STRATEGIC LEADERSHIP AT MCDONALDSMcDonalds is comprised of more than 30,000 local restaurants and serves 52 million people in more than 100 countries each day. The company is the largest food retailer in the world and is part of the American way of life. In order to remain competitive and an iconic American institution, McDonalds has developed programs and strategies for motivating employees and teaching leadership.With the biggest franchisee system in the world and a cash flow that is the envy of any industry, the role of the CEO is a complex one- especially during times of change.The changes at Mcdonalds began when Jim Cantalupo took over as CEO in June 2003. Mcdonalds business was growing through a challenge of saturated markets, increased competition from local brands and changing tastes of the American people in the fast food industry. Cantalupo recognized these challenges and used three years turnaround plan. In the first year, decided to concentrate on the existing stores and franchisees than start new ones; He concentrated on reiterating the core values of Mcdonalds - Get them in, trade them up, get them back. Positioning it as a Family restaurant--- I am loving it. The second year was about concentrating on new foreign markets and promoting mcdonalds as a family restaurant. Mcdonalds was reaping on this phased plans when suddenly in the spring of 2004, Cantalupo passed away due to a massive heart attack. The BOD of Mcdonalds had to act swiftly, they called on the COO, Mr. Charlie Bell to replace Cantalupo. Bell was incharge of the turnaround plan and he focused on the international expansion and was about to launch a third plan when he too was diagnosed with a colon cancer and he decided to retire in 2006. What are the leadership challenges at Mcdonalds?When analyzing an organizations leadership and teamwork skills, it is useful to first analyze the organizations work culture and how this culture is maintained. The work culture of McDonalds seems highly dependent upon the particular line manager in charge at any given point in time. One would imagine that the manager would almost always use position power and would use a telling style of leadership since the typical employee is young or inexperienced. Indeed, some managers were observed as running the operations in a machine like manner, especially during peak business periods. However, in the majority of cases the managers were relatively relaxed and sometimes were indistinguishable from the other employees. One manager in particular used a selling approach, which indicates a higher readiness level of her team .She did not simply give orders, but accepted feedback and alternatives to her decisions. While it was obvious she was the manager, her team was obviously in the later stages of development and was comfortable outside of their predefined roles.

In general, the managers did not try to put any strong vertical barriers between themselves and their employees. Managers usually seemed to display real concern and interest in the emotions and well being of their employees, which was not expected in this environment. For example, one manager was observed asking an employee cleaning the floors about her weekend and her kids. There seems to be legitimate efforts in order to motivate employees even at the line worker level. Herzbergs two-factor theory explains that good working conditions only go so far, and that employees require higher level fulfillment such as motivation and recognition in order to be satisfied with their position (Daft, 2008, p. 231). Even in a low- skill position, low turnover is desired. In addition, happy employees lead to happy customers.McDonalds corporate management believes in training and leadership at all levels through Hamburger University. On Hamburger Universitys website, they quote McDonalds founder Ray Krocs training focused ideology: If we are going to go anywhere, weve got to have talent. And, Im going to put my money in talent. This ideology demonstrates that McDonalds does not believe 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 (Corporate policy says that employees should be paid at or above the local market rate, and should also value both their pay and their benefits. By addressing employees higher needs by providing training they make 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. Of the McDonalds restaurants we observed, the culture was generally inviting for new employees. In addition, other factors make McDonalds an ideal employer for many individuals. A primary motivation for working in a McDonalds restaurant is that it presents a laid back environment and the job itself is not very stressful. Even during the observed lunch and dinner rushes, the employees never appeared particularly stressed or anxious. When there was a lull in the restaurant the employees would clean their stations, chat with other employees, or get a drink from the soda fountain. They were very relaxed and for the most part did not seem to fear their managers or other bosses. As Daft explains, fear can weaken trust and communication, and is usually impedes employees rather than motivates them (Daft, 2008, p. 152). For a high school student who is busy with school work and other extra-curricular activities, it may be ideal to work in a laid back environment like McDonalds. A students life may be highly stressful, and a low-skill, low-stress job offered by McDonalds may provide a break from an otherwise stressful life. Also, for the elderly employees, the low stress environment may also be desirable because they would not be overwhelmed with responsibilities that might be new to them.Another possible motivator is the social opportunity presented by such a job. As noted above, employees tended to have a very casual environment where they could talk and socialize while they worked. For example, many of the employees who work during the evening shifts are high school students. These employees are often the same age and often share common cultural interests. They are also presented with the opportunity to meet new people and develop friendships that can continue to develop outside of work. They will also have a bond with these employees because they share a common experience, and are likely from a similar background. Employment at McDonalds also offers social opportunities for those employees who are young but do not attend college and for the elderly. Many of these employees do not have the opportunity to participate in clubs or other organizations, and interact with people of their own age or anyone in general. It may even be possible to develop a romantic relationship with another employee, as McDonalds is not a work environment where this could be seen as a problem by management.A third reason for working at McDonalds is the flexible schedule. McDonalds offers many different shift schedules so they accommodate everyone. This can help employees find a healthy work-life balance. Some individuals require fulltime work, which is available through the standard day shift, while part time workers can pick up their hours after school ends, on weekends or around other social obligations. Since the company requires in some levels a low skill job, another employee can easily take ones shift over, allowing the later to take on other obligations and not be completely tied to the workplace. Part time employees can rotate their hours according to who has requested to have a certain day off. This gives employees a sense of empowerment because they have same say in their schedule and are less likely to call in sick to avoid work, which would lower team morale and the respect between the managers and the employee (Daft, 2008, p. 242). Even though the average employee is unskilled or does not require skills, empowering an employee helps him feel important and makes him feel better about his job. In addition to the flexibility offered by a position at McDonalds, the convenient location might serve as another motivator. There is a McDonalds store in most every town, and it may be relatively close to an employee and the only available job which does not require a skill or advanced training. As a result, employees who do not have cars can walk to work or take public transportation. In light of the recent economic downturn and the high price of gas, having a job in your own neighborhood is a huge benefit, especially for a young person or a person trying to earn their first paycheck. Finally, an additional motivator is the numerous growth opportunities available. McDonalds offers training to employees at various levels. In addition, if any employee stays at McDonalds for a long period he could advance into an assistant manager or manager position. While typically a McDonalds job is seen as temporary for young people, it may be the only job available for an impoverished.