Research Korner: Management of Change Coursework Assignment

Essay Instructions : Management of Change Coursework Assignment

Management of Change Your should select one organization on which both the analysis you conduct for Coursework Assignment (50%) and End of the Module Assignment (50%) will be based. This need not be a large commercial organization, but should be one on which you can collate detailed information for your assignment. Coursework Assignment (3000 word) Due date 23 Jan 08 1)      Prepare a report for senior management of an organization of your choice acting as a consultant commenting on an organization change process. Your report should be constructed to address the following aspects: (Due date: 30 Jan-08) Diagnosis (70%) -              External Change drivers -              Internal change drivers -              Current State -              Sources of resistance -              Styles of leadership/management Prognosis (20%) Use scenario planning to envisage two alternative future states: -              A no change scenario if organization continues on current path -              A change scenario achieved through organization development Conclusion (10%) -              Identify key issue a change programme will need to address   Notes: -Read the advice in the MAP on structure to adopt in preparing management of change assignments. -Work should be no more than 3000 words (not including appendices) -In determining the correct organization state you need to select and apply appropriate concepts and models such as: l  Environmental Analysis (External Issues) l  Growth Stages (Internal Issues) l  7s framework (current state) l  Cultural Web (Current State) l  Organisational Development Diagnostic (Current States) l  Transition Curve (Sources of Resistance) l  Leadership Theories (Management Style)   -A no-change scenario should be specifically identifying risks associated with strategic drift. -A success scenario should envisage successful organizational learning and adaptation -Ensure that you provide references to acknowledge your sources, and include a bibliography at the end of your work.   MOC-Final Assignment (2500 word) due date 20 Feb 2008 2)      Prepare a report for the senior management of an organization of your choice identifying and agenda for a management of change programme. Your report should be constructed to address the following issues: (Due date: 27 Feb 08) -Prescription for change (30%)             Vision for renewed organization             Direction and Scope of change             Speed of Change -Proposed Action (70%)             Leveraging Change             Renewing System and Structure             Tailoring Culture             Overcoming Resistance             Leadership of Change             Communicating Change -Read the advice in the MAP on structure to adopt in preparing management of change assignments. -Work should be no more than 2500 words (not including appendices) -In preparing a change agenda you should select and apply appropriate models and concepts from the relevant literature, such as:             Matching Objectives and Values to business domain (renewing the vision)             Unfreezing Inertia (direction & scope)             Incremental/Transformational programmes (speed of change)             Force Field Analysis (Leveraging Change)             Organisational form (Structure/Form)             Cultural web (Tailoring Culture)             Managing Participation (Overcome Resistance)             Communication Methods (Overcome Resistance)             Leadership Styles and Methods (Overcome Resistance) -It’s possible you may select a model (e.g. culture web) used for your coursework. If you do ensure you do not duplicate work (e.g. use the web to identify a desired culture, not to map current state)   Preparation of Management of Change Assignments 1)      Both assignments are requested in a report format, which requires a clear structure, and layout and logical progression of ideas-use headings where appropriate. 2)      Your report should be prefaced with an Executive Summary in which you should state and relationship you have to your target organization. 3)      Although in a report format, your work is submitted in partial fulfillment of a degree, and should therefore contain a bibliography-all source you use also fully referenced in a consistent way. 4)      All you work will be assessed according to the following criteria: Research (30%), Analysis (30%), Evaluation (30%) and Presentation (10%) 5)      Research relates both to: l  Engagement with relevant academic literature (including beyond core essential reading and learning materials) l  Depth of information relating to chosen organization (Primary research beyond any published material) 6)      Analysis relates to your skill in selecting and applying appropriate models and concepts. NB-You will gain no marks for simply copying out materials from text without using them. 7)      Evaluation relates to the extent to which critical insights have been gained into: l  Strategic change within chosen organization l  Uses and Limitations of models and concepts l  The process of managing change development 8) Presentation refers to coherence and clarity of your report. Ensure that if you attach appendices they are relevant, and properly answered and referenced with man body of the report.

Essay Instructions : Management of Change Coursework Assignment

Management of Change Your should select one organization on which both the analysis you conduct for Coursework Assignment (50%) and End o...

