Structure in simple terms, can be defined as the way things are set out in an organisation. Therefore, all businesses including McDonalds have their own organisational structure which “… consists of groups and individuals working together to achieve the aims/objectives of the organisation”. Organisations are structured in a variety of ways, dependent upon their objectives and culture. The structure of an organisation will determine the manner in which it operates and its performance.
Structure allows the responsibilities for different functions and processes to be clearly allocated to different departments.The wrong organisation structure will hinder the success of the business. Internal factors such as size, product and skills of the workforce also influence the organizational structure. As a business expands the spans of control will widen. The higher the level of skill each employee has the more the business will make use of these skills across the organization and hence save costs. Most the McDonalds stores are franchised to individuals/groups in return for a royalty payment and a percentage of their profits for trading under their name however many of the stores are owned by the corporation itself.The figure published on McDonalds websites informs us that 78% of the stores are franchised whereas the remaining 22% are owned by the corporation itself.
In general, I believe that McDonalds as a corporation have adopted a hierarchal structure; but each store would be following a different yet similar structure within the framework of the hierarchal structure. All the stores would carry out exactly the same process but the method in which they deliver the service could be different. It would depend on the franchisee on how he controls the business; however there are certain aspects which the franchisee cannot alter i.e. the McDonalds trademark (M) including but not limited to the layout of McDonalds.
As the above diagram shows, the most ‘influential’ person in the organisation is the Chief Executive/Managing Director (Mr. Jim Skinner) who makes the strategic decisions at the top level of the hierarchy and below him are his subordinates i. e. regional division managers which report back to him about the company’s progress or important issues that need to be investigated. Furthermore, each employees or crew member’s responsibility is clearly defined and the business seems to be centralised i.e. most important decisions being taken by the senior management.
Within this structure, the path to promotion is clearly defines i. e. a person will initially start from the bottom i. e. counter sales assistant and then they will have to ‘earn’ their way up to the top to get a senior rank/authority.
Moreover, the employees of this type of structure are likely to be loyal to their managers in order to be promoted. McDonald’s individual stores that are franchised would likely to have a flatter structure.There is one manager who is in control of the assistants and employees; s/he takes all the decisions for that particular store and s/he is in charge of the main functions.
This makes it very simple for the staff because all they have to do is sell/make the products. Through this way the employees can pay attention towards the customers. But the McDonald’s corporation is likely to have a hierarchical structure. McDonalds is a big company with lots of different departments which need to be organized very well, because if the employees aren’t directed in the right way they won’t perform their jobs correctly.On the other hand, organisational culture can be defined as “….
set of beliefs, customs, practices and ways of thinking that they have come to share with each other through being and working together. Culture varies greatly between organisations and some business can be ‘warm’ and ‘friendly’ whereas some can be ‘hard’ and ‘unfriendly’. ” Adapted From: Aims, Objectives, structure/culture PowerPoint presentation on Moodle. McDonalds operates according to four values; quality, service, convenience and value.
Part of their organisational culture is the delivery of uniform quality of food and service wherever the branch is located. The good reputation of the company and the expectation of an exceptional customer service no matter what branch people eat is a marketing strategy of McDonalds. However, I believe that the company must be allowing for some leeway for innovation so that each branch can perform things a bit differently to increase the reputation of the company and hence linking it back to McDonald’s culture of efficient practices.