This system was unique to the fast food industry. Instead of cooking food at the same time the customer ordered it, with Speeded Service the food was made before being ordered. This system ensured uniformity in product and speed serving the customer. This idea revolutionized the fast food industry. Ray Crock was a multi-mixer salesman who sold the McDonald brothers milk shake mixers. When Crock met the brothers, he found two men running a small but successful restaurant that thrived by having a limited menu. The limited menu allowed them to concentrate on quality and customer service.
Crock had he idea to take the Speeded Service concept and open restaurants nationwide. In 1955, partnering with the McDonald Brothers, Crock founded the McDonald’s Corporation and opened the first franchise in Des Plainness, Illinois. In 1961 he bought the exclusive rights to the McDonald’s name for 2. 7 million dollars. (http://www. Nightlight. Org) Hamburger University, the McDonald’s training center in Elk Grove, Illinois was opened in 1961. At Hamburger U, franchisees and operators are trained in the methods of successfully running a McDonald’s franchise. To date there have been over 80,000 people who have graduated from the program. Www. Battlegrounds. Com) In 1963, McDonald’s introduced Ronald McDonald, the friendly clown who would become the face of the franchise. Two other significant milestones were the opening of the 50th store and selling one billion hamburgers. In 1965, the McDonald’s Corporation went public. The stock was listed on the New York Stock Exchange on May 7, 1966. (http:/џvow. Nightlight. Org) Ray Crock always believed in the entrepreneurial spirit and rewarded his franchisees for their ideas. Some of McDonald’s most famous menu items were created by franchisees.
Examples are, the Big Mac, introduced in 1968, and the Egg McMullen, introduced in 1971. The Egg McMullen was test marketed as McDonald’s first breakfast menu item. (http://www. Nightlight. Org) As part of McDonald’s philanthropic commitment, the company opened its first Ronald McDonald house in 1974 in Philadelphia, PA. (http://www. Nightlight . Org)The Ronald McDonald house provides a residence free of charge for families whose children are being treated at hospitals away from their hometowns. Ray Crock died in 1984; however, the company still forges ahead with new and innovative concepts.
McDonald’s introduced the Playback concept in 1987, which features crawl tubes and ball pits for children to play in. The MacAfee incept was started in Melbourne, Australia in 1993 and now there are over 600 cafes worldwide. The Uncompress restaurants are located in Wall-Mart stores, and connected to gas stations and convenience stores. (http://www. Nightlight. Org) McDonald’s restaurants are now found in 119 countries and territories around the world and serve 64 million customers each day. McDonald’s operates over 33,000 restaurants worldwide employing more than 400,000 people. (http:move. Abdominally. Mom) More than 80 percent of McDonald’s restaurants worldwide are independently owned and operated by local men and women, with 70% women/minority US employees, over 5% women/minorities in leadership and 45% women/minority franchisees. (http://www. Abdominally. Com) We will begin our study of McDonald’s by evaluating the general basics of leadership. We then move on to break down the key areas to study more in depth, Leadership, Followers and the Situation. We will conclude our study of McDonald’s with the results of our assessment, final thoughts, recommendations and a summary of our findings.
Basics in Leadership Leading a group is far from an easy task. One must possess several leadership traits, the desire to lead and the disciple to continue to learn and grow each ay. One of the greatest challenges for leaders is the different personalities and work experience that each team brings to the table. An effective leader has the ability to encourage their followers to put aside their professional and personal differences in order to come together as a cohesive unit that will work together to meet the mission of the organization.
According to Bruce Bagley, leadership is the ability to guide and motivate a group of people to a common purpose. Therefore, a leader should possess the ability to drive their followers towards a common goal (10 Questions about leadership). According to Marjorie Bowman, leadership means making a difference, creating a positive change; providing the impetus that creates an atmosphere of change that improves the world, or at least the small part of the world around us. Leadership is the stretch of changing things that can be changed, of providing new thinking, new energy, to the current situation (10 Questions about leadership).
Leadership involves an interaction between the Leader, the Followers and the Situation. If leader, followers and situation are set, the intercept of these sets is defined by leadership. Therefore, leadership is the process by which a leader sees a situation and directs followers to achieve a common goal. Here, leader is the person in action to direct a group of followers. Followers are the people who take orders from leader. Lastly situation is the scenario or problem where action is needed to reach to a common goal. What it takes to become a leader?
In an organization, every personnel need direction form a leader to implement effectively and achieve the targeted goal in time to run the whole organization as a unit. Such a superior is called a leader. In order to become a leader, one should possess leadership qualities, enhance he mission of the organization through mutual votes, and motivate followers through incentives. Leaders are not all alike, but they do share many common characteristics. Leaders differ from their followers and effective leaders differ from ineffective leaders on various personality traits, cognitive abilities, skills and values (Hughes).