Management of Change: Organizational Change Process (PCCW Limited)

Management of Change: Organizational Change Process   1. Executive Summary             This assignment discusses and analyzes a specific company based in Hong Kong, which encountered a variety of problems, in relation to the changes that happened in its internal and external environments. A brief profile of the company would be provided, including the general issues and problems that the company faced. The evaluation and analysis of the organizational change process of the company would be done by using the different tools of analysis.             The company chosen for this analysis is PCCW Limited, which is regarded as the leading company in Hong Kong and in all of Asia that provides communications services and information technologies. This is because this company plays an important role in the development and improvement of telecommunications in Hong Kong, being regarded as the leading information and communications hub in the Asian Pacific region (“Economic & Trade Information on Hong Kong”, 2008). As such, this paper would prepare a report for senior management of the company, with the researcher acting as a consultant for the management of its organization change process.   2. Introduction             Given the many changes brought about by the environment, technology, economy, politics, and society, changes in the organization must be taken note of in order to cope up with the changing demands of the employees and the consumers. In this output-oriented society and generation, every organization must have the skills, capabilities, endurance, and the strategies to be able to meet the demands and the needs of their market. As such, the continuous changes that organizations must undergo may be considered as their only edge in order to cope with the overall changes observed in the society. Thus, appropriate change management must be done in a company to effectively and efficiently facilitate and govern the changes needed by organizations.   3. Brief Discussion of the Case             As mentioned, PCCW Limited is the largest telecommunication company in Hong Kong and is one of Asia’s leading competitors in Information and Communication Technologies (ICT). The company contributes in enhancing the image of Hong Kong as a center of technology and business superiority, with its outstanding innovation, especially in terms of IP-based business services, New Generation Fixed Line services, broadband pay-TV, Internet access, media content, large-scale IT solutions, mobility, and wireless innovations (“Company Profile”, 2008). However, it experienced some problems, concerns, and issues lately, which prompted the company to undergo necessary changes that are perceived to be advantageous on its part. Its problems commenced when PCCW Limited offered Cable and Wireless PCCW stock with US$11 billion in bank loans, as many residents in Hong Kong are stockholders in the company, and with the purchase, the company’s stock price was reduced by 96% in 2003, from its peak in 2000. In 2003, Cable and Wireless (C&W) finished paying in all the stock from the 14.7% stake it had, which amounted to US$5 billion at the time, and produced only $1.9 billion of sales in the end. Due to this, Richard Li resigned as the company’s CEO and agreed to sell his indirectly held 22.66% shares in the company for a total of HK$9.16 billion (“PCCW”, 2007). In the intent of PCCW for market expansion, protect its position, and create strategic agreements with other Asian companies, it has borrowed greatly to finance the $38 billion bid for Hong Kong Telecom, which resulted to its debt of US$4 billion. Further decline of its performance is brought about by its lack of confidence in the debt repayment plans among stockholders (Darlington and Cooke, 2000), which contributed to its standing as the worst performing blue-chip company on the list of the Hong Kong Stock Exchange in 2002 and 2003 (“PCCW”, 2007). In addition to its debt and change in ownership and management are the increasing pressures of competition among the industry. It has been reported that in August 2000, there were 165 external telecommunications services operators and 187 Internet market service providers. The increase in competition led to another cause of the company’s problems, which is the existence of monopoly for domestic fixed telephony. This became a major blow for the company, as many telephone operators no longer need the gateways and local networks provided by PCCW (Darlington and Cooke, 2000).             Moreover, another cause of its problems is the reduction of its staffs and workforce, which contribute to the decline of its operations. An additional cause is the failure of the bid between the company and China, for at the time, China resisted to make negotiations with a company that is connected to the Singapore government, which also became the cause of the problems of the Sing Tel’s bid in the past (Greenlees, 2006).              Furthermore, the problem for the company is the overall failing revenues in Hong Kong, with its failure to make significant progress to the China mainland. With this, heavy investment in infrastructure throughout East Asia must be needed before the full potential of PCCW can be appreciated (Darlington and Cooke, 2000).   4. Diagnosis of the Case   4.1 External Change Driver: PEST Analysis             The PEST Analysis sets up an effective investigation of the external impacts on a specific company by breaking the components into essential and noticeable elements or factors. The noticeable elements under this type of analysis include Political, Economic, Sociological, and Technological elements. <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Political – Political factors include the restrictions in the policies of the Chinese government with regards to company negotiations and mergers; the government’s choice of companies outside the country, with which it would make negotiations with; distinct superiority in China’s legal system; influence of British legal system in Hong Kong’s international financial transactions</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Economic – Economic elements include the development and underdevelopment of infrastructures in East Asia; telecommunications monopoly; debt of PCCW; dollar inflation and deflation rates; financial crises; collapse of asset prices; rate of economic growth</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Sociological – Sociological factors include PCCW’s conflict with consumers that are major stockholders; unemployment; changes