Organizational Culture

Principals of Management

ACKNOWLEDGEMENT
I am over whelmed in all humbleness and gratefulness to acknowledge my debt to all those who have helped me to move these ideas well above the level of simplicity and into something concrete. I am very thankful to our guide Miss Nimali Ekanayake for her valuable help. She was always there to show me the right track when I needed her help. It is with the help of her valuable suggestions, guidance and encouragement, that I was able to perform this project work. I would also like to thank my colleagues, who often helped and gave me support at critical junctures during the completion of this project.

Principals of Management

Contents
Introduction .................................................................................................................................................. 4 COMPANY PROFILE ....................................................................................................................................... 5 VISION MISSION, GOALS & OBJECTIVES ....................................................................................................... 6 Organizational Culture .................................................................................................................................. 7 Changing organizational culture ............................................................................................................... 8 Importance of organizational culture ......................................................... Error! Bookmark not defined. McDonalds Culture ...................................................................................................................................... 9 Corporate & Work Culture ..................................................................................................................... 10 Team Work at McDonalds .................................................................................................................... 11 Social Responsibility .............................................................................................................................. 12 Responsible Purchasing ...................................................................................................................... 12 Protecting our Environment ............................................................................................................... 12 CONCLUSION............................................................................................................................................... 13

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Introduction
McDonald's has a vision that encompasses employees and the surrounding communities. They believe that satisfied employees excel in quality customer service. McDonald's also maintain commitment to stakeholders, and the environment. McDonald's corporate culture is to do the right thing for their employees, the community and the customers they serve; this commitment is just as important to them as serving hamburgers and French fries. In addition, they provide support to local developmental projects, school and youth programs; moreover, the Ronald McDonald house provides support for the well-being of children around the world. "McDonald's has a people vision to be the best employer in each community around the world." [They believe that their] "People promise and people principles express [their] commitment to respect, recognition, openness, and employee development." "Diversity is integrated into [their] business operations and planning around the world."(McDonald's.com) The strength and involvement of the employees in the organization is characterized by the support and acceptance of goals, values, as well as a willingness to remain with the organization.

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COMPANY PROFILE
McDonalds is Global and in Your Hometown McDonalds is the leading global foodservice retailer with more than 34,000 local restaurants serving approximately 69 million people in 119 countries each day. More than 80% of McDonalds restaurants worldwide are owned and operated by independent local men and women. Our goal is becoming customers favorite way and place to eat and drink by serving core favorites such as the world famous French Fries, Big Mac, Quarter Pounder and Chicken Mc Nuggets. Our Strategic Direction The strength of the alignment among the Company, its franchisees and suppliers (collectively referred to as the System) has been key to McDonalds success. This business model enables McDonalds to deliver consistent, locally-relevant restaurant experiences to customers and be an integral part of the communities we serve. In addition, it facilitates our ability to identify, implement and scale innovative ideas that meet customers changing needs and preferences. McDonalds customer-focused Plan to Win provides a common framework for our global business yet allows for local adaptation. Through the execution of initiatives surrounding the five elements of our Plan to Win People, Products, Place, Price and Promotion we have enhanced the restaurant experience for customers worldwide and grown comparable sales and customer visits in each of the last eight years. This Plan, combined with financial

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discipline, has delivered strong results for our shareholders. Reporting Segments The business is managed as distinct geographic segments that include:

US Europe Asia/Pacific, Middle East and Africa (APMEA) Other Countries & Corporate(OCC) including Canada, Latin America and Corporate Restaurant Ownership We view ourselves primarily as a franchisor and believe franchising is important to delivering great customer experiences and driving profitability. At year end 2010, 80% of McDonalds restaurants were franchised. Of the total McDonalds restaurants worldwide:

Nearly 59% are conventional franchisees 21% are licensed to foreign affiliates or developmental licensees Nearly 20% are Company-operated

VISION MISSION, GOALS & OBJECTIVES

Mission & Values McDonald's brand mission is to be our customers' favorite place and way to eat. Our worldwide operations are aligned around a global strategy called the Plan to Win, which center on an exceptional customer experience People, Products, Place, Price and Promotion. We are committed to continuously improving our operations and enhancing our customers' experience. McDonalds Values We place the customer experience at the core of all we do. Our customers are the reason for our existence. We demonstrate our appreciation by providing them with high quality food and superior service in a clean, welcoming environment, at a great value. Our goal is quality, service, cleanliness and value (QSC&V) for each and every customer, each and every time. We are committed to our people. We provide opportunity, nurture talent, develop leaders and reward achievement. We believe that a team of well-trained individuals with diverse backgrounds and experiences, working together in an environment that fosters respect and drives high levels of engagement, is essential to our continued success. We believe in the McDonalds System. McDonalds business model, depicted by our three-

