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McDonald’s
Presented By:Chandra MacIntosh
Julia SpriggsLawrence MacPherson
Shane O’Brien
Structure, Strategy & Motivation
Outline
IntroductionBrief BackgroundStructure & StrategyMotivationConclusion
Introduction
Multinational Corporation 31,000 restaurants in 119
countries Employs over 1.5 million
people The majority of employees are
part time
Serving over 64 million people every day
Current President and CEO John Betts
Background Story In 1937 Patrick MacDonald opened “The Airdome”
restaurant in California In 1940, his two sons, Maurice and Richard (Mac &
Dick) moved the whole restaurant 40km down the road and renamed it, “McDonald’s”
In 1955, Ray Kroc joined McDonald’s and began franchising the restaurant
Mac & Dick MacDonald
Continued
In 1961, the MacDonald brothers sold business rights to Ray Kroc for $2.7 million.
The first Canadian McDonald’s opened in Richmond, BC in 1967
Ray Kroc
Building your Structure
What is the perfect structure for an organization?
“Depends on many factors particular to the organization”
Mintzberg’s Roles
McDonalds has modified to be better suited for their workplace
Technological support = Op. Core
Support Staff = Middle line
Strategy“ an activity that top
leaders perform in order to accomplish an organizational goal”
Tailored by their motivation for high profits.
At a high level (CEO’s)
Structure
Different rewards for each levelAfter finishing training and earning
experience allows you to apply for different awards
Motivates Frontline
Taylor’s Scientific Management Theory
Employees feel they are an “extension of the company”
Accused of “cannibalizing” their own system
Most part time jobs are very automated, routinized, and de-skilled
Frederick Taylor
Goal Setting Theory
“People will work harder when they have clear goals that are agreed upon”
Goals should be S.M.A.R.T.– Specific, Measurable, Attainable,
Realistic, TimelyAchieving goals increases
confidence and in turn, motivation
Managerial Implications: Job Design
Job enlargement: added tasksJob enrichment: added responsibilitiesJob rotation: experiencing different jobsGiving employees room for growth in
and outside of the company McDonald’s has many positions and
levels of authority
Managerial Implications: Rewards
People will work harder if they feel they are getting something back form what they put in
Wage raises, health benefits, vacation pay, promotion
Positive feedback
Conclusion
McDonald’s created their structure according to their own specific needs
McDonald’s employees are highly motivated by the varying positions available and opportunities to move up the corporate ladder
Questions