McDonalds Organisational Structure - Case Study & Culture

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McDonalds Organisational
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MCDONALDS
ORGANISATIONAL
STRUCTURE
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Things move quickly at McDonald's, whether we're serving our customers delicious food or helping our
own people to build their futures. In our workplace, we promote flexibility, opportunity, equality and
development. McDonald's employees come from all walks of life, but share a common approach: positivity.
We know that happy employees help to make happy customers, so we want you to enjoy your work. And
we're certain you will.
-mcdonalds.com
Let's take a look at the McDonald's organisational model, which helps the company fulfil its mission, by
examining its management structure, organisational structure and organisational culture.
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Introduction to McDonald’s
McDonald's is an American fast food company founded by the McDonald brothers, Richard and Maurice
McDonald in 1940 in San Bernardino, California, United States. They opened a hamburger stand which later
on turned into a franchise. In 1955 Ray Kroc, a franchising agent, founded McDonald's System Inc., a
predecessor of the McDonald's Corporation, and in 1961 bought the exclusive rights to the McDonald's
name and operation technique. By revenue, it is currently the largest restaurant chain in the world with 38
thousand locations in over 100 countries, serving 68 million people daily.
Do you want to know more about how franchising works? Check out our explanation on Franchises.
McDonald's management
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According to the most recent data from 2020, McDonald's employs around 200 thousand people. The
company's

employees consist
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of directors. Below that, the company is divided into separate departments such as marketing, sales,
finance, restaurant and supply. Each country or area has separate departments with its own country heads,
managers and other staff members. All of them together make up for McDonald's organisational structure, Menu
a system that outlines how activities are managed in order to achieve the objectives of a business. It means
that McDonald’s Corporation has a divisional organisational structure.
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McDonald's organisational structure chart

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Fig. 1 - McDonald's Organisational Structure
McDonald's has several top-level executives. These include the chief executive officer and the other
directors, such as the chairman of the board, senior marketing manager, senior sales manager, chief
financial officer, chief restaurant officer, and chief operating officer, among others. They are responsible for
making decisions, setting objectives, finances, operations and the overall supervision and functioning of
the company.
After the top-level executives, there are five departments that have specific responsibilities:
The marketing department is responsible for marketing and advertising. It takes care of
maintaining the right exposure and brand image of the company. It consists of a country head,
a marketing manager and an advertisement manager. Each country has its own marketing
department to maintain
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department is responsible for sales-related duties and tasks. It makes sure they are
run properly and effectively. It consists of a country head and a regional sales manager. Each
country has its own sales department taking care of sales in the region.
The
finance
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It ensures the right money flow, investment and fund handling. It consists of a country head,
finance manager and account manager. Each country has its own finance department taking
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care of money matters in the area.
The restaurant department is responsible for ensuring that restaurants are run properly. It
consists of a country head, restaurant manager, staff training and crew members such as
cooks, servers and cleaners. Each country has its own restaurant department taking care of
restaurants in the region.
The supply department is responsible for ensuring that the company is supplied with all the
necessary resources such as food items and packaging materials for restaurants. It consists of
a country head, procurement, logistics and storehouse. Each country has its own supply
department taking care of supplies in the area.
McDonald's organisational structure

There are many types of organisational structures, and most of large corporations implement a
combination of different types of organisational structures:
decision power (centralized and decentralised organisational structures),

leaders and layers of management (flat and tall organisational structures),
other types (functional, product-based and matrix organisational structures).
McDonald's organisational structure is a combination of centralized, hierarchical, and divisional

structures.
McDonald's tall hierarchy is the most prominent feature, with decision-making authority flowing from the
top down through a clear chain of command. However, the company also uses decentralized practices to
balance global consistency with local responsiveness.
In addition, McDonald's also has separate divisions or departments for different areas of the business, such
as marketing, finance, and operations. This divisional structure allows the company to focus on specific
areas of the business while still maintaining centralised control and standardization.
Definition
A hierarchical organisational structure is a type of organisational structure in which there is a clear chain
of command and decision-making authority flows from the top down.
Definition
Divisional organisational structure is a type of organisational structure in which the company is divided
into separate divisions or departments, each responsible for a specific product, region, or function.
Definition
Centralized organisational structure is a type of organisational structure in which decision-making

authority is concentrated at the top of the hierarchy, with little decision-making power given to lower levels
of management.
Overall, McDonald's organisational structure is designed to ensure efficiency and consistency across its
many franchises and locations around the world, while also allowing for some flexibility and innovation in
response to local market conditions and customer preferences.
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McDonald's organisational structure in the United Kingdom

