ORGANISATIONAL DESIGN AND CULTURE

MEANING OF ORGANIZATIONAL DESIGN:

Organizational design is the way an organization is to be structured and operated by its
members. It is both a plan and process, Theories & Principles. The manner in which
a management achieves the right combination of differentiation and integration of
the organization's operations, in response to the level of uncertainty in its external
environment.

NEED and SIGNIFICANCE OF ORGANISATIONAL DESIGN:

1. Division of work:
A good organizational design facilitates division of work among individuals and departments.
Division of work leads to specialization. It results in improvement in quality, increase in
quantity, and reduction in costs. Specialization also leads to innovation.

2. co-ordination:
A sound organizational design helps in proper co-ordination of activities among individuals and
departments. It enables systematic co-ordination between:
Top level management and middle level management
Middle level management and lower level management
Lower level management and their subordinates.

3. Fixation of responsibility:
organizational design enables fix responsibility on each and every department. It fixes clear
responsibility on the superior and subordinates. There is no scope for shifting responsibility on
account of failure.

4. Planning and Control:
a good organizational design facilitates effective planning, supervision and control of activities.
The superior can plan the activities of his subordinates well in advance and can very well
supervise and control their activities.

5. Relationships:
a sound organizational design results developing and maintaining good relations between:
Superiors and subordinates
Superiors and superiors.
Subordinates and subordinates.



6. Reduction in wastages:
Organizational design reduces wastages. Due to clarify of responsibility, the subordinates work
with greater care and concentration.

7. Optimum Use of Resources:
A well-defined organizational design facilitates optimum use of organizational resources,as :
Physical resources
Financial resources
Human resources

8. Team spirit:
The superior and the subordinate work together a team in order to get the work done. This
often results in his productivity and efficiency.




TYPES OF ORGANISATIONAL DESIGN

TRADITIONAL ORGANISATIONAL DESIGNS:
1. Functional design
2. Place design
3. Product design
4. Multidivisional design

CONTEMPORARY ORGANISATION DESIGNS:
1. Multinational Design
2. Network Design
3. Virtual Organisation















CONCEPT OF ORGANISATIONAL STRUCTURE

An organizational structure defines how activities such as task allocation, coordination and
supervision are directed towards the achievement of organizational aims. It can also be
considered as the viewing glass or perspective through which individuals see their organization
and its environment.
Organizations are a variant of clustered entities An organization can be structured in many
different ways, depending on their objectives. The structure of an organization will determine
the modes in which it operates and performs.
Organizational structure allows the expressed allocation of responsibilities for different
functions and processes to different entities such as
the branch, department, workgroup and individual.
Organizational structure affects organizational action in two big ways. First, it provides the
foundation on which standard operating procedures and routines rest. Second, it determines
which individuals get to participate in which decision-making processes, and thus to what
extent their views shape the organizations actions.
The
typically hierarchical arrangement of lines of authority, communications, rights and duties
of an organization. Organizational structure determines how
the roles, power and responsibilities are assigned, controlled, and coordinated, and
how information flows between the different levels of management.
A structure depends on the organization's objectives and strategy. In a centralized structure,
the top layer of management has most of the decision making power and has
tight control over departments and divisions. In a decentralized structure, the decision
making power is distributed and the departments and divisions may have different degrees of
independence. A company such as Proctor & Gamble that sells multiple products may
organize their structure so that groups are divided according to each product and depending
on geographical area as well.


generally, the organizational structure refers to the following:
1. Pattern of Relationships:
The organization structure is based on the pattern of relationships among the people
working in an organization.The relationships include, superior and subordinate
relationships, the relationships between levels, and the relationships between
departments. Such relationships are shown in the organization charts and in the job
descriptions.
2. Duties and Positions:
The organization structure is also based on the duties and positions of individuals and
departments in the organization. The duties and positions are also depicted in the
organization charts and in the job description or position guides.
3. Existence for a purpose:
Every organization has a definite purpose or goal to achieve. The relationships and
duties in the organization are created in order to achieve the goals. Without definite
goals, organization structure serves no purpose.
4. Two Dimensions:
The formal organization structure of an organization has two dimensions-i.e., horizontal
and vertical.
Horizontal dimenstions depicts the various departments
Vertical dimension depicts the hierarchy of authority from the top level to the
lower level.