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legged stool of owner/operators, suppliers, and company employees, is our foundation, and balancing the interests of all three groups is key. We operate our business ethically. Sound ethics is good business. At McDonalds, we hold ourselves and conduct our business to high standards of fairness, honesty, and integrity. We are individually accountable and collectively responsible. 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. We grow our business profitably. McDonalds is a publicly traded company. As such, we work to provide sustained profitable growth for our shareholders. This requires a continuous focus on our customers and the health of our system. 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.

Organizational Culture
Organizational culture is a familiar phrase that one encounters in the industry world. Organizational culture is a coordination of shared values and beliefs about whats essential and right in an organization. It also includes thoughts and relations internally and externally The culture is not material. It can be best understood by studying the behavior, the attitudes, the values and belief coordination of the employees. It characteristic is perception of the business entity. Any worker however efficient will be an individualist if he is incapable to settle in himself to the work culture. Organizations are laying emphasis on culture since expansion and success depends on the sort of culture prevalent in the company. Do employees feel in danger or cherished, is there a wish to work and grow, do they want to go forward as a group or go their separate ways? These questions can be answered by a careful assessment of the organizational culture.

Understanding Organizational Culture

Some workers do not feel safe and sound as far their job is anxious. Sometimes management seemed as a hard taskmaster. These things can be observed through the culture of an organization. Some companies support employees to start at the foundation and work towards the peak. Such companies are characterized by the existence of a huge number of workers who have

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been with the company for such time. In these organizations superiority plays a very important role and job security is somewhat assured. The culture encourages working and growing together as a relative. In some organizations people work for a short period of time before quitting. The managers seem as hard taskmasters. The employees are likely to stick on to strict deadlines. "All work and no play" is the culture of such companies. In nature, communication among employees is also limited. The place of work may not be very pleasant or comfortable. There may be hard competition and workers would try to deliver their best. Likewise, workers may burn out because of pressure. The attitude of the employees in the organization would also reflect the organizational culture. Some people open to change and decision making. They have rigid confidence. Some are willing to reinvent themselves. These things would again help in assessing the organizational culture. Companies that desire to stick to old values provide an impression of reassure to the employees. Such companies may however smother creativity and growth by discouraging workers from experimenting. A culture that fosters a good judgment of unity might effect in judging workers strictly in case they are not capable to adjust themselves to the rigid environment. Contact between the management and the employees would also be in conformity with rules and regulations. In fact, the dress code would also give important hints about the organizational culture. Organizational culture can also be understood from the connections of an organization with the outside world. Such organizations guarantee timely delivery to the customer and guarantee regular payments to the supplier. These things can provide important clues that might facilitate identify the organizational culture. An organization which can offer a positive answer to the above things is most likely a company where employees attach to deadlines. Work is taken seriously and work, earn and reinvest are a component of the organizational culture. Every organizations principles are supposed to be unique and are broadly shared and reflected in each day practice, applicable to the company purpose and strategy. Its essential for organizations of diverse size and stage to build the kind of environment or culture where the positive managerial patterns of listening, training, guiding, involving and problem-solving are energetically encouraged and reinforced. This is where the guiding principle of the Human Resources department is important as it reflects and reinforces organizational culture.

Changing organizational culture

Focusing on creating and supporting an organizational culture is a mode of presenting that people are the organizations most precious asset. But sometimes a change is required for superior efficiency and productivity. Companies which have embraced organizational culture change see a positive enhance in their employee engagement, attraction of new consumers and boosting their revenues. Other aspects influenced by effective culture change consist of:

Better employee retention Consumer satisfaction

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Reduction in operating expenses

Over the last period of time the concern in organizational culture has grown-up rapidly. Changing a culture is a large-scale mission because every organizations culture comprises an interconnect set of goals, roles, processes, values, communication practices, attitudes and assumptions; these are the organizational tools wanted to be put into cooperate for great outcome.

