Mcdonalds assessment PDF

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Management & Organisation Behaviour i Management & Organisation Behaviour

Group members: Mateusz Wladysiak s4563737

Trimester 1, 2017, Thursday 9:30 group Organisation: McDonald’s Restaurant

Management & Organisation Behaviour ii

Executive Summary Management and organizational behaviour remain the factor that determines organization’s success in the modern competitive environment. Thus, companies use various organizational behaviour theories in order to face every problem. In this article we will show an overview and analysis of interview with one of the representative of McDonald’s Restaurant. It shows relevant information on the basic managerial functions such as: planning, organizing, controlling, and leading. As for the answers provided by the representative, it is easy to find the challenges when addressing organizational behavioural issues. There is a problem of recruiting and training new staff, in other words, big employment turnover. The HR manager should be taking appropriate steps in order to face existing obstacles. Although, in today’s world of business it is not an easy task. According to the findings found in this project there is a few steps that may help in the future, when facing similar challenges. The managers cannot think only about themselves, they also have to focus on the wellbeing of their workers. As HR representative says, McDonald’s offers its workers incentives, however that did not change the fact that they have continued to quit the company. It shows the leadership and motivation problems. Therefore, the HR manager is trying to overcome these obstacles. The managers have found it difficult to implement the main management functions because of the dynamic environment and bureaucratic principles practiced in the company. In this article there is an analysis of the findings and relation to theories in nowaday’s business structure.

Management & Organisation Behaviour iii

Table of Contents Contents Executive Summary...................................................................................................................ii Table of Contents......................................................................................................................iii 1. Introduction............................................................................................................................1 McDonalds’ Restaurant..........................................................................................................1 Details of the interview..........................................................................................................2 2. Planning..................................................................................................................................2 2.2 Findings............................................................................................................................3 2.3 Analysis............................................................................................................................3 3. Organising..............................................................................................................................4 3.1 Theory..............................................................................................................................5 3.2 Findings............................................................................................................................5 3.3 Analysis............................................................................................................................5 4. Leading...................................................................................................................................5 4.1 Theory..............................................................................................................................6 4.2 Findings............................................................................................................................7 4.3 Analysis............................................................................................................................7 5. Controlling.............................................................................................................................8 5.1 Theory..............................................................................................................................9 5.2 Findings............................................................................................................................9 5.3 Analysis..........................................................................................................................10 6. Conclusion............................................................................................................................10 Reference List..........................................................................................................................12 Appendix 1 Interview Questions and Responses.....................................................................14 Appendix 2 Manager Contact Details......................................................................................15 Appendix 3 Reflection on Group Skills...................................................................................16 Appendix 4...............................................................................................................................17 TEAM MEMBERS’ CONTRIBUTION TO THE GROUP REPORT ASSIGNMENT..........17

Management & Organisation Behaviour 1 1. Introduction Every company has different goals and plans, it might by acquiring a strong relationship within the organization by achieving organizational, human, and social goals. In today’s business environment roles and tasks of a manager have to adjust almost every day. Nonetheless, managers are experiencing a lot of challenges in maintaining productivity in this competitive business environment. Due to the development of online structures the managers duties and the way of achieving goals had to change as well. Dynamic work environment expects them to be inspiration leaders and to allow the maximization of productivity of employees. The issue the report is facing is organizational behaviour issue with regards to job satisfaction in McDonalds. The article uses organizational behaviour theories to address the issues. McDonald’s Restaurant McDonald’s company is a U.S-based organizing that was created in 1954 in the United States. The organization operates in the whole world and is the leading fast food service retailer. The firm’s franchises restaurants offer soft drinks, meal and other beverages. Currently, the organization runs about thirty-two thousand restaurants in about 118 countries (Goyal & Bala 2012).. The personnel in the organization is trained in the preparation, storage, and handling of its products and delivering quality customer service. Most of the times, McDonald’s operates these restaurants through franchisees. It has further established many strategies and programs to motivate its workforce. Details of the interview The interview involved the HR management of the McDonald’s restaurant found in Australia. It was based on the email and phone communication. The interview had place on May 17, 2017. It gave us the overview on the problem that the organization is facing, which is motivation and labour turnover.

