McDonald’s<br />A Process Culture<br />Presented By:<br />Amy Elizabeth Browne<br />Daniela Capistrano<br />Michael Casale<br />
Assessment of the Culture<br />Strong corporate culture.<br />Strong sense of organizational history. They are proud of their single store, humble origins.<br />Supports global youth employment.<br />Creates 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 />McDonald’s prefers to retain employees and try to offer promotion opportunities.<br />CEO Jim Skinner began working as a crew member -- “20 of its top 50 managers began work as regular crew members.” (via McDonald’s 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).” (via McDonald’s website) <br />McDonald’s 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 />
Identifying Culture<br />INDIVIDUAL AUTONOMY:LOW<br />Employees at McDonald’s have <br />limited responsibility and ability to<br />exercise initiative. It is a very<br />centralized scope of authority.<br />STRUCTURE: HIGH<br />Every procedure has very specific<br />rules and regulations on how<br />It should be carried out.<br />SUPPORT: MEDIUM<br />McDonald’s offers flexible<br />scheduling, free meals and<br />“McCrew Care” – an <br />elective health insurance option <br />(www.pr.com/pressrelease/15766).<br />
Identifying Culture<br />IDENTIFICATION:LOW<br />Most employees are under the age of 20 and McDonald’s is often their first<br />job. Employees tend to identify more with their coworkers than the<br />corporation, due to their lack of decision-making input and what is<br />often a high-stress, fast-paced environment.<br />PERFORMANCE-REWARD:HIGH<br />Yes, high rate of promotion from within, salary increase.<br />CONFLICT TOLERANCE:LOW<br />Adherence to the work groups is a must, individuality is not<br />encouraged and differences are not discussed.<br />RISK TOLERANCE:LOW<br />Most changes are planned by the central corporation and implemented<br />in across all restaurants only after long study and testing in a pilot program.<br />
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 <br /> and punctual.<br />Authority-Obedience Management:<br /> Human elements interfere to a <br /> minimum degree.<br />Centralized Scope of Authority:<br /> All decisions are made by Upper-Level Management, and crew members and lower-level just follow procedure.<br />Horizontal Division of Labor: <br /> Each worker’s task is specialized. More conformity in the final product.<br />
How Culture Can Change<br />Vertical decision making to facilitate the flow of communication within the organization.<br />Alleviates job boredom and humiliation of the employees, because they are now more important to the running of their store.<br />McDonalds needs to become more decentralized:<br />More local suppliers and farmers would mean more accountability to local communities.<br />Lower level managers given more responsibility to make decisions that effects their own branch.<br />Crew members made to feel like a vital part of the innovation of the company. <br />
How Culture Can Change<br /> Move towards a more open Work-<br /> hard/Play-hard culture:<br />More employee participation <br /> and satisfaction through more <br /> involvement and limited risk-<br /> taking. <br />More delegation of responsi-<br /> bility to subordinates. <br />Rotate employees job-tasks so <br /> they are trained in a variety of skills including finance and accounting. <br />Take on more risks: <br />Better community relations. Each restaurant should be given more freedom to adapt and identify with their local community. i.e. what food to carry, what promotions to offer, community organizations to donate too. <br />Incorporate local healthy and seasonal foods.<br />
How Culture Can Change<br />Go completely organic as to not be usurped by more healthy food chains like Subway. Many good PR opportunities here.<br />Change supply-side procedures to eliminate suppliers which practice cruelty to animals.<br />Offer vegetarian and vegan options at all restaurants.<br />Be more accountable and responsive to consumer concerns and complaints<br />Offer REAL “healthy alternatives” for children -- <br /> not full of sodium, colors and <br /> preservatives.<br />Launch a massive, global public <br />relations campaign announcing <br />the new changes, above, and<br /> invite public involvement.<br />
Why change must occur<br />McDonalds products do not meet the nutritional needs of educated, informed, health-conscious consumers.<br />Healthier fast food suppliers, such as Subway in America, are positioned to surpass McDonalds in market share.<br />McDonalds has been forced to shut restaurants in areas where the locals are more healthy conscious.<br />McDonalds must change their mission to stay competitive.<br />
Globalization<br />If the McDonalds store is going to<br />appear on every corner and on the<br />side of every highway, they need to<br />at least make them more attractive.<br />Keep the color scheme that they are famous for, but ...<br />1) Start a world-wide competition for <br />designs with an emphasis on green designs.<br />2) 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 like the design.<br />
Avoid Bad Publicity<br />Practice responsible business!<br />
How to Implement Change<br /><ul><li> Globally announce McDonald’s new consumer-orientated mission, and plan a phased rollout of changes synced to the public relations campaign, so the public can view tangible changes in the restaurant chain as they happen.
Announce organic menu goals and the inclusion of local agriculture and the reduction in factory farming.
Announce changes in business and marketing strategies in order to be more responsible to local communities, emphasizing green initiatives, more financial assistance to community organizations, and more inclusion of public opinion.
Restructure McDonalds humanitarian efforts to supply more funds through local restaurants to local community organizations, in order to be more responsive to local community needs.</li></li></ul><li>How to Implement Change<br /><ul><li> Create a new management strategy that emphasizes employee responsibility and inclusion.
Encourage more input and ideas from lower level management, including more brain-storming sessions with employees.
Create a new training for new restaurant employees that emphasizes education, personal growth and responsibility, which includes training and participation in a number of restaurant business tasks, including inventory control, budgeting, and scheduling.
Offer plans to help employees pay for continuing their educations while they work at McDonalds.
Create an outreach program for new managers to volunteer for two weeks per year with organizations in other communities, so they can return and find ways for their store to help organizations in their own communities.</li>