McDonald`s organizational structure can be classified as divisional. McDonald`s operations are divided into four divisions based on their geographic location: Above, you can see McDonald`s organizational structure around the world. Although there are a few main departments in each geographical area, each country may have additional departments depending on its needs. As for the UK, the departments below the CEO and the board of directors are divided into: www.mcdonalds.com/gb/en-gb/help/faq/18509-whats-the-structure-of-mcdonalds-and-how-each-department-in-the-organisation-interacts-works whole.html Finally, McDonald`s Corporation`s divisional structure includes functional groups. These include learning and development, communication, compliance and sustainability. One of the drawbacks of McDonald`s organizational structure is that it tends to generalize strategies to all markets and locations that belong to the same performance-based business unit. For example, similar strategies are used in high-growth Asian markets and high-growth South American markets, despite the socio-cultural differences between these fast food markets. This business structure issue can limit McDonald`s business flexibility to meet market-specific variables. Nevertheless, the restaurant business can improve its organizational structure by adjusting how these performance-oriented areas are used in strategic management decision-making processes. panmore.com/mcdonalds-organizational-culture-analysis organizational structure of McDonald`s is decentralized because the lower levels have decision-making power.
Since the company operates in more than 100 countries, the head office is not able to control all sites and make decisions. McDonald`s organizational structure determines the arrangement or pattern of interactions between business units. The structural characteristics are related to the strategies of the catering company. In this regard, McDonald`s or 4P`s marketing mix reflects how the company`s structure supports market strategies and tactics. In this regard, strategic alignment between the company`s organizational structure, business requirements, and associated strategic efforts to gain a competitive advantage in the hospitality industry is essential. Through its corporate structure, McDonald`s is able to manage efficiency and performance in the fast food chain`s global operations. In summary, organizational structure and culture have a huge impact on how McDonald`s fulfills and fulfills its mission. The company`s core values and its decentralized, high, product-based structure shape the company`s overall processes. McDonald`s organizational structure is also large (hierarchical), which means that there are many frameworks and levels of management. Here, managers have a narrow scope of control and there is usually a long chain of command. As you can see in Figure 1, McDonald`s leadership starts with the CEO, board of directors, country leaders, managers and other employees. This means, for example, that advertising managers report to the marketing manager, who then reports to the country marketing manager.
The Head of Country reports to one of the Directors, who reports to the Director-General. McDonald`s has a global hierarchy for all of its operations, which are under McDonald`s Corporation. This feature of the division`s organizational structure emphasizes organizational management as part of management management. The Company`s organizational structure consists of CEO Chris Kempczinski at the helm and the Board of Directors. Below, the company is divided into separate departments such as marketing, sales, finance, catering, and utilities. Each country or territory has separate departments with its own country directors, managers and other employees. Function-based groups. McDonald`s corporate structure maintains function-based groups. In the area of corporate operations, for example, the company has a group of people for human resource management and a supply chain and sustainability group for supply chain management and sustainability efforts, some of which are aimed at McDonald`s stakeholders and corporate social responsibility strategies.
McDonald`s hierarchical leadership structure means there are multiple levels of management between each store manager and CEO Chris Kempczinski. In other words, directives are passed from the CEO in the hierarchy to vice presidents, regional managers, restaurant managers, franchise owners and other staff members. Each functional group in McDonald`s organizational structure is led by an executive or senior manager. These groups enable McDonald`s to better address key business functions such as managing human resources, promoting sustainability initiatives, and strengthening McDonald`s Corporation`s organizational culture. Finally, the company follows a product-based organizational structure where employees are grouped based on a specific product they are working on, the customers they deal with, or a geographic area they serve. In the case of McDonald`s, they are grouped according to a geographical area in which they operate, with each department having its national director. Because each country has its own manager for marketing, sales, finance, catering and procurement services. According to the latest 2020 data, McDonald`s employs about 200,000 people. The company`s employees are CEO Chris Kempczinski at the helm and the Board of Directors. Below, the company is divided into separate departments such as marketing, sales, finance, catering, and utilities.
Each country or territory has separate departments with its own country directors, managers and other employees. All together form McDonald`s organizational structure, a system that describes how activities are managed to achieve a company`s goals. There are also other functional departments such as legal services, customer service, franchising, security, security and licensing, real estate and construction, supply chain, and food services. McDonald`s has a divisional organizational structure in which each department is assigned operational responsibilities and strategic objectives based on geographic location. The most important geographic areas are the United States, internationally operating markets, and international development license markets. On the other hand, the hierarchical management structure is organized around regional and functional areas. Note that the IOM and IDL departments are headed by Ian Borden. Both Mr. Erlinger and Mr.
Borden report to the current President and CEO, Chris Kempczinski, according to a hierarchical leadership structure, which we will discuss in the next section. www.hierarchystructure.com/mcdonalds-company-hierarchy/ Unauthorized attempts to upload information and/or modify information to any portion of this website are strictly prohibited and liable to prosecution under the Computer Fraud and Abuse Act of 1986 and the National Information Infrastructure Protection Act of 1996 (see 18 U.S.C. §§ 1001 and 1030). Global hierarchy. McDonald`s Corporation has a global hierarchy for all of its operations. This feature of the organizational structure emphasizes the control of the company as part of the management control and direction of the restaurant chain. Thus, the CEO of McDonald`s directs and directs the activities of all business units through this structural characteristic. Through the corporate structure, strategic policies and guidelines are communicated from the CEO to middle management and, eventually, to restaurant managers and employees at the company`s own locations, as well as franchisees and licensees. In this context, structural design allows for top-down corporate governance. The management of McDonald`s operations is directly related to this characteristic of the corporate structure that is typical of many multinationals. Regional groups are one of the most distinctive features of McDonald`s Corporation`s divisional structure.
Currently, there are three areas: Through this corporate structure, strategic decisions, policies and instructions throughout the chain of command are passed from the CEO to the heads of other business groups, to senior and middle managers within those groups, and finally, to restaurant managers and employees of the company`s own restaurants as well as franchise operators. McDonald`s Corporation`s organizational structure is designed to effectively manage and conduct the company`s global operations. The organizational or corporate structure of the quick service restaurant business defines the organizational design and system by which organizational components coordinate to achieve business objectives. McDonald`s corporate structure facilitates operations in the foodservice markets based on the company`s performance.