in communication, marketing and management; retaining distinct superiority over human resources, language, competition and rivalry</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Technological – effects of e-commerce to PCCW; development and improvement of its website; utilization and maximization of the Internet; faster negotiations, development of new high-tech tools, enhancement of R&D through the Internet</li> </ul>   4.2 Internal Change Driver             One of the internal change drivers of PCCW is the change in its ownership, along with the change in its management and its organizational culture. The culture was then changed with the change in the workforce. After the acquisition, most of the staffs working in C&W HKT are now employees in PCCW. This led to the change in the culture of the company, from a conservative, seniority-based, and non-market driven, it turned to a strongly competitive, performance-based, and customer-focused company. Another internal driver is the change in the company’s priority. The quality of service is now the company’s primary concern, and the company has been investing millions of dollars in quality and customer service training. The third internal driver is the change in internal processes. Such changes in internal processes include implementing different quality programs, including quality improvement teams and six sigma programs. These changes in the culture of the company brought about the company’s restructuring process, such as changing the divisions from a cost-center to a profit-center, thus, making all employees motivated to make negotiations and transactions (“Cable and Wireless: Jobs Surveys”, 2003).   4.3 Description of Current Scenario a. Based on the situation of the company, it can be regarded as having a theoretical model of Revolution, as discussed by Greiner (1972). According to the author, the term revolution is used to describe those periods of substantial turmoil in organizational life, or turbulent times, wherein a serious upheaval of management practices can be observed. In addition, traditional management practices, which were appropriate for a smaller size and earlier time, are brought under scrutiny by both top and lower-level managers (Greiner, 1972). In this sense, the changes undergone by PCCW can be considered indicators that the company is undergoing a revolution. As indicated by its internal change drivers, the changes in its internal processes, culture, and priorities were brought about the combination of the two separate companies.   b. In line with the company’s agenda for change, several aspects in the organization can be taken note of, namely, its strategy, structure, processes, and people. In relation to its strategy, PCCW provides solutions for port management, security and CCTV systems, audio and visual solutions, and technical support and maintenance services to various sectors in the industry, such as governments, public services, aviation, and broadcast engineering operations. In addition, it re-entered the mobile market, collaborated with real estate and broadband companies, and improved its telephone directories. In terms of structure, the contribution of its large team of professionals, experiences and knowledge in the IT industry provide excellent ICT solutions that would help customers develop innovative and challenging business opportunities. In terms of processes, the company facilitates outstanding innovation, especially in terms of IP-based business services, New Generation Fixed Line services, broadband pay-TV, Internet access, media content, large-scale IT solutions, mobility, and wireless innovations. In terms of people, it has approximately 17,000 employees, located in different parts of the globe, including mainland China, South America, Japan, Korea, Thailand, Malaysia, Singapore, Taiwan, Europe, the United States, India, and the Middle East (“Company Profile”, 2008).   4.4 Sources of Resistance a. The sources for the resistance to change of the employees of PCCW are the different internal drivers of change, which include change in ownership, change in management and organizational culture, change in the workforce, change in priorities, and change in internal processes.   b. There is an observed resistance to changes in the part of the employees and the managers due to personal impacts, such in relation to changes in relationships with new employees. Another rationale for the resistance to change is the self-interests of the employees, which would not be given priority due to the changes in the structure and policies in the company. Comfort with one’s status quo would also be a source of resistance, along with the loss of power and control over situations in the organization due to the presence of new employees, managers, and leaders. Loss of jobs can also be a cause of resistance, along with the lack of confidence with regards to current skills and competencies that would hinder an employee to perform effectively in the organization.   c. Due to the employees’ resistance to proposed changes, they might not support the new policies and strategies imposed by the organization, leading to different dilemmas and conflicts within and outside the organization. This lack of support would make some employees to ignore or stop the proposed changes, thus, delaying the processes and operations in the organization. Another impact of their resistance is doing new processes and strategies wrongly, thus, leading to more errors in the processes and causing more delays. Interpersonal conflicts might also be a possible reaction, thus, resulting to resignations, personalism, and unprofessionalism. The resistance of employees and managers can lead the company to fund more training and development programs, which can yield additional expenses with ineffective results, due to the skepticism and lack of trust of the employees of the organization.   4.5 Assessment on the Style of Leadership/Management             As mentioned earlier, the management of PCCW was transformed from a conservative, seniority-based, and non-market driven, to a strongly competitive, performance-based, and customer-focused company. From this transformation alone, it can be stated that the style of leadership in PCCW is a Proactive style of leadership. This is because a proactive leader focuses on achieving performance outcomes of his or her team and shares a vision, which compels the team to move towards that vision or goal (Holmes, 2008). However, the presence of conflicts and resistance on the part of the employees may indicate that the type of leadership or management they experience from the company might not be sufficient to fulfill or satisfy their needs.   