Part 1

Revising McDonald's Organizational Chart

Purpose

Developing and altering organizational charts is an important skill for strategists to possess. This exercise can improve your skill in altering an organization's hierarchical structure in response to new strategies being formulated.

Instructions

Step I- Turn to the McDonald's Cohesion Case (p. 29) and review the organizational chart. On a separate sheet of paper, answer the following questions:

1. What type of organizational chart is illustrated for McDonald's?
2. What improvements could you recommend for the McDonald's organizational chart? Give your reasoning for each suggestion.
3. What aspects of McDonald's chart do you especially like?
4. What type of organizational chart do you believe would best suit McDonald's? Why?

Part 2

Do Organizations Really Establish Objectives?

Purpose

Objectives provide direction, allow synergy, aid in evaluation, establish priorities, reduce uncertainty, minimize conflicts, stimulate exertion, and aid in both the allocation of resources and the design of jobs. This exercise will enhance your understanding of how organizations use or misuse objectives.

Instructions

Step 1- Join with one other person in class to form a two-person team.

Step 2- Contact by telephone the owner or manager of an organization in your city or town. Request a 30-minute personal interview or meeting with that person for the purpose of discussing "business objectives?' During your meeting, seek answers to the following questions:

1. Do you believe it is important for a business to establish and clearly communicate long-term and annual objectives? Why or why not?
2. Does your organization establish objectives? If yes, what type and how many? How are the objectives communicated to individuals? Are your firm's objectives in written form or simply communicated orally?
3. To what extent are managers and employees involved in the process of establishing objectives?
4. How often are your business objectives revised and by what process?

Step 3- Take good notes during the interview. Let one person be the note taker and one person do most of the talking. Have your notes typed up and ready to turn in to your professor.

Step 4- Prepare a 5-minute oral presentation for the class, reporting the results of your interview. Turn in your typed report.