This can enhance performance because if businesses start operating, functioning and copy structural ideas then they also have a chance of increasing profits and success. This is because as Ritzer explained American industries are gaining the values and norms of McDonalds therefore adopting several of McDonalds strategies including structural can only be beneficial for a business.
Adopting the McDonaldized structure can also inhibit performance of a business because just to satisfy customer needs they may start to go against their own companies rules and ethics for example they may want predictability of products within their business instead they like product rotation and placing new products on the market constantly, for example the Sony organisation. They do not like producing the same goods constantly and insist on progression and updates on previous products. The good points of this theory are that the links and connections Ritzer emphasises between American industries.
He is correct in identifying this issue because it is true as the rate of obesity in American and in particular children is consistently increasing year in year, and this directly through eating habits and the fast food giant McDonalds. This meant that McDonalds started integrating itself within many people’s diets. Many people also criticise this theory, this is because McDonaldisation of society is not thought to be a single process where McDonalds is interrelated to other major societal industries instead industries are thought to have progressed and updated throughout time.
Sometimes an organisation needs to operate according to what projects they have to do. In these situations people usually work together in a team to achieve their projects goals. The emphasis with this type of structure- Matrix is solely on project work. It allows specialist skills to be used together; this will then create the maximum amount of efficiency and effectiveness from all the workers. Individuals will have their own role and responsibility within a team and are relied upon for work to be handed in on time and the work to be up to company standards.
If every member of the team can achieve this personal goal, the team should perform at their best. As many projects as desirable can be worked on by a company. This means that several departments can work on a project and a set of another departments may be working on another project at the same time. This type of structure will be mainly used in large businesses. Advantages include maximising the chance of profits because specialised departments are working together which should allow them to gel together enabling the company to operate at its highest amount of effectiveness.
This also brings flexibility and cohesion within a business and so therefore should also result in job satisfaction, job enrichment, job rotation and most importantly for the business a motivated workforce. Building team skills can be achieved here; this will create maximum efficiency within a team and ultimately may lead to an increase in performance of the business and hence profits. This is . how it could enhance businesses in terms of performance The Larson and Gobeli report (1987) suggested that this type of structure was very popular in large organisations but then went out of favour due to its apparent disadvantages.
They were thought to be issues of power and authority within the chains of command and this caused major confusion and loss of positive communication in these large organisations. Other disadvantages include that undertaking several projects, which include marketing, may be of huge expense, time consuming and the project may be a failure in terms of not increasing profits. This is how it would inhibit businesses in terms of performance in relation to type of structure.
