OBJECTIVE A

Evaluation of how organizational theories and practices can improve organizational operations

Despite its strong leadership, popular products, and excellent customer service, the chicken sandwich chain has become a political and cultural symbol after becoming the center of controversy. The company's success is a direct reflection of one man's legacy of giving, goodwill, and passion for supporting youth, while also drawing heavy criticism for those same values. As consumers of the fast-food market, we look at whether Chick-fil-A's reputation for excellent customer service outweighs the blowback from the controversial charitable donations. By taking a deeper look at the company's problem, the resolution, and the impact, the controversy has had on fast-food consumers.

Chick-fil-A is well known for its generous charitable contributions and community outreach. The organization structures its core values around the Christian faith of its owners. Their mission statement, labeled as a Corporate Purpose, is to "glorify God by being a faithful steward of all that is entrusted to us and to have a positive influence on all who come into contact with Chick-fil-A" (Theroux, 2019). The organization's goodwill also flows over into their charitable causes, notably the millions of dollars in donations to charities around the nation each year. However, those donations have placed a negative spotlight on the brand in recent years.A 2017 tax filing reported that of the $9.9 million donated to charities, $1.8 million went to three groups known to discriminate against the LGBTQ community (Grenoble, 2019). Specifically, their donations to the Fellowship of Christian Athletes, the Paul Anderson Youth Home, and the Salvation Army have caused genuine outrage amongst consumers who feel these actions are directly and negatively affecting the LGBTQ community, which is already marginalized (Grenoble, 2019).

Shortly after discovering the donations, Chick-fil-A's current CEO announced a shift in focus to education, homelessness, and hunger (National Post, 2019). However, objectors on both sides of the matter have criticized the announcement for different reasons. Longtime supporters are disappointed that the brand has acquiesced to the demands of a particular group, and others are skeptical that these promises for change will have no follow-through (National Post, 2019). Even with these changes, protests continue to arise as new locations open from gay rights activists and Christian groups.

On the surface, it seems as though the company resolved its organizational problem by taking an impartial approach to supporting social causes; however, donations to faith-based causes and organizations continued. Despite the controversy and the vague response to the future possibility of donating to faith-based charities, the brand has not suffered financially from the community blowback. In 2019 their sales reached 10.5 billion the year, making it the third-largest fast-food chain in the United States (National Post, 2019). It is undeniable that the company's success is due to the unique approach to customer service. It appears that while several customers do not align themselves with the brand's stances on cultural issues, it wasn't a deal-breaker.

Chick-Fil-A's response to the controversy impacts consumers in two ways. Those who live in progressive cities don't have the opportunity to purchase the products since many of those cities do not welcome the company because of the company's stance on specific cultural issues. For instance, in 2019, activists responded to plans for a new restaurant in the San Jose airport with public outcry and boycott threats. Local activists deemed the chain would be a deterrent to incoming visitors and companies who would view the city allowing its development as a sign of support for Chick-fil-A's beliefs. (DeRuy, 2019).

Another way this impacts consumers is by putting them in a position to choose a side of a hot button cultural issue before deciding where to get their chicken sandwich. That choice being driven by where a person stands on the LGBTQ causes and if that stance is important enough to affect their pocketbook and restaurant preferences.Chick-Fil-A's founder made business choices based on his Christian beliefs and structured a customer service model around stewardship and community; in fact, Cathy's opinion was that those who got to wear the Chick-Fil-A badge were a higher calling. In 2019 Cathy's staunch Christian beliefs became the heart of controversy when reporters revealed donations to several anti-LGBTQ organizations by the company's charity. While the company eventually cut ties with said organizations, it has not wavered from its religious views. It has since been identified as the third-largest fast-food chain in the United States, proving that customers will set aside their personal beliefs in exchange for good service and a quality product.

A key piece of the problem we are here to solve is"how organizational theories improve operations?". Over the last 8 weeks, we have seen through our research that organizations are all different in how they operate but normally are built on the same organizational fundamentals. One of those fundamentals is the concept of organizational theory. We believe the best way to explain this is by focusing on the simplistic formula of Who, What, When, Where and Why. This breakdown will provide a detailed and informative look at organizational theory that will justify its use and expand on its limitless potential.