Traditional Organisational Structures
Line organizational structure
Functional Organisation Structure
Line and Staff Organisation Structure.


LINE ORGANISATIONAL STRUCTURE:
This is the simplest and oldest form of internal organization. It is sometimes referred to as
scalar organization or military type of organization.
In this type, direct lines of authority flow from top to bottom of the organisations hierarchy.
The line of authority is straight and vertical. All major decisions taken and orders given by top
management are passed down to their immediate subordinates, who in turn do the same.

CHARACTIRISTICS OF LINE ORGANIZATION:
1. There is direct flow of authority from top management down to the successive levels.
2. Responsibility flows upward.
3. There is direct vertical relationship.
4. Everyone in the organization reports to only one superior.
5. Managers have complete authority in their areas of operations.
6. The principles of scalar chain and unity of command are strictly observed.
7. There is no staff relationship.
8. All persons on the same level are independent of each other.

ADVANTAGES OF LINE ORGANISATION:
1. Simplicity: this is the simplest and oldest form of internal organization. It is easy to
understand.
2. Quick decision making: Decisions can be made as quickly as possible, as managers need not
consult any staff or advisors.
3. Discipline: because of unity of command, there is adherence to strong discipline. Everyone
is aware of the superior to whom they must report.
4. Clear definition of authority: the authority, duties and responsibility of each and every
executive is clearly defined, so conflicts in their powers is avoided.
5. Easier supervision and control: due to direct chain of command, there is direct and close
relation between superior and subordinate and as such supervision and control becomes
easy.
6. Co-ordination: due to unification of control, there is greater scope for effective co-
ordination.
7. Development: it develops all-round officers who are qualified to take even higher positions
as and when opportunities arise.
8. Flexibility: this system is capable of adjusting itself to changing conditions for the simple
reason that each executive has the sole responsibility in his own area.
Functional structure:
A functional organizational structure is a structure that consists of activities such as
coordination, supervision and task allocation. The organizational structure determines how
the organization performs or operates. The term organizational structure refers to how the
people in an organization are grouped and to whom they report. One traditional way of
organizing people is by function. Some common functions within an organization include
production, marketing, human resources, and accounting.
This organizing of specialization leads to operational efficiency where employees become
specialists within their own realm of expertise. The most typical problem with a functional
organizational structure is however that communication within the company can be rather
rigid, making the organization slow and inflexible. Therefore, lateral communication
between functions becomes very important, so that information is disseminated, not only
vertically, but also horizontally within the organization. Communication in organizations
with functional organizational structures can be rigid because of the standardized ways of
operation and the high degree of formalization.
As a whole, a functional organization is best suited as a producer of standardized goods
and services at large volume and low cost. Coordination and specialization of tasks are
centralized in a functional structure, which makes producing a limited amount of products
or services efficient and predictable. Moreover, efficiencies can further be realized as
functional organizations integrate their activities vertically so that products are sold and
distributed quickly and at low cost. For instance, a small business could make components
used in production of its products instead of buying them.
Even though functional units often perform with a high level of efficiency, their level of
cooperation with each other is sometimes compromised. Such groups may have difficulty
working well with each other as they may be territorial and unwilling to cooperate. The
occurrence of infighting among units may cause delays, reduced commitment due to
competing interests, and wasted time, making projects fall behind schedule. This
ultimately can bring down production levels overall, and the company-wide employee
commitment toward meeting organizational goals.


