The Globalization of Mcdonald’s

Leading the Global Enterprise System Abstract The organization chosen is McDonald’s. McDonald’s is a multibillion dollar corporation that has concurred the fast food industry around the globe. McDonald’s has grow by expanding into new competitive spaces, attaining a complex mixture of financial knowledge, custom understanding, developing material and knowledge assets, to expand the market possibilities and replicating and standardizing their practices to be duplicated in similar markets across the globe.McDonalds as a western corporation had to make adjustments in the way they think and react to situations and customs. This paper will demonstrate how McDonald’s developed an open-mindness on the part of their leadership.

Introduction

The globalization of a multi-billion dollar corporation.

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This paper will provide a guide through a corporation that addresses its western effect on other nations through food.

Points of discussion

1. Anti-globalization movement against the west.
2. There are several reasons why leadership fails to support the organization and its goals.
3. Increasing performance through deep change.

The Five stage approach competency model

Conclusions

Lack of leadership coupled with cultural sensitivity can provide success or failure.

Further research into developing leadership styles that would support and enhance the service provided in other non western nations.

McDonald’s a multi-billion dollar corporation that utilizes local employees in each community.The mega giant has developed a tier of progression of success as it has an on going development of a component of the corporation’s strategic plan to educate their managers and line level employees. This occurs by developing a nurturing and ever developing environment for its staff.

As such, McDonald’s has demonstrated its dedication throughout its globalization across the street and around the world through the development of a university designed to teach the managers how to lead. The Hamburger University is designed to teach basic management skills with an emphasis on consumer’s behavior and leadership skills.The university also focuses on restaurant specific skills to operate a specific restaurant in a particular geographic location. The utilization of the university has lead to the development of a global leadership program. In turn it has strengthened the management staff that supports its line workers in an achievement –oriented environment. The employees can meet with their managers to be challenged and empowered to find the solutions. This paper will address the techniques and measured outcomes of the globalization of the multi-billion Dollar Corporation and how it develops the staff through the leadership and training it provides.

Culture (from the Latin cultural stemming from colere, meaning "to cultivate") generally refers to patterns of human activity and the symbolic structures that give such activities significance and importance. Cultures can be "understood as systems of symbols and meanings that even their creators contest, that lack fixed boundaries, that are constantly in flux, and that interact and compete with one another". Culture can be defined as all the ways of life including arts, beliefs and institutions of a population that are passed down from generation to generation.Culture has been called "the way of life for an entire society. As such, it includes codes of manners, dress, language, religion, rituals, norms of behavior such as law and morality, and systems of belief as well as the art. Cultural diversity is explaining the differences between people, such as language, the way they dress and traditions and the way societies organize themselves, their conception of morality and religion, and the way they interact with the environment. Cultural competence refers to an ability to interact effectively with people of different cultures.Cultural competence comprises four components:

• Awareness of one's own cultural worldview,
• Attitude towards cultural differences,
• Knowledge of different cultural practices and worldviews,
• cross-cultural Skills.

Developing cultural competence results in an ability to understand, communicate with, and effectively interact with people across cultures. Globalization Globalization is defined as the process of social, political, economic, cultural, and technological integration among countries around the world. (Hodgetts, Luthans, Doh) This process has occurred in almost every nation across the globe.Globalization has influenced international interaction of various cultures in order to exchange and educated other parts of the world. This process is designed to trade the culture’s services, ideas and products. Moreover, the encouragement of globalization has a significant impact on the political and economic involvement throughout the world. A major influence of globalization is food.

Styles of foods are easily globalized throughout the world as each of us is made up of some sort of hybrid of a different culture. It is not uncommon for a grandmother to make a dish from the “old country” during a festive holiday.The consumption and preparation of the dish in its original ethnic form is what allows the globalization to continue throughout the generations. If changes occur to the originality of the food its cultural beliefs are somewhat diminished. McDonald’s a multi-billion dollar mega corporation decided to go global with the westernized fast food industry into foreign countries. This transformation bought one of the US most beloved foods to other geographical locations and impacted a generation. Most cultures infrequently accepted such a new concept of a food so its introduction was unfamiliar and extremely different.

McDonald’s was the first corporation to introduce new eating habits and changes to other nations. As the introduction occurred throughout the world Catherine Schnaubelt wrote in her study that “McDonald’s has over 1. 5 million franchises in the United States and about half of the total franchises are outside the U. S. in over 120 countries. ” As a result of the widespread introduction of McDonald’s the company has demonstrated its willingness to conform to the local culture by the pervasive enhances rather than contaminate its culture.As a result of these enhances McDonald’s has permitted most of the foreign franchises to be locally owned and operated however utilizing the core values of the corporation without creating undesirable affects on the culture.

