Leading and Implementing Workplace Change: McDonald's Analysis Report

This report provides a comprehensive analysis of workplace change management, using McDonald's as a case study. It begins with an overview of McDonald's history, tracing its evolution from a small venture to a global fast-food giant. The report then examines the impact of external environmental factors on the company, utilizing a PESTLE analysis to identify political, economic, social, technological, legal, and ecological influences. Furthermore, it develops a change model, addressing strategic changes within the organization, leadership styles, and change management processes. Finally, the report evaluates the influence of organizational culture on the change management program, offering insights into the challenges and successes of adapting to a dynamic business environment. The report concludes with a summary of key findings and implications for future organizational change initiatives.

Leading And Implementing
Workplace Change

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Analyse the recent history of the organisation and explain how changes in external
environment have impacted on the company..............................................................................1
Develop a change model, incorporating issues regarding strategic change in the organisation
including hoe the change was managed and leadership style.....................................................5
Evaluate the impact of organisational culture on the change management programme.............9
CONCLUSION .............................................................................................................................12
REFERENCES .............................................................................................................................13

INTRODUCTION
Workplace change management refers to the process of engaging employees who are
about to experience a change in their workplace. The main goal of this process is to assist the
employees get adjusted to new workspaces as well as new ways of working. Change
management has become one of the permanent features within organisations today in order to
meet challenges and address them in an effective manner (Chappell and et.al., 2016). Changes at
the workplace are unavoidable and promote growth of the organisation as well as enhance its
overall performance. It is a kind of structured approach that usually overlaps with the strategies
related to workplace and also influence the working and design of an organisation.
McDonald's corporation is a fast food company based in America, which was established
in 1940 by Richard and Maurice McDonald. The headquarter of respective company is in
Chicago, Illinois. They serve their services throughout the world and provide food items like
burger, soft drinks, desserts, coffee, wraps, French fries, salads, breakfast and many more stuffs.
McDonald's has been considered as one of the biggest restaurant chain in the whole world by
revenue, which approximately being serving 69 million consumers everyday across the world.
The report will focus on the history of respective organisation and will discuss how the external
factors will affect the business working. It will further mention model of change and strategic
change in the company. The impact of organisational culture on change management will also be
elaborated in this report.
MAIN BODY
Analyse the recent history of the organisation and explain how changes in external environment
have impacted on the company
The cousins Richard and Maurice McDonald started their initial and small McDonald's
venture on 1940, at 1398 North E street in California which was totally different from today's
scenario. The ''Speedee Service System'' was initiated by brothers in 1948 where they utilised
various modern principles of fast food outlets that were originally used by their forerunner White
Castle two decades earlier. The Speedee of McDonald's was being refereed to the chef hat which
is being placed at the top of the hamburger. The early mascot Speedee was replaced by Golden
Archie in 1962. The Ronald McDonald, clown which became most popular was introduced in
1965, by such introduction their main target was to attract children towards the organisation. At
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1961, McDonald initially data filed and recorded for U.S trademark with the name of
McDonald's having a description of '' Drive In Restaurant Services ''. Later it was found that the
description was renewed constantly with the expansion. In 1954, Ray Kroc, a vendor of Prince
Castle brand Multi beverage milkshake machines, enlightened that the McDonald brothers in San
Bernardino restaurant were using eight of their machines. Ray Kroc joined the company in 1954
and made extra efforts in expanding its management and operational functioning. Ray Kroc
made lots of effort and was successful in modifying the brother's project so as to modernise it.
With the proper guidance of Roy Kroc, at September 13, they filed for trademark with the
demand of new logo of McDonald's. The new logo was an related, overlapped, two fold arched
'M' symbol. Before the introduction of double arches, the company used only single arch so as to
demonstrate their architecture of the respective building. The logo of Golden Arches were
represented in many forms, the recent version of was not in utilisation till 1968 when the
organisation demanded a U.S trademark. The corporation credits which are presently used has
been given to Ray Kroc the businessman on 1955 (History, 2019). This was considered as ninth
outlet which was opened by the name of McDonald's overall , though the place were demolished
and reinforced in 1984. After sometimes Kroc purchased the equity in the enterprise of
McDonald's brother and later begun to expand the boundaries of an organisation world wide.