Management & Organisation Behaviour 2 This report provides the real picture of the organizational behavioural issues McDonald’s restaurant is experiencing. The main roles of the managers are planning, controlling, leading, and organizing their workers. It all comes comes to these functions in order to upgrade the performance. The article has focused on the main functions: planning, organizing, leading and controlling. 2. Planning Planning involves looking ahead or preparing an organization for the future. According to Herman (2002), planning outlines the future course of action by making things happen. To this effect, without planning, things or functions of an organization would be left to chance. It is, therefore, a unique function because it precedes other managerial functions (McPhee 2002). Indisputably, planning allows individuals to decide the formulation and objectives of organizational procedures and policies to achieve. It thus provides answers to various questions. As described by Yip (2001), planning remains to be a function those managers must perform at all levels. Undeniably, every manager would plan, but the plans these managers develop may be different depending on the importance and scope. For instance, the top managers would plan based on the wider scope that covers a long period compared to the middle-level managers whose plans are based on the departmental needs. Nonetheless, companies require systematic planning to help them face realities in the uncertain future without embarrassment. It thus ensures things happen as expected. 2.1 Theory Planning is an important factor in achieving organizational goals. For a company to motivate its workers, it must plan for them. In fact, the theory of motivation expects the managers to consider how they will retain the employees and maintain their high levels of performance. Without planning, the company can rarely offer motivations to its employees.

Management & Organisation Behaviour 3 2.2 Findings The interview with the HR manager confirmed that McDonald’s values planning as a way to achieve its future goals. The company has established strategic plan that provides the roadmap on how it will achieve its future success. Despite this effort, the aspects of inclusivity is lacking because the company executive rarely seek the input of workers against the expectations described by the theory of management and organizational behaviour.

2.3 Analysis Planning is essential in achieving a future goal of an organization. Importantly, McDonald’s managers have established strategic plans to facilitate the company’s performance. However, the manager has failed to achieve the set objectives because of lack of goodwill from the relevant department. For an organization to benefit from the plan, it would be prudent for the managers and workers to cooperate. The theory of management expects the managers to adapt an inclusive approach in making-decisions that affect them. The democratic leaders believe in delegation of duties and tasks and teamwork. In fact, this is the best way to motivate others. Unfortunately, at McDonald’s Restaurant, planning seems to be made by the top managers and excludes the input of the workers. This has seen the employees’ performance declining. The best managers plan so that they can overcome risks and uncertainties. In most cases, uncertainties are inevitable because of the dynamics of the competitive climate. According to Daft (2008), good managers focus on organisational changes. Because of the continued increase in labour turnover, the manager needs to restructure to face the challenging tasks. The company must manage redundancy thus the managers must make tough decisions to deliver the benefits to the employees using different approaches. These

Management & Organisation Behaviour 4 changes are in tandem with the changing organisational behaviours in the market (Goyal & Bala 2012).

3. Organizing This function is also critical for an organization for it allows the managers to achieve objectives through human and physical resources. For example, when employees work in groups, the team members should know the expectations and the available resources. Organizing allows an individual to establish authority by creating responsibility relationships in a group and structural framework (Mullins 2010). With organizing, the manager creates a structure to facilitate the achievement of objectives. This function involves delegation of authority, assigning of tasks, grouping these activities, determining activities needed to achieve goals, and providing coordination vertically and horizontally in the firm. 3.1 Theory Organizing is a function that ensures the manager avoids mistakes because such an officer will make decisions based on the available resources. The motivational theory such as teamwork culture and organization structure requires the manager to value organization.

3.2 Findings Based on the interview, the manager can never realize the full potential of the employees without resources. The HR manager understands this function and its significance in improving the firm’s reputation. The company would relate its current success to proper organization.

Management & Organisation Behaviour 5 3.3 Analysis Organizing as a function is practical but it rarely meets the expectations provided in the classical management theory. For example, in the practical aspect, the HR manager has to consider the different factors and resources to meet the expectation of the market. In fact, the manager is alive to the dynamic environment in business thus influence this function. For a good manager, supporting employees should determine this function (Walker & Scott n.d). For example, through organization, the manager can identify the poor performing staff. Although the managers, especially in McDonald’s think that they are all knowing. However, in reality a good manager listens and communicates the behaviour. As such, it is possible to gain from the skills of others.

