Corporate Structure and Culture - Comparison of Organizational Cultures - Essay Example

Corporate Structure and Culture - Comparison of Organizational Cultures Part A Introduction The different behaviours that are in organizations create a culture that drives the company forward. When examining different organizations, it can be see that the development of culture begins with the foundation of business through building organizational culture. The components which factor into this are then able to change the way in which the organization can grow, specifically because the internal environment affects the customer relations, marketing and overall relationship to the external environment. The concepts which are seen with this then provide a different understanding toward how each type of behaviour affects the overall organization. Comparison of Organizational Cultures The first concept which is seen when examining different cultures is based on the objectives defined by the company, mission which is developed and the ethical considerations which link to this. The culture and different ethical considerations are known to directly reflect the way in which a business operates as well as the distinctions which creates alternative types of operations. The context is based not only on the foundations for ethics, but also the personal beliefs and cultural affiliations which link with different businesses. For instance, the Western beliefs are based on a sense of individual growth within an organization, such as individual success being the main focus for growth. However, Eastern beliefs, such as in Japan, are based on the collective and link specifically to the growth of a business by community interactions (Smith, Hume, 209: 2005). A defining point of this can be seen with different automobile companies, specifically which are developed in the United States or in Japan. In the American culture, Ford and GM are the top types of companies. These are based on private entity structures that have grown into a capitalist component. Within the internal structure are individuals that form teams and which take specific leadership positions. The tasks are divided according to one’s role and expectations with leadership. Innovation, abilities to sell more within the marketplace and working ethically toward the aims of the company allows individuals to have incentives and to be promoted. This differs from the Japanese automakers, such as Nissan. The main structure is built from a board of directors, each which is responsible for an overall team within the company. The ethics and values are based no working as teams to achieve innovation and more sales. The result is a different type of car and sets of innovation in the corporation as well as group growth, as opposed to individual values within the company (Lewis, 414: 1991). This example of companies shows how the culture is built from the main structure and creates a difference in values, ethics and the way in which most work in the marketplace. Factors that Influence Behaviours The overall culture and structure is followed by specific behaviours that influence individuals at work. The individual in the organization is the first influence which is a part of the corporation and is able to identify their relationship to others through their own belief system. The psychological understanding and cognition about a situation is one aspect of this. This is followed by an understanding of sets of beliefs which define the values in the work area. If there are sets of ethics and belief systems in the work place, then the individual will create a relationship to these based on individual beliefs, as well as associations with the psychology and understanding of what the ethics and concepts mean. The individual relation is furthered with an understanding of group relations and culture. The interactions which occur between other employees as well as leaders in the work force change the way in which one works and alters the overall success that is within the work place. The influence of the internal environment then becomes a defining factor that is a part of the work area. These each relate to the Maslow’s hierarchy of needs, which motivates individuals according to personal needs first, then with group needs that can be achieved (Furnham, 14: 2005). Organizational Theory and Management The organizational theory which is created through the organization is able to underpin the principles and practices of management. The theory creates a specific level of organization through the developed principles and practices. This comes from ethical considerations as well as the main objectives that are a part of the organization. As this theory is developed and communicated to those that are in the work place, the organizational environment becomes more conducive to work in. This is associated with the capacity of moving into practical orientations through the theories of the organization. This depicts how managers should interact with others, what the leadership styles should be and how this creates an orientation toward the overall business. There is a specific relationship that is developed between the management and the organizational theory, specifically because of the understanding that management has. The organizational theory develops a strong foundation that management can use to develop a specific sense of leadership within the organization (Miner, 19: 2007). The concept of management theories and organizational theories can be seen with various organizations. The first organization which shows this application is Dell, a company that focuses on building computers and software. The organizational theories are based on providing innovation through technology with the focus on a customer – centric approach. The corporate governance which is a part of this includes specific roles for the board of directors as well as ethics based on integrity and honesty. There are specific roles with management based on creating strategies, working within the organization, managing risk and reporting finances. These responsibilities incorporate the ethical values and give specific guidelines in how individuals should interact within the corporation (Dell, 2010). This can be compared to another computer and technology company, IBM. There are specific ethics that are based on the internal and external environment, including citizenship and service that is offered to the community. Instead of designating management roles, such as Dell, there is instead a focus on ethics that are concerned with all employees. The organizational structure