Mcdonald's Corporation How Recent Economic Essay

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According to Kerin, et al., (2003) all employees posses some form of power to interrupt the smooth running of operations by deciding to be uncooperative in the production processes, or just by terminating their services. Workers may abide to the power of the company, though they usually maintain a strong interest in their employment. Thus, employees and employers, to certain degree, are interdependent. As such, the company cannot depend only on coercion or conformity to get good performance form employees, the company as well require to gain cooperation and consent from the employees.

Chase, et al., (2004) asserts that the issues of subjectivity are related to analysis of actual work practices where interactive services are involved. This is because companies' actively control employees' identities. Chase, et al., (2004) stresses the anguish felt by employees when an organization exploits their feelings and personalities. Nonetheless, Kerin, et al., (2003) notes that some employees accept the standardization to be applied to them. Accordingly, many workers try to construct certain interpretations of their duties that do not destroy their individual personalities. Indeed, Kerin, et al., (2003) as well notes that in some circumstances, service routines offers employees and customers with benefits that assist in their regular acquiescence. Nonetheless, according to Chase, et al., (2004) routinization of service work as well as standardization of personality is not caring, and employees and customers may fail to gain from these processes. He argues that these manipulations are usually invasive, humiliating and irritating for employees an at times for customers.

McDonald's workers working as cashiers, for instance, even though merely offering fractional service interaction, are supposed to have internal control by being jovial, pleasing, courteous and smiling to customers, not withstanding that some customers may be rude or insulting. This is applicable to each employee at the company and they are expected to extent this to fellow employees and the management.

Therefore, the significance of emotional work in interactive service place, as that found at McDonald's ought not to be undervalued. To achieve its goals, McDonald's has standardized its service interaction, and this exerts a cultural impact that goes beyond the company. The organizational control approach has a profound influence in the lives of the employees, making them to adopt instrumental position towards their individual personalities, and those of other people. In its financial reports, McDonald's management has stated that the importance of effective communication as a way of motivating employees. Accordingly, Kerin, et al., (2003) encourages managers to use and focus on achievement, growth, employee recognition and responsibility as key motivators. This could be done as 'recognizing employee of the month' 'cash bonuses, awards, and promotions. All these motivators are present at McDonald's as a way of encouraging its employees increase their performance.

As noted by Chase, et al., (2004) endeavoring for career advancement locks the loyalty of the managers and other employees into the company, it could provide a genuine opportunity for promotion which could be difficulty for those employees with poor qualifications or less experience. Managers are persuaded to overlook the significance of hygiene factors that includes pay and working conditions. At McDonald's, managers do not control these aspects because they are controlled by the system. Training at McDonald's emphasizes the idea that pay and working conditions are not very important, what is more important is their 'positive' management style. Therefore, job satisfaction is explained as an experience established by the aspect of psychological ideas, and not by good pay and working conditions. Accordingly, effective managers will thus 'resolve' the problem of employee resistance by use of effective communication. Indeed, managers at McDonald's use three Cs (co-ordination, cooperation and communication) as the foundation of resoling all issues (McDonald's 2012).

Employee identification with the company and other employees is developed through the formation of a new understanding of collective. McDonald's encourages its employees to think of themselves as being part of the team, while the managers are encouraged to view themselves as coaches, who need to train the team. When the term "us and them" is used, the company wants its employees to re-think of the term to imply "us" as the company's team and "them" as the customers (McDonald's 2012). This outcome of this concept of teamwork appears to be applied by the company because people usually are reluctant to do what their colleagues ought to have done. However, with teamwork, even the most reluctant employees want to be part of the team. A common management style by McDonald's is the use of paternalistic terms for example, 'McDonald's family' that is used to describe the work conditions at each of the thousands McDonald's restaurants.

The strategies applied by human resource management of McDonald's have been successful in ensuring that the HRM helps the company to achieve its goals and objectives.


Throughout this company analysis of McDonald's we have established that McDonald's is a successful company that has continued to be the industry leader. The SWOT analysis showed that company has globally recognized brand name, high quality products and services, strong financial position and expansive distribution channel. The few threats such as government policies and challenge of trans-cultural markets were issues that company could address. When analysis its financial performance, it was established that the global recession did not adversely affect the company. McDonald's continued to post profits even when recession was baiting. Compared to its competitors such as Wendy's and Burger-King, McDonald's is far beyond them in terms of revenue and profitability. The success of McDonald's can be attributed to the effective organizational and operational strategies that the company has adopted and implemented. From this analysis, McDonald's is a good company in which to invest in, its financial base is solid and its marketing strategies are effective, the human resource management is well trained and offer critical competitive advantage; its future remains bright.


Chase, R., Jacobs, F., Aquilano, N. (2004). Operations Management for Competitive Advantage (10th Ed.): McGraw-Hill Irwin; Boston.

Kerin, R., Berkowitz, E., Hartley, S., Rudelius, W.…[continue]

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