Organisational Analysis of Mcdonald Company - Case Study Example

ORGANISATIONAL ANALYSIS OF MCDONALD COMPANY Organizational analysis: McDonald Company Background of the company McDonald is a multinational company in the production industry that deals with fast food production. It was founded in 1955 when Ray Kroc purchased a franchise from a burger shop belonging to Dick and Mac McDonald, who were brothers and opened up a restaurant in Des Plains (McDonald 2014). After operating for five years, he bought the exclusive right to the use of the name McDonald and developed it as a brand. The founder was able to grow the restaurant from scratch to a big restaurant with a good customer base before expanding to open up branches in other cities in America. The company opens up new branches through franchising where the franchise uses the brand name McDonald and has to operate in a similar way as the mother company in service delivery and recipes for their fast food. The company operates in over 119 countries with a customer base of over 68million customers being served daily in the various countries. Among the dishes served in the over 33000 outlets worldwide include: French fries, Egg McMuffin, Apple pie, Big Mac, big N Tasty, sandae, cheese burger and quarter pounder with cheese. The variety may increase depending with the specific market that the store operates in. The company also offers delivery services to their clients. It started operating 24 hours a day in line with the 24hour economy in the year 2005 thus pioneering the 24 hours restaurant in the industry. The firm was also the first in the market to provide an all round the clock delivery service for any quantity of order. This gave the company a competitive edge over its current and potential competitors making it the market leader in the industry. Organizational mission statement Their mission is to be their customers’ favorite way and place to eat. They have a global strategy called the plan to win, which their worldwide operations are aligned with. They are determined to offer a unique customer experience while being committed to continually improving their operations and enhance customer experience (McDonald, 2014). This mission statement is geared towards the betterment of the services offered to their clients for the best customer experience. Being in the service industry, the human resource manager plays a big role in the attainment of the mission of the firm. Understanding the roles of the human resource manager is the starting point of knowing his/ her role in the attainment of the mission of the firm. The ole of human resource manager in attaining the mission The major role of the Human Resource is the recruitment and development of the human resource in the firm. This majorly entails participation in the interview of potential employees to ensure the firm gets the best in the market. After the employees are selected from the various candidates, the human resource manager is responsible for ensuring that all the new employees are trained in the operations of the firm before being totally absorbed in the firm. The Human Resource manager is also responsible for the continuous development of the existing staff to ensure they are updated with the latest trends in the market and continually improve their skills and competence. The issue of promotion is also in the Human Resource management department with the Human Resoource having responsibility to recommend those who qualify to be promoted. Thus the human resource manager is at the heart of the firm and the proper functioning of this department is vital for the success of the company. Human resource management is one of the core competences of the firm due to the importance of human resource in the firm (Mathis & Jackson, 2010). The HR of McDonald company thus is not an exception to these functions. His task is actually more complicated by the fact that the firm is multinational thus has to employ competent cooks and other service deliverers from the various countries. The Human Resource manager has to employ the most competent cooks to prepare the best dishes for the customer for maximum customer satisfaction. Creativity is a major qualification for the employees to ensure the customer experience is enhanced over time and there is something new for them to try out daily. This ensures the customers are never bored with the normal menu since there is always something new for them to taste. Training employees on customer relation is also relevant for the achievement of the mission. In so doing, the employees are able to deliver the best service to their clients with courtesy and professionalism. Moreover, a good customer relation helps to create customer loyalty. On top of providing good quality and delicious meals in the shortest time possible, the customers are impressed by the service offered when being served thus prompting them to come back over and over again. When the employees relate well with the clients, the clients feel comfortable and feels free to give their own opinion of the delicacies and suggest what they would like to be added or improved. Also, brand loyalty ensures the clients are always finding their way to the brand in spite of the change in the environment and will refer others to the same brand thus ensuring that the flow of customers increase progressively. Employee satisfaction at work must be considered to ensure that they work well. The employees need to be compensated well for the work done (Mathis & Jackson, 2010). Compensation refers to salary, wages, incentives and any other benefit that the employee is entitled to. An unsatisfied workforce gives unsatisfactory results thus the HRM should rate the employee rewards fairly before forwarding to the accounts department for execution. Also, the HRM is responsible for the training of the new employees. This is more so in the new franchises to ensure the chefs there are able to prepare the same great delicacies for the customers. The new outlet should be able to compare with other McDonalds outlets so that a customer from USA or any other country is still able to order and enjoy their favorite fast food in any McDonald’s outlet in any other country. This is to ensure that the brand is not just the name but also the service offered. Moreover, there is need to develop a unique style depending with the