5. Prognosis for the Case   5.1 No Change Scenario             If PCCW Limited did not take any action regarding their problems, a domino effect of negative events would happen. Its debts would further increase, which would afford the company to sell their assets and resources in order to make up for the debts it have in other companies. Resignation of managers would also be another effect of a no change strategy. The increase in debts would lead to further loss of company assets, and later on, to further loss of human resources. Due to the lack of adequate resources and assets, there would the delay, inefficiency, and ineffectiveness of processes and operations in the company that would lead to the decline with the number of its customers, as becoming less satisfied. The loss of customers leads to the loss of profit, thus, resulting to bankruptcy and immediate closing of the company.   5.2 Proposed Change Strategy             It has been identified that one of the problems of the company is the lack of infrastructure development in East Asia, which hinders the development of the company. With this, the company must not wait for the development of the region, but must try to find alternative solutions and materials that would suit its processes and the trend of infrastructure in Hong Kong. If the company is bold enough, it can initiate in setting the trend in the city in terms of infrastructure development, given the right resources and the right skills and expertise. In order to do so, the company can invest in its Research & Development in its quest to find new supplies and materials. Another proposed change is the implementation of performance management strategies that would help develop and improve the overall performance of the organization. Since the management of PCCW has already been transformed into a performance-based management, performance management of the employees must be done in order to help guide them with their tasks and responsibilities in the organization. This is because performance management serves to focus the efforts and attention of employees in critical tasks using performance feedback (Bernardin and Russell, 1993). This would then allow the employees to gain more knowledge and develop new skills in relation to their work in the company. Another change strategy is the implementation and use of Information Technology or Information Systems, which would facilitate in the organization and information retrieval in the company and in effective communication. Through the use of an IT or IS, the company would be able to organize its customer database that would allow it to have an effective and efficient product inventory, customer follow-ups, and evaluate customer feedbacks for product improvement. Lastly, the organization can improve its operations strategies through the improvement of its supply chain. In the management of its supply chain, both the suppliers and the company would be able to have an effective and efficient relationship, thus, preventing the delay of supplies and materials needed by the organization.   6. Key Issues for Implementation of Change Program             Primarily, the implementation of the change program would surely raise resistance among the employees and managers of the organization. The sources and the perceived impacts of this resistance were already mentioned in the previous discussions. Resistance to change of the employees leads to stubbornness and lack of support, resulting to the delay of the change process and in internal processes and operations. Second issue to take note of is the differences in the preferences of the management and leadership styles of managers in the organization, resulting to varied inter-departmental cultures and practices. Due to such differences, employees would be having a hard time dealing with other employees, which can be a possible source of conflicts. Third issue is the possibility of needing to lay off employees or reassigning them to new job positions that may require new skills, technologies, and knowledge. This may also lead to grave threats and conflicts in the organization. Fourth issue is the need for restructuring in the departments that may or may not be contributory to the welfare of employees. Fifth issue is the adequacy of resources, which would be essential in sustaining the needs of the company. Lastly, the implementation of new policies would be an issue for PCCW.   7. Conclusion             From the discussion, it can be perceived that in order for a company to undergo and implement a change program, it must be able to take note of different internal and external issues that would present a variety of impacts to the employees and the performance of the organization itself. As such, an effective organizational change process would consist of important elements including its external environment, internal processes and operations, the welfare of employees, the support of top management, and the satisfaction and demands of customers. Putting each element in coordination and harmony would possibly ensure an effective change process.    8. References Bernardin, J. and Russell, E. (1993). Human Resource Management: An Experimental Approach, USA: McGraw-Hill. “Cable and Wireless: Jobs Surveys”. (2003). Vault. Retrieved January 25, 2008, from http://www.vault.com/survey/employee/Cable-and-Wireless-EMPLOYEER-5960.html “Company Profile”. (2008). PCCW-HKT DataCom Services Limited. Retrieved January 25, 2008, from http://www.pccw.com/eng/AboutUs/CompanyProfile.html Darlington, R. and Cooke, N. (2000). “Hong Kong: Overview”, Research Briefing. “Economic & Trade Information on Hong Kong”. (2008). TDC Trade. Retrieved January 25, 2008, from http://www.tdctrade.com/main/economic.htm Greenlees, D. (2006). “Politics, as well as Price, Matter in Hong Kong Deal”. International Herald Tribune, 1-2. Retrieved January 25, 2008, from http://www.iht.com/articles/2006/07/09/business/telecom10.php   Greiner, L.E. (1972). “Evolution and Revolution as Organizations Grow”. Harvard Business Review, 50(4): 1-11. Holmes, S. (2008). Leadership and Motivation Training. Retrieved January 28, 2008, from http://www.leadership-and-motivation-training.com/reactive-proactive.html “PCCW”. (2007). Wikipedia, the Free Encyclopedia. Retrieved January 25, 2008, from http://en.wikipedia.org/wiki/PCCW

Management of Change: Organizational Change Process (PCCW Limited)

Management of Change: Organizational Change Process 1. Executive Summary This assignment discusses and analyzes a specif...