4. Leading After the manager has made the plan and created the firm, the focus would shift to how to achieve those tasks. This function involves directing the activities such that the manager directs them to the subordinates by explaining their functions and helping them to perform (Mullins 2010). Leading people allows the manager to communicate the process from one person to another. It affirms the significance of a clear information flow. According to Waller (2008), leading grants an individual the leadership task so that such a person can guide and influence the work of the workers. 4.1 Theory McDonald’s company seems to embrace democratic leadership style. The managers of the company have deliberately granted powers to the employees to ensure they maximize their productivity. Despite this effect, the level of employee turnover remains high. The findings indicate that the company has invested in motivational theories ( Watson 2002). In fact, the company has integrated various provisions to achieve the best outcome. In fact, the

Management & Organisation Behaviour 6 manager acknowledged during the interview, that the firm is doing everything possible to motivate its staff (Walker & Scott n.d). For instance, the company has invested resource to train and put its staff on a four-week trial to gain required experience. However, even the manager appears disturbed that these employees never stay long-enough with company. Efficiency focuses on how a company utilizes its resources, and some companies have used their resources to maximize productivity. In fact, companies like McDonalds have used the human resource to achieve the required motivation. Leadership and management are critical because these concepts justify what an individual can do to persuade or influence followers to help a firm achieve its objectives. According to Cole and Kelly (2012), management ensures tasks are performed through people using resources. The manager has to direct and lead the organization by manipulating or deploying resources such as financial, technological, material, intangible, or intellectual. It focuses on the effective coordination and utilization of resources thus achieves defined goals efficiently (Robbins & Judge 2009). Cole and Kelly (2012) viewed leadership as a process that people in authority use to influence others and facilitate collective and individual efforts in accomplishing shared tasks. Motivation and influence are related because even a leader has an opportunity to influence and motivate the followers. To this effect, the leader must ensure the firm undertakes the right operation efficiently by establishing direction. For a leader to achieve this task, such a person must have good communication skills that can influence and inspire others (Kelly 2009).

4.2 Findings The findings from the company’s HR manager were damning because the firm experiences high turnover rate among its employees. Given the worries expressed by the manager, it was evident that the company was never doing it right. Leading was becoming a problem, as it never reflected on workforce turnover. The manager clarified that the labour

Management & Organisation Behaviour 7 turnover could be attributed to high number of young employees (Robbins & Judge 2009). Notwithstanding, the employees were unsatisfied at the company thus exposing the leading principle the firm has adopted (Northouse 2007). The company is losing its staff to its competitors, especially the young people. To this effect, the organization suffers from the high costs of recruitment and training. Since the organization uses the services of young employees, they could be leaving the firm to seek for new opportunities or higher paid jobs. Therefore, the organization continues to lose employees despite the claim of motivation. This implies that the company is never efficient in retaining them. Staff retention problem became inevitable.

4.3 Analysis The classical management function regarding leading ensures the manager take the responsibility to influence and give direction for the organization. However, in the company, it is evident that employees are not valued or motivated as anticipated. This has caused high labour turnover as many employees leave the organization for highly paying jobs. In fact, the ideal functions of the manager are never in tandem with the practical aspects. For instance, instead of taking the lead to inspire and influence workers, McDonald’s managers have failed in this cause (Goyal &Bala 2012). As explained earlier, leading is about providing information and guiding the followers to do the right task effectively. With this high labour turnover, the workers seem disgruntled and no level of motivation can retain them. Successful managers are always responsive to the needs and expectations of the workforce. They tend to earn respect by inspiring their followers without intimidation. The human resource manager interviewed had a distinct role of motivating workers and leading them. In fact, as a HR manager, the success of the company depends on him. To this effect, his roles were put on the spotlight because he never motivated the workers

Management & Organisation Behaviour 8 efficiently to bar deter them from seeking other opportunities with high remunerations. He has thus undermined the theory of leadership that needs to address the needs and expectation of the followers (Robbins & Judge 2009). McDonald’s has drawn on the theory to meet its anticipated goal to maximizing employee productivity. The findings indicate that the company has failed to apply the theory of organizational behaviour by determining and fulfilling the needs of the workforce (Watson 2002).

5. Controlling Controlling and planning are important functions that appear to be closely interrelated, because plans identify the objectives while control facilitates the actual performance that conforms to the plans. In case of any deviation, the manager has the ability to undertake a corrective measure. Mann (2008) affirms that without proper control mechanism, the uncertainties in the business environment can push the firm off the track. To this effect, controlling measures and corrects the activities thus ensures conformity to the plans. These managerial functions involve four elements including detecting deviations and make corrections, measure actual performance by comparing with standard performance, establish standard performance, and allowing managers to take appropriate corrective measures (Cloke and Goldsmith 2002). 5.1 Theory Path-goal theory befits this managerial function of organizing because the manager can use the position to manipulate the followers and ...