Report on McDonald's: Organizational Culture, Teamwork, and Motivation

This report provides an analysis of organizational behavior within McDonald's, focusing on the influence of culture, politics, and power on individual and team performance. It explores motivation theories such as Maslow's Hierarchy of Needs, Herzberg's Two-Factor Theory, and McClelland's Theory of Motivation, and examines their impact on employee behavior and performance. The report also discusses the characteristics of effective teams, highlighting the importance of teamwork in achieving organizational goals. Furthermore, it applies various concepts and philosophies of organizational behavior to McDonald's, emphasizing the need for a healthy organizational culture, effective leadership, and employee satisfaction to improve performance, productivity, and overall organizational success. The report concludes with recommendations for McDonald's to enhance employee motivation, foster better communication, and promote a more collaborative work environment.

Running Head: Organization Behaviour 0
Organization Culture, Team working and motivation
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Report on organization culture, team working and motivation 1
Executive summary –
Organization behaviour is the study and concept of knowledge how members behave towards
the organization and it is important for the improving performance of the employees as well
as organization. Motivation, effective team working, effective leadership and organization
culture, policies and power are important factors which affect the behaviour of the
organization. McDonald’s culture results in discouraging employee behaviour towards the
organization due to strict rule and regulations within the organization. They mainly focus on
the higher level need for motivating their employees as per Maslow’s hierarchy need of
theory and use motivation theory rather than hygiene theory as per Herzberg’s two factor
theory of motivation. The company support and helps their teams for improving team
performance and achieving their goals.

Report on organization culture, team working and motivation 2
Table of Contents
Introduction –.............................................................................................................................3
Task 1.........................................................................................................................................4
Influence of culture on the performance of individual employee –.......................................4
Influence of politics on the performance of individual employees –.....................................4
Influence of power on the performance of individual employee –........................................4
Influence of culture, politics and power on team performance –...........................................5
Task 2.........................................................................................................................................6
Theories of motivation –........................................................................................................6
Impact of motivation theories on behaviour and performance of McDonald’s –..................8
Task 3.........................................................................................................................................9
Effective Team –....................................................................................................................9
Impact of effective team as compare to an ineffective team –...............................................9
Effectiveness of teamwork in achieving the goals –............................................................10
Task 4.......................................................................................................................................11
Concept and philosophies related to organizational behaviour –.........................................11
Concepts of organizational behaviour in relation to McDonald’s for the purpose of
effective team building –......................................................................................................12
Conclusion –.............................................................................................................................13
References –.............................................................................................................................14

Report on organization culture, team working and motivation 3

Report on organization culture, team working and motivation 4
Introduction –
McDonald’s is a world’s largest chain of fast food restaurants. They are serving approx. 47
million customers daily in whole world and it does headquarter in California, USA. The
franchises of the company operate restaurants which offer various products such as food
items, coffee, soft drinks and many more. They have more than 32,480 restaurants in 120
countries, out of these restaurants 26,215 operate by their franchisees and 6,265 operate by
the company and its vision is to be the best and leading fast food provider around the whole
world. The company objectives are to create healthy organization culture, proper leadership
or team management and to retain employees as well as customers for achieving their goals.
Company provide training to their employees regarding their roles and job description. They
mainly focus on the employee and customer satisfaction (Company overview, 2019).
Organization behaviour is the concept and study of knowledge related to how members act
within an organization. It is a necessary tool for the benefit of the human as well as
organization. Various factors which affect the organization behaviour such as organization
culture, policies and power, motivation, team working and leadership structure in the
organization (French, 2011). There are various importance of organizational behaviour such
as it helps in skill improvement of both managers and employees, understanding the buying
behaviour of consumers, increase motivation of employees, improve efficiency &
effectiveness of employees, improving performance and productivity of the organization,
create better working environment and better or optimum utilization of resources (Perkins
and Muondo, 2013). The report consists of influences of McDonald’s culture, politics, power
and influences of behaviour through motivation theories, effectiveness of team work and
various concepts and philosophies of organization behaviour towards increasing performance
of organization and employees and achieving their goals.

