McDonalds Leadership and Organizational Behavior: A Detailed Analysis

This report provides a comprehensive analysis of McDonalds' leadership and organizational behavior, focusing on the challenges and issues faced by the company. It delves into the organizational culture, leadership styles, and employee satisfaction, highlighting key problems such as communication failures, lack of strategic alignment, and poor employee compensation. The report includes a literature review, exploring relevant theories like Kottler's Eight Step Strategy, Lewin's Freeze Phases, and Prosci ADKAR Model, to evaluate alternative solutions and propose recommendations for improvement. These recommendations include fostering a positive work environment, improving communication, and ensuring better coordination between management and employees. The report aims to provide insights into improving McDonalds' operational and functional aspects and enhancing its competitive advantage.

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McDonalds Leadership and Organizational Behavior
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1MCDONALDS LEADERSHIP AND ORGANIZATIONAL BEHAVIOR
Executive Summary
The report studies about the operational aspects that are associated with the company McDonalds
where the major objective if the study is to understand the leadership issues that are pertaining in
the respective organization. The key part of the study also contains a literature review session
along with identifying several solutions to the issue caused in the leadership function of
McDonalds. There are also certain recommendations added to make the report more
understandable and effective.

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Table of Contents
Introduction......................................................................................................................................3
Company Background.....................................................................................................................3
Leadership Issues of McDonalds.....................................................................................................5
Literature Review of McDonalds....................................................................................................7
Evaluation of Alternative Solutions to the Leadership Issue...........................................................9
Recommendation...........................................................................................................................11
Conclusion.....................................................................................................................................13
References......................................................................................................................................14

3MCDONALDS LEADERSHIP AND ORGANIZATIONAL BEHAVIOR
Introduction
The following report is based on a brief study of an organization named McDonalds where the
major objective is to analyze and understand several factors that are associated with the
respective organization. The factors which are considered to be the key part of identification are
the organizational culture and behavioral systems pertaining in the respective organization and
the issues that are related to the leadership functions of McDonalds. Apart from this, the study
also brings an understanding about the theories and operation that are required to be taken as an
initiative for the future operational aspect of McDonalds to overcome the challenges and issues
that are related to the same.
In terms of the operational aspects of the organization it has been facing issues and
challenges under the behavioral aspects of the leaders and their leadership styles which were
adopted by them in the market. This brought some negative impact under the area of operation
where it was important for McDonalds to introduce positive changes that can enhance them to
adapt effective marketing strategy in the future. The report also includes certain measures that
are considered to be a part of finding the required solutions to the problems that are associated
within the organizational prospective. There are certain suggestions and recommendations added
to make the report more advanced and innovative.
Company Background
 As Compared to the operational aspects of McDonalds, they are considered to be one of
the biggest and highly productive restaurant food chain all over the world. McDonalds

4MCDONALDS LEADERSHIP AND ORGANIZATIONAL BEHAVIOR
was introduced in America where, the headquarters of the organization is in Oak Brook,
Illinois.
 The commencement of the McDonalds was made in the year 1940, where the major
focus and key operation of the organization was on Hamburgers (Cameron & Green,
2015). The key importance was to adapt innovative measures and advancements to the
respective product in the market.
 Some of the products that are associated with the respective organization are
Hamburgers, Chicken products that are of different varieties, Sandwiches, desserts of
different flavors and also delivers a fine dine for breakfast. The products that are
available in McDonalds at a reasonable and affordable price value are vegetable
products and salads that generally have better demand and value in the market.
 The major initiative and regulative measures adopted by the organization was related to
the function of improving the menu by introducing the products that can ensure better
health consciousness to the customers where customer satisfaction was considered to
be the key motive of the company.
 According to the health measures taken by the organization for the customer prospective,
the objective was to remove artificial ingredients that were added to the Hamburgers for
which the major initiative was under the area of ignoring the content of fructose corn
syrup at higher value from the Hamburgers that were served in the market.
 As compared to the revenue part associated with the respective organization, the total
revenue of McDonalds was US$22.8 billion in the year 2017, where as per the statistical
data it was stated that there is 7.3% decrease in the revenue as compared to the fiscal
value of the previous year performance.

