McDonald’s organizational systems and sub systems Essay Example
McDonald’s organizational systems and sub systems Essay Example

McDonald’s organizational systems and sub systems Essay Example

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  • Pages: 8 (2035 words)
  • Published: December 24, 2017
  • Type: Case Study
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A system is asset of objects that interrelate with each other to form a whole. It composed of objects called subsystems. System theorists adopt a perspective when they focus on the entire system all the while understanding that the organization is composed of subsystems that are connected together in various ways.

Subsystems are useful components for isolating and evaluating functional and dysfunctional characteristics of a system.

Production or technical subsystems. Production is concerned with transforming resources into a "product" or output. It is possible to categorize organizations by what they produce. McDonald's, Wendy's, Hardee's, and Sonic produce hamburgers. So, every organization has a production or a technical subsystem that is responsible for the organization's product or output.

Supportive subsystem. The supportive subsystem provides a boundary-spanning function for the organization; it is a link with external environments. Support


ive subsystems are responsible for the acquisition and disposal of resources and products.

A restaurant is a good example of the importance of maintenance subsystems. The whole dining experience is heavily influenced by the servers that come into direct contact with customers. A restaurant can serve wonderful food at a very competitive price. However, if the service is slow or unskilled, then customers find it all too easy to dine elsewhere. One of the keys to successful restaurant management is collecting and maintaining a wait staff that cultivates and maintains a positive and enjoyable relationship with customers. The maintenance subsystem is charged with this responsibility.

Adaptive subsystem. Adaptive subsystems interface with all other subsystems by providing information and intelligence required for change or adaptation. For example, market researchers evaluate consumer needs. This information is used to improve a current product or service or creat

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a new one to meet customer needs. Employee relations professionals constantly monitor employee satisfaction levels and endeavor to make adjustments that will enhance the everyone's quality of work life. Industrial engineers continually measure and evaluate production processes in an effort to improve efficiency. Continual monitoring of internal and external conditions is necessary to facilitate organizational development and adaptation while increasing the likelihood of long-run survival.

Managerial subsystem. The managerial subsystem directs, coordinates, and adjusts functioning of the other subsystems to facilitate short, intermediate, and long-run goal achievement. This regulative and adjustment activity is largely achieved through effectively managed communication. Managers develop methods for gathering information about the operation of various subsystems, symbolize their conclusions with others during problem-solving sessions, and communicate directions for adjustment to specific persons across the subsystems.

McDonalds organization start as single fast food restarted. They manganese were just few number of staff, This Case Study looks at how McDonald's, the world's largest and fastest growing global restaurant chain; uses recruitment and training policies with practices that are designed to attract, identify, develop and retain the high caliber of staff its line of business requires.

McDonald's opened its first UK restaurant October 1974. In December 2004, there were over 1330 McDonald's restaurants operating in the UK. Around 60% of these are owned and operated by the company. The remainder are operated by franchisees.

McDonald's is a large scale employer. In September 2004 in the UK the company-owned restaurants employed 43,491 people: 40,699 hourly-paid restaurant employees, 2,292 restaurant management, and 500 office staff. McDonald's franchisees employed a further 25,000 people.

A typical McDonald's restaurant employs about 60 people. Most employees are paid by the hour and are referred

to as 'crew members'. Their primary responsibility is to prepare the food, serve customers and carry out tasks for the efficient running of the restaurants.

Other hourly-paid employees who work alongside them include Training Squad Members, Dining Area Host/eases, Party Entertainers, Administrative Assistants, Security Co-coordinators, Maintenance Staff, Night Closers, Floor Managers and Shift Running Floor Managers. These employees carry out more specific job functions. Their overall role, however, is to ensure the restaurant runs efficiently.The remaining restaurant-based employees are salaried managers. It is their responsibility to manage the restaurant's operations, crew and business performance.Each McDonald's restaurant is structured as an independent business, with restaurant management responsible for accounting, operations, inventory control, community relations, training and human resources.


Its 30,000 franchised branches in prime sites in over 120 countries makes it a living symbol of the US abroad. And the golden arches of McDonald's often inspire great support and animosity. in a country as a marker of middle-class affluence and aspiration, a sign of economic efficiency and improved infrastructure, and an index of social progress with orderly queues, clean washrooms and happy Its defenders, usually on the right, point to the arrival of McDonald's children

Efficiency: McDonald's franchisees follow extensive rules and Standard Operating Procedures (SOPs). Work is divided between chefs and food servers to maximize food production and customer service. The McDonald's "Made For You" customized cooking platform2 ensures efficient, consistent production of a variety of foods.

Quality: McDonald's ensures quality in its products through extensive SOPs and the use of backward vertical integration when needed. Regulated cooking procedures and training ensures high-quality food, whether you're in America or in Russia. It incorporates rigorous quality control procedures, monitors its

franchisees, and retains ownership of restaurants along US interstates in order to maintain quality and continued positive brand recognition. Few customers have bad experiences and most retain strong brand loyalty.

Innovation: McDonald's recent innovations include the New Tastes Menu (40-item rolling menu) and Mighty Kids Meals (preteen version of the Happy Meal). In an attempt to expand beyond the hamburger market, McDonald's has acquired 156 Donato's Pizza stores, 700 Boston Market stores, 100 United Kingdom Pret A Manger sandwich stores, and 41 United Kingdom Aroma Caf� stores. Quantum technological changes in its production principles allow it to continually improve the flavor and texture of its food products. McDonald's is initiating electronic payment options and has ventured into Internet commerce.

