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Management of Change Mc d

Management of Change Mc d

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Published by: cid3l on Nov 11, 2009
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Management of Change: Mc Donald’sCourse Work Assignment Executive Summary: 
This report focuses on the current employment condition in McDonald’s.McDonald’s restaurants serve nearly 54 million customers each day. There are 120 countriesand Territories with McDonald’s in the world. McDonald’s is a multi-billion dollar businessthat symbolizes both globalization and the American way of life. The company is often thetarget of criticisms especially when it comes to corporate ethics and the employmentcondition. In this report we found out that The corporation is still implementing the originalsystem laid down by the McDonald brothers and then ‘fine tuned’ by . The company remainsfaithful to it’s original system and try to avoid changes. McDonald’s standardized it’s productrange, manufacturing processes and management practices, regardless of cultural differencesacross societies. This strategy, often called ‘McDonaldization” by the company’s critics has been an object of criticism and concern up until now. This report suggests changes in themanagement practices and the employment condition in the company. Many workers arecomplaining about the standardization in management practices. The company also usesroutinization as an employment strategy. A strategy that is more beneficial to the companythan to the workers. This report suggests that the company allow the employees to voice outtheir feeling about the company and encourage them to participate in the decision-making.This report also suggests that the company provide more benefits and implement fair labor  practices.
Company Background and General Issues:
The McDonald's Corporation is the largest food service operation in the worldin terms of system-wide sales. At the beginning of 2000, it was operating more than 25,000restaurants in 116 countries. A modest estimate of its current worldwide workforce would bearound 1.5 million people, and 10 million people are estimated to have worked for thecorporation since it was formed. More than one in ten Americans are reckoned to have gottheir first job at McDonald's, and it has now taken over from the US Army as havingAmerica's largest job-training programme (1997). It is an incredibly successful multinationaland is expanding at a breath-taking rate. It plans to open between 2,500 and 3,200 newrestaurants every year, the equivalent of one restaurant every 3 hours. If this rate of expansionis achieved, the corporation will have more than doubled in size to well over 50,000restaurants by 2010. Part of this rapid expansion may also be aided by developments intechnology. Two British companies claim the world record for the construction of a fifty-seat
 
McDonald's restaurant in Peterborough, which was completed in 1 day and was open for  business 48 hours after the site work was completed ( 1999)
.
McDonald's shares are said to bethe best-performing consumer stock on Wall Street. According to the McDonald's web site, in1965 when McDonald's went public, 100 shares cost $2,250. On 31 December 1998, some 33years later, those same shares adjusted for stock splits were worth more than $2.8 billion. Thecorporation is described as being about the globalising of culture and belief systems and asthe most important institution of our time.
Environment and Drivers of Change:Company Hierarchy:
The hierarchy in McDonald's restaurants in all the countries in this study appears to be remarkably similar; where differences do exist, they appear to have a minimal impact onthe corporation's basic American operating system. The majority of employees are called the'crew', and in fact, this term appears to have been universally accepted; we have yet to find acountry where this term is not in use. According to (1995), “the term 'crew' was apparentlyused by the brothers right from the beginning of their 'Speedee Service System' in 1948,when they trained their twelve-man 'crew' to work like a crack drill team” (p.16).
 
The onlyflexibility in this system seems to be a few alterations in the menu, the addition of McSpaghetti noodles in the Philippines, teriyaki burgers in Japan and McLaks salmon rolls in Norway. The success of the corporation is undisputed, but the results of this success havealso brought McDonald's a good deal of criticism from all quarters. (1993), in his book 
TheMcDonaldization of Society,
suggests that McDonald's represents the paradigm case for anincreasingly 'rational' society. Ritzer suggests that McDonald's epitomises the relentless drivetowards a less human society, one centred on 'efficiency', 'calculability', 'predictability' and'control'. I seek to propose the following:
People:
Improve the morale of the employees.
 
I propose to change the working conditions of the company’s employee and make some changes in the system in order to ensure productivity and contentment among the employees. In McDonald’s many employees arecomplaining about the system and the management’s treatment. These issues madeworldwide concern and the company’s reputation, production and the quality of products andservice are affected. There are even reports of “physical sabotagecommitted bydiscontented employees against the company.It has been reported that although there are rules and tight procedures for everythingand managers usually working alongside closely monitor the work, workers do sometimesfind short cuts. The research revealed that in several countries workers sometimes cheat onthe system. They find short cuts when the restaurant is busy and when working within the
 
system cannot cope with demand. In the UK, some employees were referred to as 'cowboys';these workers would find short cuts in exactly the same way as assembly line workers inother industries in order to create some porosity in an otherwise hectic schedule. In addition,some workers have reported more deviant forms of behaviour, which might be akin to physical sabotage (1971)
.
One example was what some young male employees called'sweating competitions'. The hot kitchen conditions were used to see who could sweat themost over the products, apparently as a way of relieving the frustration or boredom or as away of seeking revenge on unpopular managers or the customer. Nor is this the onlyexample; one worker reported that he purposely did not wash his hands after a visit to thetoilet, whereas others would apply their nasal fluid onto the products as a way of getting back at customers and managers. I propose that the company allow the workers to make unionsthat will protect the welfare and safety of the employees. The company should come up withfair and reasonable regulations regarding labor unions.
Management-Employee Relations:
Create an environment that allows exchange of ideasand
 
 participation between the management and the workforce
 
I also propose to implementco-determination and participation of employees in decision making on issues regarding therestaurant. Co-determination and participation as I perceive it will improve
 
the connection between communication and consultation with the workforce and with increased worker commitment, job satisfaction, motivation and reduced resistance to change. The companymust find solutions to these issues that are mostly workforce related. I believe that not onlythe employees will benefit in these changes but also the company. I believe that if thecompany focuses more on the employeescondition, listen to their complaints andsuggestions, and try to improve; there will be an increase in productivity and quality. Theemployees must have a voice in influencing the employment condition.
 Sources of Resistance:Work Force:
Most employees are not interested in creating changes that will be beneficial tothem like creating unions and collective bargaining. Most of the employees are part timeworkers so it is difficult to reach all employees and unionized them. Some employees resistchange because they do not see the potential benefits of unionization as worth their time.While many are complaining about the employment system in Mc Donald’s, majority of theemployees resist change because they do not plan to stay in the company for a long time.They see change as a waste of time.
Management:
The management resists change because they insist on the effectivity of thecurrent system. They resist change in the employment condition because they see it as awaste of time and money. They believe that the current condition is effective in terms of 

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