Establishment of McDonalds as a Successful Business Entrepreneur Worldwide - Essay Example

?Establishment of McDonald’s as a successful business entrepreneur worldwide In this article, I will discuss the organizing function of control as mychosen method. Organizing is the most critical situation that needs to be properly managed in order to manifest one’s society as the most effective management. The company I have chosen to explain this concept of organizing is McDonald’s. The essay clearly presents the organizational analysis of the biggest food giant operating worldwide. Link should be established between the function of management and its relevance to the massive multinational organization. McDonald’s is believed to be operating in one hundred and nineteen countries across the globe. The whole food giant is made up of the franchises. Approximately fifteen million people are employed in the organization and sixty four million people serve as its customer base. Effective implementation of organizing function is necessary to establish a loyal customer base. The approach that has been used by the McDonald’s is collaborative management approach that has helped the organization to adopt a new leadership style. Management keeps itself involved in facing the new challenges and constantly developing new practices to address them, same system is followed throughout the franchises worldwide. McDonald’s has established itself as the successful organization because its management is focusing on the enhancement of long term strategic planning (Baden, 2011). It is believed that organizing is the function that comes to the surface due to synchronization and combination of physical, financial and human resources with the help of technology and knowledge (Mullins & Laurie 2007). The function of organizing in the management focuses on development of internal organizational structure. The internal structure of the organization is heavily dependent upon the labor, coordination, flow of information between the departments and control of the filtrated information passage. McDonald’s take this function of management extremely seriously as the assessment of resources, allocation of resources and distribution of resources are all dependent on this function of management, if they are not properly followed, the organization will be like just another food shop round the corner that lacks following and establishing the management functions (Harold & Donnell 1959). The basis for the formation of McDonald’s is Frederick Taylor’s principles of organization. McDonald’s works like a machine. Each activity is divided into subtasks and sub functions to get the job done effectively and efficiently. The tasks are individually designed and they work in coherence with each other to achieve the higher goals. It is the effective organizing function at McDonald’s that there is always a balance between supply and demand. Due to effective organization function McDonald’s is able to control every aspect starting from labor costs, human resource management and physical assets. - McDonald’s have always considered following and establishing management practices seriously. Management always plans the activities and coordinates them according to policies initiated by higher management. Management at McDonald’s sees their employees and customers as the most influential stakeholders for the organization and tries to manage and keep them happy through adopting effective organizing strategies. In past, the focus of the organization was in developing functional departments, highlighting the reporting links, initiating plans, developing and administering relationships between people like who reports to whom and tasks like that. It is due to focus on the organizational strategies that the McDonald’s is able to update menus, bring quality and sensational taste to its food items. (McDonald's, 2011) Today the management function of organizing reflects in the adaptive and flexible building of the McDonald’s that attract customers and make them feel why they should prefer McDonald’s over their competitors. What makes them stand out? At McDonald’s the job responsibilities of the human resources are clearly identified so no ambiguity remains there, activities are initiated and organized frequently at the establishments to attract customers. Specific jobs are placed into specific categories, assign resources to most suitable people and organize such environmental conditions that people fall in love with the organization and like to work there because of high technology, flexible work hours and the well equipped establishments. The managers at McDonald’s perform the organizing function by adopting the activities like the core activities that can make your business more successful if followed well, once all the activities are listed down they are categorized so that they can be allocated to the concerned functional departments. For instance, how to manage the timely delivery of food items, who will cook in what time, who will deliver in how much time. Then