Management of Change: Mc Donald’s

Management of Change: Mc Donald’s Course Work Assignment   Executive Summary:             This report focuses on the current employment condition in McDonald’s.  McDonald’s restaurants serve nearly 54 million customers each day. There are 120 countries and Territories with McDonald’s in the world. McDonald’s is a multi-billion dollar business that symbolizes both globalization and the American way of life. The company is often the target of criticisms especially when it comes to corporate ethics and the employment condition. In this report we found out that The corporation is still implementing the original system laid down by the McDonald brothers and then ‘fine tuned’ by . The company remains faithful to it’s original system and try to avoid changes. McDonald’s standardized it’s product range, manufacturing processes and management practices, regardless of cultural differences across societies. This strategy, often called ‘McDonaldization” by the company’s critics has been an object of criticism and concern up until now. This report suggests changes in the management practices and the employment condition in the company. Many workers are complaining about the standardization in management practices. The company also uses routinization as an employment strategy. A strategy that is more beneficial to the company than to the workers. This report suggests that the company allow the employees to voice out their feeling about the company and encourage them to participate in the decision-making. This report also suggests that the company provide more benefits and implement fair labor practices. Company Background and General Issues:                         The McDonald's Corporation is the largest food service operation in the world in terms of system-wide sales. At the beginning of 2000, it was operating more than 25,000 restaurants in 116 countries. A modest estimate of its current worldwide workforce would be around 1.5 million people, and 10 million people are estimated to have worked for the corporation since it was formed. More than one in ten Americans are reckoned to have got their first job at McDonald's, and it has now taken over from the US Army as having America's largest job-training programme (1997). It is an incredibly successful multinational and is expanding at a breath-taking rate. It plans to open between 2,500 and 3,200 new restaurants every year, the equivalent of one restaurant every 3 hours. If this rate of expansion is achieved, the corporation will have more than doubled in size to well over 50,000 restaurants by 2010. Part of this rapid expansion may also be aided by developments in technology. Two British companies claim the world record for the construction of a fifty-seat McDonald's restaurant in Peterborough, which was completed in 1 day and was open for business 48 hours after the site work was completed ( 1999). McDonald's shares are said to be the best-performing consumer stock on Wall Street. According to the McDonald's web site, in 1965 when McDonald's went public, 100 shares cost $2,250. On 31 December 1998, some 33 years later, those same shares adjusted for stock splits were worth more than $2.8 billion. The corporation is described as being about the globalising of culture and belief systems and as the most important institution of our time.    Environment and Drivers of Change: Company Hierarchy:             The hierarchy in McDonald's restaurants in all the countries in this study appears to be remarkably similar; where differences do exist, they appear to have a minimal impact on the corporation's basic American operating system. The majority of employees are called the 'crew', and in fact, this term appears to have been universally accepted; we have yet to find a country where this term is not in use. According to  (1995), “the term 'crew' was apparently used by the brothers right from the beginning of their 'Speedee Service System' in 1948, when they trained their twelve-man 'crew' to work like a crack drill team” (p.16).  The only flexibility in this system seems to be a few alterations in the menu, the addition of McSpaghetti noodles in the Philippines, teriyaki burgers in Japan and McLaks salmon rolls in Norway. The success of the corporation is undisputed, but the results of this success have also brought McDonald's a good deal of criticism from all quarters. (1993), in his book The McDonaldization of Society, suggests that McDonald's represents the paradigm case for an increasingly 'rational' society. Ritzer suggests that McDonald's epitomises the relentless drive towards a less human society, one centred on 'efficiency', 'calculability', 'predictability' and 'control'. I seek to propose the following: People: Improve the morale of the employees. I propose to change the working conditions of the company’s employee and make some changes in the system in order to ensure productivity and contentment among the employees. In McDonald’s many employees are complaining about the system and the management’s treatment. These issues made worldwide concern and the company’s reputation, production and the quality of products and service are affected. There are even reports of “physical sabotage” committed by discontented employees against the company.             It has been reported that although there are rules and tight procedures for everything and managers usually working alongside closely monitor the work, workers do sometimes find short cuts. The research revealed that in several countries workers sometimes cheat on the system. They find short cuts when the restaurant is busy and when working within the system cannot cope with demand. In the UK, some employees were referred to as 'cowboys'; these workers would find short cuts in exactly the same way as assembly line workers in other industries in order to create some porosity in an otherwise hectic schedule. In addition, some workers have reported more deviant forms of behaviour, which might be akin to physical sabotage (1971). One example was what some young male employees called 'sweating competitions'. The hot kitchen conditions were used to see who could sweat the most over the products, apparently as a way of relieving the frustration or boredom or as a way of seeking revenge on unpopular managers or the customer. Nor is this the only example; one worker