Restaurants' Structure and Effectiveness - Assignment Example

Organisation Structure and Effectiveness (Name) (Institution) (Course) (Module) (Tutor) 14th May 2009 Part 1 You will be analysing the technology used in two different restaurants-McDonald’s, Subway and a typical family restaurant. McDonald’s, Hacienda Heights, California Subway Family Restaurant 1.Organization Goals: Speed, Service, atmosphere, etc. Customer satisfaction, quality foods and beverages, excellent and encouraging décor Customer satisfaction through offering high quality food with exceptional service and good value. Customer satisfaction 2.Authority Structure Horizontal Horizontal Horizontal 3.Type of technology using Woodward’s model Small batch unit production Small batch unit production Small batch unit production 4.Organization structure: Mechanistic or organic? Organic Organic Organic 5.Team versus individual: Do people work together or alone? Together as teams Together as teams Together as teams 6.Interdependence: How do employees depend on each other? Interrelationship is very high A lot of correspondence 7.Tasks: Routine versus non-routine Both routine and non-routine Both routine and non-routine Non-routine 8.Specialization of tasks by employees High in some areas such as pizza makers Low Low 9.Specialization: How varied are tasks and products? Minimal Minimal Minimal 10.Expertise required: Technology versus social Social; Interpersonal skills especially by waiters Social Social 11.Decision making: Centralized versus decentralized Decentralised to meet individual client’s needs Decentralised Decentralised 1. Is the technology used the best one for each restaurant, considering its goals and environment? Questions 2. Is the technology used the best one for each restaurant, considering its goals and environment? The company has employed technology in relations to banks and financial services institutions in that it accepts credit cards despite the relatively low costs of their foods. The company also employs intensive communication technologies that link operations and management of the various franchises in order to ensure uniformity in operations. The running of the Hacienda Heights outlet is part of the organic system of the larger McDonalds chain of restaurants. 3. From the preceding data, determine if the structure and other characteristics fit technology. According to a many reviews in a number of blogs, customers rate and analyze the restaurants according to previous experience. While the food and beverages served are physical, the manner in which the meals or beverages are prepared and served constitute the larger percentage in forming the opinion and contributing towards customer satisfaction. As such, the most definitive product being sold is intangible. This also means that the product is produced and consumed simultaneously. The attitude of the waiter also counts a lot towards customer satisfaction which can not be stored. In fact Daft (2007) says that such products are inseparable from the producer thus emphasizing on the importance on the people factor in the service industry. The McDonalds as a restaurant lays emphasis on employee training to equip them with the necessary interpersonal skills needed as a product for sale alongside the mainstream items. As such, the running of the restaurant if labor intensive as the services cannot be wholly replaced with technologic devices such as vending machines. By waiters being kind, polite and even all smiles towards clients, Daft (2007) says it is more of a requirement than a strategy in the hotel and restaurant industry for competent players. He emphasizes that the human element is most important in the delivery of service. He offers examples such as making apologies where necessary and even welcoming of guest in the premises. 4. If you were part of a consulting team assigned to improve the operations of each organization, what recommendations would you make? As a player in a health related field, the hotels should play a more competent role in ensuring that their clients do not indulge in poor eating habits that could jeopardize their health. The McDonalds has gone ahead and introduced health related information and good eating habits in their websites which applies to all Mcdonalds outlets in and outside the US. In addition to this, the McDonalds café should make it a point that their employees are physically fit with no weight problems as the fast food outlet has often been criticized in selling unhealthy junk foods. The Hacienda Heights Mcdonalds outlet introduced a Feng Shui oriented décor that has continued to attract many clients in order to promote health, harmony and prosperity. The décor incorporates placing strategic representations of five natural elements -- earth, water, fire, metal and wood. This has been accomplished by replacing the plastic furniture, Ronald McDonald and the red and yellow palette with leather seats, silver-coated chairs, earth tones, bamboo plants and water trickling down glass panels, wood ceiling, plus red accents throughout the