Table of Contents

INTRODUCTION...........................................................................................................................................3
THE RELATIONSHIP BETWEEN THE ORGANIZATION STRUCTURES AND CULTURES CAN IMPACT ON THE
PERFORMANCE OF THE BUSINESS...............................................................................................................4
IDENTIFY AND OVER VIEW FOUR IMPORTANT FACTORS THAT CAN INFLUENCE INDIVIDUAL BEHAVIOR AT
WORK..........................................................................................................................................................5
Ability and skills.......................................................................................................................................5
Demographic factors...............................................................................................................................5
Attitudes..................................................................................................................................................5
Personality...............................................................................................................................................5
COMPARE DIFFERENT TYPES OF LEADERSHIP STYLES IN THE ORGANIZATIONS..........................................6
Transformational leadership...................................................................................................................6
Transactional leadership..........................................................................................................................6
Bureaucratic leadership...........................................................................................................................6
Charismatic leadership............................................................................................................................7
EXPLAIN HOW ORGANIZATIONAL THEORY UNDERPINS THE PRACTICES OF THE MANAGEMENT...............8
EVALUATE DIFFERENT APPROACHES USED BY THE MANAGEMENT............................................................9
Affiliative.................................................................................................................................................9
Visionary..................................................................................................................................................9
Pacesetting..............................................................................................................................................9
Coaching..................................................................................................................................................9
Democratic............................................................................................................................................10
Commanding.........................................................................................................................................10
THE IMPACT OF DIFFERENT LEADERSHIP STYLES ON EMPLOYEE MOTIVATION........................................11
Transformational...................................................................................................................................11
Transactional.........................................................................................................................................11
Autocratic..............................................................................................................................................11
Bureaucratic..........................................................................................................................................11
Charismatic............................................................................................................................................11
THE NATURE OF GROUP AND GROUP BEHAVIOR WITHIN THE ORGANIZATION.......................................12
Formal groups........................................................................................................................................12
 Informal groups.....................................................................................................................................12
Evaluate the impact of technology on team functioning within a given organization...............................13
Communication.........................................................................................................................................13
Building strategies.....................................................................................................................................13
Efficient productivity.................................................................................................................................14
Management process................................................................................................................................14
Conclusion and Recommendation.............................................................................................................15
Recommendation......................................................................................................................................15
References.................................................................................................................................................17
INTRODUCTION
Organizational behavior is the observation of individual and group behavior in response to the
other individuals or group as a whole. It studies Behavior of people or group to know their
attitude towards particular circumstances. Organizational behavior is the study of both group and
individual performance and activity within an organization. This area of study examines human
behavior in work environment and determines its impact on job structure, performance,
communication, motivation, leadership, etc. Thus, it is the systematic study and application of
knowledge about how individuals and group act within the organizations where they work.
Organizational behavior draws from other disciplines to create a unique field.

“Organizational behavior is directly concerned with the understanding, prediction, and control of
human behavior in organization.”- Fred Luthans.

Here in this research paper I had chosen McDonald’s and do the research on the basis of the
given assignment:-

McDonald’s fast-food restaurant is one of the very largest and the very well-known global food
service retailer in more than 120 countries with more than 30000 restaurants all over the country
who serves more than millions of customers every day. McDonald’s aims is to serve good food
in a friendly and fun environment, to be a socially responsible company, to provide good returns
to its shareholders, to provide its customers with food of a high standard, to provide a quick
service and value for money. McDonald’s was founded by Richard and Maurice McDonald in
1940 in San Bernardino, California. In 1955 Ray Kroc bought the chain and oversaw its
worldwide. The headquarters of McDonald’s is located in Oak Brook, Illinois, U.S. (McDonald's
American Corporation, n.d.)
THE RELATIONSHIP BETWEEN THE ORGANIZATION STRUCTURES AND
CULTURES CAN IMPACT ON THE PERFORMANCE OF THE BUSINESS.

The structure of McDonald’s is close to that of most companies. Structures may be

described as the way things are organized in an organization composed of groups and
individuals working together to accomplish a shared organizational objective.
Organizations structure is in the form of written documentation like memorandum and
articles of associations constitutions, by laws etc. the broad goals and purpose of the
organization.

The franchisor decides whether he or she is managing the company. For each of his
channels the Chief Executive takes the strategic decision. Typically, each of the sources
is focused on hierarchy, and its subordinates are below him. The structure of restaurant
organization reflects the corporate framework existing in a McDonald’s franchisee.

Organizational cultures are a collection of traditions, ways to work together and mutual
values in order to accomplish a collective purpose. This is undesirable. We usually grow
through interaction and become an invasion, continuously evolving culture of
organization. Organization culture says whether an action is wrong or good, they provide
examples of how to do it when there are no structured processes or rules.

