Motivation in Practice” Please respond to the following:Review the International Management in Action: “McDonald’s Latin Flavor” article, located on page 432 in the text (Attached). Suggest at least two (2) different ways that McDonald’s has applied theories of motivation within its initiatives in Latin American cultures to create motivation throughout the organization. Support your response with at least two (2) examples of the chosen motivational theories in action.Specify the most effective ways that McDonald’s could leverage the link between job design, motivation, and rewards. Make at least one (1) recommendation to improve McDonald’s Latin American initiatives. Provide at least two (2) examples that illustrate the benefits of your recommendation(s).
mcdonalds_latin_flavor.docx
Unformatted Attachment Preview
McDonalds Latin Flavor
McDonald’s was once the leader of “fast and friendly” service, according to
customer opinions of Latin American restaurants. Over time, the company saw its
margins quickly shrinking, and in some areas of Latin America, competitors were
edging ahead. With mana- gerial turnover at 40 percent, and an astounding 90 to
100 percent turnover rate among employees between 16 and 18 years old, it was
clear that motivation and morale were too low for a sustainable work environment. Clearly, something had to change. In the past, organizational operations were
carried out on a country-by-country basis, where initiatives were created to mirror
the specific region in a way McDonald’s calls “freedom within a framework.” The
stagnant sales and dissatisfied employees indicated that while the company could
survive, altering initia- tives could lead to further success. The human resources
department recognized its crucial role in changing the atmosphere, and soon plans
emerged. First, it modified the HR board to include one member from each
country. This provided efficient communica- tion, collaboration, and coordination
among the Latin American countries. A three-year plan was then set in place,
accentuating a continuous-improvement mental- ity which would keep processes
and employee satis-faction in check. However, no plan is effective unless it is put
into action. McDonald’s began a point reward system in which each store was
allotted a base number of points, depending on sales for that store. A competitive
struc- ture was then furthered by allowing lower-level employ- ees to increase
points by filling out operational surveys, a tactic used to promote product
knowledge and enhance employee skills. These points could then be cashed in for
prizes such as backpacks and even an iPod. Furthermore, global recognition
programs were instilled that rewarded top-performing employees. For example,
McDonald’s sent the top 300 performers from around the world to the Turin
Winter Olympics, where crew members attended various McDonald’s spon- sored
events and, of course, the Olympic games. Man- agers were also given the
opportunity to profit from their actions, and the company stressed creativity
throughout the process. Periodic meetings among regional managers allowed each
to share “best prac- tices” that have helped each store, and company strat- egies
were often brought to the table to better inform those in charge. A Latin American
Ray Kroc Award program was created to bring the top 1 percent of managers in the
region to McDonald’s headquarters, where participants had a chance to meet with
top executives and engage in forums. The company fur- ther encouraged success
through offering managers the opportunity to take business classes at surround- ing
universities and work toward a degree. Further- more, managers engaged in
training courses which shifted focus from administrative work to customers and
employees under the assumption that given a more hands-on approach, personnel
can better under- stand and achieve organizational and personal satis- faction
goals.
McDonald’s seems to have made all the right moves. Employees at every level are
more motivated, and it shows in the numbers. After implementing the new HR
strategy, sales in Latin America initially increased by 13 percent and continued to
grow by 11.6 percent the next year. More crew members and managers remained at
the stores as well, with turnover reducing to 70 percent and 25 percent,
respectively. Furthermore, employee surveys indicated that there was an increase
of overall commitment to the company by 9 percent, far surpassing the goal of 3–4
percent projected by the company. Latin America sent a strong message to
McDonald’s without having to say a word. Personnel originally did not feel
challenged and therefore sought other lucrative endeavors. McDonald’s global
strategy clearly was not universal, and in order to successfully integrate, local
responses were impera- tive (see Chapter 8). The company’s ability to balance its
global HR standardization with regional cultures proved to be beneficial to all.
Motivating personnel to achieve goals through rewards programs keeps morale
high, and could save McDonald’s a great deal of money as retention rates rise and
the need for new worker training declines. Employees have had a taste of the
revised HR programs, and it shows they like the new Latin flavor.
…
Purchase answer to see full
attachment
Recent Comments