Matrix structure
The matrix structure groups employees by both function and product. This structure can
combine the best of both separate structures. A matrix organization frequently uses teams of
employees to accomplish work, in order to take advantage of the strengths, as well as make up
for the weaknesses, of functional and decentralized forms. An example would be a company
that produces two products, "product a" and "product b". Using the matrix structure, this
company would organize functions within the company as follows: "product a" sales
department, "product a" customer service department, "product a" accounting, "product b"
sales department, "product b" customer service department, "product b" accounting
department. Matrix structure is amongst the purest of organizational structures, a simple
lattice emulating order and regularity demonstrated in nature.
Weak/Functional Matrix: A project manager with only limited authority is assigned to
oversee the cross- functional aspects of the project. The functional managers maintain
control over their resources and project areas.
Balanced/Functional Matrix: A project manager is assigned to oversee the project. Power is
shared equally between the project manager and the functional managers. It brings the
best aspects of functional and projectile organizations. However, this is the most difficult
system to maintain as the sharing of power is a delicate proposition.
Strong/Project Matrix: A project manager is primarily responsible for the project.
Functional managers provide technical expertise and assign resources as needed.
Matrix structure is only one of the three major structures. The other two are Functional and
Project structure. Matrix management is more dynamic than functional management in that it
is a combination of all the other structures and allows team members to share information
more readily across task boundaries. It also allows for specialization that can increase depth of
knowledge in a specific sector or segment.
There are both advantages and disadvantages of the matrix structure; some of the
disadvantages are an increase in the complexity of the chain of command. This occurs because
of the differentiation between functional managers and project managers, which can be
confusing for employees to understand who is next in the chain of command. An additional
disadvantage of the matrix structure is higher manager to worker ratio that results in conflicting
loyalties of employees. However the matrix structure also has significant advantages that make
it valuable for companies to use. The matrix structure improves upon the silo critique of
functional management in that it diminishes the vertical structure of functional and creates a
more horizontal structure which allows the spread of information across task boundaries to
happen much quicker. Moreover matrix structure allows for specialization that can increase
depth of knowledge & allows individuals to be chosen according to project needs. This
correlation between individuals and project needs is what produces the concept of maximizing
strengths and minimizing weaknesses.




























ORGANISATIONAL CULTURE

1. Organizational culture is the behavior of humans within an organization and the meaning that
people attach to those behaviors. Culture includes the organization's vision, values, norms,
systems, symbols, language, assumptions, beliefs, and habits.

It is also the pattern of such collective behaviors and assumptions that are taught to new
organizational members as a way of perceiving, and even thinking and feeling. Organizational
culture affects the way people and groups interact with each other, with clients, and with
stakeholders.
Ravasi and Schultz stated that organizational culture is a set of shared mental assumptions that
guide interpretation and action in organizations by defining appropriate behavior for various
situations. Although a company may have its "own unique culture", in larger organizations
there are sometimes conflicting cultures that co-exist owing to the characteristics of different
management teams. Organizational culture may affect employees' identification with an
organization.
Schein (1992), Deal and Kennedy (2000), and Kotter (1992) advanced the idea that
organizations often have very differing cultures as well as subcultures.
According to Needle (2004), organizational culture represents the collective values, beliefs and
principles of organizational members and is a product of such factors as history, product,
market, technology, and strategy, type of employees, management style, and national culture.
Corporate culture on the other hand refers to those cultures deliberately created by
management to achieve specific strategic ends.













TYPES OF CULTURES:
1. Normative Culture:
In such a culture, the norms and procedures of the organization are predefined and the
rules and regulations are set as per the existing guidelines. The employees behave in an
ideal way and strictly adhere to the policies of the organization. No employee dares to
break the rules and sticks to the already laid policies.
2. Pragmatic Culture:
In a pragmatic culture, more emphasis is placed on the clients and the external parties.
Customer satisfaction is the main motive of the employees in a pragmatic culture. Such
organizations treat their clients as Gods and do not follow any set rules. Every employee
strives hard to satisfy his clients to expect maximum business from their side.
3. Academy Culture:
Organizations following academy culture hire skilled individuals. The roles and
responsibilities are delegated according to the back ground, educational qualification
and work experience of the employees. Organizations following academy culture are
very particular about training the existing employees. They ensure that various training
programs are being conducted at the workplace to hone the skills of the employees. The
management makes sincere efforts to upgrade the knowledge of the employees to
improve their professional competence. The employees in an academy culture stick to
the organization for a longer duration and also grow within it. Educational institutions,
universities, hospitals practice such a culture.
4. Baseball team Culture:
A baseball team culture considers the employees as the most treasured possession of
the organization. The employees are the true assets of the organization who have a
major role in its successful functioning. In such a culture, the individuals always have an
upper edge and they do not bother much about their organization. Advertising agencies,
event management companies, financial institutions follow such a culture.
5. Club Culture:
Organizations following a club culture are very particular about the employees they
recruit. The individuals are hired as per their specialization, educational qualification
and interests. Each one does what he is best at. The high potential employees are
promoted suitably and appraisals are a regular feature of such a culture.
6. Fortress Culture:
There are certain organizations where the employees are not very sure about their
career and longevity. Such organizations follow fortress culture. The employees are
terminated if the organization is not performing well. Individuals suffer the most when
the organization is at a loss. Stock broking industries follow such a culture.
7. Tough Guy Culture:
In a tough guy culture, feedbacks are essential. The performance of the employees is
reviewed from time to time and their work is thoroughly monitored. Team managers
are appointed to discuss queries with the team members and guide them whenever
required. The employees are under constant watch in such a culture.
8. Bet your company Culture:
Organizations which follow bet your company culture take decisions which involve a
huge amount of risk and the consequences are also unforeseen. The principles and
policies of such an organization are formulated to address sensitive issues and it takes
time to get the results.
9. Process Culture:
As the name suggests the employees in such a culture adhere to the processes and
procedures of the organization. Feedbacks and performance reviews do not matter
much in such organizations. The employees abide by the rules and regulations and work
according to the ideologies of the workplace. All government organizations follow such
a culture.


