Discuss About The Oxford Industrial Organizational Psychology.
In the modern times it has become essential for the organisation in business to look at the environment they are facing so as to make sure that they achieve higher growth. In this process the role of top leadership becomes very crucial. McDonald is a bigger firm and hence being CEO of the company in Australia has to deal with any kinds of strategic and day to day challenges (Barreto, et al., 2015). It is the skills of his that helps in reducing the business. This report highlights the organisational history of the company as well as the purpose and values of the company. It also illustrates the role of Andrew Gregory as well as the skills of his that encourages innovation, customer service and sustainability as well as the roles that is played by him in various aspects of the business.
McDonald’s is one of the biggest fast food firms in Australia. It was founded back in the year 1940 where it operated as a restaurant operated by Maurice and Richard McDonald in Bernardino, California, united states. They started their business as a hamburger stand. The major expansion of its business started in the year 1955 where the businessman named Ray Kroc joined the franchise agent and begin to purchase the chain from brothers (Schaper and Buchan, 2014).
In the present time it is the largest restaurant chain in the world in term of revenue. It is operating with around 36,900 outlets where it is serving more than 69 million consumers in approx. 100 nations. This firm is famous for its hamburgers but it sells many other types of products through its outlets like soft drinks, ice-creams, French fries, cheese burgers etc. McDonald in the present time is the second largest employer with approx. 375,000 employees working in all their outlets including its franchises. Its official mascot was “Speedee” which got changed to golden arches in the year 1962
The major purpose of the cited firm is to serve their clients in the best possible environment and hence achieving higher consumer satisfaction as well as ensuring higher growth rate. On the other hand the values of the organisation includes the placing consumers interest at the centre of their business, strong commitment to their employees by nurturing the skills and talents and providing rewards to them for their achievements, maintaining standards in their business conduct as well as looking for the community for which they are serving (Lamb, et al., 2015).
Organisational structure of the McDonald’s is hierarchical. At the top of the table is the president or the chairman under whom there is CEO. Chief supply chain and Sustainability officer is under the CEO. Under them lies executive vice president chief people officer. Apart from this there are many other executives who are making at the top. Under the executives there are many zone managers, under them lies regional managers. Under these there are managers of various departments like the market, operational and regional human resource managers. Below them lie franchisers and supervisors. Below them lies a store manager under them laid shift managers who manage crow persons.
They have defined their organisational structure in such a manner that each and every person sitting at any particular level has some or the other roles (Jankauskaite, 2016). As it is a multinational firm in so many countries hence this organisational structure suits them. This helps the organisation in solving the problems they face in their operations. Since they have clearly defined their organisational structure hence no confusion remains in the minds of the employees regarding their roles. People at McDonald’s abide by the rules and regulation that company has made for itself hence they help in effective management of the resources which help in achieving the objectives of the firm. They train their employees in such a manner that they become capable of meeting their purpose of serving the client in the best possible manner
There are various roles and activities of the CEO Australia, Andrew Gregory (Rollins, 2014). Some of them are as follows:
These roles are from the assistant managers at the restaurant as he takes the decisions of strategic importance while the managers at the restaurant is only responsible for managing the day to day operations (Financial review,2014). Andrew has to focus on the long term goals of the company while the managers at the restaurant have to think about short term or daily goals.
According to the case study, Andrew Gregory, the CEO of the organization has adopted several strategies to foster the profitability of the organization. He has adopted a humanitarian leadership style and gives the wellbeing of employees’ utmost priority. The company motivates the top performers through reward and recognition. McDonalds has made its employees its strength, which has assisted the company in delivering excellent customer service (Zohar, & Hofmann, 2012). The company realizes that even in the eyes of customers, it should provide excellent benefits to the employees. The company has designed incentive-based remuneration structure in which the organization recognizes the top performers of the company. The CEO also realizes that today, several competitors are giving tough competition to McDonalds Australia. Therefore, it has developed innovation strategy, so that it can remain ahead of the competition (Acar&Acar, 2014). The company has designed a digital marketing strategy, through which it remains connected to the customers. The company receives feedback and makes the customer aware of the new schemes and discounts. The company has collaborated with Paypal, American Express and other companies to make the payment easier for the customers. McDonalds has established a recognition program in which the innovators and major contributors of the organization are recognized at a national level. The company realizes that recognition at abroad level motivates the employees to perform in a better manner. The leadership has created a positive organization culture, which gives importance to sustainability (Kincheloe, 2002). The employees are motivated to behave in a responsible manner. They are given regular training for efficient workplace practices and waste management techniques. It has assisted the organization in developing a positive environment in the organization
Andrew Gregory would be playing the role of management such as controlling profitability, overseeing sales, optimising restaurant management and team management in different stores. These management roles would be effective for him to make strengthening within the team which will enhance the productivity of the employees as well as the organization. It has been found from the case study that Andrew is focused towards building an effective culture where teamwork is considered as central. It has been evaluated from the case study that there are 300 franchisees and approx 9000 suppliers in McDonalds to provide the quality services to the customers. Andrew Gregory would be playing interpersonal roles because it entails three roles in it such as the figurehead, the leader and the liaison. This role would be helpful for him to perform ceremonial duties which increase the interaction between employee and employer. As it has been analysed that Andrew Gregory has weekly conferences with his management team but interpersonal role as a leader of him would increase motivation among employees (Mintzberg, 2013).
