Mcdonalds Cross Culture

As the world's population Increases and we become a Global society due to the increase In technology, more and more companies are doing business on a global scale. As business Increases Individuals Involved In cross border business alliances have had to have a greater understanding of other cultures to aid in the sustainability of business relationships.From the way business is conducted in other cultures to the way organizations are structured, an understanding of these cultures will inevitably help build businesses and provide positive aspects and a greater willingness to interact from the other ultras we aim to do business with. With the Increase In technology, global working and commuting, countries like England, which has a vast cosmopolitan society, has a greater awareness of other cultures.This Is due to the way we interact as friends, the sharing of other countries foods and the embracing of all that Is good In other cultures Is a rich source of the cross cultural awareness a nd understanding. We now look at the way McDonald's has managed to create a global empire that has taken into account other cultures and how this has aided the Corporation to become major global fast food retailer.Aims and Objectives * Identification of issues In Cross Cultural Organizations * Evaluation of diversity of workforce In various countries ; Analysis of the theories related to Cross Cultural Management * To take a look at the management skills required in a Cross Cultural Organization * To explore and identify the skills, attributes and knowledge needed to be a manager in a cross cultural environment * To look at management approaches for breaking emerging markets * Identify a Strategy for Cross Cultural Organizations Methodology me oenology uses Tort Investigating tons case study was purely researcher Vela secondary research.This included reading books, Journals and websites Culture What is Culture? ‘The sum total of knowledge, attitudes and habitual behavior patte rns shared and transmitted by the members of a particular society Ralph Linton 1940 There are various types of cultures in society, some are listed below: Corporate Culture This is the classed as organization culture or the way an organization does things and how they expect things to be carried out. Sub-culture This is a group having social, economic, ethnic, or other traits extinctive enough to distinguish it from others within the same culture or society.Multicultural This is classed as pertaining to, or representing several different cultures or cultural elements for example a multicultural society. Culture Shock This is the state of bewilderment experienced by an individual who is suddenly exposed to a new, strange, or foreign social and cultural environment. Cultured This is a person who has an awareness of other cultures and may have experienced diversification of cultures first hand. A person who is educated through life experiences rather than by studying academically.Use c ulture shock in a Sentence See images of culture shock Search culture shock on the Web Logistical and Managerial Issues for Cross Cultural Organizations Charles Handy in his book Understanding Organizations (1993) refers to organizational cultures as tribes saying: ‘The greater the size of an organization, the greater the amount of tribes. ‘ The primary problems that may be encountered when dealing with Logistical and Managerial issues within cross cultural organizations are: * Values * Norms * Ideas/Beliefs * Attitudes * Traditions Religion * Lifestyle * HistoryThe way one issue is handled in one country maybe handled totally differently in another country. There is a clear divide between both Western and Non-western ideas as well as society norms, values and religion. In McDonald's an awareness and understanding of other cultures has been a winning factor in the development and rise of the fast food chain. Understanding cultures of the Far East, Middle East and Europe have helped the organization develop as a leader in the field it operates within.Logistically the McDonald's have had to understand the values that are held in entries like India where it is a ‘crime' to kill and eat a cow as this is classed as a sacred and holy animal. So much so that the cow is worshipped as a provider of milk, not meat, which is quite different to the west who have beef as a staple part of a fast food menu in McDonald's and various other fast food chains. In India McDonald's employed Just one franchisee in the whole of a country that has a population that is touching the 1 Billion mark.This was due to the fact that the franchisee was a person who has lived and worked in India for over arrears and has a greater understanding f the culture than an outside westerner. This Cross Cultural awareness is what has made McDonald's such a popular brand in India since being introduced in the sass's. In addition to this the use of pork is forbad in India as the pig is c lassed as unclean or Harm by the Muslim population in India. Though only small in size, McDonald's saw this as an issue and removed pork from the menu that was due to be implemented in India.Managerial issues that are relevant in one country may not be relevant in another. For example, in England the Manager on the shop floor in McDonald's works closely tit the shop floor staff as they are seen by the Junior employees as part of a team and this is addressed in the Management training that is part of the induction as a manager. In India however the whole of society is based on a class system even though this has been outlawed since the last century. However the enforcement of this class system is self propagated and the divide between the upper and lower classes is substantial.The manager will tend to be based in an office on site and will expect his delegates to manage the day-to-day running of the franchise without the manager's continual input. This gives responsibility to the del egate but also makes them aware of the social place where they belong. The lower classes are rarely given senior Jobs despite education standards which maybe higher among individuals. The majority of lower classes will hold positions as cleaners or doormen.Cross cultural management issues don't seem to create issues logistically or managerially