This is called franchising. A franchise is a business arrangement under which one party (the franchisor) allows another (the franchisee) to operate an enterprise using its trademark, logo, product line, and methods of operation in return for a fee. (Hodgetts, Luthans, Doh) With that said, the individual culture and norms are integrated within the menu.This includes the religious and the culture’s diversity. However, in some nations McDonald’s is viewed as the west and its global movement away from long-established culturally based foods towards the consumption of fast food. This process Americanizes the culture it infiltrates by the restructuring of the local diet at some level. This infiltration is viewed in a negative manner by some and as hip by the younger generation that is exposed to more of American development through movies, music and the internet.

Anti-GlobalizationIn 1999 a French farmer named Jose Bove of Brazil ransacked a McDonald’s only to become a hero to anti-globalization. His emergence at anti-globalization gatherings across the world and even in the US has given him overnight fame for his intrepid move in destroying a McDonald’s restaurant. Bove’s aspiration came from the desire to support the local farmers and to stop the destruction of the fields by extracting the goods and mixing them with unhealthy chemicals to enhance the flavor. Eric Schlosser (2002), states that “By eating like Americans people all over the world are beginning to look more like Americans, at least in one respect. The United States has one of the highest obesity rates of any industrialized nation in the world.”.

“As people eat more meals outside the home, they consume more calories, less fiber and more fat”. The introduction of unhealthy foods and eating habits of foreign foods into outside cultures radically affects the traditional culture found in the nation’s foods despite McDonald’s attempt to incorporate the nation’s culture and religious beliefs in the menu. Many Europeans worry about globalization's effects on their food from the west.However, the prominent anti-globalization movement is actually a small minority. In fact, a clear majority of Europeans, especially the young, accepts that increasing global economic, political, and cultural exchange can enrich their country and their lives.

They believe that a strong European Union can help them take advantage of globalization's benefits while shielding them from its negative effects. Despite the views of others some Europeans believe globalization is what is right for Europe. Leadership Competency ModelThe types of leadership perspectives that McDonald’s incorporates in their management is the Leadership Competency Model. The Leadership Competency Model utilizes a leadership appraisal program. Each organization has its own process and culture to nurture its employees. Some processes often fail as they do not provide ownership to the participants and fail to account for the different cultures, climates, and nuances found in every organization. For effective change to take place you must involve the individuals in the development and implementation of any process.

This guide uses a five stage approach for building a competency model:

• Stage One - Assemble Focus team and create a list of processes.
• Stage Two - Build behavioral indicators for each process.
• Stage Three - Categorize the data.
• Stage Four - Order each category.
• Stage Five - Validate your competency model.

The first stage in building a Leadership Competency Model is to assemble a Focus Team composed of a cross-functional mix of first-line leaders, middle leaders, and senior leaders.McDonald’s provides the Leadership Competency Model in conjunction with Hamburger University to develop leadership.

Graduates from the university and those who participates in the Leadership Competency Model development of processes are considered the experts practitioners in their field. That is, they should be the finest in their fields. Using interviews, surveys, observations, including information on how individuals act, think, and feel while doing their jobs and other activities, create a list of the major processes and the requirements needed y leaders to disseminate in the workplace. In Stage Two, the members of the team identify the major behavioral indicators for each competency that must be performed to produce the desired outputs. Going through each competency, list the major behavioral indicators (Skills, Knowledge, attitudes) needed for superior performance (normally two to four).

These behavioral indicators need to be:

• Future-focused rather than need or problem-focused.
• Part of a strategic planning or organizational change process model.

In Stage Three, you categorize the data to include a leadership competency list divided into three categories, Core, Leadership, and Professional; with the behavioral indicator listed for each process. The core competencies is required of all individuals within the organization, the leadership competencies are specialty items for managers and supervisors, while the professional competencies are specific for each position. The competency list will insure that the chosen behavioral indicators are really the required skills, knowledge, or attitudes. The method used to organize the competencies is reduced to smaller, more manageable bundles of information that can easily be identified and used throughout the organization. Stage Four provides order to each category. Stage Four allows the identification of importance for each category. This allows the opportunity to discard unnecessary or excessive categories from the list.

