NAME: Lim Hong Yi

STUDENT ID: 0343638

PROGRAM: BACHELOR OF BUSINESS

MOBILE NUMBER: 011-35250722

EMAIL ADDRESS: [email protected]

INDIVIDUAL ASSINGMENT

INTRODUTION

McDonald's is one of the largest fast food companies in the world, founded in 1940, located

in San Bernardino, California, USA Initially, McDonld's was designated as a hamburger stall,

and later they switched to chain operations. McDonald's is known as its burgers.

(McDonald's, 2020). It also sells food such as, fried chicken, soft drinks, french fries, fruits,

coffee. McDonald's mostly provides counter-type and through-train services. They also

provide indoor and outdoor seating. McDonald's main income comes from rents and

royalties received from franchisees, as well as sales from restaurants operated by the

company itself. (Akhilesh, 2019).

MANAGERIAL ROLES

McDonald’s does very well in their management include managerial roles proposed

by Henry Mintzberg. Henry Mintzberg identified ten roles as managers in the business and

the roles are divided into three categories which are informational roles, decisional roles and

interpersonal Roles. First is the role of interpersonal, which is related to the manager's

behavior in interpersonal communication. It involves employees and people outside the

means the leader and manager of the organization, has authority and responsibility in law or

society, so the manager is regarded as a symbol of status and leadership.The McDonald's

current CEO, Jim Skinner is a good example. When McDonald's was accused of obese

teenagers, he did not hide behind but faced it bravely. He took actions to positively handle the

problem. So the manager needs to take responsibility for both customers and employees.

(McDonalds’ Leadership and Management, 2020). 2.leadership-In Mcdonald’s, they are

committed to building a supportive and inclusive workplace environment that reward

employee in good result. Mcdonald's encourage their managers to treat their workers as they

want to be treated. So, managers should guide them like coaches instead of ordering them

like policemen. Manager also have to listen and respect to employees opinion and then

communicate with them. (Daft and Marcic, n.d.). Mcdonald's have Employee of the Month

programs in all their restaurants to recognize outstanding performance by employees. The

winner is chosen by the business manager based on various criteria and ability, such as best

monthly sales, highest drive-thru or customer counts, lowest crew turnover and best handling

of an unexpected crisis area .The winner will be given some award such as, cash, gift, special

pin or uniform. (McDonald's UK, 2020). Next is the informational roles. 1. Monitor-The

McDonald’s managers get their information through intranet. They use the Management

Information System that analysis restaurant information to create a complete reports such as

total sales and other income. It helps manager to understand, and manage its business easily.

Manager also can identify problems in specific restaurants. So, manager can resolved it as

soon as possible. (MacDonald's Group, 2020).2.Disseminator-In Mcdonald's, information is

transferring from higher level to lower level, for example, Mcdonald roll out new products or

rules. Restaurant manager is the person who get the information first and after that he will

transmit the information to the shift manager and the shift manager transmit the information
to the employees by team meeting or putting the information on the restaurant wall . Last is

decisional roles. In 2003, Americans started to maintain health and looking for fresh and

healthy food. This has led to a decline in sales. So McDonald ‘s initiated innovation and

launched a new plan,called “Plan to Win”. The company started to create more new food,

good service and the environment. They renovated the restaurant into simple and modern

design, such as live plants, Wi-Fi and new modern TV. McDonald's also extended its

business hours to 24 hours. Chef Daniel Coudreaut also created the new menu that have more

on different and healthier options, such as salads,coffee and smoothies.(Ms.B. Hima Bindhu,

2017).

EVALUATION

Henry Mintzberg managerial roles have highly improved the efficiency of the

McDonald’s.First is the interpersonal roles. McDonald’s has given a lot of rewards and

benefits to their workers,such as Pension,Healthcare and wellbeing,Staff travel,performance-

related pay and holidays.The reward system is extremely important because it is very

attractive thing for employees .Reward system increases their work ability and

commitment.the bonus strategy helps. McDonald's achieved comparable sales growth for 36

consecutive quarters, and sales increased by 4% in 2011.According to the survey, employee

satisfaction with welfare increased in 2015, and 74% of employees are satisfied with this,

which is 23% higher than external benchmarks.This helped McDonald's be selected as ‘Most

motivational benefits’ and ‘Best Total Reward statements’ in the ‘2015 Employee Benefit

Award’.(Crawford, 2020).Next is the informational roles.The manager uses Management

Information System to analyze and obtain McDonald's information and materials. After

discovering problems, quickly find solutions and improvements. This has led to restaurant

managers can more concentrated on customer service.So,Mcdonald's has some improvements

for more than two months. (MacDonald’s Group, 2020) .Last is the decisional roles.Since the

launch of the "Win Plan" strategy, McDonald's 87% total sales had increased and triple stock

share increased . McDonald's compound annual returns to investors are as high as 12.7%.

This chain of stores enjoys a stable period of more than 9 years-the store's monthly sales

increase. McDonald's income is now 20% higher than other fast food companies, such as ,

Pizza Hut ,Burger King and KFC.( Ms.B. Hima Bindhu, 2017).

CONCLUSION

In conclusion, I have analysed the application of Henry Mintzberg’s Managerial roles

which include Informational role, Decisional roles and Interpersonal roles on

McDonald’s.Their management in this area is very good, and through this managerial roles

has highly improved the efficiency of the business.So McDonald's achievements today are

thanks to his efficient management so that he still maintains its position in the competition of

many fast food restaurants.

LIST OF REFRENCE

Encyclopedia Britannica. 2020. Mcdonald’S | History & Facts. [online] Available at:

<https://www.britannica.com/topic/McDonalds> [Accessed 26 May 2020].

Akhilesh, 2017. How Mcdonald's Makes Money: Monetizing The Demand For Fast Food.

[online] Available at: <https://www.investopedia.com/articles/markets/032015/how-

mcdonalds-makes-its-money-mcd.asp> [Accessed 22 May 2020].

iEduNote.com. 2020. 10 Managerial Roles By Henry Mintzberg. [online] Available at:

Daft, R. and Marcic, D., n.d. Understanding Management.

Mcdonalds.com. 2020. FAQS | Mcdonald's UK. [online] Available at:

<https://www.mcdonalds.com/gb/en-gb/help/faq/18414-what-does-an-employee-have-to-do-

to-receive-the-employee-of-the-month-award.html> [Accessed 26 May 2020].

Macdonalgroup, 2020. Mcdonald's IS. [online] Macdonalgroupblog.blogspot.com. Available

at: <http://macdonalgroupblog.blogspot.com/p/information-systems-used.html> [Accessed 26

May 2020].

Ms.B. Hima Bindhu. 2017. Mcdonald’S “Plan To Win” – A Revitalization Strategy. [online]

Available at: <https://smarketingmania.wordpress.com/2017/03/12/mcdonalds-plan-to-win-a-

revitalization-strategy/> [Accessed 24 May 2020].

Crawford, R., 2020. Mcdonald's Restaurants Puts Motivation And Reward At Heart Of

Business Strategy - Employee Benefits. [online] Employee Benefits. Available at:

<https://employeebenefits.co.uk/issues/june-2015/mcdonalds-restaurants-puts-motivation-

and-reward-at-heart-of-business-strategy/> [Accessed 25 May 2020].