Describe McDonald’s organizational systems and sub systems. How has McDonalds transformed the consumer’s dining experience? To appreciate McDonalds we need to consider how they developed the dinning experience and owe this is reflected in their organisational systems and sub systems.
The company began with a salesman; Ray Kroc, he had heard of a California hamburger stand that was using eight of the milkshake machines (Multimixers) that he was selling at the time. Ray Kroc went to see this hamburger stand and was amazed at how quickly all the customers were being served.
This gave him an idea. With this idea he went to the brothers that owned the stores and sold them on the idea of opening several more restaurants, to each he could sell an additional eight Multimixers. The brothers; Dick and Mac McDonald, asked him who would open the restaurants, and Ray Kroc volunteers. To undertake this task he had to raise finance, used his life savings and also mortgaged the family home. The idea of being able to serve food this quickly was one that he saw as having a great deal of potential.
The first restaurant was opened in 1955 in Des Plaines and growth was rapid aided by the use of franchising. The idea of serving food very quickly was fairly new at this time. Other burger joints saw food made to order. The ideas of fast food was not totally new, Kentucky Fried Chicken had already established some ground, but this was a growth area and McDonalds was the first company to develop a system based on scientific management with different people performing different tasks.
The whole experience was designed to be fast, eve the seating was designed to that it was comfortable to sit on, but not comfortable enough to stay sitting on for too long, with hard seats. The idea of the food was also one that was taking food in a new direction, with a limited menu of standardised items all ready for immediate purchase, such as the well known Big Mac and fries. If we look at the organisational structure the main structure for growth has been the use of the franchise s which are considered in more detail in question 5.
But this is a major system within the company that has allowed expansion. There are also internal systems, which just as with the food, are standardised.
These included the way job design and training takes place, an outward symbol of this are the stars awarded t the crew members as they undertake more training for different jobs. Management training is also the same, with set management programmes consisting of on the job training as well as attendance of courses. In many countries the company has set up ‘Hamburger Universities’ as training centres.