Kroc was being recorded as a hard working, motivated and aggressive business partner who
dragged and tried constantly to throw McDonald brothers out of the company.
As mentioned in the autobiography of Kroc, the McDonald brothers and Kroc fought for
the power and control of the organisation. The restaurant situated at San Bernardino was later
torn down eventually and the place was purchased by Juan Pollo in 1976. The area now indicated
as the Juan Pollo chain headquarter. The chain of the respective company continued to expand in
1988 and opened around 10,000 restaurants. During 21st century, 35,000 fast food outlets in
much more than 100 countries were started. Eventually the organisation became most favourite
and popular family fast food restaurant, which can render cheap and delicious food at affordable
price together with new flavours and fun that attract children as well as adults. The company was
active in providing charities. The prosperity of McDonald's came with high criticism due to high
occurrence of obesity among people due to excess consumption of fast good from the fast food
outlet. In return, the respective company in 2017, reacted by adding healthy food items in the
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menu list. Such practice began by adding vegan hamburger in the list, they also got rid of
supersized meal and reduced the use of trans fat oil in their food items.
External environment impacts on company
The strategies which have been addressed in McDonald's corporation reflects the external
issues which are being faced by the organisation. The identification of such factors are necessary
to overcome the threats from which the company is suffering (Dievernich and et.al., 2016). Such
variables can be identified in PESTLE analysis of the global chains which are associated with
fast food restaurants enterprise. The respective analysis support most of the strategic
management by aiding in understanding the external variables that not only represents the threats
but also give ideas about the opportunities which are based on the macro environment of the
company. The PESTEL model comprises of Political, Economic, Social, Technological, Legal
and Ecological factors. So as to enhance the benefits of the chance, the given company sets the
boundary as well as core of the strategies associated with the growth and success of the
company.
Such strategies are designed in such a way that can potentially have the capacity to
address the factors which are associated with the environment of business. Such analysis also
help in understanding the threats which the company may have due to the existing rivals related
to the same industry or domain (Kogan and et.al., 2017). As it has been observed that
McDonald's is the largest food chain of fast food in the world, it has to utilise its overall
strengths so as to accommodate the changes in the business. The adaptations which are being
made to overcome the issues as well as fears are crucial for thriving for long period of time and
to grow the enterprise in such a style that it can outcompete other organisations. Through such
model, the decisions regarding the management can be more focussed on recent trends that
actually influences the growth and expansion of the industry. The trends which are being
analysed are among those elements which defines the development in the wide market of
beverage and food services. The PESTEL analysis of McDonald's have been elaborated below.
Political factor – This aspect basically focus on the impacts of the policies as well as
actions taken by the government on macro environment of the economy and working of the
company (Rodd, 2015). The interventions which are being developed by the government can
assist in identifying the directions of the company's development. The enhancing trade
agreement which are made internationally influence the functioning of the enterprise and may be
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considered as an opportunity. The regulations regarding the health and hygiene should be
complied in such industry like any other enterprise. If the food which are being prepared in fast
food outlets does not go with the code implied by the government then the restaurant will
eventually shut down. The government have increased the rate of pressure on such company to
lower the amount of sugar and salt which are greatly used in their food products. As the high
usage of such ingredients are associated in occurring Diabetes type 2, high cholesterol and blood
pressure which further cause heart diseases (Allison and et.al., 2016). Thereby, they have to
function depending upon the guidelines stated by the government regarding the consumable diet
and health conditions.
Economic factor – This type of component centres on the effects of the issues and
conditions associated with economic factors of McDonald's. The alterations related to economic
factors may indirectly as well as directly affects the performance of the existing business. The
economy of world, regional as well as local economies which affects the industry surrounding as
well as environment. Steady but constant development has been considered as an opportunity for
McDonald's which is associated with stability of the fast food business. The market of United
States has been the largest contributor to the revenue of the business, but it has been always
analysed that the company is benefited from the constant maturation of such market.
