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