Organizational behaviour defines a broad area of study that explores the impact that various persons, teams as well as organizational structures have on behaviour in an organization. The field aims at evaluating and monitoring behaviour within an organization to identify various ways through which an organization’s operations can be carried out effectively and efficiently (Bansal, 2011). Organizational behaviour equally aims at exploring varying relationships that exist among organizational employees and management. This is a critical field that determines organizational progress based on how individuals and teams interact within the organization. For any organization to achieve significant progress, it must have a deeper understanding of how various individuals and groups interact towards contributing positively to the growth of the organization. This field of study involves a wide range of important topics that include leadership, communication, team building as well as culture (Early, 1997). It is therefore evident that organizational behaviour requires a systematic approach that will enable management to have a deeper understanding of various dynamics that revolve around its organizational human resource. It is equally important for organizations to carry out consistent and comprehensive organizational behaviour analysis due to the rising trends as people from varying cultures and backgrounds are increasingly working in common organizations (Mark, 2006). This paper intends to analyze McDonald’s organizational behaviour in order to analyze how culture, motivational techniques, emotional quotient, nature of authority, communication and virtue elements influence overall behaviour within the larger organization (Royle, 2000).
Organizational behaviour analysis
McDonald’s is a renowned chain of fast food outlets that operate in more than 110 nations across the globe and it has its headquarters in United States. It mainly sells quality hamburgers and other fast food varieties on daily basis to more than 60 million people around the world. McDonald’s owns more than thirty thousand restaurants and has more than 1.71 million employees globally (Early, 1997). Due to its rapid expansion and operations in numerous countries, McDonald’s has employees that share different backgrounds and culture. This company has therefore adopted salad bowl culture that has enabled it to embrace all its employees irrespective of their culture, age, ethnicity, and language. As this company serves numerous customers that have different cultures, it has further integrated this culture to ensure that all the customers get products and services that complement their respective cultures. The company has equally embraced equality and fairness in handling all matters regarding its employees that include remuneration and promotions (Mark, 2006). It has also ensured that there is equal opportunity when employing its staff and this has seen the company employing people from diverse cultures, religions and sexual orientations. This has enabled the company to gain innovative, inventive as well as experienced employees as it adopt a non-discriminatory approach in developing its hiring and retention policies.
This approach further enabled McDonald’s to create an appealing brand that has been accepted at a global scale, and this has greatly enhanced its image to its stakeholders that include employees, customers as well as potential investors (Royle, 2000). The company also allows individual outlets in various nations to manage their employees with respect to their prevailing culture rather than imposing the culture of the home country. McDonald’s has empowered all its employees to work as a team by ensuring that no single manager or employee prevails over others (Bansal, 2011). This has enabled its employees to feel appreciated and accepted in regard to who they are, and as such, they have shown great focus and commitment in pursuit of the company’s objectives. This in return has enabled the company to thrive in numerous countries that have varying cultures as its numerous employees are increasingly becoming more satisfied and loyal (Early, 1997). It is therefore apparent that McDonald’s has gained a lot in embracing various people with respect to their culture, which has enabled it to continue attracting as well as retaining talented and skilled employees while on the other hand creating loyalty to its varying customers.
Communication at McDonald’s is paramount as customers and employees need regular and consistent flow of information and feedback. McDonald’s has employed both verbal and written forms of communication due to its complex nature and great number of employees as well as customers (Bansal, 2011). The company over time developed a well organized and systematic means of communication that has embraced emerging technology in order to lower cost of communication and reach an array of its scattered employees. In recent years, the company has engaged IBM to provide communication software that has enabled employees and management to communicate through social network and this has ensured that communication is quick and consistent. McDonald’s believes in thorough communication channels and means that ensure that all the employees are able to communicate with one another without limitations while delivering quality care to all their clients (Royle, 2000). The company has therefore adopted both formal and informal communication means in order to reach its vast team of franchisees and employees. These channels have therefore enabled the company to increase productivity as all employees and important stakeholders are able to access necessary information whenever needed.
Verbal communication has been rampant among employees working in the same restaurant as they consult one another regarding various decisions that require urgent attention regarding the welfare of the customers. This has therefore improved service delivery to customers as they do not have to wait for a long period of time to iron out a small issue that concerns their welfare. Employees have also gained great responsibility and freedom while working in the company as they are allowed to use the most convenient mode of communication that best suits a particular situation (Mark, 2006). The company has equally used formal communication means that include letters and e-mails to communicate formal information to its employees especially meetings and this has been generally accepted by all stakeholders. There is also a well organized two-way communication between employees and their supervisors, which encourages feedback between the two parties and in return all parties are satisfied with the running of the company.
McDonald’s has adopted a centralized organizational structure that upholds and stresses on recognized social rank in carrying out its operations. Centralized organizational structure usually empowers top management in McDonald’s to make major decisions regarding products, services as well as prices in all the company’s outlets (Royle, 2000). This is due to the fact that McDonald’s aims at providing similar products and services to its customers globally to ensure that its brand and image continue to expand and to impress global population. The company equally engages the top management in making major purchasing and promotional decisions as this is viewed as being both economical and easier way of making the brand popular rather than having each outlet make their own promotional decisions that might be more costly and less effective (Bansal, 2011). This approach of governing McDonald’s enhances quick adoption of common policies and procedures throughout the entire organization, it is bureaucratic and it does not always involve all major stakeholders that include employees (Early, 1997). This nature of authority equally promotes easier coordination and control of the entire business but it reduces motivation and creativity of low ranking managers and employees as their input is not incorporated in the overall decisions. Although this approach has been very successful in the overall achievements of the company, it is negatively affecting low ranking employees as they are left out in decision making.