as the McDonald's corporation main business is not done across borders. The supply of the product is done within the franchise country where social status and norms are already understood and accepted by those being employed. Areas of Consideration Regarding Culture Douglas McGregor X & Y Theory Douglas McGregor suggests that there are two fundamental approaches to managing people: * Theory X * Theory Y The majority of managers tend towards Theory X, and generally get poor results.Lifted and more conscious managers use Theory Y, which produces better performance and results, and allows people to grow and develop. Theory X (Authoritarian Manag ement Style) * Most people dislike work and will avoid it they can. * As a consequence of the above statement most people must be forced with the wreath of punishment to work towards ‘organizational' goals and objectives. * Most people prefer to be directed and delegated. This will avoid personal responsibility and leaves the employee relatively ambitious, and most Just want security above anything else.Theory Y (Participative Management Style) * People will apply self-control and self-direction in the pursuit of organizational objectives, without external control or the threat of punishment. * Commitment to objectives is a function of rewards associated with their achievement. * People usually accept and often seek responsibility. The capacity to use a high degree of imagination, ingenuity and creativity in solving organizational problems is widely, not narrowly, distributed in the population The McDonald's organization has a modern approach to the theory and practice of mana gement.One of the primary aspects of its well balanced management style is the majority of the management that run franchises around the world are developed through the organization rather than outside management being brought in. This is largely due to Ray Crock's theory that a person needs to be able to see the placement possibilities that are available to them. Employment mobility is an important factor in the development of a person.They need a participative management style as defined in ‘Theory Y above to be of benefit to the company and themselves Alienation via authoritative management approaches can have a detrimental effect ions TTT moral as well as Atlanta gal. Tort ten Dustless Owe to lack AT reoccurring business as customers can pick up on a poorly run and unenthusiastic workforce. Abraham Mascots Hierarchy of Needs Abraham Mascots hierarchy of needs has been used as a basis by many academic scholars within the study of motivation.They are adaptations of Mascots t heory that include additional tiers within the model, however the original concept devised by Moscow is solely inclusive of the five tiers listed below, from top to bottom: * Self Actualization – Personal growth and fulfillment * Esteem Needs – Achievement, status, responsibility, reputation * Belongingness ; Love Needs – Family, affection, relationships, work group * Safety Needs – Protection, security, order, law, limits, stability * Biological and Physiological needs – Basic life needs, air, food, drink shelter, armor, sleep, sex etc Mascots theory sees the lower part of the needs, Biological and Physiological as needs that need to be satisfied first, once these have been satisfied only then can the needs further up the scale or pyramid be satisfied.Self actualization at the top can only be fulfilled if the lower parts of the scale are satisfied, if these aren't satisfied the satisfaction of the upper tier become irrelevant. Modern organization are now realizing that sustained success is achievable. Once it is realized that the unequivocal support giving to employees will help achieve the Eng term fulfillment, and will help them realism their own personal potential. Managers need to understand that the Biological & Physiological needs need to be fulfilled so that a person can start satisfying needs, the basics of life need stability for a person. Then moving up the pyramid only then can a person start thinking about their ‘Esteem and Self Actualization needs'.This however may vary in countries like India, Pakistan and other poorer countries, where all of the lower needs may not be fulfilled due to lack of finances and thus the Esteem & Self Actualization needs may be stronger through the adversity of being poor and wanting to succeed and develop. A manager for McDonald's need to have an understanding of his employees needs and empathic with their situation particularly in Asian countries where the divide in classes i s evident. The manager needs to motivate and manage even through everyday adversity to ensure that a person has a sense of belonging and that the TTY Is Torment Vela ten employment. On a more senior level regarding area management or even continent management a manager needs to understand that-?:Strategic Decisions are made for what is best for both the Customer and the Employee, and also the management style has to take into account and be consistent with a customer and employees diversity of cultures and values. They need to have a caring approach towards company as well as the employees. The senior manager needs to inspire trust among their workforce and have a greater understanding of the multicultural cosmopolitan world that we live in today. Strategic decisions need to be made by taking into account the recipient countries culture and the manager must use this to act and develop constructively when immunization across borders. The transferring of this knowledge needs to be use d when doing business in an organization that is building on a global scale and that crosses national borders and diversity of cultures.Challenges for Global Managers Stereotyping and Ethnocentrism ‘If individuals of a specific nationality are confronted with negative rather than positive stereotypes of themselves by other nationalities these individuals will not recognize themselves in the profile made'. (Browsers ; Price 2008) Stereotyping is defined as making assumption of another culture or country through unrepresentative generalizations which have been associated with the culture and country as a whole. This can mean for instance that all Chinese eat rice and work in payday fields and that all Indians eat curry and live