MGT 6681 Case Study: Change Plan for McDonalds Employee Evaluations

This case study delves into McDonalds' initiative to revamp its employee annual evaluation system, shifting responsibility from managers to human resources due to the existing system's ineffectiveness. The analysis encompasses external factors, such as political stability and economic growth in the US, and internal factors, including brand image, customer satisfaction, and product development. The study employs the STAR model and Kotter's eight-step model to formulate and implement a strategic change plan. The proposed strategies involve addressing change resistance, encouraging innovative ideas, and introducing incentives to ensure employee participation. The case study also includes a detailed evaluation plan to assess the effectiveness of the implemented changes, providing a comprehensive framework for organizational improvement and leadership management. The analysis identifies strengths and weaknesses, opportunities and threats, and proposes strategies and implementation steps to address the problem, ultimately leading to improved employee engagement and organizational performance.

Running head: CHANGE PLAN FOR EMPLOYEE'S ANNUAL EVALUATIONS IN MC
DONALDS
Change Plan for Employee's Annual Evaluations in Mc Donalds
Name of the University:
Name of the Student:
Authors Note:

1CHANGE PLAN FOR EMPLOYEE'S ANNUAL EVALUATIONS IN MC DONALDS
Executive Summary
The change that McDonalds intends to bring within the company is transformation of its
employee annual evaluation system in a way that human resources take active part in the
evaluation process instated of the managers. Such change is considered to be implemented in the
company as the existing annual employee evaluation process turned out to be ineffective. The
managers involved in employee annual evaluations process were not efficient in keeping notes or
suitable records of employee behavior that could have been successful in sending consistent
messages to the employees. Considering such issue, the change plan is implemented that
involved human resources within the evaluation process. In supporting the change process,
employee evaluations is deemed to be carried out through employing relevant human resources
that can serve as the best way to engage employees in performing efficiency and attain their
organizational and career goals. For decreasing change resistance from the employees, the
company will also ensure that encouragement of innovative ideas regarding setting up of initial
performance goals along with introducing incentives for employees that can take part in changed
employee evaluation process successfully conducted by HR personnel.

2CHANGE PLAN FOR EMPLOYEE'S ANNUAL EVALUATIONS IN MC DONALDS
Table of Contents
1. Introduction..................................................................................................................................3
2. Analysis.......................................................................................................................................4
2.1. External Analysis..................................................................................................................5
2.2. Internal Analysis.................................................................................................................10
2.1.1. Internal Strengths and Weaknesses Analysis..............................................................10
2.2.2. Diagnostic Change Model (STAR Model)..................................................................12
2.2.3. Cultural Web................................................................................................................14
2.2.4. Structural Dilemmas....................................................................................................16
3. Formulation of Strategies..........................................................................................................17
4. Implementation..........................................................................................................................22
4.1. Kotter’s Eight Step Model..................................................................................................22
5. Evaluation..................................................................................................................................29
6. Conclusion.................................................................................................................................31
References......................................................................................................................................32

3CHANGE PLAN FOR EMPLOYEE'S ANNUAL EVALUATIONS IN MC DONALDS
1. Introduction
Change is prevalent in all sectors and is taking place because of increasing globalization
and rapid technological changes. With the change in time and evolution of organization, nearly
all the firms that wish of keeping their doors open and ensure long term growth and
development, are required to successfully undergo organizational change. The term
“organizational change” is widely conceptualized by several scholars as the “movement from the
status quo to a new, desired, configuration to a better match the environment” (Armenakis,
Harris & Feild, 2000).
This paper shall elaborate on identifying a problem within an organization that requires a
change initiative. It shall develop a case by means of highlighting and explaining the issues by
including the background of the case and analyzing the organization structure, processes and
operations of the firm. The chosen firm for this purpose if McDonalds. It is to note that
McDonalds is striving to implement successful change management program for ensuring that
the annual evaluation of the employees are completed by human resources instead of managers
in the organization. McDonalds is an American based fast food company founded in the year
1940 that has placed its restaurants over several locations all over the world. Despite being
successful international fast food chain the company is dealing with the issue of maintaining
effectiveness of its “people practices” through its existing employee evaluation plan. The
existing annual employee evaluations plan carried out by the managers in the company is
observed to be ineffective in ensuring employee productivity, commitment, retention along with
consumer loyalty. Such issues are observed to take place because of several reasons including
managers not offering timely feedbacks, improper review of poor performers’ issues and the

