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McDonald's company philosophy conflicts

The solution discusses teh inherent conflicts within the philosophy of McDonald's

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1. Discuss the inherent conflicts that exist between McDonald's company philosophy and its reformed organizational structure.

Ray Kroc's philosophy was "Career education, that's what this country needs. Many young people emerge from college unprepared to hold down a steady job or to cook or do housework and it makes them depressed. No wonder! They should train for a career; learn how to support themselves and how to enjoy work first. Then if they have a thirst for advanced learning, they can go the night school." To this day, McDonald's trains all of its managers at its Illinois "Hamburger University" campus. The training instills the values of Kroc and expands the knowledge of the employees who serve the public daily.

Prior to 1999, the employees at the corporate office seemed pleased with the direction of the company and felt they had job security. Many employees worked their way up from restaurant help to high level management positions. The abundance of employees, over 500 at the corporate headquarters, was a burden to the company's overall profit and a decision was made to slash the workforce. For the first time in the company's history, profits were put before the employees. McDonald's franchisees were unhappy with the corporate structure and pushed for change. This was the first time since the inception of the company that the franchises pulled the corporate strings.

From the readings, this appears to be the only significant change that ...

Solution Summary

Discuss the inherent conflicts that exist between McDonald's company philosophy and its reformed organizational structure.

As McDonald's continues to expand internationally, discuss the many human resource issues that may arise and how the company may manage differences in culture.

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