McDonalds has effective menu for its restaurant which approach a large audience of Australia. It provides vegetarian as well as non-vegetarian food in its menu which is liked by people. the change or add on is necessary for every restaurant as it is well known restaurant all over the world so it is required for it to add on some changes in menu for brining different taste and customers for the company. Healthy options are implemented in McDonalds such as Salads and wraps. Andrew would be playing information role of management to provide the efficient knowledge about information to the employee in making changes in menu. This role covers the monitor, disseminator and the spokesperson. The aspect of monitor in the role would scan the environment for latest information. The disseminator of information role of management would providing on advantaged information to the subordinates so that they can start to work on it after getting training of how to make and serve (Nadolny and Ryan, 2015).
Organization’s commitment is essential for the employees as it help to work with employees for the long time and maintain the good relationship with customers as well. Andrew Gregory would be playing decisional roles as an entrepreneur, resource allocator, and negotiator and disturbance handler. The role of entrepreneur would improve the unit of the restaurant through implementing the projects. As a resource allocator he would allocate the responsibilities as per the job profile so that confusion in working cannot be made. The negotiator will be committing about the resources of organization in real time with the huge information (Burstein, Sohal, Zyngier and Sohal, 2010).
In that manner, Andrew would be able to manage the management of McDonalds in effective manner in which he has to adapt the different management roles for different conditions
The approaches of Andrew Gregory and McDonalds are not compatible with any other restaurants and other managers can learn from them how to operate restaurant with more than 9000 employee worldwide. It is quiet hard to manage the entire organization in an adequate manner without conflicts and it has been doing by effective organizational structure of McDonalds which is followed by each employees of the organization (Wright, Frazer and Merrilees, 2007).
There is a huge difference in being a CEO at McDonald’s and being a CEO at non-profitable organization. The aim of non-profitable organization is to make healthy society in which Company is not focused towards profits. On the other hand, the aim of McDonalds is to satisfy the customers by providing quality services in food which is helpful to increase the revenues of the restaurant. Non-profit organization is exempt from income taxes as it has not to pay taxes to the government while profit organizations as McDonalds has to pay tax which should be done by CEO of the company. Being a CEO at McDonald Australia, activities would be comprised under production, marketing of goods and services while the activities of CEO of non-profit organization is providing social services, educational services, cultural services and religious (Carver, 2011).
Conclusion
It has been concluded the role of the management is important in every organization; it is the assignment which has been made on case study of managing McDonald’s Australia. The organizational structure and the role of Andrew Gregory as a CEO of McDonald’s Australia have been mentioned. Overall, the description has been given on how to manage McDonald’s Australia in an effective manner by the CEO of the restaurant.
References
Acar, A., & Acar, P., 2014. Organizational culture types and their effects on organizational performance in Turkish hospitals. Emerging Markets Journal, 3(3), 18.
Barreto, P.M., Bortolotti, S., Murray, M., Porzio, C. and Simons, J., (2015). Good Faith in Franchising. Int’l J. Franchising L., 13, p.17.
Burstein, F., Sohal, S., Zyngier, S. and Sohal, A.S., 2010. Understanding of knowledge management roles and responsibilities: a study in the Australian context. Knowledge Management Research & Practice, 8(1), pp.76-88.
Carver, J., 2011. Boards that make a difference: A new design for leadership in nonprofit and public organizations (Vol. 6). John Wiley & Sons.
Financial review, 2014. MacDonald’s replaces Catriona Noble with Andrew Gregory. [Online]. Available at: https://www.afr.com/business/mcdonalds-replaces-catriona-noble-with-andrew-gregory-20140407-ix7gu. [Accessed on: 20 April 2018].
Jankauskaite, D., 2016. A case study of user generated content on the collaboration of McDonalds and Olympic games on Twitter. International Journal on Global Business Management & Research, 5(1), p.31.
Kincheloe, J. L., 2002. The Sign of the Burger: McDonald’s and the Culture of Power (Vol. 27). Temple University Press.
Lamb, K.E., Thornton, L., Cerin, E. and Ball, K., 2015. Equity of access to fast food outlets in Victoria, Australia: a comparison of statistical methods. In Annual Meeting of the International Society for Behavioral Nutrition & Physical Activity, ISBNPA 2015. ISBNPA 2015..
Mintzberg, H., 2013. Simply managing: What managers do—and can do better. Berrett-Koehler Publishers.
Mitchell, S. 2014. McDonald’s replaces Catriona Noble with Andrew Gregory. Available at: https://www.afr.com/business/mcdonalds-replaces-catriona-noble-with-andrew-gregory-20140407-ix7gu. Accessed on 20th April, 2018.
Nadolny, A. and Ryan, S., 2015. McUniversities revisited: a comparison of university and McDonald’s casual employee experiences in Australia. Studies in Higher Education, 40(1), pp.142-157.
Rollins, A., 2014. McDonald’s home delivers Mac-attack as sales slump. Australian Medicine, 26(18), p.29.
Schaper, M.T. and Buchan, J. 2014. Franchising in Australia: A History. Int’l J. Franchising L., 12, p.3.
Wright, O., Frazer, L. and Merrilees, B., 2007. McCafe: The McDonald’s co-branding experience. Journal of Brand Management, 14(6), pp.442-457.
Zohar, D., & Hofmann, D. A., 2012. Organizational culture and climate. Oxford handbook of industrial and organizational psychology, 1, 643-66.
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