McDonalds lives on four values; consistency, efficiency, comfort and interest. The
provision of standardized food and service consistency anywhere the division is based is
part of their corporate philosophy. The culture associated with McDonalds’ program,
consistently strive to develop goods and services, profitably expand business, give back
to the society and ethically run business, putting the customer experience at the center of
what it does.

This is clear, based on McDonald’s projects, that it was important to recruit more
employees to attract more customers, thus granting more franchise to more employees.
This will have an effect on structure. McDonald’s mission shapes the society by serving
consumers with fresh food and being environmentally conscious. McDonalds contributes
to the society, for example by fundraising at the Ronald McDonalds Home. McDonald’s
is carefully evaluating its commitment to its shareholders as shown in its culture which
means that McDonalds is committed to shareholders. McDonald aims at offering quality,
affordable food. This interest represents productivity for McDonald. (Mcdonalds Structure
And Culture Business Essay, 1970)
IDENTIFY AND OVER VIEW FOUR IMPORTANT FACTORS THAT CAN
INFLUENCE INDIVIDUAL BEHAVIOR AT WORK.

For too many reasons people act differently when they work and their actions is sure to
be different from when they are at home. According to Michael Mattson and John
Ivancevich established that behavioral factor that affect people at work are abilities and
skills, demographic factors, attitudes, perception and personality.

Ability and skills

The training expertise and physical skill will also influence how a worker performs this at
work depending on the complexity of the job being done. The managers play a significant
role in balancing this to the condition of jobs.

Demographic factors
The nationality, socio economic background, age, race, education etc. will have a
considerable impact on how a person behaves at work.

Attitudes
Psychologists, attitude can be characterized as a propensity to react to a particular
situation, person or circumstances favorably or unfavorably.

Personality
A person’s distinctive characteristics may influence how he or she interacts with others or
how he or she performs in a work setting. Other consideration can include inspiration,
power allocation and the organization’s obligations, function and community.
COMPARE DIFFERENT TYPES OF LEADERSHIP STYLES IN THE
ORGANIZATIONS

There are different styles of leadership styles in the organization, namely

Transformational leadership
Transformational leadership encourages people to produce positive or unpredictable outcomes. It
allows employees control over particular positions, as well as the decision- making power once
they are educated. This is particular to consult. This occurs in the transition of an existing
operating system into a modern one. These members are worried with projects that would bring
additional value. This leader transfer passion into the squad, “detail people” might need to help
him or her. (What is Transformational Leadership? How New Ideas Produce Impressive Results What is
Transformational Leadership? How New Ideas Produce Impressive Results, 2018)

Transactional leadership
The most common contrast with transactional leadership is with transition leadership.
Transactional leadership relies on people who are self-motivated who work best in an organized,
guided environment. This form of leadership starts with the idea of team members promising to
follow their boss as they accept a task. The “transaction” typically entails team members being
paid by the company in exchange for their commitment and compliance. The type of leadership
clarifies the duties and responsibilities. (What is Transactional Leadership? How Structure Leads to
Results, 2018)

Bureaucratic leadership
Bureaucratic leadership is a system of management whereby employees are made to follow
specific rules and lines of authority created by the superiors. Leaders operate “by the book.”
They specifically observe laws, and ensure that their staff obeys processes correctly. This is a
good leadership style for jobs requiring severe health threats (such as dealing around equipment,
dangerous chemicals, or at unsafe heights) or requiring huge amounts of money. Bureaucratic
leadership is also useful in organizations where employees do routine tasks (as in
manufacturing). Bureaucratic leaders gain their place, not because of their skills or abilities,
because of their capacity to adhere to and follow the laws. This can trigger frustration when
members of the team do not trust their experience or advice. This is unsuccessful in versatility,
imagination or innovation-based departments and organizations. (Bureaucratic Leadership Guide:
Definition, Pros & Cons, n.d.)
Charismatic leadership
The charismatic style relies on the charm and persuasiveness of the leader. Charismatic leaders
are driven by their convictions and commitment to their cause. These members inspire passion in
their communities and encourage them to move forward. The team passion and dedication is a
big advantage. They had more confidence in themselves than in their colleagues. This could pose
the possibility that if the leader leaves directly linked to the involvement of the charismatic
leader, a project or even a whole company could fail. Leadership entails immense responsibility
and the individual wants a long-term dedication. (What is Charismatic Leadership? Leading Through
Personal Conviction, 2018)
EXPLAIN HOW ORGANIZATIONAL THEORY UNDERPINS THE PRACTICES
OF THE MANAGEMENT
The organizational theory refers to the collection of interrelated principles, terms that describe
the actions of individuals or groups or subgroups communicating with each other to carry out the
activities aimed at achieving a common objective. The organizational theory examines the
impact on the organization as a whole of the social relationships between the individuals within
the organization and their behavior. There are two essential sections of a logical organization
system which are Clarity of objectives and formalization. (businessjargons, 2020)

Organizational theories are used when a certain objective needs to be met and certain practices
are to be implemented in an organization. It can be explained through an example as well: if a
restaurant or a hotel wants to increase the number of guests and increase the revenue, the
company has to use the set of theories and management practices adopted earlier and make new
and better practices and implement them in the company. Management practices are always
linked with the theories that are implemented in an organization. Organizational theory is derived
from the organizational actions and encouragement that must be brought to the managers and
workers who work for the company.