5MCDONALDS LEADERSHIP AND ORGANIZATIONAL BEHAVIOR
Leadership Issues of McDonalds
As compared to the leadership functions and operations of McDonalds, the respective
management associated with the company has been facing several leadership issues to undertake
operations in Australian market. As compared to the operational aspect of McDonald these issues
created a negative impact for the organization in maintaining a better competitive advantage in
the market as compared to the competitors. Some of the major leadership issues that were faced
by the top management and the employees of the respective company are mentioned as follows:
 As compared to the internal environment processes associated with the respective
organization there were no systematic employee’s satisfaction in the organization.
There was no proper system of pay structure for the employees where they had to face
several issues that were related to the protest made by the workers regarding the
compensation strategy adopted by the organization.
 According to the managerial operations that were associated with the respective
organization, they had to face several complicated issues and challenges that were
raised by the investors in the market regarding the poor performance of the
organization.
 The other major leadership issue that was faced by McDonalds was that the
communication system within the organization was a huge failure. The managers
associated with the respective company showed least interest towards the function of
sharing the future implementation plans, the vision and goals required for the future
initiative operations of McDonalds.
 There were no systematic Accountability factors pertaining in the respective company.
Under this function the major issues that were faced by the top management was that they

6MCDONALDS LEADERSHIP AND ORGANIZATIONAL BEHAVIOR
failed to adapt innovative and advanced strategies that were considered to be a major
part of operational aspect for the company in the future. The organization failed in
understanding the behavioral aspects of the competitors which created a negative
impact in the functional area of McDonalds.
 As compared to McDonalds the company had no systematic alignment of strategic
planning in the organization (Lantz, Rubin & Mauery, 2015). The major issue that was
related to the respective problem was that there were no proper coordination among
the employees and the managers associated with the respective company. They failed
to adapt strategies that were required for the satisfaction of the employees by offering
better reward schemes and incentives for the employees which may motivate them to
work as per the visions and goals designed within the respective organization.
 There was no proper vision in the internal environment of McDonalds which created a
negative impact in the functional area of the company as compared to the competitors in
the market. They were unable to execute the strategies in the desired manner which
created a rapid effect in attaining the competitive advantage and ensure better system
of sustainability in the market operations.
 The most effective challenge that was faced by the organization was related to the
function of poor execution of ideas and strategies as per the planned initiatives for the
current and future operations. The organization was successful in generating innovative
and advanced ideas in the market, where they failed to implement the same understanding
the competitive techniques and operational strategies that were adopted by the
competitors in the market.

7MCDONALDS LEADERSHIP AND ORGANIZATIONAL BEHAVIOR
Literature Review of McDonalds
 According to Kottlers Eight Step Strategy, as compared to the operations that are
associated with McDonalds they must try to ensure proper system of flexibility within
the employees associated with the respective company (Kok & McDonald, 2017). It is
important for the organization to give more emphasis on the satisfaction level of the
employees which may enhance them to increase productivity and attain systematic and
effective competitive advantage in the market. They must try to offer and introduce
reward schemes for the employees as per the dedicated work delivered by the respective
personnel for the organization which may create a factor of motivation in the employees
where this may help in building an emotional attraction in the mind of employees towards
the organization which can bring a positive impact for the company in the market.
 According to Lewin’s Freeze Phases, it is understandable that the organization has to
maintain proper system of management operation to ensure better coordination
among the employees and the managers which may enhance a better strategic
implementation for the respective company in the current and future operations. The top
management must build capability in sharing the desired goals and objectives to the
members associated with the respective company and develop effective training and
development programs which can enhance the team members to operate according to the
desired vision of the organization in market which can help them to gain a proper system
of sustainability as compared to the competitors of McDonalds in the market operations.
 According to Prosci Adkar Model, one of the major issues that were faced by the
McDonalds was to bring innovative features to the food quality for the purpose of
retaining the lost customer image in the market (Kwamie, 2015). Thus it is important