McDonalds Culture
McDonalds is committed to business culture on the well-being issues so many of their customers care about. Mc Donalds are focusing their efforts on menu choice, physical activity, and consumer information. Mc Donalds culture is focusing giving back to their community and it is a way to return customers loyalty. They take social responsibilities and commitment to diversity seriously. Driven by the rich culture that covered its position as a leading restaurant in the global market, McDonalds commitment to its workers and commitment to the community keep on to be the brand of its current accomplishment. The culture of collaboration and respect has certainly served them well in terms of their ongoing achievement, they continue to change and re-invent themselves as they move along within that strength of teamwork and they continue to improve and stand out so they can take everything to that next level. Fundamental in building the McDonalds brand to go beyond customer expectations, the company is dedicated to engaging and retaining a talented workforce. Combined with the foundation the business is built on its dedication to its employees. McDonalds prides itself on its culture of trust and teamwork and employs the three roles. Each role representing the company, franchisees and supplier partners. By investing in the future of its people, the company profits from a motivated, thrilled and happy workforce. If one of these roles is not working the role is not going to be functional. All three [roles] are important and they realize they are very inter-reliant. As a result they have a very high level and high degree of teamwork. McDonalds provided the tools, training and the opportunities to do different things. Thats one of the cool things about McDonalds in terms of their culture. It provides these kinds of opportunities and challenges and is a way of maintenance employees engaged. Its very much focused on growth and the success of their people. There is particularly important in terms of McDonalds culture is delivering on what is promised and engaging and retaining employees by respecting their requirements and flexibility. Corporate culture at McDonalds is characterized by its contribution toward employee goals that includes provided that the essential resources to succeed within the company, or a career independent of McDonalds. And, to additional encourage professional development.

Principals of Management

McDonalds will help people to meet their future. They will invest and growth. People can take many of the competencies they will help people develop in whatever it is choose to do whether its with McDonalds or whether its external of McDonalds. Beyond formal training and development, and educational assistance programs, McDonalds also invests in reward and recognition programs. McDonalds rewards employees, franchisees and suppliers who hold the three roles together. Beyond providing a dynamic and rewarding workplace, McDonalds works collaboratively with its franchisees and its suppliers and has long established its promise to corporate social responsibility. The Ronald McDonald House Charities is one of the many ways the company makes an impact on millions of lives. They certainly encourage and celebrate this with all of their people. They believe in the culture of collaboration and giving back to their communities in which they do business. Corporate & Work Culture When analyzing an organizations it is useful to first analyze the organizations work culture and how this culture is maintained. The work culture of McDonalds seems very much dependent upon the particular line manager in charge at any given point in time. McDonalds corporate management believes in training and leadership at all levels. McDonalds founder Ray Krocs training focused ideology: If they are going to go anywhere, theyve got to have talent. And, they are going to put their money in talent. This ideology demonstrates that McDonalds does not consider its restaurants crew members are just gears in a machine that can be easily replaced. Because training is not just offered to executives or managers, McDonalds is able to spread and reinforce its culture and values in all directions, not just downward. McDonalds corporate values also have people as one of its pillars. By addressing employees higher needs by providing training they create employees feel important and valuable. Training also serves to reinforce the culture at all levels through education and fostering a positive image of the employees importance to the company. One of the most influential changes came with the introduction of fast food restaurants like McDonalds into foreign countries. Transformations have taken place which could be perceived as beneficial or corrupting to that culture. Before the introduction of McDonalds overseas fast food was almost unknown. McDonalds been the first company to try to export Americas love of fast food and changes in eating habits of other nations. McDonalds, there are concerns about how the spread of standardization of the franchise is affecting culture, attitudes and the environment. The globalization of McDonalds has raised many debates on both sides of the issue. The proglobalization belief is that it enhances culture rather than adulterate. The McDonalds has conformed to the local culture not the other way around. The McDonalds corporation notes that most of its overseas franchises are locally owned, and thus make efforts to buy from local communities. McDonalds also alters its regional menus to conform to local taste.