4CHANGE PLAN FOR EMPLOYEE'S ANNUAL EVALUATIONS IN MC DONALDS
under-performing employees are attaining similar review as performing employees. Considering
such issues McDonalds is considering rethinking its strategies to improve such situation
(McDonald's - Official Global Corporate Website., 2019).
Being the consultant of the organization the change management issue faced by the
selected company McDonalds will be addressed. In proposing solutions to the change
management problem faced by the company external an internal analysis of the company’s
business environment has been carried out. Based on such analysis Kotter's eight step model will
be implemented along with proposition a change management implementation and evaluation
plan in the company.
2. Analysis
Analysis of the different internal and external environmental factors in an organizational
context enables the same in maintaining the efficiency of the operations while operating in
diverse markets. Pulakos, Hanson, Arad and Moye, (2015) stated that the examination of the
different market situations enables an organization in influencing the strategy formulation and
implementation process. In this relation, the section will be considering the evaluation of the
internal and external environment of McDonald’s in US, which will assess the opportunities and
threats for the business. The assessment of the different situations would enable the organization
in maintaining the efficiency of the operations as per the needs of the venture while operating in
the different markets.
For an effective industry analysis, internal strengths and weaknesses framework is a very
useful tool as it helps in developing the business strategy (Desai, 2019). Strengths and
Weaknesses are considered to be internal to a company and on the other hand, Opportunities and

5CHANGE PLAN FOR EMPLOYEE'S ANNUAL EVALUATIONS IN MC DONALDS
Threats are regarded as external. It is to note that strength of affirm can be in terms of
management of the process of branding comprehensively and effectively. On the other hand,
weaknesses can depend on the products distribution and delays in payments. These are all
internal issues and they are required to be dealt with a continuous and ongoing process. Again, in
case of the external factors of opportunities and threats, there are the issues that are not under the
control of the company. The external environment of the business such as the social, legal,
national, economic, regulatory and international events fall under this category and these are all
required to be scanned continuously to remain updated on the same. According to Seifert,
Brockner, Bianchi and Moon, (2016), Strengths and Weaknesses analysis is “high-level strategic
planning model that helps organizations identify where they are doing well and where they can
improve, both from an internal and external perspective”. Below is mentioning the external and
internal analysis of McDonalds.
2.1. External Analysis
Factors Opportunity Threat
Political  The increasing political
stability in US would enable
the organization in improving
the line of operations as per
the sustenance related needs
of the venture (Telang &
Deshpande, 2016). It has
been noted that the increased
political stability in US has
 Governmental guidelines and
regulations for diet and health
and the evolving public health
policies in the nation might
restrict the capabilities of the
organization in offering fast
foods. The policies greatly
emphasized on improving the
quality of the propositions that

6CHANGE PLAN FOR EMPLOYEE'S ANNUAL EVALUATIONS IN MC DONALDS
contributed to the growth of
different support industries
which again fueled the
growth and expansion of the
concerned organization
 The US government held
international trade
agreements with Australia,
Bahrain, Chile and Colombia
and the like, which would
support the free trade
activities of the venture
(Miksch, Nguyen & Schulz,
2018)
are made by the restaurants
and café to have minimum
impact on public health. In this
relation, McDonald’s might
encounter specific issues in
correlating their activities with
the changing public health
policies in US (Thornton et al.,
2016)
Economic  The GDP of US grew by
5.2% and the employment
rate by 61% which has
backed the potentiality of the
customers (Schmid &
Gombert, 2018). Therefore,
the growing rate of
disposable income in the
nation would sufficiently
 The US- China trade war
would affect the scope of
growth in the organization in
China. The increased rate of
taxation and the minimization
of bilateral trade between
China and US might affect the
capabilities of the concerned
organization in holding a