and theories are based on both employee well – being and diversity within the work place. This leadership begins with a board of directors and executive officers that are responsible for communicating the mission and vision of the company. This is followed by relationships that are withheld with managers. The management is then expected to overlook and communicate information about the environment and the well – being of employees (IBM, 2010). This main structure differs from Dell, specifically because it is based on team leadership, as opposed to individual responsibilities. The management then has a more open platform to add in personal innovations and leadership styles that are a part of the organizational theories of IBM, as opposed to following strict policies and regulations that are associated with what is expected in management roles for the corporation. Motivational Theories There are several types of motivational theories that are associated with the work place. The first is based on goal setting that can be used. This allows each individual to understand the main concepts that are applied in the work place as well as what their relation is to the goals. The communication of the objectives in the organization then creates more motivation in the environment for employees to work toward individual goals. A second motivational theory is based on social cognition. This implies that individuals working as groups are able to have different associations with goals in the work area. As the groups become motivated with the overall objectives, there is the ability to meet different needs and to build a specific level of knowledge and performance within the work area. Motivation of knowledge providers is also associated with this, which includes management using knowledge processes and motivational theories to allow both groups and individuals to meet the goals within a corporation (Quigley et al, 71: 2007). Relationships between Motivation Theory and Management For the motivation theories to work in a given work area, the management has to understand what the needs of the organization is. The management is required to take a specific leadership form that is accountable for groups of employees. The innovation and completion of projects then becomes reliant on the use of management and leadership. If the management doesn’t understand the goals which are set in the organization, then difficulties will arise with employees meeting the goals and with completing projects successfully and on time. If there are difficulties with creating individual or group initiatives to succeed within a given area, then there may also be difficulties with the organization and the cultural structure that is a part of this. The management becomes the integral part in building a sense of leadership that is formed around motivating others to reach goals and objectives within the corporation (Miner, 17: 2005). Factors for Teamwork and Success The concept of motivation then moves into the use of teamwork and the success of a company. The factors that effect teamwork begin with personal relationships which are built. This includes psychological associations and beliefs about a specific objective or goal. The individual belief systems then begin to affect others within the same team with either positive or negative responses toward a given project. The dynamics within the team are then created to motivate each other and reach goals or to hinder the progress that is within the corporation. If the teamwork is built with negative responses, misunderstandings of goals and an environment that is not conducive to reaching goals, then it can threaten the success of the organization. The motivation to finish projects as well as the road blocks which form as a part of this become the main hindrances with those who are working within different teams (Tarricone, 54: 2002). Part B Organizational Background The organization analyzed is McDonalds, a global entity that is known for the fast food hamburgers and other meals. McDonalds began in 1954 by Ray Kroc who opened a small burger shop in California. The main approach which Kroc took was to provide high quality meals by creating uniform preparation. The belief was that the more uniform the meals were, the better the value would be. When this was developed, Kroc immediately began to build with several stakeholders and potential owners. He created the slogan of being in business for yourself but not by yourself. Affiliate ownerships were set up in as early as 1955, specifically with other interested investors who used the same uniform preparation for McDonalds. The franchises were required to follow the same policies of cleanliness, creating value and following uniform routines in the meal preparation and customer service. To continue with this, Kroc developed the hamburger university, which provided training for those interested in the franchise program and in employment. By 1975, this had expanded with franchises located nationally and with the first drive in being opened in Arizona. In 1984, Kroc passed away and the company name was handed over to a new board of directors. By this time, the company was known globally and was placing advertisements in places such as the Olympics. Today, there are over 32,000 restaurants located in 117 countries with 1.7 million employees and 75% of the restaurants owned as franchises (McDonalds, 2010). The current structure and culture is one which has been built from the history of McDonalds. There are specific standards and compliances that are a part of the operations, all which are based on the objective of Kroc to keep a uniform preparation procedure for foods. This has been followed by uniform customer service options as well as franchises which are required to keep a specific structure. The main division begins with two chief operating officers that overlook the business. This is followed by executives that are responsible for different structures. This includes the president of McDonalds USA, president of McDonalds Europe, president of Canada and Latin America and of Asia, Pacific, the Middle East and Africa. There are also executive officers for human resources, chief operations and the divisions of each of the regions. Each of the executives is responsible for setting the goals and agendas of all franchises. These are communicated through the individuals operating the franchises which are then given to the employees through the main management (McDonalds, 2010). Analysis of Organization Structure and Culture to Business Performance The organizational structure of McDonalds is