ORGANIZATIONAL CHANGE AND EFFECTIVENESS

Running head: ORGANIZATIONAL CHANGE AND EFFECTIVENESS
Organizational change and effectiveness
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1ORGANIZATIONAL CHANGE AND EFFECTIVENESS
Introduction
McDonald’s corporation is fast food Company of America built in the year 1940 by
Richard and Maurice McDonald. It began as a hot dog stand in CA in the year 1937. Soon
after that, Richard and Maurice had realized that hamburgers would give them more profits
and hence they had changed their menu and started serving certain limited items. It became
the fastest food chain around the globe. They have expanded their business to 119 countries
and have 37,855 outlets. McDonald’s is popular for its hamburgers and French fries. They
also have chicken products, soft drinks, milkshakes, wraps, cheeseburgers, breakfast items
and desserts. The company in order to avoid the unhealthiness of the food, added fish, salads,
fruits and smoothies to their menu (Stevens and Johnson, 2016). The company earns revenue
through royalties, rent and fees paid by the franchisees and also through sales in the
company-operated restaurants. The company has 1.7 million employees and is the world’s
largest private employer.
Organizational stress fractures:
Due to increased competition and globalization in the industry of food, McDonalds
has faced a lot of challenges. There are various external and internal factors that has affected
the functions of the company and demands for more creativity and innovations.
The internal factors are-
 Employees- McDonalds totally depends on their employees but was majorly criticized
for giving low wages with a high ratio of turnover.
 Products- McDonalds is continuously improvising their menu in order to meet the
needs of the consumers.

2ORGANIZATIONAL CHANGE AND EFFECTIVENESS
 Internal management: The internal management plays an essential role in the
organization’s progress. The internal management of McDonalds fails in coordinating
with each other.
The external factors are:
 Health concerns: it has been seen over the recent past that the food of McDonalds
has high health risks. This has created a negative impact on the customers about
the company. The food of McDonalds has serious damaging affects to the health
of the customers. The main reason being the low nutritional value of the meals,
which contain sodium, calories and high fat. The food contains significant amount
of grease and oil, which in turn is quite harmful as it, disposes huge amount of bad
fats into the body.
Technological stress fractures of McDonalds:
The fast food chain is everyday improving its customer experience with newer
technologies like a mobile application and a revamped menu. The employees of the
McDonalds have been handling many tasks without any rise in the pay and insufficient
staffing which further led to long working hours and stressful working conditions and
complicated procedures (Simon & Grover, 1993). Thus, the newer technologies troubled the
employees, as they were not used to using such modern techniques.
Human resource stress fractures of McDonalds:
The human resource management in McDonalds has no support of the top
management. The attitude of the top management brings in a negative impact in the
McDonalds organization. The human resource management fails to conduct proper training
and development process of the employees, which in turn affects the customer service of the