7CHANGE PLAN FOR EMPLOYEE'S ANNUAL EVALUATIONS IN MC DONALDS
contribute to the growth and
expansion of the concerned
venture in the markets.
 The increased rate of public
spending based on disposable
income of the customers
would allow the organization
in increasing its scope of
holding a significant amount
of prospective customers.
sustainable position in the
Chinese markets (Mathur,
2017).
Social  Busy lifestyle of the US
population have made the
same more reliant on foods
that are prepared by the
concerned organization or its
competitors (Andreasson &
Johansson, 2016). It has
increased the chances for the
concerned organization in
improving the scope of
potential customers for the
value proposed by the same.
 The increased affordability of
 The growth of health
conscious customers in US
might restrict the capabilities
of the concerned organization
in retaining their market share.
It has been noted that around
44- 45% of the US population
are opting for healthy
substitutes of the propositions
that are made by the
businesses (Nagarajan et al.,
2019). The growing health
related concerns among the

8CHANGE PLAN FOR EMPLOYEE'S ANNUAL EVALUATIONS IN MC DONALDS
the customers might
empower the concerned
organization in improving
their business operations
people and the changing
preferences of the customers
would restrict the potency of
the venture in sustaining in the
markets.
Technological  The increasing R&D
operations of the industry
would contribute to the
competitive benefit of the
business while operating in
the different US markets.
 It has been noted that around
85% of the adults in US
access the internet through
mobiles which has enabled
the growth of many
organizations (Schmid &
Gombert, 2018). On the
other hand, 92% of the US
residences have access to
internet which would
contribute to the growth of
customer base for the

9CHANGE PLAN FOR EMPLOYEE'S ANNUAL EVALUATIONS IN MC DONALDS
concerned venture (Kane,
2016). 97% of the US
population are active in
different social media
platforms which would
empower the organization in
undertaking extensive
promotional activities
(Mathur, 2017). The
technological innovations and
internet accessibility would
enable McDonald’s in
targeting a large number of
prospective customers in the
US markets.
Environmental  The concerned organization
followed the triple bottom
line approach where the firm
contributed to the
environmental conservational
programs like Panda’s garden
and sustainable fisheries for
contributing to the
 Growing concern for
environmental conservation
and the Policies and
regulations imposed by EPA
(Environmental Protection
Agencies) might restrict the
capabilities of the organization
in improving the operational

10CHANGE PLAN FOR EMPLOYEE'S ANNUAL EVALUATIONS IN MC DONALDS
environmental protection
(Thornton et al., 2016). The
sustenance based operations
of the venture contributed to
its brand value
units.
Legal  The increasing rate of health
related regulations in the
workplaces and schools might
reduce the amount of
customers in the market. The
changing health related
regulation sin the economy
might affect the capabilities of
the organization in retaining
the primary target market of
the business (Murdock, 2017).
2.2. Internal Analysis
2.1.1. Internal Strengths and Weaknesses Analysis
Organizational
Pressures
Strength Weakness
Brand image The brand image and reputation is
based on the quality of the
The growing competition in the
markets through the new entrants and

11CHANGE PLAN FOR EMPLOYEE'S ANNUAL EVALUATIONS IN MC DONALDS
propositions and the competitive
edge of the business in the
different markets. The competitive
propositions that are made by the
business enabled the same in
improving their position while
operating in the different markets
(Morente, Ferràs & Zizlavsky,
2018).
their improved propositions might
affect the brand image. It has been
noted that KFC, Burger King and
Subway are the major competitors
along with the new entrants which
has threatened the position of the
brand.
Customer
satisfaction
The improved rate of customer
satisfaction is based on the tastes
and preferences of the customers.
The satisfaction of the customers
based on their inclination towards
burger related foods have greatly
contributed to the growth of the
venture.
The changing preferences of the
customers towards healthy
consumption related habits might
affect the capability of the
organization in retaining the huge
customer base.
Product
development and
quality
The quality of the proposition that
is being proposed by the
organization would permit the
venture in retaining the trust and
confidence of the customers.
The lack of efficient product
development might affect the
capabilities of the organization in
retaining the competitive edge while
sustaining in markets with new
entrants.