Unit IV Case Study

Organizational Structure
Name:
Institution:
What type of organizational chart is illustrated for McDonald’s?
At the McDonald’s, the organizational chart used as seen on page 29 is the hierarchical organization. This is considered one of the classical forms of organization, where the employees at the different levels are organized into functional groups. At the top is the chief executive officer, and directly below him are the vice presidents who are in charge of the various departments among them finance and marketing. Then follows the various head of the four geographical segments (Lakshminarasimhan, 2011). Unlike most others, this is a simple structure that one can easily follow as the functional groups are structured in a clear manner, from marketing, sales, finance, production, design and human resources among others. The different sectional heads have great freedoms within their area of management and thus exercise great control.
What improvements could you recommend for the McDonald’s organizational chart?
The hierarchical structure of administration is associated with the inflexibility, such that the organization cannot adapt fast enough towards the changes in the business environment. Due to the fact that the power to make most of the crucial decision is concentrated within very few and specific heads of the various departments, decision making also cripple the level of creativity and innovation. With the different departments that have been setup, there is a tendency of competition that yields destructive results.
To avoid all of these bottlenecks, it is crucial to adopt a structure that is more reliable. The network model is better placed, as it gives the company better response to the opportunities and the threats that in the business environment. With this kind of a structure, the management has a better chance to identify, the various barriers as well create the urgency change and adapt.
What aspects of ...