Organizational theories exist to better the way an organization makes decisions, sets processes, employs, defines labor, and functions. There are several theories that an organization can choose to follow through on. Classical, Non-Classical and Neoclassical are just a few of the theories in which to operate in. But who is in charge to implement this process? Organizational theories can improve operations most when applied by the leaders. It defines individuals within an organization, which creates delegation and hierarchy of authority. Defining the organizational division of labor created structure. Structure allows individuals to operate within their tasks and space, which gives the employee their direct value. The goal being to mitigate ambiguity. Employees who operate in structure feel valued, and thus stay with the organization over time, which promotes your culture.

A positive culture will attract high operating employees. Systems theory will provide a more dynamic change over time. As the organization does work, the process of changing, provides inputs on how the people operate, what materials are created and how structure must also adapt or change. Organizational operations is improved throughout and as a result of the outputs created through the process of systems theory. In reverse, Open Systems Theory says that the environment and society can affect an organizations operation. Outputs can affect the inputs of an organization. Government regulations, suppliers, shareholders, industry standards and competition can all affect the way operations pivots to manage change. To improve the operations and function successfully, the organization will have to rise to the challenge, and make the necessary change.

Organizational theory is a collection of different concepts that seek to explain the behavior of organization members who interact with each other to perform the activities and tasks of an organization. The groups or individuals within an organization typically have a common goal in mind that they seek to accomplish. Organizational theory also looks at the impact that the internal environment and external forces have on a firm. Experts, managers, and analysts in the field may use one or several organizational theories to identity problems a business may be facing and recommend an effective model to address them.

When is it best to apply organizational theory? Organizational theory should be applied at all levels of management and production within a company or organization. Organizational behavior impacts every interaction between employees, stakeholders, and leadership or ownership. For example, team performance and individual motivation are directly impacted by applied organizational behavior theory since these interactions can be affected by personal feelings and weak policy enforcement or leadership support. Establishing policies such as concentrated efforts to reward cooperative behavior or effective leadership, and regular performance reviews that are an opportunity for a raise are examples of internal behaviors that are applications of organizational theory.

Any part of the internal structure that is based on personal interaction, whether in person or through communications, should be viewed through the lens of organizational behavior in order to do strong and positive internal value culture. Applying the theories and practices of positive organizational behavior not only impacts the longevity of the organization through its internal culture, but also in the outside interactions that take place between the company and its stakeholders, or its customers. If stakeholders and customers have consistent positive interactions with the company and its employees, they are more likely to support the brand and confirm their alignment with the brand's values.

The article "Employee ownership, motivation, and productivity" discusses the relationship between worker motivation and work productivity within an organization."The performance of any organization and its continuity depends on their key assets, employees, as well as the capabilities of the managers to be able to do motivating environment for their people" (Jonathan, Christine, Yvonne, 2002). This organizational theory ideology simply increases productivity when a worker's motivation increases.Moreover, the reality of their behaviors from the motivation gained allows them to interact with other workers to perform their activities towards the organization's accomplishment of the goal.The article helped us understand that there are positive ways of motivation that can allow individuals and groups that work for Chick-Fil-A on how to improve the efficiency of their work that they perform and how they can accomplish it better, together.This is where organizational theory of accomplishing a goal as a team is important and is highly valuable.Chick-Fil-A's success comes from its workers and their ability to be motivated by the company to sell that famous chicken while maintaining excellent customer service that keep customers coming back for more.

The article "The Limits of Organizational Theory and Incentives"finds that human behavior has considerable predictive powers towards an organization, but financial incentives and rewards are not all that matters for motivating people to be successful."Managers and employees are assumed to have "utility functions" with only two important elements: one that reflects people's preference for leisure over work and a second that reflects individual tolerances for risk" (Schmidt, 2005).In theory, this statement speaks on how people work for either their own success or the success of the organization.Chick-Fil-A is one of those organizations that its employees work for the success of the company, not the individuality.The pay is beyond fair, and the incentives are justified through the atmosphere of the organization that keeps their employees happy to be a part of the Chick-Fil-A name.

Although there are several organizational theories, they all share the same purpose: to understand what makes an organization work. Every approach works with the belief that an organization has its structure, strategic goals, and employees; however, each theory focuses on how efficient an organization is at achieving its goals, how it responds to the environment and how it well it holds up to external challenges. Managers can apply different theories by aligning the organization's goals, business environment, and personnel with the organizational theory that best applies to the challenges a company faces. If applied with support, understanding and direction...a strong organizational theory can be the key to success for a company no matter the size, market or industry.

Objective B

Analyze how values, attitudes, beliefs, feelings, and personality influence decision making in the workplace.