There persist many scenarios where leader from one scenario differ from others. For example, approach and functions of a leader in a military campaign differs vastly from that of the leader in an organization. A leader in military campaign has to be aggressive and communication mostly flows one erection. In contrast, in a business organization, a leader gives order but also takes suggestions from subordinates for better decisions. Therefore, leaders differ from scenario to scenario. Leader’s experience of history in a particular organization is important to his/her effectiveness.
For example, leaders if a leader is promoted within an organization, he/ she will have advantages in hitting the job running. Compared to leaders from outside the organization, insider leaders will have better understanding of the followers and situation, efficiently solve the situation. Power and Influence: Using power and influence to maximize organizational performance is essential for a leadership. When an organizational goal is assigned or missioner, what is a key that can drive followers to follow steps imagined by a leader? Therefore, a leader should hold that power and influence while leading followers to a common goal.
Power, in leadership performance, is leader’s scholar or experience that determines why such a leader is superior among the group of followers. For example, Steve Jobs was an influential leader of Apple Co. And his strategies for organizational performance were outstanding. If a random guy “X” wanted o lead Apple Co, his credentials similar to CEO will be first questioned by the subordinates and then only he would be given the position as CEO. Therefore, source of power comes from something that both a leader already possess and given by subordinates. Influence comes after power is established in an organization.
Beside several motivating tools used by leaders to achieve a common goal, influence stands as a good impression that makes subordinates feel easy and extra motivated towards performance. For example, in company Y, if a leader X has all powers to run followers towards a goal, his dedication towards current organization can be influential to followers. This feel of impression can lead followers to put similar devotion towards organizational performance. Leaders, born or made: People think that if leader is either in one’s genes or not; other also think that it is built though knowledge and experience.
These view of leaders are born not made is just a myth and what constitutes a leader is in fact how a person has ability to handle a situation in leading followers. For example, though an intelligence quality of a teacher comes from genetically from parents, he/she must have advanced education in a specialized field. Therefore, to come a leader natural talents or characteristics may offer certain advantages or disadvantages but cognitive abilities and personality traits are at least partly innate (Hughes, page 17). Ability to see from followers’ eye: A leader should be able to critically think from followers’ point of view.
Each follower in a group has different level of potential, and could have better way in solving problem and leading the functions towards goal achievement. Similarly, a follower may have problems in contribution efforts in daily activities. A leader should be able to find discrepancy in work force ND find what can be done to make the efforts smoother. Therefore, a leader should take followers perspective in daily activities and altogether in achieving a common goal. Other significant components to become a leader in an organization: According to Hogan and Warrens, the skills and behavior of a leader constitute four categories.
Interpersonal skills: a leader has these skills to adapt stress level in goal orientation, and in adhering organization rules. Interpersonal skills: a leader has these skills to communicate, direct, build relationship with follower and other organizational personnel. Leader skills: these skills in leaders help them to build teams effectively and get results through other concisely. Business skills help leader to analyze issues, make decisions, financial savvy and strategic thoughts in achieving organizational goals (Hughes, page 273) McDonald’s is a company committed to people; both customers and employees.
A part time job at McDonald’s can turn into a long-term career because there are many opportunities for advancement. Most of McDonald’s employees are under 20 years of age and 70% of them are students (Naval, 2011). The student/employees are usually open to flexible schedules and unsuitable hours. McDonald’s is willing to work with their schedules more than other fast food companies, which is why students prefer employment at McDonald’s. They are also drawn towards discounted or free meals and other miscellaneous rewards, such as trips or tickets to the movies (Naval, 2011).
The key to the company’s success is its strong leadership practices (www. Streptococci. Com). According to abdominally. Com, McDonald’s was rated the most admired company in the world in 2011. That same year they were rated the best place for diverse managers to work and number one in management quality. The employees of McDonald’s implement a global strategy allied, “plan to win. ” The plan to win focuses on people; products, place, price and promotion (Goldman, 2011). Due to excellent marketing campaigns, people are aware of its existence and the products offered.
The company strives to provide customers with “an experience” by providing quality food at a great value, in a clean and welcoming environment. The restaurants are bright, casual and provide a sense of nostalgia. The price of McDonald’s products are one its customers can afford. The company cares about its people and views its customers as the reason for its existence. Customers expect the food to taste DOD, be quick and not cost a lot and that is what McDonald’s offer. The company has a number of initiatives in place to motivate employees and build loyalty.
