Question

How do you square the mechanistic organization of McDonald's retail outlets with the process of innovation so characteristic of the McDonald's enterprise?

Answer 1

McDonalds has mechanistic organization as the arrays of tasks which are performed within the outlets are repetitive at every outlet. Tasks and responsibilities at every outlet are delegated properly and there is a scientific division of labor. Such delegation and division of labor makes the work activities simple as well as small.

It is through its emphasis and focus on specialization, standardization and formalization that McDonalds is able to innovate. As its tasks are stable the company the company leverages its environmental stability to gain technological flexibility. Another factor that enables McDonalds to innovate despite being a mechanistic organization is the fact that it does not let its mechanistic nature to stifle creativity within the organization.

McDonald harps on ambidexterity by attempting to have both organic and mechanistic structure co-exist. This enables the company, its managers and its employees to take risks, generate new ideas, develop an entrepreneurial mindset and develop a tolerance for failure. All these, eventually, encourages innovation.