Above, you were able to see McDonald's organisational structure globally. Although there are some main
departments operating in every geographical area, each country can have some additional departments
according to its needs. When it comes to the United Kingdom, below the chief executive officer and board
of directors, departments are broken into:
Corporate affairs,
Marketing,
Human Resources,
National operations,
Regional managers,
Finance,
Information,
Strategic planning.
There are also other functional departments such as legal, customer services, franchising, safety, security
and licensing, property and construction, supply chain and restaurant services.
To learn more about the different types of organisational structures, have a look at our explanation of
organisational structures.
McDonald's organisational culture

Organisational culture is a collection of organisational shared values and practices that guide employees'
actions and behaviours in the organisation. McDonald's organisational culture supports people, learning
and diversity which aims to emphasize human resource development, operational efficiency and
productivity.
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People
The organisational culture of McDonald's prioritises employees' needs and development. Its values reflect
the importance of people in the company and aim to support them - which is understandable as
McDonald's is operating in the service industry. In doing so, the company promotes the engagement of management
to help improve its processes.
Learning
The McDonald's organisational culture supports both individual and organisational learning. It believes that
learning enhances productivity, quality and business performance and therefore the company offers
various training and development opportunities. Additionally, it applies the knowledge to the organisation
through programs and meetings where employees can give and receive feedback and share their
knowledge.
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Diversity and inclusion are also key factors in McDonald's START
organisational
QUIZ culture. The company outlines the
importance

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also promotes feedback and conversations between employees, suppliers, franchisees and customers to
support these values.
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To learn more about the importance of organisational culture in business, have a look at our explanation of managing organisational culture
.
In conclusion, both organisational structure and culture have a huge impact on how McDonald's performs
and fulfils its mission. The company's core values and its decentralized, tall and product-based structure
shape the overall operations of the company.
McDonalds Organisational Structure - Key takeaways
McDonald's is an American fast-food company founded by the McDonald Brothers,

Richard and Maurice McDonald in 1940 in San Bernardino, California, United States.
By revenue, it is currently the largest restaurant chain in the world with 38 thousand
locations in over 100 countries, serving 68 million people daily.
McDonald's employs around 200 thousand people.
The company's organisational structure consists of a CEO, board of directors and

departments separate for each country or region.
The organisation structure of McDonald's is a combination of centralized,

hierarchical, and divisional structures.
Its organisational culture highly values people, learning and diversity.
References
1. https://www.mcdonalds.com/us/en-us/about-us/our-history.html
2. https://corporate.mcdonalds.com/corpmcd/our-stories.html
3. https://www.mcdonalds.com/gb/en-gb/help/faq/18509-whats-the-structure-of-mcdonalds-and-
how-each-department-in-the-organisation-interacts-works- together.html
4. http://www.orgcharting.com/templates/mcdonald-organizational-structure/
5. http://panmore.com/mcdonalds-organizational-structure-analysis
6. https://www.statista.com/statistics/819966/mcdonald-s-number-of-employees/
7. https://www.hierarchystructure.com/mcdonalds-company-hierarchy/
Frequently Asked Questions about McDonalds Organisational

Structure
Q: What type of business is McDonald's?
A: McDonald's is an American fast-food company.
Q: What Organisational structure is McDonald's? Accept
out if you wish.
A: The company's employees consist of chief executive officer (CEO) Chris Kempczinski at the top and

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board of directors. here! that, the company is divided into separate departments suchLearn
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marketing, sales, finance, restaurant and supply. Each country or area has separate departments
with its own country heads, managers and other staff members. All of them together make up the
Menu
McDonald's organizational structure, a system that outlines how activities are managed in order to
achieve the objectives of a business.
Q: Is McDonald's a decentralized organization?
A: McDonald's has a decentralized organizational structure. A decentralized organizational structure is

when lower levels of a business hold the decision power.
Q: How many people are employed by Mcdonald's globally?
A: According to the most recent data from 2020, McDonald's employs around 200 thousand people
all over the World.
Q: What are the functional areas of McDonald's?
A: The functional areas of McDonald's are the marketing, sales, finance, restaurant, and supply
departments.
Q: Is McDonald's centralized or decentralized?
A: McDonald's organizational structure is a combination of both centralized and decentralized

elements. While the company has a clear chain of command and ultimate decision-making authority
rests with the CEO and board of directors (a centralized feature), it also allows some decision-
making power to regional and store managers (a decentralized feature) to better respond to local
market conditions and customer preferences.
Final McDonalds Organisational Structure Quiz
Question Question
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When was McDonald’s founded? By revenue, is there currently a re
McDonald’s Corporation?
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Fig. 1 - McDonald's Organisational Structure