in big extended families. These statements are unrepresentative of the country and are classed as sweeping statements based on what a few people do.Ethnocentrism is classed as a belief in the intrinsic superiority of the nation, culture, or group to which one belongs, often accompanied by feelings of dislike for other groups Inevitability this will result in some form of prejudice and discrimination as a feeling f superiority is held by when a culture or country is Ethnocentrism. Misconstrued preconceptions and false stereotyping can have a profound effect on an individual by resulting in having a lower self esteem issue as talked about by Moscow and can result in alienation from a group. This is detrimental to both the well being of the individual as well as the wellbeing of the company. Errata Areas to De consoler By a Manager * Cross Cultural Awareness and Understanding * Knowledge of various cultures norms and beliefs * Eradication of stereotyping and addressing employee as an individual not a ultra bias * Elimination of Ethnocentrism as this can breed alienation and hatred * Development of own awareness and deletion of self prejudices Hypotheses Cultural Framework Greet Hefted is a Dutch social psychologist who carried out a pi oneering study of cultures across modern nations. This study was created in order for organizations to recognize and benefit from knowledge of how the various cultures around the world address issues and how interacting across nations with different cultures can be made easier by a greater understanding of these diverse cultures. Greet Hefted created a Framework or Dimension that helped compare the cultures from various nations and he used the below sections to help compare these nations using a Cultural Indices. â€Å"Culture is more often a source of conflict than of synergy. Cultural differences are a nuisance at best and often a disaster. † Proof. Greet Hefted.Applying the Dimensions to Countries Around the World Confucian Dynamism Confucianism is not a religion it is a collection of pragmatic rules of daily life. â€Å"In practical terms Confucianism refers to a long-term versus a short-term orientation in life† Greet Hefted McDonald's (USA) versus Countries From around the World Austria Brazil Australia China Denmark Italy Poland As can be seen from the charts above there is a large contrast within the indices for various countries and cultures around the world when compared with the USA. Western countries like Australia show a correlation of cultures with the USA, whereas there is a large disparity between eastern and western cultures with countries like China and India.Strategies for Managers in Organizations With Cross Cultural Issues The main Strategy that should be employed to aid in organizations with Cross Cultural issues are: An introduction into ‘Equality and Diversity by ensuring that every employee has participated in a course covering this area. * Senior management should look at also how a course like the ones offered by Greet Hefted regarding his Cultural Framework can be used to help break new emerging markets. This will also help to gain a better understanding of existing established markets and how the services can be improved to gain effectiveness and efficiency. * Establish Corporate ‘Equality and Diversity Champions that will instill the values of fairness and understanding of other cultures that are part of the corporate business.Ensure that the recruitment of staff, particularly managers are done correctly and effectively by the Human Resource management department by placing an emphasis on Cultural Diversity as key criteria for selection. * Ensure that the retention of key staff is paramount for the business, particularly Equality and Diversity Champions as these are the propagators of the corporate aim to achieve cultural awareness. * Use Key indicators to help monitor the effectiveness of the Equality and Diversity course being implemented. Quantify this information to evaluate if improvements re required, whether all cultural interactions are represented by this course and monitor future and refresher courses.Conclusion when McDonald's was Torment In ten sass's an ten corporation relents were Drought out by the founder Ray Crock his main emphasis was to duplicate his franchise idea not only across the United States, but also across the world. How big this realization was at the time is quite modestly spoken about in Ray Crock's autobiography. The growth of McDonald's was done incrementally rather than a franchise explosion across the world and it was Ray Crock's values and visions that help get the brand name associated with quality. This was widely accepted as the norm in the USA and when a customer visited a McDonald's they knew what they were to receive on the menu.Breaking into the international market placed a greater emphasis of understanding cultural practices of the new franchise country, and what foods would be accepted as being part of the menu. In addition to this the senior management of McDonald's USA needed to gain a greater understanding of how the new culture they were to sell their food to would take to the menu. Adaptations had to made, and certain foods had to be removed from the menu in astern and far eastern countries. Worldwide McDonald's had a major diversification in their labor force. This diversity had to be represented in the training and practices that McDonald's employed in various countries and this was primary dealt with by continent managers of these areas e. G. Europe, Asia and South America.The staff who work in the franchises were trained according to regional customs and traditions and various foods available in the western world were seen as Harm for these countries, so adaptations had to be made. As the company grew incrementally these countries were fully researched so a ultra awareness was available to the corporation. Differences were recognized by the corporation so these had to addressed so that advertising and marketing was appropriate. Cultural sensitivity and elimination of stereotyping and prejudice had to be taken into account. Individuals from various cultures are motivated and concerned with various things that needed to be understood by the management of McDonald's to ensure that no alienation was created.