One of the most important aspects in a business leadership is the organizing function of management. The organization of management can basically make or break a business project. It is very important for the management of a business to be well trained in all function of a business not just the organization part. However, many business owners do not spend enough time looking at the organization function of its business.
The organization function of management can have many impacts on the many levels of business operations. To begin with, the organizing function of management addresses how people in the organization will be working together as a team: who will be reporting to who, the organizational chart, and the order of authority. All are aspects of personnel management and organization and fall within the organization function of management.
Another theme that is also considered part of the organizing function of management is financial planning and budgeting. The organizations personnel need to be informed about the ins and outs of the budgeting process for their company. The personnel needs to understand the spending and the priorities to the budget in order for the employees to best understand how to distribute the company’s resources to ensure maximum profit in the end. In this paper an evaluation of the organizing function of management in relation to organizational resources will be made and will be assessed in relation to an organization, such as McDonald’s.
McDonalds Corporation The world’s largest fast food chain serving hamburgers is McDonalds. McDonalds serves more than 58 million customers on a daily basis. McDonald’s restaurants worldwide are owned and operated by independent local men and women (McDonalds, 2010). McDonald’s is home to the Big Mac, Quarter Pounder, Chicken McNuggets, Egg McMuffin and of course to those world famous fries (McDonalds, 2010), which are some of America’s favorite foods.
McDonald’s Organization Structure Just like many companies, McDonald’s has a vertical structure in which the organization has board of directors, a CEO and top management team (Bateman & Snell, 2009). McDonald’s operations have been aligned around global strategy called “Plan to Win”. “Plan to Win” focuses on the five basics of an exceptional customer experience: people, products, place, price and promotion. McDonald’s is committed to improve their operations and make their customers’ experience a much better one (McDonalds, 2010). In the 1990’s, their slogan was “food, folks, and fun”, but even though the slogan has changed many times the motto has not.
McDonald’s Physical Assets McDonalds is known for being a child friendly fast food restaurant, having bright colors and a big indoor playground. Having those bright colors and big playgrounds attracts children and the children take their parents. The environment of a typical McDonald’s restaurant is clean to offer those famous hamburgers in which they are widely known for. The company’s strategic goal is to increase their globalization by making their franchise bigger. In 2009, McDonald’s announced that they planned on investing $2.1 billion to open more McDonald’s restaurants in Europe, U.S. and in Asia. About two-thirds of sales made outside the U.S. McDonald’s and about two-thirds are managed by owner-operated franchises (McDonalds, 2010). The franchises are put in place so that all McDonald’s operate parallel with each other, meaning operating the same or similar to other McDonald’s restaurants. McDonald’s is now found everywhere giving the restaurant chain an advantage.
McDonald’s Human Resources Human resource is the department in an organization which staff and operates an organization, such as employees, staff, personnel. It is also the department in charge of implementing strategies and policies relating to its employees. In McDonald’s, the human resource department places a huge emphasis on the training and development to all of its employees. The fast food chain offers both full and part-time career opportunities which help the staff to combine work, family, and or education. The employees at McDonalds fall into three categories: restaurant workers, corporate staff, and franchise owner. One McDonald’s restaurant usually employs between 50-60 people. The restaurants crew members are entry-level workers and are the most numerous and about three-quarters are part-time employees. After the crew, the fist managerial position is the swing manager then the assistant manager and the restaurant managers, which all McDonald’s restaurant should have at least one. Workers training are highly structured and the training consist of on-the-job training and each level above the crew has a new training program. Each restaurant has its own video and training room. The videos cover every detail of the restaurant from how it operates to everything from how to make a Big Mac to how to make a shake.
McDonald’s Technology In the past years technology has been growing intensely and technology is now playing a huge role in McDonald’s plans to get more customers to its restaurants as well as having customer save more and operate efficiently throughout its stores. McDonalds everywhere are introducing new things to their store. Recently McDonald’s got together with AT&T to offer WiFi to McDonalds customer for free. Not only are McDonald’s restaurants offering free WiFi to its customers, but many now have flat screen television, video game consoles, and music videos in their stores. “It’s about offering customers more choice and making the restaurant more relevant,” Steve Tiley, McDonald’s head of management information system told Computing. Tiley also added by saying that no one thing will attract customer, but offering healthier food options, entertainment and internet access, people will begin choosing McDonald’s over other restaurants. McDonald’s wants to attract business users to come to McDonalds have a meal and use their laptop to check their e-mail or conduct business there.
Conclusion
In conclusion, McDonald’s restaurants run in a vertical organizational structure in which they have a board of directors, CEO and a top management team. Along with their organizational structure and using its resources to its advantage like its physical assets, human resources and technology, McDonald’s has been a more effective and efficient business. McDonald’s is the number one fast food chain all over the world meaning they must be doing what they are doing right. The restaurant keeps opening new restaurant and adding more to both their menu and locations making it the place to go for all types of people: from the health oriented to a couple with kids to a business owner.
References
Bateman, T. S., & Snell, S. A. (2009). Management: Leading & Collaborating in a Competitive
World (8th ed.). : McGraw-Hill.
McDonalds. (2010). About McDonald 's. Retrieved from http://www.aboutmcdonalds.com/mcd
Thomas, D. (2004, February 11). McDonald 's offers customer a bigger taste of technology.
Computing. Retrieved from http://www.computing.co.uk/computing/analysis/2075881/mcdonald-offers-customers-bigger-taste-technology
References: Bateman, T. S., & Snell, S. A. (2009). Management: Leading & Collaborating in a Competitive World (8th ed.). : McGraw-Hill. McDonalds. (2010). About McDonald 's. Retrieved from http://www.aboutmcdonalds.com/mcd Thomas, D. (2004, February 11). McDonald 's offers customer a bigger taste of technology. Computing. Retrieved from http://www.computing.co.uk/computing/analysis/2075881/mcdonald-offers-customers-bigger-taste-technology
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