reported that he purposely did not wash his hands after a visit to the toilet, whereas others would apply their nasal fluid onto the products as a way of getting back at customers and managers. I propose that the company allow the workers to make unions that will protect the welfare and safety of the employees. The company should come up with fair and reasonable regulations regarding labor unions. Management-Employee Relations: Create an environment that allows exchange of ideas and participation between the management and the workforce   I also propose to implement co-determination and participation of employees in decision making on issues regarding the restaurant. Co-determination and participation as I perceive it will improve the connection between communication and consultation with the workforce and with increased worker commitment, job satisfaction, motivation and reduced resistance to change. The company must find solutions to these issues that are mostly workforce related. I believe that not only the employees will benefit in these changes but also the company. I believe that if the company focuses more on the employees’ condition, listen to their complaints and suggestions, and try to improve; there will be an increase in productivity and quality. The employees must have a voice in influencing the employment condition.   Sources of Resistance: Work Force: Most employees are not interested in creating changes that will be beneficial to them like creating unions and collective bargaining. Most of the employees are part time workers so it is difficult to reach all employees and unionized them. Some employees resist change because they do not see the potential benefits of unionization as worth their time. While many are complaining about the employment system in Mc Donald’s, majority of the employees resist change because they do not plan to stay in the company for a long time. They see change as a waste of time. Management: The management resists change because they insist on the effectivity of the current system. They resist change in the employment condition because they see it as a waste of time and money. They believe that the current condition is effective in terms of productivity and uniformity of the products. Employers insist routinization to the workers. It is clear that the company’s employment strategy to use the lowest-cost labor available, to keep turnover within acceptable limits by providing workers with recognition and fun working environment rather than increased compensation, and to minimize the number of workers on any given shift.   Style of Leadership:             The section on fast-food work in the United States, where most of McDonald’s Chains around the world patterned their systems, demonstrates that the industry relies on low-paid, part-time workers whose tasks have been rigidly standardized. It can be noted that while Mc Donald’s are trying to localized their restaurants worldwide, the only changes happen more in the products and not  in the system and procedures. The working environment of all Mc Donald’s all over the world is the same with their American counterpart. I think it is because the company is American owned. Globalization aided its expansion but the company remained American in terms of employment and production system and regulations. The employment system in the fast food industry generates extraordinary rates of labour turnover, presenting a formidable obstacle to unionization, especially in combination with industry decentralization and determined employer opposition. Extreme routinization, which affects customers and managers as well as workers, supports the industry's low-wage, low-commitment employment strategy. In recent years, tight labor markets have made it harder for fast-food employers to find and retain qualified workers, yet, there is little evidence of a marked increase in fast-food workers' compensation or power. The American fast-food industry was built on the promise of low prices. Profitability therefore depends in large part on keeping labor and other operating costs down. Low wages, minimal benefits, tight staffing, and efforts to intensify labor are the predictable results of strong competitive pressure in a legal and cultural setting that grants employers remarkable discretion. Most fast food chains use routinization of work as their strategy to run their business. They hire young part time workers with limited experience and make them perform limited number of tasks according to instructions provided by management. This sort of standardization has a variety of benefits for employers. It increases managerial control over the operation and cuts wage costs by eliminating the need to hire skilled workers. The simplified jobs can be learned quickly, making employers less dependent on experienced workers. Routinization is especially advantageous to fast-food companies because of its capacity to promote uniformity of outcomes. At McDonald's, workers are instructed in the precise arm motion to use when salting a batch of fries. Moreover, since the jobs of many fast-food workers involve serving the public, their appearance, words, and facial expressions are also subject to managerial oversight and control. Customers are promised an enjoyable experience as well as a particular quality of food, and fast-food companies try to ensure that such experiences will be reliably produced by standardizing the interactions between customers and workers even as they encourage workers to inject a touch of 'personal' service through eye contact, smiles, and friendly delivery of scripted lines (1993).  The extreme standardization of work is key to numerous features of the fast-food industry. It justifies low wages and benefits. Young, inexperienced people, who are competent to perform the simplified jobs, are especially likely to be able to accept-or have no choice but to settle for-these low rewards. The youth of the workforce and the low wages and benefits contribute to high labor turnover.             The leadership style in Mc Donald’s is more beneficial to the people who hold power. The workers, mostly part-timers, are not given the same benefits as the regular employees. Many issues need to be addressed but the focus of this report is to improve the employment condition of the workers in Mc Donald’s. I think the company needs to change the style of leadership and allow the employees to voice out their feelings about the company.       