Social Factors – Such kind of factor is associated with the social aspect that either aids
of limits the growth of McDonald's organisation. The trends of social aspects affects the action
and behaviour which further influence the macro environment of the company referring to their
revenue. The habit or tendency of individuals to buy more fast food than to cook at home have
been considered as an opportunity to the McDonald's which provide ample of chances to expand
their business. Though, the recent trend of healthy lifestyle has been a threat where people show
more concern on the fact of being healthy and active and avoiding ingestion of junk food (Lagan
and Moran, 2015). Such identification give the company an opportunity to add more healthy
food products in the list of menu so as to attract such adults also.
Technological factors – When the technological aspect comes into consideration, the
impacts of modernising and development comes into action. The McDonald has an opportunity
to maximise their research and developments sector so as to maintain and regulate the efficiency
of the company. Such organisation can rely more on automation to exceed its daily production
which are basically based on external variables. The organisation can improve its business by
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developing modernise mobile services so that the facilities and the reach of the McDonald can be
provided to more people through new software and applications.
Ecological factors – The factor which is associated with the natural environment comes
under the ecological variables. The modification in the climatic situation in some part of the
world effects the availability of the food which eventually associated with the fall or gain of the
sales in the respective places (Derman-Sparks, LeeKeenan and Nimmo, 2015). Thus, the
company need to amplify their supply chain management and further expand their storage area
and place so as to store the raw material without getting spoiled. High emphasis on such business
strategies which are sustainable has been considered as an opportunity for the organisation.
Legal factors – The factor of PESTEL analysis consist of laws and regulation which are
abide on an organisation. The recent regulation related to change in the lifestyle has being a
potential threat to the McDonald. The supply of minimum wages to the recent employee is being
a threat to the company, they should make such amendments and policies which must increase
the wages of the employee so as to make their workers satisfied and increase the retaining ability
of the associates. In whole, the external components in such aspect creates major and crucial
threats in the development of the strategies of McDonald's.
Develop a change model, incorporating issues regarding strategic change in the organisation
including hoe the change was managed and leadership style.
Basically, a change model helps in to analyse the potential areas where the change is
required in an organisation and then to implement strategies in order to reduce or eliminate the
existing resistance prior to the process of change. It plays a most crucial part in an organisation
and is consider as a planning tool for implementing required change which is necessary to
achieve target goals and objectives (Hodges, 2016). There are some of the major reasons for
using a change management model such as forecasting operations and processes in an
organisation, analysing results, eliminating resistance, clarification of roles as well as
responsibilities of candidates within a particular organisation. In order to mange change in a
particular organisation there are some of the fixed models and theories that could be
implemented so that a required change could be easily handled. It is basically a process of
transforming teams, candidates, projects in a company from one phase to another phase. One of
the change model theory which is need to be implemented in McDonald is Kurt Lewin's change
management model which is discussed here.
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Kurt Lewin's model: It is consider as one of the most effective model in order to bring
changes in the organisation. It helps in to understand structural and organisational change. This
particular model was first developed by Kurt Lewin in the year 1950. It is an effective model for
understanding the change in an organisation. It basically consist of three stages which are
discussed as follows.
Unfreeze: It is the very first stage of this model for managing change in an organisation.
It is generally consist of preparation for change. For a fact that change is constant and needed,
the organisation must be prepare for implementing a change which is required for managing the
overall operation and business. This particular stage is very crucial as most of the candidates
within an organisation tends it hard for resisting the change (Maccoby, 2015). This phase help in
to be prepare or the change which is going to be take place. It explains about how and why the
existing operations and function of organisation is need to be change and what will be the benefit
of implementing change. Supervisors and managers of the organisation review all the operations
of the business and examine that what changes are needed to be done so that targets goals and
objectives could be achieved effectively and all the staff members of the organisation could
perform better.
