Importance Of Effective Leadership In Mcdonalds

981 Words 4 Pages
The importance of effective leadership is visible in the HR practices of the organization. When a company’s leader lacks the ability to provide direction, coaching, training and motivation for the staff, the organization will walk its way to the collapse of its entire business empire due to lack of morale and commitment from its main driving source, its employees. McDonald’s is facing similar issues with its newest CEO, Steve Easterbrook, who was appointed to restore the fast-food chain from its worst slouch in more than a decade. His approach was presented in a speech that emphasizes how his turnaround strategy will affect the global stage for the restaurant but failed to deliver specific details on how to improve customer experience as well …show more content…
This resulted in employees becoming disillusioned with McDonalds considering it as an unfriendly environment to work. Around the United States, McDonald’s workers have been going on numerous strikes in order to raise the wage rate from $7.25 to $15 per hour to gain access to an adequate standard of living, and to enforce their rights in the company. (Featherstone, 2013) Moreover, McDonald 's is losing its customers as it is unable to provide them with a friendly and professional customer service in comparison to other restaurants. In a recent interview one of the McDonald’s executives recently shared that “1 in 5 customer service complaints are related to friendliness issues and it’s increasing” (Waterhouse, 2013) McDonald’s came out last of the fast food chains in the Customer Satisfaction Survey 2015, which pertained to a continuous decrease for the past six quarters. It finished with a 67% in the industry chart (Allen, 2015), which may have pertained that the turnaround strategy does not uphold an effective approach in maintaining good relationships with the organization’s most important stakeholder, its consumers. Therefore, the issues of poor leadership will affect the employees, who are the first contact to the customers and thus, making a negative representation of the organization. If the employees are not …show more content…
These conditions apply only to 90,000 employees approximately and around 1500 restaurants (Zillman, 2015). At the same time they also see that it doesn’t affect other McDonald 's franchisees who operate around the world. By paying employees a minimum wage the employees will be satisfied and will be willing to work in the company so that the company could increase its sales by providing good customer service. They say that when the employees are happy, the customers are also happy. McDonald 's could motivate and encourage its employees to perform better in their job by giving them proper training and encourage them to work as a team. Rewarding employees financially through incentives, bonus payments and increment of wages will be beneficial to the drive and motivation of these high-performing individuals to maintain their productivity or better yet, increase it. They can also motivate their employees by non-financial rewards such as: healthcare benefits, promotions, fringe benefits etc. This will lead employees to perform better and improve customer service of the company. As a global brand to defend themselves from low pay for employees and other leadership management problems McDonald 's has to take a great risk on the brand

Related Documents