McDonald’s motivates their employees through their educational assistance program and through scholarships. They also offer a “Muscular of the Year,” by awarding three student-employees a $5000 scholarship. McDonald’s is the only restaurant organization that awards college credits from the American Council of Education. While at Hamburger University employees can earn actual college credits. Working at McDonald’s also offers competitive wages, free uniforms, paid holidays and vacation. They also provide medical, dental and life insurance (Abdominally. Com). The convenient locations of McDonald’s are another reason for their success.
McDonald’s are usually in easily assessable locations, off US highways. Over half the population lives within 3 miles of a McDonald’s, this makes it very convenient for students that do not yet drive to travel to work (www. Kiev. Info/ food/McDonald’s. Admonished). McDonald’s is now a brand name, which makes it easy to sell a product. McDonald’s attract both young and old customers and employees and they always looking for new ways to bring in people. The current racketing initiative is free WIFE (vim. Business-standard. Com). Teamwork among employees is crucial for McDonald’s to operate efficiently and the corporation recognizes this.
They take a task and break it down into small tasks; this was called Inconsideration (Naval, 2011). McDonald’s uses an assembly line to prepare food to ensure a high quality product and high performance of the employees (abdominally. Com). Each employee is trained to do a specific job; cashier, fries, drive through, etc. If they leave their post other members of the team will not be able to do their job and the entire assembly line will suffer. The order is then passed on to the kitchen and grill stations, sandwich maker, etc. Without teamwork McDonald’s would not be the successful organization it is today.
From the moment a customer enters the restaurant and places an order with the cashier; teamwork is present. The team members are not self-reliant but depend on direct input from management. The management’s job is to motivate employees, keep them productive and morale high. A study done reveals McDonald’s managers possess mentality, ‘Which complies more with the Tailor’s scientific theory in which, according to them, the crew members are likely to work harder when hey are being pressured and supervised closely for the maximum expected output” (Naval, 2011).
Management attends Hamburger University, which provides extensive leadership training. The company has implemented the effective motivation strategy that is based on the existing motivation theories. SITUATION PORTION The situation is the third critical part of the leadership equation. (Hughes, 2009) The situation can be anything from specific tasks to a wide variety of scenarios. At, McDonald’s, the situation is generally how the managers and employees interact with customers to meet their expectations. Customers are the one unpredictable variable in a stores day, customers will come in, but what mood or desires they have constantly change.
That is the daily situational challenge for employees. We place the customer experience at the core of all we do. (http://about McDonald’s. Com) Customers are why McDonald’s exists, without the person who walks or drives into the restaurant, there would be no McDonald’s. McDonald’s demonstrates their appreciation by providing with high quality food, and superior service in a clean, welcoming environment, at a great value. The goal of McDonald’s is quality, service, cleanliness, and value for each and every customer, each and every time. (http://about McDonald’s. Mom) To ensure that they provide a consistent customer experience, McDonald’s takes pride in being a premier educational and training institution. They prepare managers to operate multi-million dollar businesses through leadership training at Hamburger University. McDonald’s continually looks for opportunities to provide employees with the tools they will need to be successful. McDonald’s is a leader when it comes to diversity and inclusion, developing curriculum that teaches employees how to move from awareness to action in the areas f inclusion and intercultural management. Http://about McDonald’s. Com) McDonald’s is a leader in mentor/mettle relationships across the entire organization. They pair up advisor and learners then use web based tools, formal and informal training sessions to incorporate learning. All of the training, interaction and cultural awareness is designed to make the experience of every customer a good one and keep them coming in to McDonald’s McDonald’s should be given credit for increasing the standards of service around the world. When McDonald’s opened restaurants in Hong Kong in 1975, they offered consistently clean restrooms.
This was unique to Asia and it drove customers to demand this service at other restaurants and institutions. In China, McDonald’s is taking advantage of the use of personal vehicles by opening drive-thru restaurants. McDonald’s has opened a restaurant and a MacAfee on the underground premises of the French museum, The Louvre. McDonald’s now offers free wireless internet service at restaurants worldwide. (http://en. Wisped. Org/wick/McDonald’s) When you increase the service standard, you make the situation more predictable.
McDonald’s is a leader, and innovator in bridging the gap between leaders, lowers and the situation (customer expectations). As we enter the New Year, our nation’s economic outlook remains dreary. In a time with high unemployment rates and businesses cracking under the pressure of a troubled market, McDonald’s has managed to remain on top. What is their secret that has carried them through these turbulent times and has aided them in not only remaining one of the top players within the fast-food industry but has allowed them to financially prosper?