Customer Responsiveness: McDonald's has maintained the core values of founder Ray Kroc: cleanliness and customer service. It employs a multi-domestic strategy and company managers go to great lengths to ensure their perceptions of a country's culture and tastes in food are accurate. McDonald's anticipates customers' preferences and needs and quickly meets those needs. It sells toys tied to current entertainment markets in its kids' and preteens' meals to ensure brand loyalty in its ownership of the youth market. It satisfies customer preference for a wide variety of options by providing many different types of foods, including beef, chicken, fish, pork, eggs, breakfast foods, fries, salad, juice, soda, desserts, ice cream, and more.

Summary: McDonald's has achieved positive brand loyalty and recognition by keeping the quality of its products and franchises globally consistent. It has achieved market focus and competitive advantage by remaining true to founder Ray Kroc's QSC&V (quality, service, cleanliness, and value for money) core values. It is

committed to growth through great tasting food, superior service, everyday value and convenience and has become the segment leader recognized as the largest and best-known global foodservice retailer. It has focused on a single concentration corporate strategy combined with low-cost and multi-domestic strategies to best serve its customers. The vast number of successful franchises denotes the efficiency of McDonald's management, organizational model, site development expertise, and advanced operational systems. McDonald's Hamburger University has gained a reputation as a training academy that produces experienced managers. Ronald McDonald ranks second to Santa Claus in global popularity.


You can smell Greeley, Colorado, long before you can see it. The smell is hard to forget but not easy to describe, a combination of live animals, manure and dead animals being rendered into dog food. The smell is worst during the summer months, hanging heavy in the warm air, almost assuming a physical presence, blanketing Greeley day and night. Some people who live there no longer notice the smell; it recedes into the background, present but not present, like the sound of traffic for most New Yorkers. Others can't stop thinking about the smell, even after years; it permeates everything, sickens them, interferes with their sleep. Greeley is a factory town, one where cattle are the units of production.

Monfort Inc., "The Complete Meat Company," runs a beef slaughterhouse, a sheep slaughterhouse and processing plants a few miles north of Greeley. To supply the beef slaughterhouse, Monfort operates two of the nation's largest feedlots, which together hold up to 200,000 head of cattle. One of the feedlots stretches for almost two miles along Highway 35. At times, the animals are crowded so

closely together that it looks like a Woodstock Festival for cattle, a moving mass of animals that goes on for acres. At feeding time, the cattle don't eat blue grama and buffalo grass off the prairie; during the three months before slaughter, they eat surplus grain dumped into long concrete troughs that resemble highway dividers. The grain fattens the cattle more rapidly than grass would. Almost two-thirds of the grain produced in the U.S. is now used to feed livestock, mainly cattle.

A typical steer will consume about two tons of grain during its stay at a feedlot, just to gain 400 pounds in weight. The process involves a fair amount of waste. Each steer deposits about fifty pounds of manure every day. The two feedlots outside Greeley produced more excrement last year than the populations of Denver, Boston, Atlanta and St. Louis -- combined.

The way MacDonald transform beef is to bring dozens of cows and kill htem , then they go through process . at the end or the output will be beef to be used for habrguers.

Americans spend $110 billion a year on fatty, sugary fast food, more than they do on films, videos, books, magazines, newspapers and music combined.

Nearly two thirds of Americans are now overweight, and the US Surgeon General says 300,000 Americans die each year of obesity.

As fast food chains spread through Europe and Asia on a rising tide of affluence, people got fatter in those countries. It is called , "globosity" by the World Health Organization (WHO).

In 1995, the WHO estimates there were 200 million adults and another 18 million under-five children classified as overweight. By 2000 the number of

obese adults had risen to 300 million.


4. What are some of McDonald's marking process innovations?

The importance of recruitment, and creativity and innovations comes first with McDonalds. They have used Tec logy to update their process.

For McDonald's, people are its most important asset. This is because customer satisfaction begins with the attitudes and abilities of employees and committed, effective workers are the best route to success. For these reasons, McDonald's strives to attract and hire the best, and to provide the best place to work.

All businesses experience staff turnover for various reasons e.g. career change, leaving the area, returning to education, a new opportunity elsewhere. Recruiting and training staff is very expensive and businesses will look to keep staff turnover to a minimum. One way of doing this is to 'choose wisely, and treat well'.

McDonald's needs people who want to excel in delivering outstanding service. To ensure the company recruits the right people, it has identified essential skills and behaviors that applicants should be able to demonstrate. For each position there is a job description outlining typical duties and responsibilities and a person specification defining personal skills and competences.

1- McDonald's case overview


Mired in a price war and escalating domestic competition in 1993, McDonald's sought to create new customer value by re-inventing its core restaurant systems -- service at the front counter and drive-thru, and the basic kitchen processes involved in producing its menu. The objective was to create a competitive advantage via delivering better experiences, including better food.

What we did

From extensive video research into customer and crew behaviors, we helped McDonald's develop a simple but powerful model of customers' expectations and frustrations as they visited McDonald's.

We used this model to create design principles that drove scores of infrastructure and process innovations both at the counter and in the drive-thru process. Then, having established customer requirements for product and service quality, we analyzed kitchen processes, revealing an underlying structure that McDonald's Restaurant Systems Group used to fundamentally re-invent their approach to food production.

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