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There has been a loss of traditional values with the introduction of nontraditional food into the culture of foreign countries. The types of foods are symbolic to particular regions, religions and mores. In India, to the Hindu people, the cow is considered to be sacred as part of its religion. Although a number of religions exist in India, the two cultures that have influenced Indian cooking and food habits are the Hindu and the Muslim tradition. With the introduction of non traditional foods into this society, as with many others, there are adverse effects on the traditions it tries to uphold. McDonalds is viewed as American and the movement away from traditional foods towards fast food is considered to be Americanization of the diet. This concept has more far reaching effects than is seen on the surface. The Americanization of the food also means that of the culture and a way of thinking which in not acceptable to many nations. The restaurant stands as a symbol of an unwanted change sweeping across the borders of culture and tradition. Even though there have been many changes in the eating habits of the nations influenced by the introduction of McDonald's there has been many positive aspects. With the advancement of technology and communication the world seem to be moving at a faster pace. The advent of fast food into foreign cultures allows the opportunity to keep up with this fast pace. Culture is ever changing and thus McDonald's marks another step in the evolution of culture with the changes in has brought about. The menu has given people a new choice over the traditional foods eaten in the past. McDonald institution has really spread across continents giving rise to a number of indigenous fast food chains. There is also the case of Asian nation where Asian food such as Fried rice is rapidly spreading all over the world. Unemployed youth are taking advantage of the McDonald institution to set up fast food businesses on the streets. This can be called fast food-street food. There are good and bad sides to this phenomenon. Team Work at McDonalds While not all employees can be superstars, McDonalds owes is success to its team functionality rather than the efforts of one individual. McDonalds does not have very highly integrated teamwork, but they would be unable to deliver their products and service without sufficient team unity and cooperation. The team on the floor of a McDonalds restaurant is best described as a functional team .Team members have one area that they focus on during their shift. If they leave their post or are not productive, other line members will not be able to accomplish their jobs and the production line will suffer. For example, when a customer enters the restaurant places an order with the cashier, the later inputs the order into the computer and the information is displayed in the kitchen at the sandwich and grill stations. The grill worker prepares the meat and then places the burger on a bun. The sandwich maker then assembles the sandwich according to the type of sandwich and any additional requests the customer has. If the sandwich maker leaves his post, another worker has to cover for him or the entire product delivery process shuts down. As a result, a McDonalds restaurant team is sequentially interdependent. Without everyone working together and having sufficient motivation to provide good and quick quality service, all members of the team fail. As a result of one person losing motivation or failing to adequately perform his duties, customers may complain and business can be lost. Even though

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most employees are trained to perform multiple tasks at various stations, they are not usually able to perform all of these tasks simultaneously.

Social Responsibility
Perhaps the single most important thing to consider in a McDonald's culture is the role they play in the community. After all, the people they know, meet, serve, hire, or greet are all part of it. Over many years, millions of people have frequented McDonald's because it's a trusted name with proven service. Giving back to the communityboth local and global is their way of returning that loyalty. They take their social responsibilities as seriously as they take their successes.
Community

To promote social awareness, they have many collaborations and partnerships. First off, they sponsor countless neighborhood beautification projects around the world each year. Theyre also extremely proud of their long-standing childrens programs, like Ronald McDonald House, that continue to remain very strong and benefit so many. Created in 1974, Ronald McDonald House provides a home away from home for families of seriously ill children who are receiving treatment at nearby hospitals. There are now more than 245 in 28 countries. Even the very operation of a single restaurant can fuel the economy of a local community. Simply put, theyre a big part of our neighborhoodsthats where theyre from. Naturally, they want to help care for them.
Responsible Purchasing

They believe in culture by example. Their policies and guidelines strive to make the world a safer, better place. When it comes to animal welfare, McDonalds is an industry leader. Take their Farm-to-Counter food safety systema program that monitors critical aspects of all their processes and serves as the benchmark for animal treatment throughout the industry. In addition, they have taken the lead in preserving the effectiveness of antibiotics that are important to both human and animal health. When it comes to toy safety, their record far exceeds the record for the toy industry overall. Also, thanks to their many supplier guidelines and expectations, they ensure the vendors they work with are as serious about their commitment as they are.

Protecting our Environment

Keep the planet clean and green. That's their practice and they strongly stick to it. By understanding that consuming and recycling go hand-in-hand, they created a Total Life Cycle approach to waste. For them, its important to consider the environmental impacts of their products at every stage, from the production and harvesting of the raw materials through final

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disposal. Theyre also proud to employ a strict rain forest policy and do not source any beef from recently deforested areas. Most recently, they we initiated a program on environmental resource sustainability, providing clear principles and goals on how to preserve the world in which we live.

CONCLUSION
McDonalds being a multinational corporation operates its business globally serving its products in more than 120 countries through its restaurants. McDonalds have got more than 32,000 outlets which are situated all over the globe. McDonalds provides a magnificent line of products in which they offer different items for different countries on the basis of the local culture. This reflects that McDonalds gives high respect and importance to the culture of its customers, which finally helps in a global acceptance of its products. McDonalds products are very reasonable for a common man and of good quality; making it a very preferred fast food brand globally .Different effective steps have been taken by the corporation to solve all its problems, for their product development and its business growth. McDonalds believes in quality products for its customers without and compromise.

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