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BUMGT5921 Organisations: Behavior,Structure,Process Assignment Help

- Provide a brief introduction to the organisation (it is acceptable to withhold the name of the organisation).

- Describe the problem, as much as possible in terms of the observable or measurable symptoms it manifests, for example: low levels of motivation; high employee turnover; deterioration of service quality; increased customer complaints; dysfunctional groups; loss of profit; negative/ unhelpful organisational culture etc. 

- The issue/problem should then be considered and analysed in terms of concepts/ models/ theories drawn from any two topics studied as part of this subject, and not covered in your first assessment. Try to choose the topics that seem to offer the most useful insights into the problem. Do not try to deal with many models or concepts. Topics outside course coverage must not be selected. 

- Design an intervention (a change program or set of activities and procedures) utilising some aspect or aspects of your analysis.

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Introduction

The idea of organisational culture is extremely essential for a business venture to recognise the importance of values and thoughts that would essentially permit them to achieve their designated status in the market. Also, it can be evidently stated that the presentation conducted was a brief overview of the essential factors that were required to be considered to understand the drastic situation that the organisation is going through right now. The concept of organisational behaviour and culture can be clearly considered as the proper manifestation of the ideology that is integrated towards achieving new heights and professional remarks in their respective industry. The discussion provided below would consider gaining substantial amount of knowledge on the current organisational issues that has been faced by McDonalds or could be possibly faced by them due to their current business activities. With an overture range of analysis and depiction, it would be ensured that proper recommendations have been made to deal with this issue in a comprehensive manner.

Company Background

This assignment has taken into consideration the situation of the organisation named McDonalds which was established in the year of 1940 by two brothers in San Bernardino, California (McDonalds.com, 2019). The organisation was the first venture that discovered the concept of Fast Food and went along to be one of the popular food joints around the world. They called their fast-food equipment as the ‘speedo system' and made sure that their customers do not have to wait on longer cues for their food. It was eventually Ray Kroc, who took upon himself to ensure that the franchises of the organisation can be properly established (McDonalds.com, 2019). Also, there have been times that the organisation had been subjected to numerous controversies and were being subjected to legal lawsuits but they eventually managed to overcome them with the help of their ideologies and views that they stood by for a long time. The discussion would eventually cover grounds that would highlight the essentials of situations that has been incurred by the organisation and the measures that could be used to solve them.

In Depth Understanding of the Issue Identified

McDonalds is one such organisation that has been subjected to varied range of controversies and legal issues over the years. However, this is one such situation that has eventually led to a sole decision inflicting interpersonal conflicts among the key officials of the organisation. McDonalds has always been considered as one of the most popular and trusted brands around the world. As stated by Occhiogrosso, (2019), their consideration towards $15/hour wage would eventually be considered a huge success by the labours and the workers who are constantly fighting for it. However, there is a necessity to make sure that it has been considered as a massive blow for people and organisation who are fighting against the bill. For a certain amount of time, McDonalds was opposing this ideology but now they have abandoned this and are continuing to support the labours for their demands. This has eventually created a sense of conflict between the corporate policy and the investors, along with the franchisees as well, since the decision was solely made by the CEO. Since, the company has had incurred subsequent amount of losses in their brand equity due to brand renovation, new marketing strategies and other prospects, there is a possibility that the company would be subjected to the ‘ripple effect', which would eventually have more negative consequences than that of the price hike that has been identified (Rensi, 2019).

The company has been subjected to a negative organisational culture and there is a possibility that they would be incurring losses if they succeeded achieving the demanded price hike by the labours. Additionally, there would be a subsequent amount of growth in the interpersonal conflict between the CEO and the investors (Rensi, 2019). It has the possibility to give birth to increased amount of quality and services complaints from the side of the customers, since increased wages means that the company has to raise the prices of the existing items in their menu.