Motivation is a key factor that has contributed to the rapid growth of McDonald’s and its ever increasing profitability. According to Mark (2006), McDonald’s has largely adopted extrinsic motivational technique, which has greatly motivated employees that in return have shown great focus and commitment to their job. The company has thus ensured that it rewards employees and managers as well as heads of franchises at the end of every month, quarter and year depending on their level of performance. The company has ensured that it awards employees who meet and surpass set targets with lucrative bonuses. McDonald’s has equally set awards for the restaurant of the quarter and of the year and this has made all its restaurants across the globe motivate their employees to give their best to ensure that they win the prize and in so doing they contribute to the overall success of the company (Royle, 2000). The company has equally introduced Ray Kroc Awards that include high perks and other gifts that are offered to the best manager across Europe. This has acted as a great incentive to the managers in the company that are now putting their efforts towards managing their outlets with great enthusiasm and professionalism to win the awards, which subsequently improves the overall fortunes of the larger company (Early, 1997). The company also offers “Champion of the Month Award” that recognizes the best performing employee that is ultimately nominated to participate in the “Employee of the Year Scheme”, which is one of the prestigious awards that attracts huge gifts in the company. While these awards have kept managers and employees motivated in pursuit of achieving and surpassing set targets within the company, it has greatly enhanced competition among the employees and the managers, and this has ultimately contributed to the rising profitability and rapid expansion of the company (Bansal, 2011).
McDonald’s has adopted effective practices in managing employees’ emotional intelligence, which has greatly benefited it as employees that have in return become loyal and committed to the company. The company has strived to ensure those employees’ emotions and personal affairs are positively managed to minimize cases of stress that reduces employees’ productivity (Early, 1997). The company has equally offered opportunities for managers and potential employees to undergo numerous training relating to emotional intelligence quotient. This has therefore equipped many managers and employees with relevant skills that enable them to effectively manage their personal emotions as well as the emotions their fellow employees and ultimately the emotions of their customers. McDonald’s sensitivity to its employees’ emotions has enabled it to implement various policies that include “Family and Friends Contract”. This contract enables employees to cover various shifts for their friends and family members that may not be able to attend duty due to their personal emotions and affairs. This has promoted emotional stability among the company’s employees’ and hence, they have contributed positively to the growth of the organization (Bansal, 2011). The company equally provides working mothers with baby care services that enable them to come to work along with their children, which enables them to be emotionally relieved hence being able to concentrate with their work. Due to the increasingly changing environment and technology, McDonald’s is prompted in providing trainings to its employees as it seeks to eliminate stress that comes with change and as such employees are always contented and pursue their work without fear (Royle, 2000).
McDonald’s has greatly incorporated virtual elements in its operations and this has enabled the company to save costs, improve sales as well as meet customers’ expectations. With rising technology, this organization has embraced video conferencing to aid it in holding meetings with managers and employees (Mark, 2006). This has therefore enabled managers and other employees to have meetings at the comfort of their restaurants without travelling to the main offices that may be situated in distant locations. This has enabled all restaurant managers and employees to save time and costs that would have been impossible if they were to travel to the main offices that are located in far distances. The company has equally implemented Fast Forward Drive-Thru that allows customers to order and be served without alighting their vehicles. This has not only increased sales but has also improved the company’s efficiency in its service delivery to ensure that customers get quality products timely (Early, 1997). McDonald’s has equally utilized online services that enable their customers to place orders at the comfort of their offices after which they can pick them once they are ready. This has greatly increased the company’s sales thereby becoming one of the world’s most admired fast food companies that deliver quality and timely orders to its customers. This in return has enabled managers and employees to enhance their skills in response to the changing working environment that requires effectiveness and efficiency to wade off competition from emerging competitors (Bansal, 2011).
It is evident that organizational behavior is a key aspect that determines how an organization conducts its affairs involving its employees and ultimately how employees interact with one another as well as the entire organization. McDonald’s fast food restaurant is a renowned multinational company that has numerous outlets and employees across the globe. Organizational behavior analysis at McDonald’s is well implemented as the company seeks to create a healthy working environment for all its employees and managers. This has enabled the company to employ extrinsic motivational technique as well as virtual elements that include video conferencing in order to improve employees commitment to their work and as such increase productivity. The company has equally embraced social networking, verbal as well as written forms of communication and this has enabled employees to interact without limitations to foster healthy relationships. The company has adopted salad bowl culture that has promoted diversity while eliminating all form of discriminations that arise due to diversity of people’s culture, religion and ethnicity across its outlets. McDonald’s has also put measures that ensure that employees’ emotions are cared for as it has implemented a system that enables friends and family members to cover shifts for one another. The company has adopted a centralized organizational structure that upholds social rank as the top management decides and implements all major decisions for the entire company. Well managed organizational behavior at McDonald’s has fostered healthy relationships among managers, employees and customers and this has ultimately improved the company profitability and growth.
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Mark, S. (2006). McDonalds in Crisis: A Comparative Analysis in a National Organizational Context, Competition Forum, 4(1): 102-150.
Royle, T. (2000). Working for McDonald’s in Europe: The Unequal Struggle?, London: Routledge.