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Organization Change Essay

1531 words - 7 pages

HRM/310

McDonald’s Plans to Change U.S. Structure, by Bob Cramer
Article Summary
McDonald’s Corporation has been going through a series of underperformances over the past three years, mostly marred by unwarranted restaurant outlays and menu changes. This has resulted in a slump in its market share as customers walk away from the fast food giant, often mentioning dissatisfaction in their experiences at their outlets. The company’s management credits this to poor service delivery and the institution of menus that are irrelevant to their target market’s needs. With this observation, the company has taken it upon itself to institute a number of changes to the organization structure it has in ...view middle of the document...

The Types of Changes the Company is going through
Strategic Changes: McDonald’s has opted to go through strategic changes in an effort to win back the loyalty of their customers, which has been on a dwindling trend over the past three years. It plans to do this by instituting changes in the way it attends its customers by having their different stores develop their own menus to satisfy the needs of customers in their immediate locations. This comes after an observation that various regions tend to have preferences for different products.
Structural Changes: The management has also decided to institute changes in the organization structure as regards the way their executives institute policies within their respective stores. This majorly affects the decision-making process that was previously centralized in that the executives had to seek approval to institute changes within their stores. The new model allows them to make such decisions autonomously as long as it works to improve the efficiency of doing business within the store.
Another important inclusion of structural changes adopted by the company is that the managers are now free to analyze the running of their stores’ preferences and determine the number of staff required to keep the store running optimally. This is expected to work by reducing redundancy and confusion when it comes to responsibility allocation. Defining the duties all employees is required to accomplish individually enhances an organized mode of doing business that the company currently lacks, evidenced by the number of internal complaints.
Customer-Centric Changes: According to their mission statement, the McDonald’s Brand exists to be their customers’ favorite place and way to eat and drink, through providing exceptional customer experience (McDonald’s, 2014). It has failed considerably in living up to this as among the main complaints customers have against the company is the quality of their food and the service they get at their stores. The changes made here will result in the preparation of a menu customized to meet the customers’ individual preferences.
Reason for Change
According to Mike Andres, McDonald’s US President, the current structure in the US is not optimized for the customer (Jargon, 2014). The initial reason for the changes is therefore to make sure that the company aligns its operations and business structure to suit the requirements of the customer. This is in respect to the fact that their departure will mean the closure of business for the company, a factor that the organization is clearly against, based on the appointment of the new president two months ago. The company was also consequently losing their market share to the competition, profitability and market capitalization, something that the shareholders would obviously not be pleased to hear. These individuals keep the company afloat and their sole purpose in their relation to the company is to reap from their returns on investment.
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