Identify four types of control mechanisms (ways controls are applied) for McDonalds
Control can be defined as a device or mechanism used to regulate or guide the operation of a machine, apparatus, or system. Organizations use controls to regulate their business processes, which include production, distribution, finance, and so on. Controls help organizations to restrain and correct atypical behavior, and to reduce and prevent the spread of problems and errors (Microsoft Technet, 2006). Control is described as one of the four fundamental functions of management which includes organizing, planning, and coordinating where organization controls describe the primary mechanisms that managers use to direct attention, motivate, and encourage McDonald’s members to act in desired ways to meet business objectives. Control mechanisms is defined by Boland (1979) as seeking compliance with established plans, standards, quality criteria, and in conformance with organizational goals and values in which can be both enabling and constraining to the organization. Control mechanisms are used to monitor progress and evaluate performance. Businesses, like McDonalds must have control mechanism in order to be more efficient in managing their business organization.
Controls are implemented through internal controls, technology, social structure and culture. Internal controls are broadly defined as the standards and procedures that a company establishes to protect its assets (Kelleran, 2006). McDonald grows, it would tend to hire more people to help conduct the business. However, without these policies and procedures in which companies implement, it would be impossible for the company to protect its assets and conflicts may arise between the people in the organization. Standards and procedures must be implemented in the company. Personal control is defined as the dyadic relationship between the direct supervisor and subordinate. While social structure is embedded controls with policies, procedures, rules, well-defined job descriptions, career ladders and incentive schemes. On the other hand, culture is the workers' shared norms and values that shape behavior, order perception, and influence attitudes. A shared ideology obviates the need for extensive and explicit procedures and rules, providing a philosophy of interests and norms from which members can deduce an almost limitless number of specific rules to suit varying conditions.
The company’s Code of Conduct adhere highest levels of ethical business practices in which guidelines for ethical conduct of directors, officers and employees are provided. It is the code in which the company put into practice. It is an expansive statement of principles of the company that should conform to their actions as part of the company. It means “being at McDonalds is striving toward the highest possible standard of ethical business conduct. In addition, the board of directors has a set of Corporate Governance Guidelines to provide framework so that the management and the board can operate effectively together to achieve the company’s objectives. Its corporate structure has established appropriate financial controls and internal process management. In order for the company to establish good control over the hired employees, it important to consider having potential employees completes an application form in their own handwriting. It is important also to have the potential employee over a series of two to three follow-up interviews with the other staff member. In the case, hiring is by committee in which one person talks to different people. It is also essential to ask a potential employee tough question. In this manner control of incapable applicants may be avoided and that managing these people would to much easier.
Control mechanism also can by specialization of labor or responsibilities, projects are made by teams. Division of responsibilities would be also a much easier to control since it would be easy to determine which work is effective and efficient and whose work are not. Performance management would be easy to accomplish. Having also specialization gives an individual more responsibilities and the sense of making works more efficient and effective. McDonalds has set policies in their company in order to protect their most valuable assets which are the knowledge workers which are mostly engineers. The following are enumerated by Eric Schmidt and Hal Varian (2005). Hire by Committee in which the person being interviewed would actually at least half dozen of the company’s management and staff. Cater to every need, provide standard package of fringe benefits, but on top of that are first-class dining facilities, gyms, laundry rooms, massage rooms, haircuts, carwashes, dry cleaning, commuting buses about anything a hardworking engineer might want. Pack them in as McDonalds is team project, and teams have to communicate, employees are put within feet away from each other for ease of communication. Sitting next to knowledgeable employee was an incredibly effective educational experience. Communicate effectively; allow management to stay in touch with what knowledge workers are thinking and vice versa. McDonalds has remarkably broad dissemination of information within the organization and remarkably few serious leaks.
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