market. This is only possible with the help of employees from the specific market who have knowledge and expertise on the staple delicacies in the specific country thus adjusting their menu to fit the market. The HRM is the one to oversee the process of ensuring that the most suited employee is selected for every market. Thus, training employees for every outlet depending on the country the branch is operating from is important in accommodating diversity in their market share. The HRM can also develop organizational culture that is positive and improve the performance of the firm. The plan to win should not just be a slogan but it should be developed as a culture in the firm. Positive organizational culture goes a long way in ensuring the success of the firm. A culture where employees are trained to be the best in what they do serves to ensure the success of the firm’s mission of expanding the market share as well as increasing customer satisfaction over time. If this culture is passed over to new employees, the success of the firm remains a trend to be desired by the competitors in the industry. Challenges faced by McDonald Company High labor turnover is a challenge to this firm. The firm, being a 24 hour service provider requires flexible employees who are able to work in shifts in the restaurant. Speed in service delivery is also an essential part of the firm which most people may not be able to handle. As a result the employees keep leaving due to the workload involved. Thus the firm is constantly recruiting and training new employees. The varied cultural background of the markets that the firm operates in is also a challenge to the HRM. The cultural background of the market limits the employees who can work in any specific outlet since not all can fit in any branch. This becomes a problem in posting members of the staff due to various barriers such as culture and language barriers. The lawsuit against the firm has had a toll in the HRM in that the popularity of the firm declined rapidly. With the law suit against the firm for supplying junk food to its customers has seen the employees demoralized with some of them resigning. This also affected the customer base as some customers stopped eating the fast food from the brand. With the reduction in their market share, the firms HRM was faced with the challenge of downsizing which required early retirement and laying off of some employee. This is a necessary but undesirable move. Moreover, the firm being in the service industry requires the best skilled labor for the outlets. Lack of enough skilled labor in the market is a challenge that the firm has to deal with anytime it has to employ a new employee. The firm is therefore having problem getting ready skilled labor straight from the market to the job. Managing the employees in various branches is another challenge in the firm. McDonald being a multinational company has branches all over the world. Though the branches are opened through the franchise, the firm has to follow up on the activities of the branch to make sure they are in line with the overall organizational goals and culture. However, this is challenging due to the long distance and the spread of the branches all over the world away from the main outlet. With this the employees in the branches may divert their attention from the intended code of ethics and work expectation in terms of the quality of service offered. Complaints from customers about any employee also take time to be handled due to the long procedure to be followed before it gets to the headquarters. Wages are also another challenge facing the firm with some of the employees being dissatisfied with their salaries and benefits. With the firm operating in many countries, it pays its employee, according to the wage rate of the particular market. In so doing, employee in low economies may not earn as much as those in the developed economies thus creating income disparities in the firm. Human Resource strategies to overcome the challenges The use of performance based remuneration is vital in solving the issue of wages. In so doing, it reduces the employee dissatisfaction about their wages since each is paid according to their work. To ensure that the labor turnover is reduced as much as possible, the firm can offer rewards such as medical allowance and hardship allowance to compensate the employees for the long working hours. A good working environment that is safe is also secure especially for those working in the night shift. The global mindset will help in solving the problem of diversity in the market (Reilly & Williams, 2012). Global mindset is understanding the global market and acquiring skills to be able to work in every part of the world. This is also important in managing employees in every part of the world through online human resource management. This will enable the HRM control the human resource effectively from the head quarters and respond to the customers queries. Employee mentorship program also help restore employee confidence in the firm. Effectiveness of the recommendations in making the organization competitive When employees are remunerated according to their work, they tend to perform better at work due to the expected reward for their work. Global mindset will also play a role in stabilizing the performance of the firm in various countries due to international staff the firm will have. The use of online HRM control will give the HRM better control over the employees thus ensuring proper utilization of the human resource for the success of the firm. The mentorship program is also important in improving the self esteem of the employees and the employees will be more determined to work for the success of the firm. Moreover, a safe working environment ensures that all employees turn up for work as required and perform their duties comfortably, thus ensuring success of the firm through the 24 hour economy. References McDonalds Website. Accessed on 31 October, 2014 from http://www.mcdonalds.com.ph/content/page/about McDonalds website Accessed on 31 October, 2014 from http://www.aboutmcdonalds.com/mcd/our_company/mission_and_values.html Mathis, R. L, & Jackson, J. H. (2010). Human resource management. Mason, OH: Thomson/South-western. Reilly, P. A, & Williams, T. (2012). Global HR: Challenges facing the function. Farnham, Surrey, England: Gower. Read More