Analysis in terms of Concepts/Models and Facts

There are certain aspects which needs to be considered by the organisation. According to Rensi (2016), there is a connotation that keeps on circulating around that the company earns on millions but still the millions that are working in their restaurants are not getting paid enough for their own bills. If an instance is to be considered, then a typical franchisee makes earnings of about $2.6 million from selling burgers, fries and happy meals every year, which eventually leaves them with the profit of about $156,000. Say for example, that franchisee has about 15-part time employees who are being paid as per the minimum wage payment of current scenario, however if they are to be paid $15 every hour, then it will constitute of about three-quarters of the profit that is being earned. For some locations, where sales are less and profits are less than what has been mentioned earlier than the minimum wage of $15 would wipe out their entire profit and it would be extremely difficult for the franchisees to maintain the independence range of their work (Rensi, 2016).

If the use of various theories and models are to be considered, then it can be evidently stated that a certain range of acquisition and the exact application would lead to understand the opinion and the consideration that the organisation has put to use before making this conflict infatuating decision.

Shareholder Primacy Model

As, it has been considered, the organisation has prioritised the idea of preferring the choices of their shareholders over others. It might be considered as one of the important decisions to be made by an organisation, but eventually in this case this situation does not speak in favour of McDonalds. The conducts and ideologies of shareholder primacy are being heavily criticized due to their contradictory features and standards that form an essential part of the corporate social responsibility of an organisation (Smith & Rönnegard, 2016). McDonalds might consider it as a win-win situation since the employees would be extremely benefited but the profits of the company would be suffering from a severe loss and it will be difficult to overcome from it.

 

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There is a possibility that the shareholders would eventually intervene in almost every decision of the organisation. With the shareholders getting maximum amount of privilege there is a possibility that the organisation might be subjected to resource scarcity and due to their loss in brand equity earlier they might face trouble in maintaining a perfect blend of demand and supply. 

Resource Scarcity Theory and Maslow’s Hierarchy of Needs

According to Cannon, Goldsmith & Roux (2019), this theory would be a resulting effect of the time when the company would fail in keeping the balance between supply and demand. If majority of their profits and earnings are spent on labour wages, then there is a huge amount of possibility that the company might face extreme amount of difficulty in winning over this particular situation and gaining the approval of the customers in terms of quality and product and in creating a positive aspect of their organisational culture as well. With the amount of conflict that has been witnessed in the recent scenario, it has been effectively considered that the company would rise then the key individuals of the organisation would not be able to attain basic needs. The inability to gain basic needs eventually leads to the disapproval of the Maslow’s Hierarchy of Needs theory. There would be chaotic situation in the business and there would be not trust among people to understand the ability and prevalence of working as a team. 

image 11.png

 

The figure provided above demonstrates the key needs of an individual and these are the kind of expectations that an organisation has from their employers. If the organisation fails to fulfil the basic needs of their key personnel, then it would be the resulting factor of the scarcity principle. However, with the formation of proper agenda and plan there is a possibility that the company might be able to overcome this situation and understand the importance of consultation with the important people of the organisation and then make a decision to promote enough positivity (Velmurugan & Sankar, 2017). 

Intervention Plan

Developing an intervention and later an appropriate action plan for it would ensure a certain range of outcomes that would be considered extremely incremental for the organisation. Also, it would highlight their ability to transform their situation in an appropriate manner that permits them to gain subsequent amount of attention in the market about how concerned they are about their business measures (Alhnity, Mohamad & Ishak, 2016). The detailed intervention plan provided below would allow in gaining a proper perspective of the situation that McDonalds is facing right now. 

 

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The intervention plan formulated earlier would only be considered effective when a proper action plan has been designed to make sure that the key activities has been conducted properly and on time. The action plan formulated would ensure that appropriate strategies have been undertaken and implemented as per the following schedule to assort the growth of the organisation. 

Conclusion 

The report provided above generated sufficient amount of details on the situation of McDonalds that have resulted due to them backing out from the $15/hour movement. At the initial stage, the company was opposed to the idea but then they suddenly changed their views without validating any kind of consultation and made sure that the people considered them as someone with sophisticated amount of corporate social responsibility. One of the key aspect here is to make sure that the people have managed to achieve subsequent amount of knowledge on how this decision might negatively cause plausible consequences for the organisation with the biggest on being resource scarcity and this would eventually impact the key functioning of the organisation. 

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