The second key aspect to troubleshooting this organizational issue is figuring out"how values and attitudes influence decision making". To answers this question, we will first define what values and attitudes are to the company, introduce who sets this tone within Chick-Fil-A. We will also define authority as represented within the company, as well as define the various structures that influence the company. Values and attitudes can be defined differently by different companies, so it is valuable to first define what they mean to our focus company, Chick-Fil-A. As we have learned from our previous papers, Chick-Fil-A values are primarily religious based. They value family, a quality image and conducting business in a fashion that is both efficient and welcoming. Their attitude towards customer service is easily the best in their industry and it's a reason customer keep coming back.

It is a standard theory that values drive our actions as managers and motivates our professional goals, and, from there, guide our decision-making to ensure our choices align with those of the company we represent. In addition to goals, company culture impacts the decision-making process. Chick-Fil-A is an excellent example of how values and attitudes influence decision-making. Chick-fil-A's founder, S. Truett Cathy, based his business model on his Southern Baptist beliefs and principles found in the bible. He used his money, time, and reputation to influence the companies' leadership and the lives of his patrons. The religious influence is explicit in the company's purpose, "To glorify God by being a faithful steward of all that is entrusted to us and to have a positive influence on all who come into contact with Chick-fil-A. (Turner, 2015)." While Truett passed away in 2014, his influence continues to shape the company's culture based on valuing people above everything else to this day.

"Two of the most important differentiators of a business are its talent and its culture. Talent energized by an influential culture will drive organizational success and provide innovative growth opportunities for both the business and the individual. (Turner, 2015)." Today, staff at all levels continue to set the attitudes that promote inclusion, dignity, and respect. From recruitment to ownership to retirement, Chick-Fil-A employees must demonstrate that they are committed to Truett's primary goal of improving the lives of everyone it touches, beyond the restaurant's walls.

Decision making within an organization creates a ripple effect both inside and outside of the organization that can affect productivity and performance. A company like Chick fil-A, which was founded as an extension of its founder's religious convictions, takes these values into account when promoting its business or creating new policies. Their most notable policy of closing restaurants on Sundays so that employees can spend time with their family and practice their religious beliefs is still unique to the industry, and this practice is a cornerstone of its success (Turner, 2015). At the same time, their decisions to promote and support charitable organizations that do not condone any LGBTQ+ communities or people have sparked controversy and lead to a change in the company's charitable practices (Lucas, 2019).

However, decisions like closing on Sundays have brought more success and brand awareness to the market by creating demand and providing a service to employees that gives them at least one guaranteed day off per week that would allow them to return to work more relaxed (Taylor, 2019). Chick fil A's core values are evident in their business practices and this drives their internal decision making as well and their marketing. If employees are devoted to the company because of the shared values and supportive actions like having certain days and holidays off, or providing education assistance, this will drive employee-level decision making that benefits their customer service metrics. In turn, internal decision making that leads to these innovative practices further reflects the core values back into the market.

The corporate side of Chick fil-A is focused on following the latest technology and offering consistent avenues of feedback for employees and customers that has created a strong relationship and more specialized care (Patel, 2018). Every part of the interaction with customers is analyzed as an opportunity to perfect their experience and maximize employee efficiency. In turn, employees are given autonomy to make decisions in the moment of their interaction that would positively support the customer or the company (Patel, 2018). Policy decisions such as these from the higher managerial and ownership levels is a practice that has created the longevity for the Chick fil-A brand that has allowed them to continue to compete in the market. The foundation of the company is a family-owned business that follows a religious mindset and seeks to support its community at any opportunity. By offering more supportive benefits than their competitors and following their core values even through organizational changes, their decision-making process has created a successful fast-food brand.

Objective D

Analyze the impact of different structures and lines of authority on organizational strategy and culture.

Lines of authority can be best defined as a chain of command within an organization. Most companies have an organizational chart. The chart is a visual of the chain of command taking place within the organization. At the top of the chart is the Chief Executive Officer Dan Truett Cathy. Directly under the CEO, his Leadership team consists of the Chief Operating Officer is Tim Tassopoulos, and the Chief Marketing Officer, Jon Bridges. Reporting into the Chief Operating Officer would be the Executive Vice President of Operations, Andrew Cathy. Onome Okuma, who sits in line with the other Chiefs, is the Chief Digital Officer. Brent Ragsdale is the Chief Financial Officer, and Cliff Robinson is the Chief People Officer. The leadership team is expansive, and perhaps the third level would be the various Executive Vice Presidents. Anita Costello who manages the International Operations, and Susannah Frost of Restaurant Development. Their led legal counsel is Lynette Eaddy Smith. Under the leaders, you would find General Managers, Supervisors and Leads.

