Human Resource Management
Mc Donald’s is a multinational and renowned fast food restaurants corporation that is famous for its widely spread restaurants. Founded in the 1940s, the corporation has been able to withstand the test of time. There is a need for the corporation to embrace change because their consumers have changed. Every company should have a signature product; but when there is a need to change it, the corporation should change. The menu for Mc Donald’s is highly unhealthy and currently contemporary society is made up of enlightened consumerism. This has led to a drastic decrease in the volume of sales and the number of clients served.
Last fiscal year only the corporation experienced a massive $111.7million in losses as compared to an average of $80.4milliom that would be reported annually. Some of the restaurants have been closed down in Latin American countries and in Jamaica as well. There is definitely a need for a change and the best model to diagnose the change and its effects are the four frames of organizations.
The Diagnostic Model
The model is made up of four main components and will address the corporation in the following way:
This will address the function and structure of Mc Donald’s as a corporation. The following areas will be the main focus:
- The hierarchy of power and authority – as much as bureaucracy is always encouraged in order to ensure accountability and transparency. There is also a need for diversity, the restaurants are located in different areas of the world and different settings, methods, and strategies should be encouraged to ensure that diversity is captured.
- Specialization – the restaurants should specialize in meeting the demand of the majority of their clients. This means that different menus for different places. At the same time, the employees should be well trained to deliver as per the expectations of the clients.
- Set goals and objectives for the firm- the corporation should set some goals to be met at the end of each fiscal year. This is because it is apparent that the olden ways are not able to deliver any financial or brand profits for the corporations.
- Control and coordination mechanisms- in order to set new goals and objectives stated above, there is a need to control the factors that lead to financial losses. This means there have to be changed in the types of products offered and how they are served so as to satisfy the clients’ needs.
- Harmony- this does not mean that all restaurants should do the same thing, in contemporary society, harmony and coordination is not ensured by similarities, it flourishes by embracing differences. In this way, the multiplicity of the needs of clients are met effectively.
- Work relationship- the labor force should be well treated and offered competitive compensation packages because they are working for a multinational organization.
- Equal distribution – each and every restaurant should be awarded equal chances of making a change and the employees should be given equal opportunities. Motivation and increase in output and innovation are not achieved by simple financial incentives at times importance, appreciation and recognition are enough to improve productivity.
- Conflict resolution strategies-as a food corporation, its product is highly labor intensive and this means there should be a well-established conflict resolution strategy that ensures good work relationships.
- Work Culture- it does not necessarily have to be the product, it can be in terms of quality and delivery to the clients. This is actually what the corporation needs to consider, that its menu right now poses serious health implications for its consumers, it can change the menu but retain the brand and the quality. This will not in any way indicate a change in culture.
- The two companies that will be evaluated are Apple Inc and Microsoft Corporation. Both companies are in the information technology world where they are either involved in the production of software or computer hardware. In 2011, Microsoft Corporation acquired Skype Technologies as a software company for $8.5billion. This is the most expensive acquisition in the technology world. In 2007 Apple changed its name from Apple Computer Inc to Apple Inc, when it launched into the mobile phone market. This was shortly followed by the launch of the first iPhone.
Some of the internal forces that made the companies change include:
- Increase in innovation – during the life of a company as it grows, innovation is a result of changes that the employees undergo thorough training experience and even at times contact with the clientele.
- Need for expansion – Microsoft Inc acquired Skype in order to be able to increase its influence in the industry’s market, expand in terms of market control, increase revenue and increase its diversity as well.
Some of the external factors that led to the changes by the company are:
- Change in consumer taste and preference- after the production and sale of iPods, Apple ventured into the making of iPhones in order to cater to consumer demand.
- Change in technology- technology has a massive influence on the products offered by both companies, technology is not meant to simply enhance communication but also create convenience. As technology changes, the need for better-performing gadgets increases and this leads to the production of new software and hardware.
The acquisition of Skype Technologies was meant to offer consumers new communication software that could be incorporated with other software produced by the company. Microsoft Corporation leaders handled the acquisition very discretely and there were little scandals from the process.
