EFFECTS OF ORGANISATIONAL TRANSITION ON EMPLOYEE COMMITMENT

Effects of Organisational Transition on Employee Commitment

Table of Contents

CHAPTER I:4

Introduction4

Background of Study5

Purpose of study6

CHAPTER II7

Literature Review7

Committed Employees7

Franchising10

Advertising and Promotion11

McDonald's Commitment11

Increased Volume vs. Reduced Costs11

Designing The Incentive Systems12

Risk Averse Officer13

Moral Hazard13

Directing Function14

Sabotage14

Filter15

Property Rights And Incentives15

Organizational Tranistion and employee comitment16

Theoretical concepts and relationships18

Managers' individual outcomes18

Performance19

Cultural value perceptions and managers' commitment and efficacy19

Individual outcomes and business performance20

Culture and business performance21

CHAPTER III23

Research Methods23

Research Design23

Measures23

Data analysis24

CHAPTER IV30

Results30

Organizational culture perceptions and individual outcomes30

Individual outcomes and business performance30

Culture perceptions and business performance31

Discussion32

CHAPTER I

Introduction

When the McDonald brothers, opened their first bistro in 1940 in San Bernardino, California, they could not ever have envisaged the phenomenal development that their business would enjoy. From exceedingly unassuming beginnings, they strike on a triumphant equation trading a high value merchandise at reduced cost and quickly. However, it was not until, a Chicago founded salesman with a flair for trading, became engaged that the enterprise actually begun to grow. He recognized that the identical thriving McDonald's equation could be exploited all through the United States and beyond. McDonald's achievement is constructed on a base of individual and expert integrity. Hundreds of millions of persons round the world believe McDonald's. We profit from that believe everyday by assisting protected nourishment, highly regarding our clients and workers and consigning spectacular Quality, Service, Cleanliness and Value (QSC&V). We construct on this believe by being ethical, honest and dependable.

Actually, McDonald's bistros in the UAE are Emarati-owned and functioned by the Emirates Fast Food Corporation, with as the Managing Director. McDonald's has 39 bistros in the UAE with the first bistro unfastening on 21 December 1994. Since then, McDonald's UAE has been dynamically combining with its community and playing a premier function in the Quick Service Restaurants over the district. Each McDonald's bistro is organised as an unaligned enterprise, with bistro administration to blame for accounting, procedures, inventory command, community relatives, teaching and human resources. Basically, McDonald's is identified by the Government as a premier business that assists to the UAE economy. Large investments are made in genuine land parcel, mechanical equipments, localized provide string of connections and work force. Priority is granted to localized suppliers, and today 80% of the components utilised by McDonald's UAE are approaching from localized and Arab suppliers in the Middle East (). Moreover, the business presents teaching programs and job possibilities to the nationals who would like to connect its group over the UAE.

 Background of Study

In multi-outlet operations within the service industry, there has been a tendency to 'production-line' (Levitt 1972, 1976) service deliveries. As evidenced in the phenomenal success of franchise operations within the fast food business, the 'production-lining' and accompanying division of labour has allowed specialization and efficiency that may be very successful. However, two trends may have major influence on the viability of the continuing success of the standardized product. First, the general tourism literature (e.g. Poon 1994) indicates that with increasing affluence, travellers and customers expect more than the standardized product, in as much as they expect sensitive attention to individual needs and customized ...