The Organization is family owned, however not completely operated. The family has influence over the business, but the Chiefs and Leaders work together to make the decisions that have made Chick - Fil- A so successful. Their leadership tier, which consists of ten people, including the Cathy family leaders. Managers are given ample amounts of training which not only mentors them, but trickles down to mentor and benefit their staff members

Structure of Chick-fil-A One key responsibility of working as a manager is to recognize the best way to organize and run an organization. A manager who can work with and put into motion the structure and plans of a company is very important to the life of the organization. Chief Executive Officer of Chick-fil-A Dan T. Cathy is an example of such a manager and business owner. There are also staff departments, which are the researchers, marketing, accounting, and sales specializations (Bateman, 2011). Because each Chick-fil-A has a private owner, the store operator would be the line department and the corporate office will be the staff department. As defined by Bateman, a Functional Organization departmentalizes around specialized jobs, such as accounting, marketing, and production. Each Chick-fil-A restaurant operates under their own management; however, the marketing, production, accounting, and human resources departments operate from the corporate office (Chick-fil-A, 2011). Since, the structure of an organization dictates how the company will grow, creating a strong foundation will benefit a company in numerous ways.

Within any business there are the organizational functions that can create the type of structure an organization will have. A business's functions are the things it does. Production, sales, and marketing are a few examples Chick-fil-A has within the company. The organizational structure defines the relationship and interactions between the different parts of the company and identifies how the chain of command runs through the different levels. When money is earned at a fast pace, it opens door for company to expand. Chick-fil-A has various departments including the accounting, production, marketing, and HRM, store, research and sales department. For the franchised Luits/restaurants, the private owner whereby the corporate office becomes the staff department, and the store operator is the line department. Chick-fil-A uses the Functional organizations departments that are set according to specializations from HRM, accounting, through marketing, production, sales, store, and research work. Every restaurant is managed separately under own management despite for the HRM, accounting, production and marketing activities that are controlled from the overall corporate office.

The specialization evident in the functional organization structure is passed-down to the formal teams, production lines and individual levels where employees are assigned in the area of their best abilities/giftedness: Chick-fil-A ensures that each employee work at the level they are best suited by basing hiring and promotion on performance an academic merit. Each distinguished restaurant also has its own department similar to the high-level departments of the centralized management. The integration of the centralized and decentralized management is based on varied functional levels and taking each operational restaurant as a management unit that operates independently. A key component of Chick-fil-A's success has been Chick-fil-A, Inc.'s stable management team. While corporate management at many quick-service restaurant companies changes frequently, many members of the Chick-fil-A corporate management team & Chick-fil-A corporate staff have been with the company for more than 20 years.

Chick-Fil-A islikenoothercompanyintheUnitedStates. Their values, morals, their quality of their products, and most of all the employee's dedication to the company is the key to their success. Thedecisionsthataremadeinternallyandcarriedoutonaday-to-daybasis represent what the founder's vision was when he started the company over 40 years ago.None of the decisions though, have been as difficult as the company stores being closed on Sundays.The company looked at all possible options whether it wanted to open on this day.Why didn't they open just for the morning or just in the afternoon?What about the revenue that they are losing or could gain if they opened on that day?All good questions, but in the end Chick-Fil-A represents a company of being that of a Christian company.The idea that the company would lose revenue on one of the busiest days for food sales, shows what is important to the company and they stand behind that decision 100 percent."At our restaurants, we're known for being closed on Sunday, to allow Operators and their team members to enjoy a day of rest, be with their families and loves ones, and worship if they so choose" (Culture and Values, 2002, para 2).To fear the risk of jeopardizing their identity and culture, they made that decision a reality and remain loyal to being closed on Sunday.Their values are shown because of the decision they made. Chick-Fil-A differentiates itself from a lot of its competitor because its close relationship with religion has acted as a blueprint towards success in terms of attitude, values, structure and authority. As one of the highest grossing fast-food chains in America, there is no reason for a change in culture and we believe that this approach forward will only continue to succeed.

Final Recommendations

To provide our final recommendation for how Chick Fil A should move forward and overcome their past issues with specific social groups.

Identify at least three (no more than five) potential workable solutions to your problem and identify the pros and cons of each alternative solution and its high-level implementation steps.

Identify your preferred solution and describe exactly what should be done and how it should be done, including by whom, with whom, and in what sequence. Always explain your thinking behind your final solution set. It's important to be clear about why a particular alternative (solution) was chosen, as opposed to others.