Change: This is the second stage of the Kurt Lewin's model. It is a time consuming
process as individuals generally takes time to adapt the changes which has been implemented in
the organisation. They spend a lot of time in embracing development, changes as well as new
happenings. At this particular stage, a good leadership and a reassurance is needed in order to
lead the organisation in right direction and assist various staff member of the organisation to
accept the changes and to work according to the changes done. A good leadership will help the
staff to perform better ad make the process quite easy for all the staff members of the
organisation. Time and communication are the most effective resources of this stage in order to
draw a positive outcome.
Refreeze: This is the third stage of the change management model where the organisation
try to be stable. This process begins after all the necessary changes has been implemented and all
the staff members has accepted and embrace the change (Kobayashi, 2018). This is the reason
for why this stage is called a refreeze stage. At this time the staff members as well as different
operations and processes of organisation begin to refreeze and go along with the change. It will
help the individuals to understand that changes are required in an organisation or smoothing the
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functions and operations of business and it is continued even after the target goals and objectives
as been achieved.
This change management model could be implemented in MacDonald for making their
business effective an to implement necessary changes within their organisation. However, in
order to achieve target goals and objectives respective organisation should build and implement
some strategic changes within the premises so that they can attain a respectful position in market
area and can gain a competitive advantage.
Strategic change
Transformational change are need to be done in respective organisation in order to
deliver better quality of food products. There is a need for change in MacDonald which is to
focus on some promotional, advertising and marketing operations within the organisational to
bring new activities and technology. Modifications in such procedures will help the organisation
to enhance their productivity. However, there may be some difficulties which are faced by
MacDonald such as dealing with internal an external factors of their business activities which are
tend to change continuously Promotional activity changes in the operations will help in to boost
the image of MacDonald in the eyes of their service users. There is a negative reaction from
employees as culture is not supporting the required change.
Leadership style
A good leader thus will help the employees and overall organisation to accept the change
and to implement it. A good leader poses appropriate and correct leadership style according to
the situation arising. Basically a leadership style is a method through which a leader provides
assistance and give direction regarding implementing plans and motivating staff members to
work effectively according to the changes and policies and norms of the organisation
(Christensen and Schneider, 2015). There are eight kinds of leadership styles which are most
effective and common in organisation. They are discussed here. Democratic leadership: This style is generally very effective in organisations where a
leader makes required decisions for the company based on contribution of each team
member. It allows a low level of staff members and help the leader to come to the
conclusion fast according to the feedbacks and considerations f the employees. Autocratic leadership: It is just opposite to the democratic leadership. In this kind of
leadership style, the leader basically takes decisions regardless of any of the staff
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members who are involved in the process. Staff members are not considered in the
decision making process, moreover they are supposed to adhered on to the decision.
 Laissez-Faire Leadership: There is a full authority to the employees and leaders
generally ask them to take necessary decisions. The style is basically known as let them
do. It can empower and motivate employees at a larger scale (Dallas, 2015). It is
sometimes effective for the organisation but not really successful every time as it could
be problematic sometimes to left all the major decisions in the hands of employees
without any indulgent of the leaders. Strategic leadership: It is most commonly an effective leadership style which involves
focus on intersection between organisational goals and objectives and its growth
opportunities. The company supports number of employees in one go through this
particular leadership style. Transformational leadership: It is a leadership style where a constant improvement
could be seen in employees performance. The employees are assigned with some tasks
and activities with set deadlines however, leaders keep drag them and push them to finish
goals and objective before time. Leaders tend to give more and more challenging goals to
the employees as they grow in a company. It basically motivates and encourage the
employees in order to work with heir full potential. Transactional leadership: This is the most common leadership style where the leaders
praise and reward their followers according to their work It help in to establish
responsibilities and roles for each employee (Douglass, 2017). Leaders also build some
effective strategies in this style for the betterment of their own team work. IT puts more
focus on growth an development of the organisation and offers some of the similarities
with democratic and strategic leadership styles. Coach style leadership: The leaders basically analyse the strength of each and every
employee within the organisation and praise them to do their best and put their efforts in
order to achieve target goals and objectives.