Conclusion:             Mc Donald’s is the epitome of Globalization. It has expanded all globally at a breath-taking rate providing employment to a lot of people. Yet there are issues and concerns that arise. One of this is the company’s rules and regulations on employment and the current work practices inside the company. The change program regarding the company’s employment policies aims to enhance the condition of the workers. It also seeks to provide fair labor practice and benefits to the workers. It also aims to boost the morale of the workers by giving them voice and allowing them to actively participate in the decision-making. The safety and welfare of the employees must also be protected. The company should provide the employees with more benefits, insurance, wage increase and opportunities for growth.      Management of Change: McDonald’s Final Assignment Executive Summary:             This report proposes changes to improve the employment conditions in McDonald’s Company. McDonald’s is the leader in global foodservice retail. It has over 30,000 local restaurants that serve approximately 50 million people in more than 119 countries and territories everyday. McDonald’s employs over one and a half million workers worldwide, over half of them under 21 yrs old. The multinational company has helped pioneer employment practices based on low pay and few rights coupled with arduous production-line work. This report urges the company to amend or make improvements on the current employment condition and practice in the company. The propose changes aim to create a more favorable working environment by providing the workers with benefits and allowing them to have a say in the company’s decision-making. The report also stresses out the importance of creating well-organized unions that will represent the workers and protect their rights and interests. This report encourages the use of collective bargaining to solve problems and address the issues within the company. Introduction:             According to (1997), “McDonald’s corporation is the largest food service operation in the world in terms of system-wide sales”. At the beginning of 2000, it was operating more than 25,000 restaurants in 116 countries. A modest estimate of its current worldwide workforce would be around 1.5 million people, and 10 million people are estimated to have worked for the corporation since it was formed. It is an incredibly successful multinational and is expanding at a breath-taking rate. It plans to open between 2,500 and 3,200 new restaurants every year, the equivalent of one restaurant every 3 hours. If this rate of expansion is achieved, the corporation will have more than doubled in size to well over 50,000 restaurants by 2010.   Employment Condition:             The success of the corporation is undisputed, but the results of this success have also brought McDonald's a good deal of criticism from all quarters. (1993) suggests, “McDonalds represents the paradigm case for an increasingly rational society”. He further suggest that McDonald's epitomizes the relentless drive towards a less human society, one centered on 'efficiency', 'calculability', 'predictability' and 'control'. The corporation has also become the focus of much direct anger and outrage. It has been reported, “Work at McDonald’s is so systematized, automated and closely monitored that all opportunity for thought, initiative and human contact, let alone self development has been removed” ( 1988). In this interpretation, 'McJobs' offer nothing more than a dreary existence to a shiftless army of unskilled workers. Virtually all aspects of the business are highly standardised and rigorously monitored. Assembly line techniques are used to produce and serve identical products; standardisation and higher productivity are ensured through new technology and the systematic planning of each job, broken down into the smallest of steps. The corporation's industrial engineers measure and plan the equipment layout and scheduling in terms of seconds of working time using computerized time study methods. The worker's skills are eliminated and the work is labor intensive with the machinery making the cooking decisions. Lights and buzzers tell workers when to turn burgers or take fries out of the fat. Computerized cash registers do most of the thinking for till and window workers, separating the hand and the brain in classic scientific management style (1974).  All the jobs can be learnt with no previous experience or with the minimum of training. Operations are monitored and controlled using the Operations and Training Manual or the 'bible' as some McDonald's managers call it. It is some 600 pages in length and extremely comprehensive, it includes full colour photographs which, among other things, illustrate the correct placement for ketchup and mustard in the preferred five-point 'flower' pattern and it determines the correct size of pickles to be placed on each type of hamburger. Rules and procedures cover everything, eliminating decision-making for workers and, as one respondent put it, make the job 'virtually idiot-proof'. One German floor manager stated 'Anyone can learn this job. There is no challenge for workers, only speed and exactitude'. When the assembly line output of burgers slackens because the restaurant is quiet, it does not mean that the workers are allowed to take a break. Ray Kroc was obsessed with cleanliness; he insisted that his staff should be constantly cleaning areas that no one else would even think about, with the cleaning cloth becoming an essential tool for every crewmember. As Kroc frequently reminded his staff (1995), 'If you've got time to lean, you've got time to clean'. Therefore, although the work can be easily learnt, it would be a mistake to think that it was easy.   Prescription for change:             The McDonald’s corporation was the pioneer of a global, standardized and fast production-line system. This system is aims to maximize the products and profits turnover. There are more than a million employees (mostly young people) working at McDonald’s today. McDonald’s is seen by critics as a multinational company that takes advantage of high unemployment to exploit the most vulnerable people in society. The company’s workers worldwide are complaining of discrimination and lack of rights. They also complain about understaffing, few breaks, and illegal hours and poor safety condition.              