IMPACT OF CULTURE-
Organizational culture is a combination of social, cultural, physical, psychological and other
conditions within an organization. A good and healthy organizational culture is important for
the well-being of the organization. It has the following impact/ positive effect on the
organization:
1. Separate Identity:
organization culture gives a separate identity to the organization as compared to other
organizations, as each organization has its own set of values, beliefs, practices, customs,
etc. Some organizations follow traditional values whereas others adopt professional
values in their organization.
2. Motivation:
when the goals, plans and policies of the organization are stated in clear and specific, it
indicates a healthy organization culture. An open communication system and better
facilities to the employees motivates the employees to put in their best efforts in order
to achieve the desired goals.

3. Job satisfaction:
it is an employees general attitude towards his/her job. It is normally believed that
satisfied employees are more productive than dissatisfied employees. A good
organization culture brings job satisfaction to employees.

4. Reduction in absenteeism and employee turnover:
A good organization culture results in reduction in absenteeism and employee turnover.
Absenteeism refers to the failure on the part of the employees to report to work.
Employee turnover means permanent withdrawal of the employee from an
organization. Employee absenteeism and turnover affects the smooth functioning of the
organization.

5. Innovation:
organizational culture fosters innovation. This is possible when organization
encourages:
Openness to new ideas.
Participative decision-making
Creative thinking.

6. Higher efficiency:
a good organization culture brings higher efficiency to the organization. It motivates the
employees to perform better. When employees are properly motivated, they can
produce the best possible returns at the lowest possible cost. This is because of
optimum utilization of resources by the employees.

7. Corporate image:
a good organizational culture develops and enhances corporate image. Corporate
image comprises all the visual, verbal and behavioural elements that make up the
organization. The corporate image communicates the organizations mission, the style
of its leadership, the capabilities of its employees, its role in the market place and in the
society. A good sound organizational culture creates confidence in the minds of
customers, employees, shareholders, etc. Hence, it is vital for improving corporate
image.

8. Higher performance:
a strong organizational culture results in commitment and dedication among
employees. It consists of sound human resource policies relating to selection,
placements, promotion, performance appraisal, etc. a fair and impartial work
environment gives a sense of security and satisfaction among employees. Hence, they
are motivates and can perform their jobs better. Better employee performance leads to
higher organizational efficiency and effectiveness.

9. Effective control:
organizational culture controls employee behavior. In case of strong culture,
organizational members intensely hold and widely share core organizational values.
When the employees deviate from organizational culture, managers intervene and take
corrective actions.

10. Strategic management:
success often depends upon the degree of support that strategies receive from a firms
culture. When firms strategies are supported by cultural aspects such as beliefs,
attitudes, values, customs etc. then managers can easily introduce and implement
strategic changes. However, if a supportive or co-operative culture does not exist and it
is not developed, then it would be difficult for the managers to introduce strategic
changes. Therefore, it is advisable to cultivate a good supportive culture in the
organization.
On the other hand, an unhealthy organizational culture brings the following negative effects:
1. Lack of organizational commitment:
poor organizational culture results in lack of organizational commitment. Employees
may not believe in the goals of the organization but they put in efforts to achieve their
personal goals. Employee self-interest may be important than the organizational
interest. The organizational interest becomes secondary. Such employees value
personal success rather than organizational success.