 Bureaucratic leadership: In this particular leadership style, the leaders mostly tends to
eliminate the opinions of the employees if it is conflicting within the company policy or
some practices. There is a lack of freedom for the employees as they are not supposed to
share their considerations freely and openly.
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Thus, these leadership style play a crucial role in order to achieve target goals and
objectives of the organisation. In context to MacDonald, where a change management is required
to be handled for promoting the new acuities an technologies, an autocratic leadership style
would be beneficial because in this particular style, the decision is in the hands of leaders. The
leader of the organisation will assist all the team embers and staff members to accept the changes
and to adjust within the changes as it is for the benefit of both organisation and for employees. It
will enhance the productivity of the organisation and helps in to achieve target goals and
objectives.
Evaluate the impact of organisational culture on the change management programme
An organisational culture relates with the expectations, desires, philosophies, experiences
as well as beliefs that monitors the behaviour of an individual. Such factors are expressed while
interacting with other staff members and outer world or while focussing on future wants and
expectations (Chambers and Ryder, 2017). The culture revolves around the common values,
attitudes, guidelines and rules that have been formed over a period of time and which at the same
time must be valid and authenticate. The culture of an organisation also comprises of the norms,
symbols, missions, objectives, languages, habits as well as visions of the company. In more
common terms the culture of organisation can be defined as the way the work is being completed
around the work place. The leaders in business has been considered as an important part for
developing and communicating over their cultural official place. The leaders and the managers of
the enterprise must regulate their duties and roles according to the organisation culture, they
must amend the way their work is being accomplished as per the evolution of the culture.
Different organisation culture have been determined and may be applied in McDonald, some are
mentioned below.
Adhocracy culture – Such culture render innovative and dynamic environment while
working. The associates are constantly motivated to take risk, such encouragement is being
provided by the leaders. The company is actually glued up by experimentations, where emphasis
has being laid on freedom of individual (Hayes, 2018). The managers who are influenced by
such culture always focus on innovating new ideas and things so as to increase productivity in an
organisation.
Clan culture – The prime root of such culture is collaboration. The team members share
some general features which actually make them a big part of the office family who are involved
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and remain active. The rules and guidelines which are being formed by the company's high
authority bosses makes the organisation as well as employees bound in functioning accordingly,
thus the leader take the shape of the mentors. In clan culture, the key value is based on collective
team work and daily interaction so as to make the process and working of the company smooth
and the objectives can be achieved in give time frame work.
Market culture – Such kind of culture revolves around the aspect of existing and future
competition for accomplishing solid and high end results. The aims which are being pre defined
are directive and requires the employee as well as the leaders to become more tough and high
demanding when it comes to achieve the target of the month. The entire organisation is being
collective and work on a single goal at a time and primary focus on beating the recent rivals
(TenHave and et.al.,2015). The components like profitability and shares of the market for
particular company actually drives the market culture.
From the above cultures, clan culture may be used by the McDonald which majorly focus
on working collectively and collaboratively. They lay emphasis on team work and rely on the
fact that more aims and objectives have been achieved by the organisation if whole team
members are working and taking decision unanimously. The respective enterprise should focus
on increasing the salaries and bonus of the workers so that they can work efficiently and find
new and innovative ways to improve the policies and functioning of the business. The focus
should be laid on the achieving highest goals in least amount of time.
Impact of organisational culture
Organisational culture plays a crucial role in any organisation as it governs different
behaviours of individuals in an organisation. It will put impact on how the supervisors as well as
leaders manages or implement required changes. It will also impact on how the staff members
are taking changes and perceive them. Organisational culture is consider as an most effective
way in leading or implementing a particular change. If the culture of the organisation is quite
conservative, risk-taking and compliment then the leaders are need to give away the details of
changes and prepare the employees to hand hold (Drago-Severson and Blum-DeStefano, 2018).
