivisional or divisional organizational chart marks off an organizational structure according to the demands of different markets, customers and products in their given business environment. In the case of McDonald’s organizational chart, the different divisions represent the demands of different geographical markets as illustrated in the organizational chart.

McDonald’s organizational chart is a good chart representing a successful structure of the company. However, there are various improvements which I could recommend for the organizational structure. First, I recommend that the divisions of the company should be based not only on the geographical markets but also the products of the company. For instance, the company may have food division, grocery division and beverages division. Another recommendation which I think can be more beneficial for the company is to increase the geographical divisions so as to reduce the burden of the divisional managers.

For instance, McDonald’s Asia/Pacific, Middle East and Africa division may be divided into three divisions: McDonald’s Asia/Pacific, Middle East and Africa as different divisions not as a single division. The company should also divide McDonald’s Canada and Latin America division into three divisions namely Latin America Division, Canada Division and Mexico division. Europe’s division may also be divided into Eastern Europe and Western Europe divisions. Finally, a good recommendation for the company’s organizational structure is for the company to establish a central division which offers central services such as finance, CSR and other centrally managed services of the company.

These central services are conducted with a direct link to the various divisions through an integrative, participative and proactive system which ensures that there is an effective information flow from the top management through different management levels to the various divisions of the company (Rollinson 2008). Despite the various aspects which require improvements, McDonald’