Organizational Psychology of McDonald's - Research Paper Example

Organizational Psychology of McDonalds Overview of McDonalds McDonalds is one of the largest chains of fast food restaurants. The company serves approximately 69 million customers across the world. The firm has subsidiaries in 119 countries. The diversification strategy by this company has enabled it to accumulate huge amount of money which is being used as a barrier of entry to other interested investors. The company was started in 1940. Currently, McDonald’s restaurants are operated as a franchise, an affiliate, or an independent corporation. Most of the company’s revenues come from sales, rent, royalties, and fees that are paid by the franchisees. Statistics indicate that the firm is the send largest private employer behind Wal-Mart. However, it has faced several issues related to working conditions and poor working relationship between the top-level management and the rest of the subordinates. Description The success of any organization depends on the relationship between the top management and the rest of the subordinates. In the past five years, the turnover rates in the company have increased tremendously. In addition, the employee output has reduced significantly. In 2013, the company told its employees to quit complaining in order to reduce stress. This is after the firm received thousands of complaints from the workforce. This was mainly related to the working environment and remuneration (Welton 1). In addition, many subordinates felt that the organization was not doing enough to offer them with the necessary security while working in its premises. Furthermore, working conditions were not effective. The company had controversial terms of work. The zero hours contracts do not guarantee the employees regular work and stability of income. Various reports have been written on how to improve the working conditions in the company. However, they all end up in the company’s archives. Diagnoses Motivation Motivation is a critical aspect towards the success of the organization. With the increasing levels of globalization resulting from liberalization of markets, efficient flow of information and integration of economies, the level of competition in the local and international market has increased immensely. Therefore, pressure on employees to perform to their maximum. However, maintaining this momentum requires constant motivation from the top-level managers. Lack of employees’ motivation has made it hard for the company to maintain its position in the market (Rmuse 1). The employees feel that they are not connected to the firm because their future is not guaranteed. In addition, the organization has failed to engage the employees while critical decisions that affect their welfare are being made. As a result, intensive resistant by the employees has made it hard for the organization to make any progress in relation to critical changes that will enable the firm to improve its competitive advantage in the market. Leadership Employees are a critical source of information for all companies. They interact with the customers each day. As a result, they are able to note any change in the tastes and preferences of the target market. This enables the company to make the necessary changes, an aspect that prevents the customers to be attracted by the substitutes in the market. However, the interaction between the leadership of the company and the rest of the employees is very poor. The leaders are less concerned about their welfare (Neville 1). In addition, the leadership has not focused on creating a strong team that will lead to the growth and development of the company. Meetings between the leaders and the employees are very rare. Therefore, the leaders are not aware of the issues that affect the employees in the company. This aspect makes the employees to quiet and look for employment elsewhere. Many of them end up in rival companies such as KFC. Job Attitude Majority of the employees working in McDonalds are not satisfied with the working environment. Any effort to air their grievances to the leaders have remained futile. This can be ascertained by the company decision to request the employees not to keep on complaining in order to reduce their stress. In addition, the working environment is not safe and several accidents in the premises have been reported over the years. Therefore, many of the employees work in the company because they lack another source of income. However, a survey indicated that over 80% of the company’s employees working in different subsidiaries across United States are not happy with their conditions. However, majority of these are low-level employees (Lobosco 1). The handling of personal issues by the supervisors was cited as a major factor that leads to their discontentment. Moreover, their requests to the top leaders to apply an open office policy in order to enable them to air their grievances without the use of intermediaries have been ignored. This makes them feel unappreciated. Growth opportunity and incentives In 2013, there was an uproar by existing employees working for Macdonald firm in US after the country opted to hire new employees to occupy higher positions rather than promote the existing subordinates who have been dedicated towards the success of the company. Many stated that it takes a long time for their effort to be recognized. In addition, the existing rewarding system is not transparent. Moreover, it is very complex for some employees to understand. This has lowered the morale of the employees in the company. The company has scrapped off majority of its incentives in order to reduce the costs of operations. Initially, the firm felt that it was spending a lot of money in motivating the employees, an aspect that was weakening its position in the market. However, this affected the employees’ performance, an aspect that was replicated in the overall sales by the company. McDonalds CEO, Steve Easterbrook has failed to introduce long-lasting incentives that would keep the employees motivated and focused towards the goals and objectives of the company (Kim 1). As a result, the employees feel disjointed with the company’s operations. Group Processes McDonald’s is set up in departments. Each department is specialized in a particular function. For instance, there is a marketing department, finance department, customer care, etc. However, unlike other organization, McDonalds has encouraged the employees to work as individuals. This has been increased by a rewarding system that focuses on the individual effort rather than the effort of the whole team (Kasperkevic 1). Employees are assigned different tasks according to their qualification and areas of specialization. Many decisions that are related to daily activities of the employees are made by the supervisors. However, excessive power that has been embedded on them has distance them from the employees. This is because cases of using force have been reported frequently by low-leveled employees. However, majority of the employees have learnt their roles. Therefore, they work independently without the need to be supervised. Work and Family Due to the nature of the job in MacDonald’s, the firm has employed very many women. However, the working environment is not family-friendly. For instance, due to company’s zero hour’s contract, many women are forced to quit in case they have a family issues which will take majority of their time, e.g. taking care of their children (Welton 1). In addition, although there have been proposals to set up a dare care center in the premises in order to improve ladies concentration in their work, the issue has not augured well with the top leaders who are working hard to reduce the operations of the organization. Job Stress Cases of working for long hours and intensive pressure on employees in the company are common. Many employees have been admitted in the hospital with stress-related diseases. This is because the work is demanding while the salary does not meet the employees’ needs. In addition, the working conditions in the company have contributed to job stress (Welton 1). For instance, pressure from top management is so intensive to an extent that employees opt to stay out of work rather than face the managers in case of an working issue. Works Cited Kasperkevic, Jana. "McDonalds Workers Told to Treat Burns with Condiments, Survey Shows | Business | The Guardian." The Guardian. N.p., 16 Mar. 2015. Web. 1 May 2015. . Kim, Sussana. "McDonalds Defends Employee Help Tips Deemed Offensive, Clueless by Advocacy Group." ABC News. N.p., 21 Nov. 2013. Web. 1 May 2015. . Lobosco, Katie. "McDonalds Workers Allege Unsafe Working Conditions - Mar. 16, 2015." CNNMoney. N.p., 2015. Web. 1 May 2015. . Neville, Simon. "McDonalds Ties Nine out of 10 Workers to Zero-hours Contracts | Business | The Guardian." The Guardian. N.p., 5 Aug. 2013. Web. 1 May 2015. . Rmuse. "NLRB Charges McDonalds With Employee Rights Violations." PoliticusUSA. N.p., 21 Dec. 2014. Web. 1 May 2015. . Welton, Caysey. "McDonald’s Offers Its Employees Budget Tips But They Aren’t ‘Lovin’PR News." PR News. PRnews, 18 July 2013. Web. 1 May 2015. . Zillman, Claire. "Ruling: McDonalds is Responsible for Worker Pay, Treatment." Fortune. N.p., 29 June 2014. Web. 1 May 2015. . Read More