- There was proper communication to all the stakeholders at the appropriate time. The employees from both corporations were retained and this led to an improvement in quality.
- All the legal matters were dealt with and there was proper financial compensation for the acquisition.
- Co-ordination was established, Microsoft is a household name and it ensured that all the subsidiaries were able to incorporate the necessary changes after the acquisition.
Apple decided to change its name so as to capture the different products that it was to offer to the clients. The change in the name was ensured through:
- Proper analysis of the cost versus the benefits – the company experienced both implicit and explicit costs due to the change however the benefits were to be reaped after the sale of the iPhones.
- Use of new marketing strategies to advertise for the new products was a very vital strategy. The company had to ensure that the consumers were made aware that the change in the name did not mean a decrease in the quality of goods offered.
Apple is the second largest electronics company globally. It is known for the Mac version of the computers and the famous iPods, IPads, and iPhones. Sustainability involves the organizational strategies aimed at ensuring corporate responsibility: the products should not pose any danger to the consumers or the environment. Apple has several sustainable strategies:
- Energy saving – most of the products that are offered by Apple are energy saving. The hardware is made in a way that they require very little energy and have long-lasting batteries. The company also involved in the use of renewable energy.
- Environmental footprint –this involves the tracking of the amount of carbon dioxide used in the production, transportation, distribution and product use. Once this has been tracked, the company has aimed to decrease it completely by putting in place mechanisms in the production and distribution methods and also creating awareness for the clients when they are using the products.
- Recycling – the company has a very good reputation for recycling. This ensures that resources are not depleted quickly and scarcity is reduced. Currently, Apple recycles all school computers for free as a service to encourage recycling.
4. Steve Jobs is one of the most influential leaders of all times. He is known not only to be the CEO of Apple Inc but also to be a motivational leader who does not believe in following the leadership rule book to the letter. He believes in the notion that proper analysis of the market and the clients will always give the answer to the best products to be offered to the people.
Apple almost went bankrupt in the 1990s after experiencing serious lawsuits from Microsoft Inc on the use of some of their products without any collaboration. Once Steve Jobs took over the company again, it flourished. There are several strategies that he used that are very fundamental even though they may not necessarily work for all the managers in all companies.
- Jobs faced the issues head-on. In the 1990s the company was tied in legal issues that were affecting production and sale. Once he was there he decided to deal with the issues head-on and solved them. This made the pressures and complications of production and sales to decrease and the working environment became more secure.
- Specialization – the company was producing very many products to the market in an attempt to capture almost all the aspect of the technology industry. When Jobs took over he realized there was a need for specific products. He reduced the company products from forty to four products and made them the signature products for the company.
- Working environment – innovation is always an outcome of a challenging working environment. When employees are always looking for better ways to improve themselves they are likely to increase output and come up with new products. This is one of the strengths that Jobs offered.
- The client taste and preference – Jobs was a strong believer in giving the consumer the product that they desire. In the famous words of Sir Henry Ford, costumes always know what they want to experience but you as the producer will know how to package it. Jobs gives the clients products that will increase their utility at all times.
- Simplicity – Jobs is a strong believer in keeping all the business transactions and decisions as simple as possible.
Steve Jobs was a good leader for Apple Inc because he was able to ensure that the company achieved its mission of increasing clientele base and offering the best products in the market. Apple is currently one of the largest firms globally in terms of revenue and sales in the electronic and technology industry. He improved the PR of the company and was able to ensure that innovation is part and parcel of the company as it is always launching new products.
Some of the mistakes that Steve Jobs made were great and would cost Him or the Company a lot financially. For instance, the purchase of Pixar Inc for $10million was an initial mistake as it was expected to bring in more money which it did not. He even tried selling it off severally to other investors by giving them a pitch off but none would buy it. It became like one of “those dead stock” to the company and during that time it was valued at $50million. This means there was $50million sitting somewhere in the company and not being utilized.
Jobs also tried to push his limit by introducing several products in the market at the same time. This led to the poor performance of others like the Macintosh TV and the Apple Lisa. However, all these mistakes are covered by all the successful things he has done for the company.
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