McDonald’s Organizational Structure

Type of organization chart

The type of organizational chart illustrated for Mcdonald’s is the traditional hierarchal structure. This means that the reporting procedure is aligned to a specific grid since persons that have similar roles are pooled in terms of assignments in the organization. As a result, the managers report to a single higher authority in the organization. For instance, six executive managers report to a Chief Executive Officer while regional managers report to the Chief Operating Officer. At the bottom of the grid, the sub-divisional heads report directly to the Executive Vice President and Chief Operating Officer in the US product line (McDonald’s Corporation, 2015).

Improvement on the McDonalds’ Organization Chart

More duties that are currently handled by the President and Chief Operating Officer to the other five executive officers to improve on efficiency in handling operations at the organization. Besides, each division and subdivision should be harmonized to report to another person rather than the Executive Vice President and Chief Operating Officer for McDonald’s USA. Through this, the aspect of accountability and meeting targets that are set will be managed by more than one agent for the good of the organization (McDonald’s Corporation, 2015).

Aspects of McDonald’s’ Chart that are Ideal

The organization chart of the organization allows for close monitoring of activities within the headquarters and interests in divisions within the US and other continents. The managers are allocated roles according to duties to be accomplished. For instance, the Chief Operating Officer who doubles up as the President is assigned the duty of monitoring operations through different divisional heads who are running operations in their respective locations. At the bottom, the sub-divisional heads of operation within different regions in the US are expected to report to the Executive Vice President who doubles up as the Chief Operating Officer for all restaurants within the US. In the end, it would be easy to track failures or fraud in the organization simply by monitoring its source and who is responsible.

Type of Organization Chart that would be Ideal for McDonald’s

The ideal organization chart that would suit McDonald’s is the matrix structural chart since it gives room for pooling persons with the same roles or skills to report to more than one manager as opposed to the current chart, which has narrowed down the role of reporting at each stage of management to a single person. If the matrix chart is adopted, the organization will be in a position to micromanage what happens at each division or subdivision through more than one agent to improve on accountability and efficiency, since each stage of management will audit itself before submitting reports to a higher authority.

High-Level Objective for Each Functional Group in the Chart

Highest Level: Chief Executive Officer

The objective of this functional role is to offer management skills such as setting targets as the general manager for the organization.

High Level: Six executive officers

The objective of this functional role is to offer management support to the main departmental heads as ensuring that the set targets are met.

Middle Level: Divisional heads

The objective of this functional role is to execute set targets to ensure that the goals are met within the expected time with optimal resource use and allocation.

Low level: Sub-divisional head

The objective of this functional role is to implement the set targets and follow up on the progress of the organization within the efficiency and sustainability matrices.

Reference

McDonalds Corporation. (2015). Organization structure. Web.