Stage Five allows validation of the instrument. This can be completed by utilizing duplication through replicating the original results: Replicate the original research results.This is done by obtaining another sample of superior performers, conducting interviews, and deriving a competency model. Creating departmental focus groups to allow more people to become involved, while at the same time, giving you less information to accumulate. Structured Interviews/Observation: Perform one-on-one interviews and observations with a random number of leaders throughout the organization to determine which competencies they perform and to get their opinions of which ones are the most important for the execution of their job.In order to develop a program to achieve this goal a strategic understanding and planning need to occur. Understanding motivation, the key to success, relates to the adhered interest and involvement in a goal-oriented task by a member of the team.

There are a variety of ways to view what rewards affect learning and behavior in the workplace. Two such ways are intrinsic desires and external controls. Intrinsic desire is the desire of the learner to reach mastery of a skill, as well as situational factors, based on personal desires that drive or motivate the employee.External controls are those that are governed by the policies and procedures of the organization. These procedures prevent and/or protect the necessity and essence of the organization. Generally, lack of having available the sources of motivation which are the primary reason to retain an employee with a corporation is divided into two categories; each containing a number of components responding to related strategies. McDonald’s has developed a university to combat poor development within the company.

In 1961, Fred turner, a former senior chairman and Ray Kroc’s first grillman founded Hamburger University.The university was developed to provide training that emphasized consistent restaurant operations to include procedures, services, quality and cleanliness. It is the company’s global center for training and leadership development. Currently there are more than 5,000 employees that attend the university each year. Since 1961 more than 80,000 managers, mid-managers and owner/operators have graduated from the university. Hamburger University was developed to foster the company mission to be the best aptitude in each of its employees.For employees who attend the university the hope is to instill Quality, Services, Cleanliness and Value (QSC;amp;V).

Increasing Performance

To attain excellence, an individual, group or organization must care enough about an activity to insist that it fully meets and exceeds the demands of its audience (either internal or external), and this involves a fair amount of risk. (Leslie, J. Velsor, E 1996) McDonald’s utilizes the five stage approach for building a competency model as a means to devise a road map of development for the employees within the company.The utilization of Hamburger University, the five stage approach and grasping the view of the Quality, Services, cleanliness and Value gives the employees the opportunity to reach for a deep change for success. Leadership and Culture Sensitivity Despite notable progress in the overall acceptance of globalization there continues to be continuing disparities in effects of the west emerging into other cultures. The acceptance status among the east and others compared to the U. S. opulation as a whole shows a vast difference in how corporations such as McDonalds can grow globally. In addition, the global system is becoming more challenged as the population becomes more ethnically diverse. Therefore, the future of globalization in areas such as China will be directly impacted by the influence of McDonalds to the social economical environment to provide substantial improvements. Cultural, ethnic, linguistic, and economic differences impact how individuals and groups access and use globalized products.They can also present barriers to effective communication between the leader and the employee if there is a lack of understanding of the language, culture or norms. This is especially true when leader’s stereotypes, misinterpret, make faulty assumptions, or otherwise mishandle their encounters with employees who are viewed as different in terms of their backgrounds and experiences. The demand for culturally competent leaders in the United States is a direct result of the need for leaders to handle operations that have gone global.

The term cultural competence refers to the ability to work effectively with individuals from different cultural and ethnic backgrounds, or in settings where several cultures coexist. It includes the ability to understand the language, culture, and behaviors of other individuals and groups, and to make appropriate recommendations. Cultural competence exists on a continuum from incompetence to proficiency. Cultural sensitivity, which is a necessary component of cultural competence, means that leaders make a significant effort to be aware of and understand the culture in which they work.Cultural competence cannot be achieved through short workshops or classes. A long-term commitment is required to learn a second language and become familiar with other cultures to deliver an effective service for the ethnically diverse world and the potential and actual cultural factors that affect their interactions with a client. It also means that they are willing to design programs and materials and implement those programs to make recommendations that are culturally relevant and culturally specific.

The terms cultural competence and culturally effective and are sometimes used synonymously.Culturally effective training is, indeed, related to cultural competence and cultural sensitivity. However, it goes beyond these concepts in describing the dynamic relationship between leader and employee. Effective communication between leaders and employees may be even more challenging when linguistic barriers exist. Cultural competence is a developmental process that requires a long-term commitment. It is not a specific end product that occurs after a two-hour workshop, but it is an active process of learning and practicing over time. Becoming culturally competent is discuss than to implement.

