Introduction to Management: A Case Study of McDonald's in Poland

Desklib provides past papers and solved assignments for students. This report analyzes McDonald's success in Poland.

Introduction to Management
1

Table of Contents
Introduction......................................................................................................................................3
1. Identify and explain the 3 levels of an organisation and their responsibilities, including
associated functional areas, in light of the given case study / article..............................................4
2.Identify and explain the roles and styles of leadership and management from theoretical
perspective. With reference to the case-study / article, interpret the leadership and management
style adopted in the organization.....................................................................................................7
3. Explain relevant effects of globalisation facing the organization...............................................8
4. Explain your understanding of CSR and review two responses adopted by the organisation in
light of the case study / article.........................................................................................................9
Conclusion.....................................................................................................................................11
Reference List................................................................................................................................12
2

Introduction
Managing of business needs to be done at different levels. There are different levels in the
organization that decides the decision that needs to be taken in order to operate in the market and
earn the desired amount of revenue. In order to arrange the employees towards goal attainment it
is imperative for the organization to adapt to effective management and leadership style. In order
to gain insights on the different levels of organizations and various leadership and management
models the case study of McDonald’s at Poland will be considered. McDonald’s is one of the
leading fast food chains in the world. However, its entry into Poland was not easy due to the
different eating cultures of the country. In this study, different obstacles faced by the
organization in Poland will be discussed along with the leadership and management theories that
were undertaken to solve the issues
3

1. Identify and explain the 3 levels of an organisation and their responsibilities, including
associated functional areas, in light of the given case study / article
Management of the organization and the employees is done through three levels namely
 The Top Level Management which is the Administrative Level
 The Middle Level Management which is the Executory Level
 The Low Level Management which is the Supervisory Level
Each of the level in the management performs different functions in order to attain the goals for
the organization. The top-level management of the administrative level consist of the Managing
Directors, Presidents, Vice Presidents and the Chief Executive Officers. The responsibility of
this level of the management is to lie down and draft policies for the organization to function.
Moreover, this level strategizes plan in order to align the competent managers who reside in the
middle level so that tasks can be carried out smoothly. The people stationed at the administrative
level manage the communication within the organization and the outer world (Harrison and
Lock, 2017).
The Middle level management is also known as the Executory Level. This level acts as a
subordinate to the Top-level management and provides direction to the low level management of
the organization. In the middle level the branch managers, departmental managers are employed
who drafts plans for the completion of the plans made by the officers of the top level. The
function of the managers at the middle level is to pass on information and data to the top-level
management from the lower level. The main responsibilities of the middle level management are
to carry out plans that have been designed for the heads of the organizations (Ansoff et al.,
2019). Managers in the middle level allocate resources and organize various departmental
activities. Thirdly, this level provides motivation to the employees and junior managers stationed
at lower level
The lower level of the management is the operative level. This level is primarily responsible for
the execution of the plans that so that discipline and efficiency is maintained in the company.
Further this level of management is made up of the shift boss, superintendents, sergeants, and
many more. The responsibility of this level of management is to allocate the tasks to the
4

employees so that activities are carried out effectively in the organization. Additionally this
department communicates the goals of the organization to the employees.
Apart from the different levels of management, different organizational structures are followed
in order to effectively achieve the goals. The different organizational structures are as follows:
 Vertical Structure: In the vertical structure the managers have the command to
strategize the workings of the employees in order to attain the goals (Saadat and Saadat,
2016)
 Horizontal Structure: Organizations having horizontal structures have strict hierarchy
in the company. In these structures there is strict division of labour and each level id
distinguished with different responsibilities
 Divisional Structure: Companies following this structure are divided according to the
functions they perform. Departments are created in this type of structure in order to carry
out different tasks (Den Hond et al., 2015)
 Network Structures: The network structure is based on the communication between the
internal and the external factors. The network structure is decentralized and flexible in its
nature.
Figure 1: Divisional Structure
(Source: Matinaro and Liu, 2017)
5

