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Business culture at McDonalds

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  1. 1. A PROCESS CULTURE<br />
  2. 2. Assessment of the Culture<br />Strong corporate culture.<br />Strong sense of organization history. They are proud of their single store, humble beginning.<br />Supports global youth employment.<br />Supports pro-social initiatives like the Ronald McDonald Foundation.<br />In a highly competitive field, which is beginning to be more regulated than in the past. eg. In New York state food must be cooked without trans fats. <br />Staffing:<br />Prefers to retain employees and tries to offer promotion opportunities.<br />Jim Skinner the companies CEO began working as a crew member, “20 of its top 50 managers began work as regular crew members”. (McDonalds website)<br />Hamburger University trains all managers in the corporate culture of the restaurant. “McDonalds is currently the only restaurant organization to be recognized by the American Council on Education, (ACE)”. (McDonalds website) <br />McDonalds wants to invest in their leaders, this is called entry socialization.<br />Management and decision-making is very CENTRALIZED. Lower levels are rarely asked to make input or ideas. <br />
  3. 3.
  4. 4. Identifying Culture:<br />Individual Autonomy: LOW  Employees at McDonalds are not responsible and independent to exercise initiative. There are very particular procedures, which are decided by the board and CEO and are expected to be implemented by the lower levels-no questions asked. It is a very centralized scope of authority.<br />Structure:HIGHEvery procedure has very specific rules and regulations of how it should be carried out.<br />Support:  MEDIUMMcDonalds tries to offer a great deal of support to its employees.  Yet it does not seem as though they offer health benefits for their employees?<br />Identification:authority-obedience management style<br />Performance-reward:HIGHYes, promotion, salary increase.<br />Conflict tolerance:LOWAdherence to the work groups is a must, individuality is not encouraged and differences are not discussed.<br />Risk tolerance:LOWThe degree to which employees are encouraged to be aggressive, innovative and risk-seeking. McDonalds does not take risks. It still offers the same menu as when the chain opened. The only time McDonalds changes is when it is forced to make a change due to regulation or public scrutiny.<br />
  5. 5. Evaluation:<br />PROCESS CULTURE:<br />Employees must focus on a how things are done.<br />Stick to strict procedures.<br />Those who thrive here are orderly and punctual.<br />
  6. 6. How the culture can change?<br />McDonalds needs to stop thinking about growth and start thinking about the communities it is destroying by causing so much corporate greed and globalization.<br />Not conduct their business in a way that attracts negative attention. They are made an example of for the downfalls of the entire fast food industry. They must set a higher standard of quality for their food. People now want to know what they are eating and where it comes from. McDonalds must be able to answer these questions honestly and proudly.<br />If McDonalds became more decentralized and ran their stores more locally then they would be accountable to the neighborhoods and communities which they operate in and to the health of those people. <br />Caring more about their customers: Influence people to make the right choices about their health and the environment. If they are only able to make money when those two things are sacrificed then it doesn’t seem like they care about their customers. <br />If you are going to offer “healthy alternatives” for children, make them healthy not full of sodium, colors and preservatives.<br />In essence: Be more accountable.<br />
  7. 7. Globalization:<br />If the McDonalds store is going to appear on every corner and on the side of every highway, they need to at least make them more attractive.<br />Keep the color scheme that they are famous for.<br />Start a world-wide competition for designs with an emphasis on green designs.<br />Ask employees to design more attractive uniforms, this will make the employees feel like they have a say and they will wear the brand with pride if they good. <br />
  8. 8. Practice responsible business to avoid bad publicity:<br />
  9. 9. How change can be implemented?<br />Lead by example.<br />Reduce bad publicity by:<br />Focusing on sustainability and green initiatives.<br />Trying to find ways to reduce factory farming and buy more locally. <br />Improving local agriculture, which will give the local farmers more jobs. <br />Reducing hormones and chemicals in their food.<br />Stop marketing unhealthy products to children.<br />Encourage more input and ideas from lower level management, eg. ask each crew member to come up with ways they can make a difference in their own store.<br />Be more responsible about the input they have in the world they live.<br />Ronald McDonald organization is a start but what about a deforestation initiative, or cruelty to animals. <br />
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