dining area to symbolize fire and "good luck, laughter and prosperity. To complete the whole Feng Shui environment that is said to free flow of chi or energy, the hotel needs to introduce a customer loyalty program that sponsors selected winners in Feng Shui classes (AP). PART 2 1. How might an enterprise resource planning system be used to improve strategic management of a manufacturing organization? Manufacturing organization often follow a mechanistic structure where divisions or departments within the organization tend to operate independently. As such, it becomes hard for the effective use of an enterprise resource planning system which tends to call for the harmonized management of resources through a single system. However, Daft (2007) says that different enterprise resource planning systems can be combined or integrated together in order to fit a mechanistic structure of a manufacturing organization. He says that a supply chain management system can be combined with a warehouse system, and the production system. However, he says that the application of the system is more complex in organization that manufacture a family of products as there seems to be very many cells whose requirements must be fully represented by the singular system that will be combined to form the main ERP system. 2. How might the adoption of IT affect how an organization is designed? Among the numerous varieties of organizations such as virtual, negotiated, traditional and vertically integrated ones, there is a general agreement among organizational design experts and empirical evidence that an organization designer ought to also consider how structure and technology sway job tasks and people in order to be successful. PART 3 1. Why do large organizations tend to be more formalized? Formalization in big organizations creates order as they tend to have many employees and departments. An informal scenario where there are many employees and departments would create a lot of inconsistencies and chaos. Thus formalization creates some order and consistency in products and service and general performance of such big organizations. 2. Government organizations often seem more bureaucratic than for profit organizations. Could you this partly be the result of the type of control used in government organizations? Explain. Government organizations have a very vertical structuring that consolidates authority to the topmost employee. For profit organizations, the case is different as theory and empirical evidence points to the dangers of a bureaucratic organization. Bureaucracy on one hand is actively suppressed by a decentralized power structure. For government organizations, decentralization of power is somehow difficult as job ranking is stringently upheld. PART 4 To understand more about corporate culture, visit two retail stores and compare them according to various factors. Go to one discount or low-end store, such as Kmart or Wal-Mart, and to one high-end store, such as Saks Fifth Avenue, Dayton/Hudson’s, Goldwater’s, or Dillard’s. Do not interview any employees, but instead be an observer or a shopper. After your visits, fill out the following table for each store. Spend at least 2 hours in each store on a busy day and be very observant. Culture Item Wal-Mart Store Dillard’s Mission of store: What is it, and is it clear to employees? If we work together, we’ll lower the cost of living for everyone…we’ll give the world an opportunity to see what it’s like to save and have a better life. Or simplified to Saving people money so they can live better. No, it is misinterpreted to mean to lower costs at the cost of service. Delivering maximum fashion and value to its shoppers by offering compelling apparel and home selections complemented by exceptional customer care. It is understood by employees as they offer quality service demonstrated through politeness, assistance in trying out clothes and the high rate of returning customers. Individual initiative: is it encouraged? No. Minimal and restricted interaction between employees and customers Yes. Encouraged through close interaction between employees and customers. Reward system: What are employees rewarded for? Overtime hours are paid. Highest sales Teamwork: Do people within one department or across departments work together or talk with each other? Yes Yes Company loyalty: Is there evidence of loyalty or of enthusiasm to be working there? Yes. Driven by the low prices Yes, driven by the quality products and customer service. Dress: Are there uniforms? Is there a dress code? How strong is it? How do you rate employees’ personal appearance in general? Yes, there is a uniform for all employees. No Diversity or commonality of employees: Is there diversity or commonality in age, education, race, personality, and so on? No Yes Service orientation: Is the customer valued or tolerated? Tolerated Valued Human resource development: Is there opportunity for growth and advancement? Yes Yes Qs 1. How does the culture seem to influence employee behavior in each store? At Wal-Mart, employees seem to work there as they have no alternatives. Seemingly, they would abandon their jobs if better positions popped up elsewhere. 