The success of McDonald’s in Poland can be attributed to the decisions made by the Top-level
management of the organization. When McDonald’s entered the country 25 years ago, they did
not do it with the traditional menu which consisted of the beef burger. The people in Poland have
always preferred pork. However, the top-level management and CEO Adam PienKowski took
decisions that changed the fate of the organization in the country (Theceomagazine.com, 2019).
In Poland, McDonald’s has followed in the divisional structure as well as the network structure
in order to carry out the tasks efficiently and build effective rapport with the potential consumers.
6

2.Identify and explain the roles and styles of leadership and management from theoretical
perspective. With reference to the case-study / article, interpret the leadership and
management style adopted in the organization
Leadership is the activity that is performed by the leaders in the organization in order to
motivate, guide and mentor the employees in order to achieve the goals. There are different
leadership models that have been drafted by the theorists which can be put to use in order to
effectively guide the employees. The different leadership model are as follows:
 Autocratic Leadership: Autocratic leaders are strict ones and only care about the
productivity from the employees. These leaders do not consider the opinions of the
employees when taking any decision (Iqbal et al., 2015)
 Democratic Leadership: Democratic leadership is all about managing and leading the
employees through a participative style. Democratic leaders do consider the opinion of
the employees when drafting any decision
 Transactional Leadership: This is contingency kind of leadership style. When
situations are tight in the organizations leaders are strict in their approach and on the
other hand leniency is shown by the leaders when work pressure is less (Amanchukwu et
al., 2015)
Different management models are directed towards different purposes in the organizations. The
different management models that can be followed in the organization are as follows:
 Scientific Management Theory: Frederick Taylor put this Scientific management
theory forward. The main underlying concepts of this theory are decisions are taken
according to the numerical data that is found from the market. The managers can use
these numerical data in order to take effective decisions (Waring, 2016)
 Bureaucratic Management Theory: This management theory states that there should be
clear and strict hierarchy in the organization and employees in each level should be
designated with different tasks in order to accomplish the goals
 Human Relations Theory: In the recent century, the management models are becoming
employee centric and this is the core idea of the human relations theory. The theories of
7

human relations stresses on the fact that it is important to align the employees to the
objective of the organization.
 Systems Theory: n the systems theory, the goal of the organization is identified and the
goals are drafted in such a way that employees can have a holistic approach towards it.
According to the CEO of McDonald’s in Poland, it was imperative for the managers to select
effective leadership and management theories in order to efficiently manage the different
activities in the organization. In the initial phase of the company, the company used the
marketing statistics in order to align the activities of the employees. Thus it can be said that
Scientific model of management is followed in the organization. However, in the recent scenario,
the company is relying on the human management model in order to increase the output from the
employees. The success of McCafe in Poland can be attributed to the use of Scientific
Management theory (Theceomagazine.com 2019). Moreover, the organization has always
followed the transactional path of leadership in order to guide the employees in the organization.
This path of leadership has helped the leaders in the organization to achieve the goals on time.
3. Explain relevant effects of globalisation facing the organization
Globalization can be termed as the phenomenon that has made the world a closer place to do
business. In order words, globalization has made the world a local market place. Due to
globalization market, expansion strategies are now much easier and different companies are
being able to expand their business in different countries other than the country of origin. There
are different impacts of globalization that either effects or affects the organization (Reader,
2017). McDonald’s entry into Poland was the by-product of the decision taken by the
organization due to globalization. McDonald’s entry into Poland helped the company increase its
worldwide share in the fast food industry (Firlej and Kubala, 2017). According to the YIP’s
Model of Globalization, McDonald’s greatest driver in the country was the market drivers and
the demographic factors. Poland being one of the most emerging places in UK as the most
feasible option for McDonald’s to open its operation in the country. The competition in the fast
food market was low and this increased the chances of the company to become successful in the
market. In addition to this, the demographics of Poland were a contributing factor for the growth
of the organization in the country. The population of Poland was welcoming of the idea of beef
8

