Mcdonald's Organizing Function of Management

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McDonald’s Organizing Function of Management
Billie Holloway
Jack Geer
July 19, 2010

Organizing Function of Management
This paper shows how McDonald’s like any other organization must use the organizing function of management to have a successful business. Management must always take action. It is important for management to organize and coordinate activities that relate to the establishments policies. Over the years management has developed from creating charts to identify business functions, creating reporting relationships, and having personnel departments that administer plans, programs and paperwork to having effective managers who use new forms of organizing. In today’s society it is important that management view their employees and customers as the most important resource available. Organizations are building establishments that are flexible and adaptive in regards to competition and customer needs. It is important that organizations organize activities that attract people to the establishment, specify job responsibilities, put specific jobs into job categories, marshal and assign resources, and create conditions that people work together to accomplish the maximum amount of success possible (Bateman & Snell, 2009) McDonald’s Corporation

McDonald’s Corporation is made of franchises and operates in 117 countries. Through all the McDonald’s Corporations they have employed more than 15 million people. In 2009 an average of 60 million customers were served each day around the world (McDonald’s 2009 Annual Report, 2010). McDonald’s uses a collaborative management approach which has created a strong global leadership team throughout McDonald’s history. Management has taken responsibility of working together with each other’s franchises to take on new challenges and responsibilities on behalf of the Company (McDonald’s 2009 Annual Report, 2010). McDonald’s continues to be successful because of the focus on their management enhancing long-term profitable growth, giving the recognition to management and leadership development, and offering their customers a means of eating out that will still fit their way of life (McDonald’s 2009 Annual Report, 2010). Physical Assets

McDonald’s individual franchisers or company will handle the physical assets of the corporation. The majority of McDonald’s restaurants are independently owned and operated by men and women internationally. The conventional franchise agreement has the franchisees provide part of the capital requirements. These requirements will consist of investing in equipment, signs, seating, and the decorations of their restaurant. The franchisees will also need to keep updating the restaurant though the years. Through the agreement of the organization and the franchisees the company will own the building and land that the restaurant is on or if the building is leased the company will carry the long-term lease of the building that McDonald’s franchise occupies. By McDonald’s having full rights to the building that the restaurant is in they can control costs better and ensure that all franchises correspond with each other (McDonald’s Corporation, 2010). McDonald’s believes them to be the main franchiser or the organization and the owners of the franchises work together to give customers a great experience which in the end will help create a higher profitability for the Corporation. Although being the franchiser allows the Corporation to guide the franchises in the right direction it is important the franchise can provide the services the people in the area want and have experience in customer values. While the franchises work together to create a memorable experience for the customers they are: 1) constantly developing new ideas, 2) improving operational standards, 3) improving marketing concepts and products, and 4) improving price strategies to fit the economy. To improve the overall performance, McDonald’s restaurants are continuously reviewing and creating...
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