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McDonald's Organizational Change - Essay Example

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tariffs, export fees and even import quotas. There has been a reduced restriction on the movements of capital from one country to another together with investment. These changes has increased comparative advantages of various companies that are currently rushing to open up various branches in the world as it has become easy to manage them due to increased information flow and improved technology. One of the companies that have recorded tremendous changes over the past decade is MacDonald’s company. The company deals with fast foods a sector that faces a lot of competition as result of mushrooming of food vendors both small and huge companies. As a result there was a need to change the old management system in order to install new skills that have adequate knowledge concerning the current global market. There have been an increase in the number of multinational companies that deal with fast food e.g. KFC. This has necessitated a reshuffle in the top management in order to be able to diversify and increase skills required in retaining the company competitiveness. The company has looked for leaders who have the latest skills and experience concerning the latest market trends (Roch & Boivin, 2010). Initially, the company agitated for individual work so that one can have an individual performance appraisal. This was meant to ensure that the employees work harder for their work to be recognized during awarding of the most hardworking person. Due to the latest organizational changes, the management has instead preferred to change this working strategy to instill teamwork. This has worked in helping the organization deal with different challenges that may face the organization. This is because team members are able to come together and bring about different ideas that can solve the current challenge. Team groups in an organization have also made it easy for the management to manage the organization easily. This is because the management is able to appoint team leaders who report to them. The major implication of this move is that it has enabled the company to diversify its operations as the management has the opportunity to monitor the performance of other branches that are spread in different parts of the world (Huber & Glick, 1995). Macdonald has seen a tremendous change in organization culture. A culture of an organization plays a great role in setting the performance of the organization in the market. One of the major changes has been on power distance. This is the extent to which less powerful employees of the organization are treated unequally by their leaders. Initially leaders in the organization kept a distance and never related with other employees. Instead they used an intermediary or when they meet they addressed the whole group as they had no time for a single person enquiry. This created a rift between the employees and leaders an aspect that reduced the morale of the workers in the organization. This also put a barrier to employees who wanted to report any issue that may have been affecting the organization performance or the relation of the employees with each other. The change that has been implementation is open office policy. This is a policy which encourages any members of staff to meet the management and leadership of the company in case there is an issue or enquiry that the management can solve. This change has been received with a lot of positive attitude from ...Show more


MacDonald’s organizational change Name Institution Abstract Major economic changes in the world required organization changes and procedures to be able to keep up with the changing world. As a result, this paper will discuss the implications of these changes to the organization and all stakeholders…
Author : norberto28
McDonalds Organizational Change
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