Therefore it is with the help of organizational theory that a management will develop a certain
practice and implement policy for achievement of certain goals. Organizational theories about
motivation including Maslow’s Need hierarchy and Vroom’s theory of anticipation are some of
the theories that can help understand the staffs need for satisfaction of work. These theories help
to enhance the bond between the staffs and the organization which infact helps management in
obtaining profits.
EVALUATE DIFFERENT APPROACHES USED BY THE MANAGEMENT
According to my research the leadership styles which are followed by McDonald’s are:

Autocratic leadership style in which employee is not involved in decision making process. It is
also one of the facts that any suggestion or any advice by employees is not welcomed. Any the
employee who are working in McDonald’s are young and cannot offer ideas to the leader.
Employees are young and motivated if they are paid wages on time and given extra benefits.
This motivates employee to work in spite of the autocratic leadership. (What is Autocratic
Leadership? How Procedures Can Improve Efficiency, 2018)

The autocratic leadership style does not fulfill the criteria of self-esteem expressed in the
hierarchy of Maslow. At McDonald’s employee, however, achieve self-esteem and esteem one
another as well. McDonald’s won’t follow any leadership model because the company worries
that a convincing or cooperative model won’t produce the product, i.e. supplying decent products
to the consumers on time. (Effectiveness Of Leadership At Mcdonalds Management Essay, 1970)

D. Goleman in his book the ‘Primal leadership’ analyses six different leadership styles. They are;
Affiliative, Visionary, Pacesetting, Coaching, Democratic and Commanding.

Affiliative
This organizational style matches administrators who employees work as a collective or squad. It
promotes team cohesion, enhances integrity, and strengthens teamwork in this form, restores
faith in an organization as well. This approach also has a drawback in that it can lead to low
results of individuals and its better fit in other forms of management.

Visionary
This management style is best for firms the likes of Google, Apples and technology firms or
firms that need new directions.

Pacesetting
High performance expectations are set, and the chief. It’s vain to do it differently and easier,
telling others to do the same. The downside of this style will weaken confidence and make
people feel as if they are struggling and that they are losing ought to be used sparingly.

Coaching
This is a suitable style for workers showing ambition and seeking more professional growth. It is
a one-on-one management style that allows them to boost their results and help them reach their
goals.
Democratic
This style builds community interaction by drawing on the expertise and skills of participants
where organizational strategy is uncertain and a consensus building resolution includes joint
decision-making. In times of crisis, it can be catastrophic, when urgent situation requires swift
decisions.

Commanding
The leadership of the “industrial” style is one of the least successful, as it hardly praises and
instead criticizes it lowers morality and undermines job satisfaction.
THE IMPACT OF DIFFERENT LEADERSHIP STYLES ON EMPLOYEE
MOTIVATION
The impact of different leadership style on employee motivation in McDonald’s are:

Transformational
Leaders transfer passion on to leaders and they are inspired to perform harder. We are looking
for program; motivation is by lobbying and support.

Transactional
It provides sense of achievement and the encouragement that comes in is achievement of the job
collection.

Autocratic
The motivational aspect here is threat and punishment.

Bureaucratic
As a source of work satisfaction, this leadership style includes social responsibility, success and
self-actualization.

Charismatic
Brings in a sense of belonging and through encouragement motivates the individual.
THE NATURE OF GROUP AND GROUP BEHAVIOR WITHIN THE
ORGANIZATION
Group is a collection of two or more people with shared common objectives. Groups fulfill their
objectives through meaningful interaction and interdependence. Group members show stable
behavior pattern as relationships among the members. Such behavior of individual influence the
group activities and hence to the organizational performance.

Moorhead Griffin – “Group is a two or more people who interact with one another such that each
person influences and is influenced by the other person.”

Work group are divided into two, namely formal and informal group.

Formal groups
These are classified as part of the organization system, set up by management. They are defined
in terms of their purpose and roles. The community must usually operate in relation to the
organization’s mandate to have its policies and procedures and should be formally recognized
and have its own budget.