When asked how McDonald’s has been able to thrive, Karen Wells, a top company executive, explains their success boils down to two main components listening to customers and maintaining a cohesive bond between their franchisees, suppliers and corporate staff. “We believe in the McDonald’s System. McDonald’s business model, depicted by our “three-legged stool” of owner/operators, suppliers, and company employees, is our foundation, and balancing the interests of all three groups is key. ” (Battleground’s. Mom) They have found triumph in choosing to pay attention to the few things that can truly add value to the company rather than waste time measuring areas that may or may not affect their overall goals. Instead, McDonald’s continues to streamline equines practices and focus on what they have found their customers are most interested in. The best way they have found to maintain a strong and prosperous environment is to continue heavily investing in their multi-level training programs for employees. Togged the best, you must provide the best is a philosophy that McDonald’s has been following since opening their doors in 1952.
POWER AND INFLUENCE Many view McDonald’s as being a “McKee” – offering low-paying and low-skill work to our uneducated population. If this holds true, then why do business schools worldwide dissect their business practices? They clearly on are to something as they have been able to transform a once small hamburger stand into a mufti-billion dollar empire that extends their reach to all corners of the earth. Northwestern University s Kellogg School of Management professor, Edward Jack, describes McDonald’s as being “a slice of the U. S. Like Coca Cola. ” They have grown to become one of the few businesses in American history to exceed selling products and services to its customers. To speak of McDonald’s as a leader within its market, in terms of power and influence, it is important to define these key terms. Power is described as the capacity to produce effects on others, or the potential to influence others. Influence is described as the change in a target agent’s attitudes, values, beliefs, or behaviors as the result of influence tactics. We believe in the McDonald’s System.
McDonald’s business model, depicted by our ‘three-legged stool” of owner/operators, suppliers, and company employees, is our foundation, and balancing the interests of all three groups is key Jim Skinner, current CEO, acknowledges that during McDonald’s more than 55 years of service, they have transformed into one of the most recognized ND sought out brands around the world. Holding such a high status within its industry, Skinner stresses the importance of utilizing their acquired power and influence to help improve not only their business practices but also the world around them.
Skinner notes that being held to such a high standard is not only a privilege but an ongoing responsibility as well. In wielding such power and influence across the world, it is imperative that McDonald’s continue to practice good corporate social responsibility that makes way for positive change that affects their customers, their community and environment. Ways in which they meet these needs is by using their clout and muscle to create constructive change within the areas of: nutrition and well-being, sustainable supply chair, environmental responsibility, employee experience and community (Message from Jim Skinner). We give back to our communities. We take seriously the responsibilities that come with being a leader. We help our customers build better communities, support Ronald McDonald House Charities, and leverage our size, scope and resources to help make the world a better place. ” (Battleground’s. Com) Additional measures begin at the restaurant bevel to reduce the use of energy, which is then followed by taking steps at the industry and market levels by evolving the menu to address the balance and choice – to promoting the use of sustainable sourcing.
What are the strategies that McDonald’s uses to retain their power and influence within their market? In order to remain competitive and hold the top spot, McDonald’s has developed programs and tactics for attracting and maintaining talented employees. Understanding the importance that education and training holds in today’s society, it has been estimated that McDonald’s invests ever $480 million annually in providing topnotch training to all employees – regardless of the level of their role they fill.
Considering the demographic that are most often found working behind the counters, this can be life changing for those who are affected by poor education poverty as they are offered the same training opportunities. McDonald’s founder, Ray Crock, was known for his strong emphasis on finding and maintaining quality employees with strong work ethic and a desire to strive for higher achievements: “If we are going to go anywhere, we’ve got to have talent. And, I’m going to put my money in talent. “
Crock’s dedication to the overall betterment of his company was evident in his belief that every person working for the company is of equal importance. He placed the same value on those who held positions within the restaurants and those who held top executive positions at corporate headquarters. McDonald’s estimates that more than 50% of their owner operators started off behind the counter as well as 75% of their current restaurant managers (McDonald’s. Com). To further call attention to the opportunities for growth provided, Skinner is not a graduate of college.
He was able to make his way from the bottom to the top ND now holds the position of CEO. This is a true testament to their commitment of providing quality training and education from the bottom up. It is this management style that will ensure the Golden Archers remain a powerful and influential icon within our culture for many years to come. The main focus of McDonald’s training and educational programs is the mastering of leadership skills. ‘We strive continually to improve.
We are a learning organization that aims to anticipate and respond to changing customer, employee and system needs through constant evolution and innovation. ” (Battleground’s. Mom) Over the course of our studies, we have learned the importance of quality leadership and how one obtains the skill sets needed to be effective and influential in their roles. According to McDonald’s website, they have two primary educational tracks employees can follow Restaurant Operations Leadership Practices and Business Leadership Practices.
Restaurant Operations Leadership Practices teaches participants the following: Use appropriate leadership approaches to develop high-performing teams and individuals Recognize the importance of team building and use appropriate lolls and techniques to help teams reach their full potential Develop skills in leading teams Prioritize restaurant needs to improve people, SC&V, profit and sales .