2. What effect does employees’ behavior have on customers? Customers use employee’s behavior to judge the store wholesomely. At Wal-Mart, customers feel not valued. In fact not in many instances were there enough employees to help shoppers with queries on the shopping lanes. 3. Which store was more pleasant to be in? How does that relate to the mission of the store? Dillard’s store. The employees of that store create a good, polite and friendly environment that makes shoppers feel welcome and felt at home. This is explicitly stated in their mission statements as to offer exceptional service. PART 5 1. How is the management of radical change likely to differ from the management of incremental change? Radical change differs in that in most cases, it is triggered by market conditions and is reactive. Incremental change is based on previous knowledge and experience and can be administered accordantly. Again in radical change, theory & practice or knowledge & actions are co-evolving, and hence the research into change must corrobate theory and practice. 2. Of the five elements required for successful change, which element do you think managers are most likely to overlook? Discuss. Leadership. Business managers have shown a problem in differentiating and understanding the different role of business managers and business leaders. Business leaders create opportunities or rather initiate the change process while business managers turn the change process into tangible results. Therefore, it can be assumed that the often named resistance to change or fear of unfreezing is simply lack of business leadership. 3. In order to examine differences in the level of innovation encouragement in organizations, you will be asked to rate two organizations. The first should be an organization in which you have worked, or the university. The second should be someone else’s workplace, that of a family member, a friend, or an acquaintance. You will have to interview that person to answer the questions below. You should put your own answer in column A, Your interviewee’s answer in column B, and what you think would be the ideal in column C. Innovation Measures Item of Measure A General electric B Delta airlines C Your Ideal Score items 1-5 on this scale: 1= don’t agree at all to 5= agree completely 1. Creativity is encouraged here. * 5 4 5 2.People are allowed to solve the same problems in different ways. * 1 1 3 3. I get to pursue creative ideas. ** 4 3 4 4.The organization publicly recognizes and also rewards those who are innovative. ** 3 1 3 5.Our organization is flexible and always open to change. * 4 5 5 Score items 6-10 on the opposite scale: 1= don’t agree at all to 5= agree completely 6.The primary job of people here is to follow orders that come from the top. * 5 3 3 7.The best way to get along here is to think and act like others. * 4 3 2 8.This place seems to be more concerned with the status quo than with change. * 2 1 1 9.People are rewarded more if they don’t rock the cost boat.** 5 5 4 10.New ideas are great, but we don’t have enough people or money to carry them out. ** 1 1 1 *These items indicate the organization’s innovation climate. **These items show resource support. Qs 1. What comparisons in terms of innovation climates can you make between these two organizations? General Electric as the organization which I have worked for has a very bureaucratic system of management. Routines and manufacturing procedures are scheduled and employees are expected to follow them exceptionally. This denies employees opportunities to explore out of the ordinary. Many of them look forward to completing their shift with no much concern for the organization itself or their career paths. At Delta airlines, the situation is completely different. Certain changes in the organization’s operations involve all parties and employee from all levels. For instance, a proposed change in cabin staff uniforms saw all cabin crew members voting on the best uniforms from a number of proposed ones and suggesting on any possible modifications on them if necessary. 2. How might productivity differ between a climate that supports innovation and a climate that does not? Productivity is high in a climate that supports innovation and creativity. A innovation supporting climate creates a sense of belonging and offers motivation to employees while in the other situation, employees feel not valued and their contribution in the organization just as common as any ordinary employee. 3. Where would you rather work? Why? Delta airlines. Though the working hours are at times odd, employees efforts are recognized through better consideration in making of decisions as well as good remuneration. References Associated Press (2008) Feng shui flows at McDonald's outlet http://articles.moneycentral.msn.com/Investing/Extra/FengShuiFlowsAtMcDonaldsOutlet.aspx Daft, B.L. (2007) Organisation Theory and Design, 9th ed New York: Thomson South-Western Read More