burgers in the country. In addition to this, the population also welcomed coffee. The support the
suppliers also helped the company to growth in Poland (Theceomagazine.com, 2019).
Figure 2: YIP’s Model of Globalization
(Source: Wirtz et al., 2016)
4. Explain your understanding of CSR and review two responses adopted by the
organisation in light of the case study / article
Every industry and sector in the economy has become increasingly competitive thus, it is
important for the organizations to take up strategies in order to develop its image in the market.
CSR is one of the tools that can be deployed by organizations in order to increase the goodwill of
the brand in the market. In other words, CSR can be defined as the activities that are performed
by the company in order to give back to the society. CSR is performing activities that would
uplift the society that we will in. The model developed by Carroll insists on four types of CSR
activities and they are economic responsibilities, legal responsibilities, ethical and philanthropic
responsibilities. In economic responsibilities, it is noted that, companies should come up with
products that suffices the needs of the consumers. In addition to this, companies should not make
a major percentage of profit in selling the goods and the services.
9

Figure 3: Carroll’s Model of Corporate Social Responsibility
(Source: Carroll, 2016)
In ethical responsibilities, the companies should not carry our any activities that dismantle the
stable condition of the society. In other words, the activities performed by the organization
should be within the ethical limits of the society (Pino et al., 2016). The other two
responsibilities include following the law and order in the country and providing donations and
aid to the voluntary organizations in the country in order to make the society a better place to live
in (Tran, 2019). The success of McDonald’s in Poland can be attributed to the CSR activities
performed by the company in the country. McDonald’s has pioneered in the economic
responsibilities in the country. All the products that are manufactured by the company are
aligned to the taste buds of the consumers. In addition to this, the products are priced effectively
which makes the company fulfil its duties towards the ethical responsibilities in the country
(Theceomagazine.com, 2019). The delivery app can be also attributed to the economic
responsibility of the company towards the growing needs of the consumers.
10

Conclusion
In this study, different management and theories have been discussed which helps organization
to attain the desired goals. With the changing global scenario, companies need to change the
leadership and management style in order to sustain in the changing market. In addition to this,
companies need to adopt various CSR policies in order to increase the goodwill of the brand in
the market. McDonald’s in the recent scenario, has changed its business dynamics in order to
sustain in the competitive market. Moreover, through this study different impacts of
globalization have been identified that could make potential improvements in the organization.
11

Reference List
Amanchukwu, R.N., Stanley, G.J. and Ololube, N.P., 2015. A review of leadership theories,
principles and styles and their relevance to educational management. Management, 5(1), pp.6-14.
Ansoff, H.I., Kipley, D., Lewis, A.O., Helm-Stevens, R. and Ansoff, R., 2019. Implanting
strategic management. Springer.
Carroll, A.B., 2016. Carroll’s pyramid of CSR: taking another look. International journal of
corporate social responsibility, 1(1), p.3.
Den Hond, F., De Bakker, F.G. and Smith, N., 2015. Social movements and organizational
analysis. The Oxford handbook of social movements, pp.291-305.
Firlej, K. and Kubala, S., 2017. Factors of Functioning and Chances of Development of Fish
Industry in Poland. Acta Scientiarum Polonorum. Oeconomia, (2), pp.33-43.
Harrison, F. and Lock, D., 2017. Advanced project management: a structured approach.
Routledge.
Iqbal, N., Anwar, S. and Haider, N., 2015. Effect of leadership style on employee
performance. Arabian Journal of Business and Management Review, 5(5), pp.1-6.
Matinaro, V. and Liu, Y., 2017. Towards increased innovativeness and sustainability through
organizational culture: A case study of a Finnish construction business. Journal of cleaner
production, 142, pp.3184-3193.
Pino, G., Amatulli, C., De Angelis, M. and Peluso, A.M., 2016. The influence of corporate social
responsibility on consumers' attitudes and intentions toward genetically modified foods:
evidence from Italy. Journal of cleaner production, 112, pp.2861-2869.
Reader, J., 2017. Reconstructing practical theology: The impact of globalization. Routledge.
Saadat, V. and Saadat, Z., 2016. Organizational learning as a key role of organizational
success. Procedia-Social and Behavioral Sciences, 230, pp.219-225.
12