2. Conflicts:
an unhealthy organizational culture brings in conflicts or disagreements over the
attainment of goals or means to achieve the goals. Conflicts may arise due to:
Personal prejudices
Role conflicts
Organizational change, etc.

3. Employee turnover:
a poor organizational culture results in job dissatisfaction. If an employee is dissatisfied,
he may quit the organization and join elsewhere. When employee turnover is rapid and
high, other employees may feel demoralized. When a new employee enters in the
organization, the work and social patterns would change. Higher rate of employee
turnover results in poor corporate image.

4. Employee absenteeism:
absenteeism may be high when job satisfaction is low. In case of negative
organizational culture, absenteeism occurs with high frequency among a certain cluster
of employees, and usually occurs on the first day or the last day of the week. Such
employees do not plan to be absent. They simply find it easier to respond to the
opportunities to do so.

5. Tardiness:
sometimes a poor organizational culture is reflected through employee tardiness.
Tardiness involves reporting late to work i.e. beyond the designed work time. Late
coming may be of a few minutes or few hours. Tardiness is an attempt to withdraw
physically from an unpleasant job. It affects work schedule and timely completion of
work.

6. Stress:
a poor organizational culture brings stress to the employees. Such job-related stressors
are:
Role conflicts
Role ambiguity
Poor working conditions
Lack of participation in decision making etc.

7. Lack of trust:
every relationship requires some degree of trust the capacity to depend on each others
words or actions. Due to negative organizational culture, employees may not trust each
other. The employees may not trust their fellow colleagues due to their personality
traits, competition for rewards and resources, acquisition of power, etc. lack of trust in
each other can cause conflict in the organization.
8. Poor corporate image:
an unhealthy organizational culture affects corporate image. It results in employee
dissatisfaction and hence do not develop a feeling belongingness in the organization.
This affects organizational efficiency and effectiveness. Hence, the organizational
performance and profitability becomes low.



















MCDONALD
The McDonald's Corporation is the world's largest chain of hamburger fast food restaurants,
serving around 68 million customers daily in 119 countries across 35,000 outlets.
Headquartered in the United States, the company began in 1940 as a barbecue restaurant
operated by Richard and Maurice McDonald; in 1948 they reorganized their business as a
hamburger stand using production line principles. Businessman Ray Kroc joined the company as
a franchise agent in 1955. He subsequently purchased the chain from the McDonald brothers
and oversaw its worldwide growth.
A McDonald's restaurant is operated by franchisee, an affiliate, or the corporation itself.
McDonald's Corporation revenues come from the rent, royalties, and fees paid by the
franchisees, as well as sales in company-operated restaurants. In 2012, McDonald's Corporation
had annual revenues of $27.5 billion, and profits of $5.5 billion.
McDonald's primarily sells hamburgers, cheeseburgers, chicken, French, breakfast items, soft
drinks, milkshakes, and desserts. In response to changing consumer tastes, the company has
expanded its menu to include salads, fish, wraps, smoothies, fruit, and seasoned fries.

Mission & Values
McDonald's brand mission is to be our customers' favorite place and way to eat and
drink. Our worldwide operations are aligned around a global strategy called the Plan
to Win, which center on an exceptional customer experience People, Products,
Place, Price and Promotion. We are committed to continuously improving our
operations and enhancing our customers' experience.

McDonalds Values
We place the customer experience at the core of all we do.
Our customers are the reason for our existence. We demonstrate our appreciation by
providing them with high quality food and superior service in a clean, welcoming environment,
at a great value. Our goal is quality, service, cleanliness and value (QSC&V) for each and every
customer, each and every time.
We are committed to our people. We provide opportunity, nurture talent, develop leaders and
reward achievement. We believe that a team of well-trained individuals with diverse
backgrounds and experiences, working together in an environment that fosters respect and
drives high levels of engagement, is essential to our continued success.
We believe in the McDonalds System.
McDonalds business model, depicted by our three-legged stool of owner/operators,
suppliers, and company employees, is our foundation, and balancing the interests of all three
groups is key.
We operate our business ethically.
Sound ethics is good business. At McDonalds, we hold ourselves and conduct our business to
high standards of fairness, honesty, and integrity. We are individually accountable and
collectively responsible.
We give back to our communities.
We take seriously the responsibilities that come with being a leader. We help our customers
build better communities, support Ronald McDonald House Charities, and leverage our size,
scope and resources to help make the world a better place.
We grow our business profitably.
McDonalds is a publicly traded company. As such, we work to provide sustained profitable
growth for our shareholders. This requires a continuous focus on our customers and the health
of our system.
We strive continually to improve.
We are a learning organization that aims to anticipate and respond to changing customer,
employee and system needs through constant evolution and innovation.