there is the allocation of authority as to which extent the power is delegated to concerned job level and to a specific person in a certain department. Whether all should have access to the financial module or few are enough. Finally there is interaction between the authority and the responsibility that has been allocated to the resources which have to work in coordination with each other at a particular franchise of McDonald’s. It is the responsibility of every employee, manager and the management at McDonald’s to improve the internal systems, so on continuous basis training is provided (Eric Goldman, 2008). McDonald’s have recognized the importance of organization of internal activities in the local as well as the international set ups. Usually the strategies that are deployed in the internal activities are based upon manpower, technology and capitalization etc (Carroll &Gillen 1987). McDonald’s have some serious organizing systems in place that have been proved by investment of hundreds and millions of dollar till they achieve the status of standards. The systems that are effective are adopted after customization in the entire franchises worldwide and the set of activities that do not work, they are diminished eventually. Usually when the function of management organizing was not implemented, McDonald’s was considered unsuccessful in eyes of customers as well as employees. Customers were experiencing poor quality food and slow service and as far as the employees were concerned, there were problems like absenteeism, lack of motivation and bickering. Then the management decided to focus on the organizing function and came up with efficient procedures and systems to effectively handle all the routine activities and properly defined everyone’s area of operating which resulted in higher profits and improved quality of service. A strict check was also introduced by the management of McDonald’s which was delegation of authority, it was introduced to keep a check on everyone and make sure that the employees were doing what they were assigned to do, according to their job responsibilities (Lamond 2004). Managers are more than motivated and organized enough to make their team work in coordination without having ambiguities in their minds. They show people how organizing improves them and their work and which rewards they can win by organizing themselves (Whitley 1989). The organizing function is implemented at all levels in McDonald’s today no matter whether it is production crew, service crew or the whole management. The effective organization has paid well in achieving the success for the organization (Reger, Mullane, Gustafson & DeMarie 1994). In short, systems and organizing is perfect for organizations. For every elementary scenario there are organized systems in McDonald’s so that everyone knows their task. Operations, training manuals, maps, e-learning and software’s introduction are products of organizing function which have resulted in increased profits for McDonald’s. References Baden, B., 2011.The World's 25 Best Multinational Workplaces [Online] (Updated 28 October 2011) Available at: http://money.usnews.com/money/careers/articles/2011/10/28/the-worlds-25-best-multinational-workplaces [Accessed 19 January 2011]. Carroll, S.J., Gillen, D.J., 1987.Are the classical management functions useful in describing managerial work, Academy of Management Review, 12, pp. 38-51 ERIC GOLDMAN, T. S., SARA TULLY 2008. Observation of Leadership & Organizational Behavior at McDonald’s. Available: http://www.ericgoldman.name/non-technical/28-leadership/34-observation-of-leadership-a-organizational-behavior-at-mcdonalds [Accessed 30 November 2011]. D. Lamond, 2004. A Matter of Style: Reconciling Henri and Henry, Management Decision 42 (2), pp. 330–56. Lee, Robert. Mechanistic Organizations: McDonald's [Internet]. Version 3. Knol. 2008 Aug 12. Available from: http://knol.google.com/k/robert-lee/mechanistic-organizations-mcdonald-s/2jqmqvqcae1q6/2. Harold, Donnell C., 1959. Principles of Management: An Analysis of Managerial Functions, 2nd Ed., McGraw-Hill, New York. MoneyCNN,2011. World's Most Admired Companies [Online] (Updated 21 March 2011) Available at:  http://money.cnn.com/magazines/fortune/mostadmired/2011/snapshots/2262.html [Accessed 18 November 2011]. Mullins, Laurie J., 2007. Management and organisational behaviour. Financial Times Prentice Hall. Macdonald's, 2011.  Getting to Know Us [Online] (Updated 19 November 2011) Available at: http://www.aboutmcdonalds.com/mcd/our_company.html [Accessed 20 November 2011]. MCDONALD'S. 2011. Our People [Online]. McDonald's. Available: http://www.mcdonalds.com/us/en/careers/our_people.html [Accessed 30 2011]. Reger, R.K., Mullane, J.V., Gustafson, L.T., DeMarie, S.M., 1994. Creating earthquakes to change organizational mindsets, Academy of Management Executive, 8 (4), pp. 31-46 Whitley, R., 1989. On the nature of managerial tasks and skills: their distinguishing characteristics and organization, Journal of Management Studies, 26 (3), pp. 209-24 Read More