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Style. The way managers collectively behave with respect to use of time, attention, and symbolic actions. ORGANIZATIONAL DESIGN LEVERS AT McDONALD’S Winning formula Pivotal jobs Design levers Organizational structure Management systems Leadership style Staff Strategy Skills Shared values VISION ?Centralized buying to control fat content ?Hamburger University degree required ?Promotion from within to build experience ?Regular inspections ?Franchise expansion based on high grades on prior inspections ?Many procedural mechanisms aimed at building employee enthusiasm and loyalty ?Hardnosed, rigid attitude on how to run the business The skills and shared values must be used to determine needed changes in anizational design. For example, McDonald’s specific skill of quality control drives many anizational design decisions. Structure buying provides more than economics of purchasing. It also helps ensure that fat content is between and percent and ensures that burgers are 100 percent beef. Staff –operators have more say on quality of operations than absentee investorowners. at Hamburger University ensures that managers really know how to make the food right. It is a $40 million facility, with 750student capacity per 2week session, and translation booths for foreign managers. It is the only school in the fastfood industry accredited by the American Council of Education. from within builds experience in meeting pany standards and reinforces shared values. Systems systems, including job descriptions and performance appraisals, ensure that quality of operations meets standards.. franchises are inspected on a regular basis, including grades( A through F) on QSC. other franchises that give rights to territories, McDonald’s franchises cannot expand unless they show a history of high quality in operations. ’s Personnel Action Manual provides mangers with a wide array of programs to keep crew members motivated and mitted. Style tolerance for variance from operations standards, except as wellthoughtout improvements. No shortcuts allowed. ’s inspections. Before entering a franchisee’s office, Kroc would often pick up all the trash within a twoblock radius of a McDonald’s restaurant and then dump it on the franchisee’s desk to show a need for greater cleanliness in McDonald’s vicinity. ORGANIZATIONAL DESIGN LEVERS AT McDONALD’S Winning formula Pivotal jobs Design levers Organizational structure Management systems Leadership style Staff Strategy Skills Shared values VISION ?Centralized buying to control fat content ?Hamburger University degree required ?Promotion from within to build experience ?Regular inspections ?Franchise expansion based on high grades on prior inspections ?Many procedural mechanisms aimed at building employee enthusiasm and loyalty ?Hardnosed, rigid attitude on how to run the business The design lever clients exercise the most is probably structure. Too often we hope that by tinkering with boxes in anizational charts, we can solve anizational problems. Structure is really about how to arrange people and jobs for optimum performance. A few assertions about structure: 182。 Systems. The processes and procedures through which things get done from day to day, including hiring, pensation, performance evaluation, promotions policy, and training. 182。 For example, McDonald’s has a visiondriven ―winning formula,‖ as described below. McDONALD’S WINNING FORMULA Vision : to bee the leading restaurant chain in the world Strategy Shared values Skills ? Convenient ? Good quality ? Consistent ? Familyoriented environment ? Fair value ? Quality control over all aspects of business ? Superior site selection ? Continuous new product development ? Strong promotion of products and McDonald’s image ? Quality ? Service ? Cleanliness ? price Organizations usually change in response to discontinuities – either external shocks (such as deregulation ) or internal changes (such as new leadership) that make it clear that the old , ―grooved‖ way of doing things is no longer winning. The successful ones will create a new winning formula that is based on changes in strategy, newer or stronger skills, and/or shared values. Contrasting the new winning formula to the old formula identifies and gauges the change that the anization is considering and defines the vision for the change program. A change vision is a creed that summarizes what an anization is trying to bee and why. As such, it guides anizational priorities by redefining and rebining business objectives, required institutional skills ,and corporate values about what is important around here. A change vision is at the heart of top management’s role in improving performance and is often the first step. It provides the vital bridge between the initial dissatisfaction with the status quo and the first practical steps taken in a change program – the articulation of a clear target that represents something better that is both logically sound and emotionally appealing. IMPROVING ORGANIZATIONAL PERFORMANCE Grooved Redirected Unfrozen Discontinuities External shocks ?New petitors, economics ?New technologies ?Deregulation Internal changes ?New aspirations ?New leader Major change through people Strategy Skills Shared values VISION New strategy New or stronger skills Shared values CHANGE VISION Certain key people in the anization hold positions that determine success or failure in instituting a new strategy, skill, or shared value. These people fill what we call pivotal jobs. We will only succeed in implementing the change vision if we succeed in changing the behavior of piv