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for them to ensure adaptive techniques in the market operations by improving the quality
of food items that are served by them and understand whether the qualities of food
products are as per the taste and preference of the customers. There should be proper
system of accountability and alignment features to adapt the planned strategies and
innovative measures in the desired manner. It is important for McDonalds to ensure the
whether implemented strategies are as per the visions and goals designed with the
internal environment of the organization.
 According to Kublers-Ross Grief Cycle, the strategic management theory states that it is
important for the organizations to adopt proper system of strategic implementation in
the market which may enhance them to maintain better growth and can also be a
supportive factor in increasing the productivity of the respective organization (Wu,
2018). As compared to the functional aspects of McDonalds in the market the two key
major objective of the company was overcome the issues that were related to the pricing
system of the organization by maintaining an effective competitive challenge with the
operation of Burger King in the market. The other key objective was to prevent the
scandal that was raised by different countries regarding the quality of food products
and pricing strategies adopted within the organization. A systematic implementation of
organizational strategies through a proper system of decision making function can
enhance them to make adaptive measures to overcome the respective issues faced by
them in the market.

9MCDONALDS LEADERSHIP AND ORGANIZATIONAL BEHAVIOR
Evaluation of Alternative Solutions to the Leadership Issue
Some of the major factors that are considered to be the key part of improving the leadership
issues that are associated with the operational and functional aspects of McDonalds are
mentioned below:
 According to the organization McDonalds, it is important for the mangers and team
members associated with the respective company to create a positive and demonstrative
environment within the organization (Doppelt, 2017). This can help in building a
systematic and effective working nature in the mind of members of the respective
organization.
 As compared to the employees of the organization they must create a clear
understanding about the responsibilities and must be aware about the vision and
goal strategies that are required to be implemented by the company to gain a proper
system of competitive advantage in the market as compared to the operational aspects
of the competitors.
 There should be proper coordination among the management and employees
associated with the respective organization to face any kind of challenges, issues and
discrepancies caused to the marketing operation of the company (Howse et al., 2017).
They must try to ensure proper appreciation factors to support and motivate the
efforts made by the team members which can enhance them to bring better advancements
in the future functioning’s,
 As compared to the managers, they must ensure proper tendency in communicating the
future initiatives and upcoming strategic implementation process to the employees at

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the right point of time such that the goals and objectives of the company can be easily
achieved under all terms. The managers must also guide and support the organization
and the employees in case of any disputes pertaining within the organization.
 To ensure proper system of customer satisfaction in the market the major initiative that
has to be taken by the manager of McDonald must be by developing proper targets
within the organization, creating an effective and systematic budget planning system,
introducing training programs and development for the employees to operate
according to the planned strategies. The most important factor that can be adopted to
enhance better customer base can be by introducing marketing campaigns within the
organization where this can help in creating a positive and satisfactory revenue structure
for the company as compared to the competitors.
 They must try to ensure better system of accountability by understanding the culture of
social responsibility factors that are required to be implemented in the organization for
the further operation of the business on a successful manner.
 In order to adopt better and effective strategic implementation within the organization,
under this function the system of employee’s satisfaction can generally play a major
role. There should be systematic compensation strategy adopted for the employees
where they must be paid as per the work done by them along with the function of
introducing better incentive schemes and reward systems for the employees.

11MCDONALDS LEADERSHIP AND ORGANIZATIONAL BEHAVIOR
Recommendation
As a part of recommendation some of the major aspects that are required to be considered as
the key part of strategic implementation are mentioned below:
 It can be recommended that McDonalds must ensure better system of consistency in the
taste and preference of the customers rather than developing innovative features to the
product without understanding the demand and expectation of the respective customers in
the market. They must try to maintain better quality in the food products that are
delivered by them in the market which can enhance them to adopt better operations as
compared to the competitors in the market.
 In order bring a better customer base along with understanding the competitive
strategies adopted by the competitors they must try to develop innovative features to
the available food varieties to have a better enhancement and growth in the revenue
structure of the company.
 As compared to the previous information’s associated with McDonalds, it can be
recommended that the organization must try to adopt effective promotional and
advertising strategies in the market such that they can create an effective growth in the
sales value and market share of the organization.
 The key factor of recommendation can be based on introducing health conscious
factors to the food products through avoiding the artificial ingredients by giving more
emphasis on the hygiene factor of the customers.
 It can be recommended that the organization must follow the system of autocratic
leadership function within the respective company which can enhance them to maintain