one that is based on systematic processes that work within each of the different regions. The advantages of the organizational structure come from the different divisions of executives that are divided first by region then through the specific needs, such as human resources. The management and those in each region are then able to have more established communication and correspondence in regards to setting goals and meeting the main objectives of McDonalds. If there are changes which are needed, then the operating officers will set these and allow those within the franchises to make the necessary changes. The communication which is used through goal setting and executive decisions to make changes to the main system used then becomes the strength in the operation of McDonalds. The culture that is formed from the main structure keeps the same system that is associated with the goal setting and the overall understanding of the business. The ability to have a process that is continuous with the processing of meals and customer service allows the business to remain in tact, no matter which location is functioning. The training centre of Hamburger University is able to support this, specifically so rules and regulations continue to be followed when individuals are working with the franchise. The regulations include everything from basic policies of the organization to methods for cleaning and preparing meals, ways to interact with customers and how to advertise in the area one is located in. The systematic structure that allows each restaurant to work as a team then provides defined goals and little room for change or inability to conform to the required standards of the business. While the system works to the advantage of customers and the overall goals of McDonalds, there are still weaknesses with this main structure. The functions only allow for individuals working in the structure to be a part of the system and to mechanically respond to the expectations from the executive board. It is known that McDonalds has one of the fastest turn – around times for employees, specifically because of the lack of quality in management as well as the low level of innovation that is a part of the corporation. The functions are further limited by the systematic culture that doesn’t provide more opportunity for employees or management. The complexity of this is one which is based on individuals to only work within the system, without initiating specific changes which can be implemented to the functions of McDonalds. For instance, if a new recipe is added to the menu, it is difficult for the chefs to alter this according to innovation. It is also difficult for chefs to add in suggestions about the recipes or needs of the corporation. Instead, this comes from executives that make the decisions while overlooking entire regions. Leadership Styles and Effectiveness The leadership styles and effectiveness that are a part of McDonalds also incorporate different dynamics. These styles move into other expectations and goals that are a part of the business. The leadership style is dependent on the managers and the expectations which are required. However, the leadership style is one which is dependent on the system that has been developed and the need to it into specific requirements of each franchise. For instance, each hamburger has to be cooked as fast food, meaning that record times have to be met. The leadership style of management will naturally change to pressure employees to meet these restrictions of the franchise, as opposed to working with the diversity and needs of the establishment. The main motivation with the leadership style is based on the goal – oriented process which is a part of the executive decisions and overall structure. For many, this can be a cause of motivation while other employees may respond negatively because of the expectations that have to be met within the corporation. The next component that is a part of the leadership management and style is based on the orientation of teamwork and goal orientation. The managers have set goals that are provided by the structure of the organization as well as changes which are made by executives. The advantage of the goal setting is one which allows managers to easily comply with changes and take a specific role of leadership in the corporation. However, there is the inability to orient this toward teamwork and individual initiatives. There are instead goals that are oriented to customer satisfaction and the ability to grow within the main company. Most employees and managers are unable to meet the main objectives and don’t have the option of offering innovation or diverse goals within the company. The gap that is created is one which is based on staying within a structure, as opposed to allowing individual and group growth to be a part of the main initiatives. The leadership style then becomes limited to the systematic thinking that is a part of the overall organization, which is initiated only to meet the needs of customer satisfaction. While McDonalds management is limited in this aspect, there are specific alterations that can be taken with executive leadership. The regional differences create opportunities for new innovations by leaders. The individuals that work in each region have the capability of offering innovation and new goals for each area. More important, there is the ability for the leaders to work within the company to ensure that changes are initiated that are specific to the region. The advantage of this level of management is based on the ability to respond to the social and cultural demands of an area while creating a response to the trends in society. Many of the executives can then direct new goals that will assist with the overall management and leadership within the main franchise developments. Nature of Groups and Behaviour The groups are based on behaviours that are linked to following the systems that are a part of the McDonalds franchise. The nature of the groups is then defined by the organizational environment that is set into place. The theories that are associated with behaviour of groups state that the ability to understand goals and to have an integral role as a team member makes a difference in how one responds. This corresponds with beliefs, definitions of the goals and an understanding of how one can associate with the specific group. Each of these components are important in identifying the most important parts of one’s job as well as how the specific interactions can help with the growth of the company. The practice that is in McDonalds is based on establishing