Sample Essay On Company Experiencing Organization Behavior

Management

Introduction
McDonald’s is a global fast food chain with more than 36,000 restaurants worldwide. Its CEO, Don Thompson, is set to give way to Steve Easterbrook amidst mounting losses being faced by McDonald’s. The franchisees of the global chain are clamoring for a quick pace of change for the company to stem its losses.

Problem Description

McDonald’s has been suffering losses as younger and upscale diners are now giving it a miss. Amidst health consciousness rising in the world, there is increased demand for fresher and healthier fare. While McDonald’s had broadened its menus over the past years to broaden its appeal, the sprawling menus have since led to slowdown in service, making customers dissatisfied. Franchisees, clamoring for rapid change, fear that the new CEO would not be able to make the necessary tough decisions, as he is a man from within the establishment. Easterbrook faces a perception problem from the franchisees. Being an organization man, he is perceived to be lacking the strong will to be ruthless in pushing through change. Downsizing the menu of McDonald’s would effectively imply a reduction in staff. As a result, the staff would be opposing any change in the menus. The chefs in the company, long used to creating fatty foods, would be wary that fresh blood would be inducted into the company, and would be similarly wary of change. Thus, the problem for Easterbrook would be to gain trust of the franchisees and to successfully transform the image of McDonald’s to being a health conscious food chain.

Recommendations

Easterbrook would need to open free and frank communication channels with his franchisees to prevent rumors about his perceived inabilities from spreading. He should leverage electronic communications to individually address all franchisees. A blog under his name would be a good idea to open channels of communication to his own employees. Easterbrook would need to address the insecurities of his employees, as he would need their cooperation for heralding any change. He should carry out integrative bargaining with the unions of McDonald’s and convince them that their prosperity lay in the ability of McDonald’s to become profitable fast. He should announce the support of the company for career counseling, training and a generous severance package to any employees who might lose their jobs as McDonald’s goes about downsizing and transforming its menus. Having thus tackled the restraining forces to organization change, Easterbrook should simultaneously go about providing impetus to the driving forces. He should bring in a new Food and Beverages Head with progressive ideas on nutrition and diets. He would need to quickly fashion a new menu. The new menu should not be too radical as to antagonize the die hard McDonald’s fans, yet be attractive to new age health conscious clientele. Throughout the process of change, Easterbrook should remain open, frank and ethical in his concerns for his employees and for his clients. He should exude the air of a strong and firm leader who is empathetic for his employees.

Conclusion

McDonald’s is facing a crisis due to changing food habits and rising health consciousness in its clientele. The company would need to bring in healthier and smaller menus. The change is likely to be resisted by employees who might fear losing their jobs. It is only through an intricate combination of astute communication, sound leadership and management of change that Easterbrook would be able to redeem McDonald’s from its present position and bring it back to profitability.

Work Cited

Baertlein, Lisa. “McDonald’s Franchisees to New CEO: Back to Basics, Fast.” Reuters.com. January 30, 2015. Web. February 14, 2015.