Individuals working with different ethnic and cultural groups can become more culturally competent by advancing through three main stages: developing awareness, acquiring knowledge, and developing and maintaining cross-cultural skills. Developing cultural awareness includes recognizing the value of the population and its cultural diversity. It also means an honest assessment of one's biases and stereotypes to include limits of their understanding. One can never learn enough about another culture. However, acquiring knowledge about other groups is the foundation of cultural competence.In addition to understanding other cultures, it is essential to understand how different cultural groups view themselves. Knowledge of another culture includes assessments of facts to include relevant norms, values, worldviews, and the practicality of everyday life and how that reflects in the business as a whole.

Even though the United States is a pluralistic society, most employers have been trained in a mono-cultural tradition. In addition to this some leaders operate as if ethnic and cultural differences are insignificant. Cross-cultural skills are developed through formal training, informal interaction and experience. Organizational Responsibilities It is important for leaders to articulate a commitment to cultural competence and to initiate cultural-competence initiatives. Many companies receive social and legal pressures to do this from different segments of the cultures they impact. The development of professional preparation programs can play a significant role in providing the knowledge and skills for culturally competent leaders.These programs can provide on the job training and other formats developed with the sole purpose of addressing cultural competence and/or cultural sensitivity.

They also can provide specific educational components on cultural competence and/or cultural sensitivity within the program. Trainings and in house development of skills is one thing but leaders need to go beyond educating their employees and providing workshops on cultural sensitivity they must also change institutional policies and procedures. This can be done by constant review and ongoing development of the skills needed.

Steps to Becoming Culturally Competent

Developing Awareness

• Admitting personal biases, stereotypes, and prejudices
• Becoming aware of cultural norms, attitudes, and beliefs

Valuing diversity

• Willingness to extend oneself psychologically and physically to others
• Recognizing comfort level in different situations

Acquiring Knowledge

• Knowing how your culture is viewed by others
• Attending classes, workshops, and seminars about other cultures
• Reading about other cultures
• Watching movies and documentaries about other cultures
• Attending cultural events and festivals
• Sharing knowledge and experiences with others
• Visiting other countries before placement.

Developing and Maintaining Cross-Cultural Skills

• Making friends with people of different cultures
• Establishing professional and working relationships with people of different cultures
• Learning another language
• Learning verbal and nonverbal cues of other cultures
• Becoming more comfortable in cross-cultural situations
• Assessing what works and what does not
• Assessing how the beliefs and behaviors of the cultural group affect the client or family
• Learning to negotiate between the person's beliefs and practices and the culture of your profession

Being more flexible

• Attending continuing education seminars and workshops
• Learning to develop culturally relevant and appropriate programs, materials, and interventions
• Learning to evaluate culturally relevant and appropriate programs, materials, and interventions
• Ongoing evaluation of personal feelings and reactions Overcoming fears, personal biases, stereotypes, and prejudices
• Developing and implementing a strategy to recruit, retain, and promote qualified, diverse, and culturally competent administrative, and support staff
• Promoting and supporting the necessary attitudes, behaviors, knowledge, and skills for staff to work respectfully and effectively with patients and each other in a culturally diverse work environment
• Developing a comprehensive strategy to address culturally and linguistically appropriate services, including strategic goals, plans, policies, and procedures
• Hiring and training interpreters and bilingual staff
• Providing a bilingual staff or free interpretation services to customers and employees with limited English skills
• Translating and making available commonly used educational materials in different languages
• Developing structures and procedures to address cross-cultural ethical and legal conflicts, complaints, or grievances.

While cultural competence has increased significantly, there is still much to be done on the personal, organizational, and societal levels. Education and training to enhance the ability of a culturally effective leader must be integrated into lifelong learning.

Through these activities, current and future leaders will be prepared to meet the needs of cultures from across the street and around the world. Conclusion In conclusion, globalization through the fast food industry has allowed the west to develop in other countries. McDonalds has been a dominating force in the immergence of western culture. The globalization within the food industry is not always received warmly by everyone in other nations. The fast food industry offers food items that change or may violate religious or cultural beliefs.However, McDonald’s has taken extreme efforts to develop a corporation that offers education and training to all of the employees. This training gives each restaurant the opportunity to develop within the five stage model utilized for leadership.

By allowing restaurants to be locally owned by other nations through franchising allows for community owned companies. This thus allows them to drive changes in the menu to support the traditions and religious beliefs. With local owned restaurants it’s difficult to believe that there would be any resistance through anti-globalization.Anti-globalization only impedes global progress and can cause significant economic issues. McDonalds as a global leader has been successful in the development of its staff and support in the community.

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