Culture is basically a combination of values and beliefs which shape the norms of behaviour and
help the leaders to assist their followers in order to reach organisational goals and objectives. It s
one of the most crucial actor that impact the ability of an organisation to change. A few of them
consist of culture, leadership and external factors like needs of customers and their desires.
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Operations of business, financial aspects and culture are the key factors to influence change
management projects. There are some of the factors that effect change management process
within an organisation. Such factors are competitor pressure, executive leadership, technology
and tools,culture and many others. Organisational culture is most critical to overall success and
development process. However, culture of the organisation grows over period of time and still
goes same until and unless a change manger apply or implement some changes in that. If any
changes has been implemented in an organisation it will also impact on roles and responsibilities
of different staff members and somehow effect their performance (Dawson, 2019). Different
organisations have different change strategy which helps them in achieving success along with
desirable goals and objective.
Change is mostly hard and difficult to adapt for individuals as it is time consuming as
well as risk taking. However, if an organisational culture is promoting open and collective
decision making process individuals will tend to know about the change which is going to be
implemented. Different beliefs, views and perfections of the staff members will help the leaders
to draw a meaningful conclusion and an effective decision making process. Employees will get
to know the reasons and facts of the change which has been applied in the organisation.
Uncertainties within the organisational culture is sometimes a major issue for the resistance of
change management programme within the operations and functions of the organisation. In order
to evaluate the effectiveness and success of change, individuals beliefs and values plays a most
crucial role. Clear and effective communication within a certain organisation will help in to
implement an effective change management program. Methods and ways to implement and
introduce a particular change within the business is greatly dependent on the kind of
organisational culture. However, there is no such standard ways to categorizing these cultures.
Overall impact of organisational culture in change management program will be depend
on the staff members as well as leadership with a role of assisting the employees to adapt
changes in the organisation. A culture of an organisation can largely effect the attitude of a
manger towards a leadership style (Skovgaard, Marling and Justesen, 2015). The overall
management of a business is driven by its culture thus, supervisors or managers must focus on
analysing and reviewing all the operations of a business very clearly and then examine the need
to change. A company's culture can also alter the attitude of a leader which is greatly be effected
by employees perceptions and values.
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In context to MacDonald, the organisational culture will greatly impact on change
management process as there will be different opinions and perceptions of the employees
working there. It is very important that each and every employee is adapting the change which
has been implemented in an organisation as it will directly impact on the productivity of the
organisation. The main key or role of the employees is to adapt the change regarding what is
working for the existing culture (Dorac-Kakabadse, 2017). In order to make changes effective,
the organisation must need to change the internal culture of the organisational first which is
causing hurdles in implementing the change management project in the organisation. It can
include defining the behaviour and values of the employees, build some effective strategies and
policies so that the team embers could be stick to them, measure the inputs of each and every
employee, don't rush up the processes, evaluate the organisational performance. In addition, it is
essential for all the team members to adjust in the organisational cultures in order to give their
best and perform effectively.
CONCLUSION
From the above study, it can be concluded that change is important in an organisation in
order to reducing the negative effects of existing resistance within the organisation. Changes are
constant and thus it help in overall growth and success of the organisation. It is basically a
process where the companies changes its structures, technologies, policies, strategies as well as
operational methods. It is an important component in an organisation as it help the employees to
learn new skills, facilitate the operations and functions of organisation, explore new
opportunities, build effective strategies and eventually benefit the whole organisation through
new ideas and an increased commitment. Various change models are there which help in to to
analyse the potential areas where the change is required in an organisation and then to implement
strategies in order to reduce or eliminate the existing resistance prior to the process of change.
Kurt Lewin's model has been discussed which help the organisation to prepare, adapt and
stabilize the change. PESTEL analysis of the organisation has been done which help to analyse
all the external factors that are impacting on the organisation. At last, effect of organisational
culture on change management process has been discussed which shows that it effect the change
management process as it dependent on employees beliefs and values.
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Online
History. 2019. [Online]. Available through:<https://corporate.mcdonalds.com/corpmcd/about-
us/history.html>.
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