The concept of a company’s organizational structure outlines the corporate layout and mechanism through which institutional divisions work together to achieve business goals. Organizational culture refers to the attitudes and practices that lead to an organization’s distinct social and psychological environment. It specifies the common values held by all employees in an organization. Culture is the “glue” that contains a company’s employees together (Kinicki & Soignet, 2021). McDonald’s management chart facilitates the operation of foodservice marketplaces based on productivity levels. As the world’s leading fast-food chain, the company is always evolving to meet existing and emerging market issues. This framework is used by the firm to develop new products in order to maintain its performance in pleasing customers, given the existence of rival food service organizations. McDonald’s corporate structure, which is designed to adapt to changing business settings, supports a number of strategic goals. The firm’s fundamental components are kept, but changes are made to response to market developments and needs. McDonald’s organizational structure and attributes contribute to operational efficiency and financial stability.
Organization Chart
The McDonald’s Organization is structured into divisions. In this structure model, the corporate unit is conceptually separated into components that are assigned duties depending on operational requirements. Each division is in charge of a particular operating area or set of strategic goals. One of the goals of this corporate structure is to promote autonomy and organizational flexibility in meeting business demands across various administrative features and markets. This organizational chart is characterized by several attributes, including Global Hierarchy, performance and function-based divisions.
Global Hierarchy
McDonald’s has a leadership structure that oversees all of its activities worldwide. This organization design attribute stresses corporate control within management control and direction. Through this structural trait, for example, McDonald’s CEO supervises the training of all company departments. In addition, mandates and recommendations are communicated from the CEO to middle management and restaurant managers and workers in company-owned businesses and franchisees. Most global commercial enterprises share this characteristic of McDonald’s corporate structure.
Performance-based divisions
Performance-based divisions distinguish McDonald’s organizational model. Following the reform in 2015, the company’s new divisions in its structure were based on performance. The integration of worldwide lead markets also accounts for a sizable portion of the company’s revenue. Even though these regions provide significant potential for company expansion due to fast economic development, high-growth markets constitute a small fraction of McDonald’s revenues.
Function-based divisions
Incorporate functions; for example, the corporation has a group for human resource managers and a Supply Chain and Sustainability group for supply chain management and sustainability efforts. Each division is led by a corporate executive or a senior executive. This organizational structure feature allows McDonald’s Corporation to address the fundamental activities of its business. As the firm expands and its target markets shift, groups may be added or modified.
The organizational structure and divisions of McDonald’s can allow the corporation to adopt plans depending on the business performance patterns and associated metrics. However, one problem of McDonald’s organizational structure is that it tends to generalize tactics for performance-based divisions. This constrains company flexibility. Thus, by modifying or tweaking how these divisions are employed in strategic execution, McDonald’s might enhance its organizational structure.
Corporate Culture
The organizational culture of McDonald’s complements the firm’s sector positioning objectives. McDonald’s, the world’s largest fast-food restaurant chain, leverages its corporate culture to attract consumers and competent workers. Their general culture can be defined by clan culture and people centricity and inclusion.
People centricity
McDonald’s corporate culture stresses the needs and growth of its workers. The necessity of helping individuals is emphasized in the company’s Core Values and Standards of Business Conduct. This is logical given that McDonald’s is a service company. To guarantee that individuals are supported, the company’s organizational culture encourages employees to work with management to enhance processes and procedures.
Diversity and Inclusion
According to McDonald’s formal human resource management policies, diversity and inclusion are essential aspects of the company’s corporate culture. McDonald’s understands the value of diversity and inclusion in maximizing HR skills to cope with an increasingly diverse environment. McDonald’s corporate culture encourages workers, suppliers, franchisees, and customers to provide opinions and engage in constructive dialogues to grow the business to assure appreciation for diversity and inclusion.
McDonald’s corporate culture benefits the corporation by allowing it to increase customer service via people-centricity and inclusivity. However, competence and high quality are not well addressed in business culture. While the organizational culture at McDonald’s emphasizes development and support for employees, there is little emphasis on individual achievement. As a result, one feasible solution would be for McDonald’s organizational culture to promote excellence and high-quality production.
Conclusion
Finally, the corporation should expand its spending on employee development to demonstrate its dedication to its personnel. Aside from training and professional development programs, the organization should implement diversity and mentorship initiatives to maximize the potential of its personnel. Diversity initiatives will improve collaboration by teaching employees to understand and tolerate cultural diversity. On the other hand, mentorship projects will allow workers to harness their different cultural backgrounds to assist the organization in meeting its objectives.
References
About us (n. d) McDonald’s. Retrieved from https://www.mcdonalds.com/us/en-us/about-us.html
Kinicki, A., & Soignet, D. B. (2021). Management. Retrieved from http://www.worldcat.org/oclc/1246496025
Raduzzi, A., & Massey, J. E. (2019). Customers’ satisfaction and brand loyalty at McDonalds Maroc. African Journal of Marketing Management, 11(3), 21-34.
Chia, X. R., Kee, D. M. H., Khor, S. T., Chan, K. Y., Lok, T. X., Almutairi, H. A. … & Kulkarni, S. (2020). Contributing Factors to Organizational Success: A Case Study of McDonald’s. International Journal of Tourism and hospitality in the Asia Pacific (IJTHAP), 3(2), 38-47.
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