ORGANIZATIONAL CULTURE AND STRUCTURE AT MCDONALDS,

McDonalds is the worlds largest fast food chain restaurant with over 31,000 outlets in 118
countries and employing over 1.6 million people globally. Out of the 31,000 outlets, 1000 of
them are in the U.K. McDonalds serves over 47 million customers daily in the 118 countries
they operate in and have a market capitalization of $60.08bn in the financial year of 2008. 78%
of the McDonalds are owned by the franchisees and the remaining 22% are owned by the
corporation itself.
Structure in simple terms, can be defined as the way things are set out in an organization.
Therefore, all businesses including McDonalds have their own organizational structure which
consists of groups and individuals working together to achieve the same aims/objectives of the
organization.
Organizations are structured in a variety of ways, dependent upon their objectives and culture.
The structure of an organization will determine the manner in which it operates and its
performance. Structure allows the responsibilities for different functions and processes to be
clearly allocated to different departments.
The wrong organization structure will reduce the success of the business. As a business expands
the spans of control will widen. The higher the level of skill each employee has the more the
business will make use of these skills across the organization and hence save costs. Internal
factors such as size, product and skills of the workforce also influence the organizational
structure.
The figure published according to McDonalds websites tells us that 78% of the stores are
franchised; whereas the remaining 22% are owned by the corporation itself. My assumption is
McDonalds as a corporation have adopted a hierarchical structure; but each store would be
following a different yet similar structure within the framework of the hierarchical structure. All
the stores would carry out exactly the same process but the way in which they deliver the
service could vary. It would depend on the franchisee on how she/he controls their business;
however there are certain aspects which the franchisee cannot alter i.e. the McDonalds logo,
shop appearance and etc. As the above diagram shows, the most highest or influential person
in any organization is the Chief Executive officer/director (CEO) who takes all strategic decisions
because they are on the top of the hierarchy and below him are his/her subordinates i.e. area
regional managers, department managers who then report back to him/her about the
companys progress or any other important issues that needs their attention.
However, every staffs responsibility is clearly defined and the business itself seems to be
centralized e.g. important decisions being taken by the senior management centrally. Within
this structure, the path to promotion is clearly defines i.e. a person will initially start from the
bottom e.g. counter sales assistant and then they will have to earn their way up to the top to
get a authority. It is considered employees of this type of structure are likely to be loyal to the
business.
However, franchised stores of McDonalds are likely to have a flatter structure. There is one
manager, who is in control of the assistants and employees; who takes all the decisions for that
particular store and he/she who is in charge of the main functions, carries them out. But the
McDonald's corporation is likely to have a hierarchical structure. McDonalds is a big company
with lots of different departments which need to be organized very well, because if the
employees aren't directed in the right way they won't perform their jobs uniformly.

Comparing organization structure and culture
The features of the structure of organizations are formal lines of authority and responsibility; It
assists in defining the formal rights, the rewards and punishments on individual behavior or
groups. The structure is accepted on the basis of rules and procedure. It defines how the
organization works and its inflexible.
Organizational culture is the informal way an organization behaves this arises as a long lived
concept often passed down by word of mouth its an ideology centered, and defines the good
and bad, the winning and losing. It defines the people, events and circumstances, processes
information and objects that are important for organizational decision and progress.
















STRUCTURE.

McDonalds organisation structure is similar to those of other companies. Structures can be
defined as the way things are set out in an organisation to it consist of groups and individuals
working together to achieve a common objective for the organisation.
Organisations structures is in the form of written documentation e.g. .Memorandum and
articles of associations constitutions, by laws etc. the broad goals and purpose of the
organisation, It reflects the interest, membership clientele and core values
The Five general types of organisational decisions are defined by structure are policy,
management, structural. For example policy matters are decided by the board of directors.
Formal office positions are also defined in the structure.
The franchisee determines how he or she runs his or her business. The Chief Executive
officer/director (CEO) makes the strategic decision for each of his outlets. Usually bases each of
his outlet on hierarchy and below him are his/her subordinates. The restaurant organisation
structure is usually as depicted below. This represents the organisational structure prevalent in
all franchisee of McDonalds.