Report on organization culture, team working and motivation 5
Task 1
Influence of culture on the performance of individual employee –
McDonald’s organizational culture supports the company’s goals because company use its
culture to attract qualified employees and customers. Organization culture defines the value,
traditions and habits which influence behaviour of the workers (Alvesson, 2012). They
encourage employees or individuals learning by their culture at organization. It helps or
supports operational efficiency to maximize their productivity. It helps in lifelong learning
for the individual employee of organization. So, learning helps in promoting the productivity,
performance, quality and effectiveness of the employees towards organization. They believe
that employee satisfaction is important for better quality service to the customers. Company
have a strong sense of its organizational history such as “single store”, it helps in motivating
to the employees. They support their employees by encouraging through awards and
recognition for their performance and growth towards the organization. But, due to strict
procedure, horizontal division of labour and centralized structure, so employees discourage
and it also result in decreasing their performance.
Influence of politics on the performance of individual employees –
Organizational politics refer as a various activities associated with the use of influence
strategies to improve organizational and personnel interest and productivity (Wroblewski,
2018). McDonald’s organizational politics effect on the performance of the individual
employee. The business operation of any organization is also influenced through policies of
the government. The business operation at McDonald’s is also depends on the policies, rules
and regulation of the government. So, the government laws or legislation related to
employment also helps or effect or influence the performance of the individual employees
within an organization (Political contribution & policies, 2019).
Influence of power on the performance of individual employee –
Power refers as a function of dependency where one individual or entity depends on another.
So, leadership is an important factor to success of the organization and to improve
organization and individual productivity. Leader has awareness of using power to influence
their members towards increasing their performance and achieving their goals (Fairholm,
2009). At Macdonald’s, leader used the autocratic leadership style of management. They do
not involve employees in decision making process and they follow constructive model, so
leader inspires their members by enthusiasm and leader also develop their team members for

Report on organization culture, team working and motivation 6
increasing their performance and achieving their objectives. So, by using of the powers
organization can reduce productivity and performance of their employees.
Influence of culture, politics and power on team performance –
Company culture is highly depends on the specific line manager as they follow autocratic
leadership style of management means all decisions are made by top level of management
and crew members and lower level just follow their decisions or rules and order. It resulted in
decreasing the performance of their team members and it also creates conflicts among
different level of management. Manager would always use their position and power towards
employees. They do not seem to display real interest and concern in the emotion of their
employees, so because of this there is conflicts arise between manger and their employees.
Due to the political pressure relating to the minimum wages, company does not want to
increase wages of their employees, so it will affect the team performance of the company. So,
company’s culture, politics and power result in decreasing performance of the team because
of strict procedures, rules, centralized structure, lack of motivation to team, horizontal
division of labour and no feedback process (Ferris and Treadway, 2012).

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Task 2
Theories of motivation –
1. Maslow’s Hierarchy of Needs theory – This theory of motivation was developed by
Abraham Maslow. The theory suggests that people are motivated by their basic needs
then move further. There are five different level of the theory of Maslow’s hierarchy
of needs (Ryan, 2013).
a. Physiological or basic needs: It includes food, shelter, air, drink and clothing.
b. Safety needs: It includes protection to the employees from elements, order,
security, law, stability and freedom.
c. Social needs: It is the third need after fulfilment of basic and safety need. It can
by fulfil by maintaining positive relationship with the employees.
d. Esteem needs: It is classified in two categories one is esteem for oneself such as
achievement, independence and other one is the desire for reputation as status.
e. Self- actualization needs: It includes realizing self- fulfilment, growth and
personal potential to the employees (Mathes, 2009)
McDonald’s is using Maslow’s hierarchy of needs theory. But they does not
emphasise basic needs because they believe that basic need and safety need can by fulfilled
by their families. So, they emphasise higher level of needs of Maslow’s hierarchy of needs
theory.
Self
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Social needs
Safety needs
Physiological or Basic needs

Report on organization culture, team working and motivation 8
2. Herzberg Two factor Theory of motivation – This theory was developed by Frederick
Herzberg. There are two factors, one is hygiene and other one is motivation theory.
a. Hygiene theory: As per this theory, organization environment should be hygiene
and friendly for effectiveness of work by the employees towards the organization.
There are various factors which affect the hygiene culture such as organization
policies, power, working conditions, job security, wage structure and interpersonal
relations.
b. Motivation theory: It includes motivate employees by achievement, recognition
for their performance and also build interest of the employees towards their work
and organization (Bexheti and Bexheti, 2016).
Company also use Herzberg’s two factor theory. They believe that this theory can
bring satisfaction of employees. They motivate to their employees by rewards and future
development. They motivate employees by their work rather than by hygiene theory (Nawaz,
2011).
3. McClelland Theory of Motivation – This theory classifies motivational needs in three
different forms which help in building employee satisfaction and increasing their
performance.
a. Need for affiliation: This need can be fulfil by recognition which is given to the
employees. So, employees feel affiliated from their team.
b. Need for power: Sometimes, organization also needs to empower their employees
with various sessions as brainstorming.
c. Need for achievement: This is also necessary for organizational objectives. Leader
can build the need for achievement in their team members (Badubi, 2017).
McDonald’s is using this theory for increasing motivation to the employees. So, it
helps in building team, increasing work quality and efficiency of the employees and
achieving organization objectives.