Although all restaurants are closely monitored and the head offices are very keen to train managers in developing the right leadership style, the ultimate emphasis is not on how the employees are managed but first and foremost on the profitability of the restaurant and its QSC (quality, service and cleanliness). Satisfaction, resistance and consent are in a state of flux, but the all-powerful 'system' and the one-sided nature of the communication processes usually mean that grievances and complaints are often waved aside or sometimes forgotten in the rush to satisfy the customer. Given the way in which the employment relationship is managed at McDonald's and given that there is an asymmetry of power in the employment relationship, it would appear that the only way in which McDonald's employees could be represented effectively would be through the mobilisation of collective interests.   Direction and scope of change:             The proposed changes aim to improve the current employment situation in McDonald’s. These changes will not only benefit the workers but the company as well. I believe that the productivity and efficiency of the employees will improve if these changes will be implemented. These changes do not aim to change the entire employment structure. These changes are proposed to enhance and improve the employment condition in the company. These changes will boost the morale of the employees by encouraging them to participate in the decision-making, protecting their rights, giving them benefits and implementing fair labor practices. These changes require careful planning and proper execution. Because McDonald’s is a large globalized organization with more than 30 thousand restaurants worldwide, the propose changes are expected to be gradually implemented in 5 years.  Moving Forward:             The following proposed changes do not intend to change the employment structure but to improve the employment condition. The proposed changes are as follows: well-organised trade unions, compulsory minima provided by sectoral or national level collective bargaining and worker-friendly labour legislation providing rights to consultation, information and, in some cases, co-determination. It should be noted that there are current strategies and regulations that deal with the employment issues in the company. The propose changes aim to improve these strategies and regulations. 1. Co-determination / Participation             'Participation' at McDonald's (McParticipation) means 'crew meetings', 'RAP sessions', 'grievance procedures', 'notice boards', 'opinion surveys', McNews and 'Good ideas'. These forms of participation originated in the USA. Communication is therefore the common theme that runs through all these forms of participation; they are not about giving decision-making power to the workforce, which could interfere with the prerogatives of management.             These types of participation that are currently implemented at McDonald’s do not give the employees the power to actively participate in the decision-making. The employees should be given the freedom to express their feelings about the company. The employees should be allowed to make suggestions or discuss anything to do with their jobs. These ‘McParticipation’ strategies will address the issues regarding employment if they are implemented strictly and the managers are properly trained. The management should also discuss the importance of these strategies to the employees. I do not seek to change these strategies, I only propose that the company implement these strategies strictly and train the managers to properly address the issues concerning the employment condition at McDonald’s. 2. Collective Bargaining             Through collective bargaining, negotiations between the company and the employees over wages and working conditions are made. Collective bargaining is a process of negotiation between the representatives of the union and the company. Collective bargaining aims to solve issues and problems regarding the condition of employment such as wages, working hours, working conditions, and grievance procedures. 3. Well Organized Unions             McDonald’s is notoriously known al throughout the world as an anti-union company. The company has openly opposed efforts from the employees to form a union that will protect the welfare of the workers. The company believes that whatever grievances, issues and problems regarding the employment condition are better solved within the company.             The propose change urges the company to allow the employees to create unions that will represent the workers. The company should come up with a set of rules and regulations regarding this matter. The company should come up with a strategy to deal with these unions effectively and fairly.   Type of Leadership:             The type of leadership that is most desirable in implementing the changes is John Adair’s Action Centered Leadership in which three elements – achieving the Task, Developing the Team and Developing the Individuals are equally important to effectively implement change. The manager of change must define the task and monitor the progress towards the company’s aim. In McDonald’s case, the changes must be strictly implemented and closely monitored in order to achieve the company’s goal. The management should establish the strategies to implement the changes and properly communicate the standards of performance and behavior.   Conclusion:             The proposed changes aim to improve the current employment condition in the company. Through these changes, the workers’ employment condition will change. The careful planning and proper implementation of these changes is the key to improve the current situation and avoid resistance. In a big multinational organization like McDonald’s, the plan for change must be properly disseminated first among the local company leaders of each country down to the managers and then communicate and inform the workers about the change.

Management of Change: Mc Donald’s

Management of Change: Mc Donald’s Course Work Assignment Executive Summary: This report focuses on the current emplo...