Informal groups
They are employee-centered groups that emerge from having a mutual purpose or shared beliefs.
Their allegiance to the leaders of the community and their goals are determined by what they
feel.
Evaluate the impact of technology on team functioning within a given
organization
(How Focus On Technology Can Drive Sales For McDonald's, 2017) Technologies are now taking over
the world in an exceptional pace. It is changing the functioning of business organizations in a
drastic measure. With the advancement in technology an organization must be up to date with the
technology and the employees as well should be trained with the technology trend. Gadgets such
as mobiles, tablets, desktops etc. are included in the trend of technologies. Technology impacts
the organization in a drastic measure. Some team functions in McDonalds where impacts of
technology can be seen in an organization are:

Communication
Communication is a basic function of team in any organization. Communication is required for
proper and smooth workflow in any establishment. Technologies have now improved
communication among the team members in various organizations and in McDonalds as well.
Cell phones, electronic mails etc have made communication easier and more convenient for the
people where they can communicate about any issues, comments or any feedbacks from the
entry level staffs to the higher ups and vice versa. For e.g.: As seen in a certain outlet in China a
two floored McDonald uses POS for order transferring from the counter to the kitchen at the
back. This creates less hassle and makes it more convenient for the staffs to work.

Building strategies
Better technologies means better planning and even better strategies for business success plans.
Technology helps an organization for report making, data processing and evaluating where the
business stands. Over the years using strategies that are beginning to pay off, McDonalds has
initiated a range of strategies, most notably its technological developments in its mobile app, self
order kiosks and most recently digital signage. For example: When people order their own food
from a kiosk, they tend to add more things to their order than if it was made by an employee at a
counter. CEO Steve Easterbrook says, ‘We have built an ecosystem that is increasingly being
used by our customers to order, pay and receive” their food, one that it plans to expand on with
the recent acquisition of dynamic yield artificial intelligence company

Through machine learning McDonald’s technology systems are installing data collected from its
millions of customers served daily which will be used to make meal suggestions based on
trending factors such as time of day, weather or menu items. It is currently being used at 700
drive throughs but will be eventually be implemented across all digital platforms in the chain.
Efficient productivity
The two main pillars of McDonalds transformation are menu that matches shifting customer
tastes, and a focus on technology to boost restaurant performance. A digital restaurant ordering
platform and kiosks can reduce the time it takes to order a meal and offset the extra time taken to
make a fresh burger. As fast food restaurants compete on both the productivity and quality of a
meal, use of technology will ensure McDonalds maintenance in its long term competitive
advantage. These phones ordering initiative and door delivery service will draw more customers
with the efficient ordering and delivering..

Management process
Technologies help the teams of the company perform the functions such as maintaining database,
doing business through online websites, market surveys etc. Those are carried out more
effectively, with the aid of technology, with less time and expense. This also offers aid in
gathering information from various sources and in making effective decisions using that
information.
Conclusion and Recommendation
McDonalds has been a fast-food service industry since 1955. It has been providing fast-foods
since a long time and has employed 210000 employees in its time of operation and 38695 chains
till 2019. McDonalds certainly has created its own organizational structure making its policies
and standardizing its cultures to enhance the business performance. Certain ways of leadership,
practices and studying of the market and its customer behavior has set McDonald to be a
worldwide worldwide franchise and a growing fast-food chain.

Therefore, McDonalds can be taken as an example of how an organization’s behavior impacts an

establishment. Setting out their own culture, theory and understanding the behavior of customer
and the employees and using collected data to reach its goals are McDonald’s ways of success.
McDonald has been up to date with everything and every technology as well so that it can stay in
the market along with the competition with other franchises such as burger king, subway and
many other franchises.

As a conclusion, it can be shown that creating a proper organizational behavior led McDonald to
be a successful establishment with the study of their employees, customers not being left behind
on the technology as well.

Recommendation
(Recommendations, n.d.)Though McDonald has been a successful franchise there is certain
recommendation that I would like to enlist. Certain recommendations to enhance the franchise in
my opinion are as follows:

1. Standing out from the competition:

McDonalds should step up its game and stand out from the crowd. With the increase in
burger serving establishments McDonalds must step up and bring ways for service
differentiation. McDonald needs to concentrate on service differentiation strategy to put the
restaurant as a superior service restaurant in customer’s minds. The Servicer differentiation
strategy implies that McDonalds provide superior services at every step of the customers
touch point right from the placement of the order through the delivery of the products.

2. Integrated marketing balance:

McDonalds should incorporate an innovative marketing mix for brand advertising that
includes blend of both conventional and new digital media. McDonalds need to understand
the value of digital media in the organizations advertising mix, and will formulate digital
marketing strategies to engage with the online client base.
3. Product amplification:
McDonalds can provide additional product and service features such as on demand food and
home delivery to increase the customer convenience. Product quality may be enhanced with
the use of fresh ingredients. McDonald can further invest in menu customization and menu
standardization strategies in various geographic markets to attract and connect with more
customers.
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