McDonalds culture
Organisation cultures are set of customs, ways of working together and shared beliefs to
achieve a common goal. This is unwritten. They generally evolve through conversation and they
are an influx, constantly changing organisational culture. It interpret the meaning of things,
Organisation cultures tells whether an action is bad or good, they give indications of how things
are to be done when there are no formal procedures or policy.
In large organisations culture may dictate the objectives of the company.
McDonalds operates according to four values; quality, service, convenience and value. Part of
their organisational culture is the delivery of uniform quality of food and service wherever the
branch is located.
The cultures associated with McDonalds its System, striving continually to improve products
and services, grow business profitably, give back to the community and operate business
ethically It places the customer experience is at the foundation of what it does.



CHARACTERISTICS OF CULTURE & STRUCTURE:
Structural Features Cultural Features
Contingency-centered
Ideology-centered
Formal
Informal
Fixed
Flexible
Documented
Word-of-mouth

Impact MacDonalds of organization structure and culture business on its business
performance.
It is obvious based on McDonalds missions that to gain more customers it needed to hire more
staff hence more franchise given out hence more employee. This will affect structure.
McDonalds mission affect its culture by serving quality food to customers and to be social
responsible. McDonalds gives back to the community e.g. through Ronald McDonalds House
charity.
McDonalds carefully considers its investment to its shareholders this is reflected in its culture
that indicate McDonalds are committed to shareholders.
McDonald aims to provide quality and healthy food. This value reflects McDonald of
profitability.




Factors which influence individual behavior at work:
People behave differently where they work for so many reasons and their behaviour is likely to
be different from whom they are at home.
According to Michael Mattson and John Ivancevich established that behavioural factors that
affect people at work are abilities and skills, demographic factors, attitudes, perception and
personality.
1. Abilities and Skills:
The experience qualification and physical ability will affect how a person behaves at work this
will also depend on the nature of work being carried out. The managers play an important role
in matching these to job requirement.
2. Demographic Factors:
The nationality, socio economic background, age, race, education etc. will have a considerable
impact on how a person behave at work
3. Attitude:
Psychologists, attitude can be defined attitude as tendency to respond favourably or
unfavorably to a particular situation, individual or circumstances.
4. Perception:
Perception is the cognitive process to interpret an environmental stimulus. Ability of a person
to interpret a situation will affects how the person behaves at work.
5. Personality:
The distinctive traits of a person will affect how he works with other or how he behaves in a
working environment.
Other factors can be motivation, delegation of authorities and responsibilities, structure and
culture of the organization.




Different approaches to management and leadership
There are different styles of management, namely:
Transformational leadership
Transactional Leadership
Autocratic Leadership
Bureaucratic Leadership
Charismatic Leadership
Democratic/Participative Leadership
Laissez-Faire Leadership
Task-Oriented Leadership
People-Oriented/Relations-Oriented Leadership

The usefulness of motivation in the work place:
Employee motivation is a way to create excitement. Techniques can be cutting edge creative
and new.
1. Business Promotion:
This technique makes the company standout and increase morale of the work force, giving
employees things like coffee mugs, pens, pencils, etc. All with your companys logo on them.

2. Surveys:
Carrying out survey about problems and activities in the organisation will lead to more
participation and involvement and will lead increase in morale.

3. Understanding Employees:
Finding out about employees interest will go a long way to show one cares for them and will
improve work ethics because it shows one cares for them, Employees will not fell like a
numbers.

4. Building Employee Recognition Program:
These programs are designed to motivate employees through awards. The Use of awards like
gift cards, days off, choice of shifts, etc, will create excitement.

5. Enjoyable Work Environment:
Creating a viable working e will help in motivating employees and increase performance. Having
fun is also a great way to manage Stress. Example are chess or other board game or sports
during break Or management team washing cars.

6. Build Trust and Respect:
One way to start building trust is to give employees special projects with deadlines that are
important. In order for leaders to earn respect they need to treat others with respect.

7. Roundtable Committee:
The committee should consist of five people such mid-level managers, Department managers,
etc. a representative needs to be elected who will meet management to discuss issues or
problems within the organisation.