Report on organization culture, team working and motivation 9
Impact of motivation theories on behaviour and performance of McDonald’s –
1. Motivation theories help the company for proper utilization of human resource to
accomplish organization goals.
2. It helps in improving level of efficiency and productivity of employees. So, it will
automatically impact on the organization performance.
3. It also helps in building friendly relationship with employees, stability of workforce,
co- operative work environment and effective team performance. So, theories of
motivation help the organization in improving their behaviour, performance and
productivity (Furnham and MacRae, 2017).
Recommendations –
1. Company should give their employees some autonomy, allow them to find their
solutions and allow them to participating in some decisions.
2. Provide training and development to their staff to meets their goals.
3. Conduct various communication sessions with the employees and take regular
feedback from the employees.
4. Regular check the performance of employees and give accurate reviews to the
employees for their performance.
Challenges of applying the Theories
1. Motivational theories is applied on the basis of reward and punishment which can
further has negative impact on the performance of employees in McDonald’s and
create gaps.
2. It is difficult to define what motivates employees in the workplace, as each individual
has their own driving factors here it make it hard to apply motivational theories.

Report on organization culture, team working and motivation 10
Task 3
Effective Team –
A team which is made up of two or more employees who work together for accomplish a
common goal. Effective teams help in increasing employee motivation and productivity of
the McDonald’s. The team members not only share the information but also share the
responsibilities relating to their goals. A team can be effective if members of the team have
mix talents and skills which are required for achieving team goal, clear purpose or objective,
there must be open communication with all members, use fair decision making process from
which every member of team agrees on, share leadership by the leader of team and share
creative and diverse idea (West, 2012). Effective team plays an important role in productivity
of the company.
Impact of effective team as compare to an ineffective team –
1. Effective team members participate, contribute and communicate openly to the team,
so they have diverse ideas and suggestions, so it will help the team as well as the
company in achieving their goals. But in case of ineffective team, they do not give
chance to every people to give their ideas or suggestions while taking any decision.
So, effective team will result in reducing conflict and maintaining positive relations
with all team members.
2. At McDonald’s, Effective team take decisions when all members agree on those
decisions with their logical arguments rather than by voting and by ignoring that
member who does not agree with the decisions as an ineffective team do this. So, if
leader does not focus on the satisfaction then it will result in decreasing employee
morale, employee satisfaction and loyalty.
3. Due to clear purpose or objective and every member is well understood about the task
at McDonald’s, effective team complete their goals early than an ineffective team.
Without clear objective, no one can achieve their goals.
4. Leader of the team more understandable and does not dominate towards their
members as compare to an ineffective team. Leadership play an important role for any
organization for achieving their goals. Without leadership organization cannot survive

Report on organization culture, team working and motivation 11
in long run. Effective team effect the organization in better way in achieving their
goals as compare to an ineffective team.
5. In case of effective team, task is given to the members by leader in proper way means
as per employee skills and ability to do that task. So, it will help in accomplishing
their goals without conflicts among employees as compare to an ineffective team
because in this case, leader does not manage their team properly (Katzenbach and
Smith, 2015).
Effectiveness of teamwork in achieving the goals –
1. Strong team members properly understand the objective of the organization and its
long term and short term strategies. They are working towards a common goal and
share all information and responsibilities with members. So, this creates a strong
dynamic team which supports the one of objective of the McDonald’s.
2. Effectiveness in teamwork helps in improving motivation for the employees because
it encourages involvement of employees or employee participation while making
decisions.
3. Teamwork creates positive synergy and due to this it creates higher level of
productivity, so it will automatically help in achieving their goals.
4. Due to the effectiveness in teamwork, it help the McDonald’s in satisfaction of social
needs for their members by creating friendly relationship among team members and
increasing members interactions towards their goals.
5. Training and development which is provided by the team leader at McDonald’s helps
the employees to build their technical, interpersonal and decision making skills. So, it
will help in achieving organizational goals.
6. At McDonald’s, each member skills, strengths and talents are used for the benefit of
team. Leader assign task as per members skills and talents. So, it will impact
positively on the organization performance and productivity (McQuerrey, 2019).