groups that are a part of different shifts for the various franchises. The practice of the groups is then set by the different types of employees and the management that is dictating which goals have to be met. The beliefs and definitions that are a part of this are incorporated into an understanding of the system that is used with McDonalds. However, there may be differences based on the experiences within each of the restaurants and how this creates a specific response from individuals. If an individual finds that the practices and the system isn’t conducive to what is needed, then the belief system will result in negative responses. This will lead to group behaviours that are not as conducive and can eventually create a lack of meeting goals within the restaurant. The group member can easily initiate this by noting problems with the system or not being able to meet the goals. As this happens, it affects others in the group. The result is a lack of groups meeting goals, remaining motivated and fulfilling requirements of their job. The entire group is then affected by negative responses to the environment. If this occurs with the opposing viewpoint, such as valuing the system, then the goals will easily be met and the organizational environment will change. Impacts of Technology on Teams The impact of technology on teams in McDonalds is also important in recognizing the overall parts of the structure. The technology links are used as communication in the organization. This is done as an individual takes the order of a customer from the front desk or through the drive through window. A computer transfers this information to the cooks who then are able to meet the needs through a systematic lining of the food that is cooked. This allows the food to be cooked faster while allowing the system to create a specific response time for customer value. The technology for the teams works as a main way to communicate between the workers and allows for the functioning of the system to work with a smoother response. This can provide different goal orientation for the employees and managers. More important, it can help with more goals being met, which will provide better responses to customers and can create a positive environment. The result will be the ability to create higher responses with the integrated technology both with customer satisfaction and employee response. Critical Reflections and Limitations of Research The different attributes that are a part of McDonalds create a specific effect on all components of the organization. This begins with the concept of the organizational structure. This is system oriented and is geared toward systematic processing and implementation of the food. This is done specifically in relation to the concept of fast food as well as the responses which are required by employees and management in different franchises. While this works effectively, the organizational environment becomes limited to the system that is established. There is a sense of sustainability in the company but the growth only comes by implementing more franchises, as opposed to growth of different restaurants through individual initiative and the ability to provide innovation. The limitations of the research are based on the understanding of how the organization works. To further this, there would need to be a survey or set of observations conducted within the different franchises. The internal workings of the various environments as well as the relationship which is created between the executives and those that are in the organization creates specific changes to the environment and alters the way in which many conduct business. The research then becomes focused only on the limited information that is on the website as well as the basic corporate goals that are a part of the website. This continues to be limited with the potential misunderstandings of how the different organizational environments are created through individual franchises. The inability to understand other policies and parts of the structure at a more intimate level become the main limitation with this study. Conclusion The concept of organizational structure and culture intertwine to create specific responses within the internal and external environment. When analyzing McDonalds, it can be seen that the main organization was established on the idea of creating a systematic process for processing food. This led to the initiative of fast food which was based on creating a specific response for customer service. As this grew into several franchises, the system became more incorporated with different expectations and duties that are a part of the corporation. While there is a sense of leadership and creativity through executive members, franchise owners and management are limited by following the system and motivating employees through the goal oriented concepts that are a part of the main structure. It can be seen that this changes the culture and environment of the company and also creates specific expectations and demands from the external environment. The strengths and weaknesses of this are then incorporated into the limitations and potential of the organizational culture and the responses from customers in McDonalds. References Dell. (2010). About Dell. Retrieved from: http://content.dell.com/us/en/corp/d/corp-comm/leadership-governance-principles.aspx. Furnham, Adrian. (2005). Psychology of Behaviour at Work: the Individual in the Organization. New York: Routledge Press. IBM. (2010). Corporate Governance. Retrieved from: http://www.ibm.com/investor/governance/. Lewis, David. (1991). The Automobile and American Culture. Michigan: University of Michigan Press. McDonalds. (2010). McDonalds Corporate Structure. Retrieved from: http://www.aboutmcdonalds.com/mcd/our_company/mcd_faq/. Miner, John. (2007). Organizational Behaviour: From Theory to Practice. New York: ME Sharpe. Miner, John. (2005). Organizational Behaviour: Essential Theories of Motivation and Leadership. New York: ME Sharpe. Smith, Aileen, Evelyn Hume. (2005). “Linking Culture and Ethics: A Comparison of Accountants’ Ethical Belief Systems in the Individualism / Collectivism and Power Distance Contexts.” Journal of Business Ethics 62 (3), 209-220. Tarricone, Pina. (2002). “Employees, Teamwork and Social Interdependence – A formula for Successful Business?” Team Performance Management 8 (3), 54-59. Quigley, Narda, Paul Tesluk, Edwin Locke, K Bartol. (2007). ‘A Multilevel Investigation of the Motivational Mechanisms Underlying Knowledge Sharing and Performance.” Organization Science 18 (1), 71-88. Read More