Ray Kroc Leadership Practices - Essay Example

? An Analysis of Ray Kroc Leadership Practices Table of Contents 2 An Analysis of Ray Kroc Leadership Practices 3 3 Chapter 1: Introduction 4 Chapter 2: Leadership Practices 7 Chapter 3: Leadership Style and Organizational Goal Achievement 10 Five Leadership Theories 10 Leadership Styles 12 Leadership Style of the Leader 12 Leadership Style and Organizational Goals 13 Recommendations 14 Chapter 4: Delegation and Development Levels 15 Necessary Conditions for Effective Delegation 15 Development Levels of the Followers 15 Development Level of McDonalds Brothers 15 Delegation Practice of the Leader 16 Development Levels and Delegation Practice 16 Recommendations 17 Chapter 5: Conclusion 18 References 20 An Analysis of Ray Kroc Leadership Practices Ray Kroc was an American entrepreneur who was fundamental in propelling McDonald’s to international success where it is now the world's largest chain of restaurants. Kroc approached the McDonald brothers to start a number of restaurants in Illinois where he later bought the McDonald’s legal rights to the restaurants in 1961 to become the president of the company. He ensured the growth and consistency of production in the company. Notably, McDonalds is the world's largest chain of restaurants based in San Bernardino, California with its first restaurant starting in 1955. The company continued to open other restaurants all over the world where it sells the same brand and quality of the world’s favorite foods, which include Fries and Chicken, Big Mac sandwich, and Nuggets. Today, McDonalds is the world’s leading foodservice retailer. The leadership case of Ray Kroc relates to me since I also worked for McDonalds and I could use his leadership style in my position. Abstract Leadership is one of the dominant aspects in modern life. There are different forms and levels of leadership and thus it is not easy to define leadership. However, leadership involves the ability to establish a long-term policy and influencing others towards the realization of that policy (Bennis, 2009, p.1-8). Leadership requires leadership skills which are either taught or acquired and may have formal powers to exercise their mandate. Notably, leadership is very subtle in any organization and the leaders have unique responsibilities over their followers (Bennis, 2009, 147-149). This paper will analyze the leadership practices of Ray Kroc who was the founder of the McDonalds. In doing this, the paper will rely on theories covered in this course. Chapter 1: Introduction Ray Kroc was an American entrepreneur whose name is very dominant in the restaurants industry because he was synonymous in propelling McDonald’s to international success where it is now the world's largest chain of restaurants. Ray Kroc was born in Oak Park, Illinois, on October 5, 1902 (Mattern, 2011). Ray Kroc grew and spent the greater part of his life in Oak Park, Illinois. He dropped out of school at an early age 15 years to become a Red Cross ambulance driver in World War I after lying about his age to become an ambulance driver at 15 (Mattern, 2011). After the World War 1, Kroc tried various career options, which included selling paper cups, plying piano, and being a DJ on a local Oak Park radio station (Mattern, 2011). At 20 years of age, Kroc got married. He started selling cups during the day for Tulip Cup Company in 1922 and plays the piano on the radio at night. He worked as a sales representative for 17 years where he rose to become the Tulip’s Midwest sales manager (Mattern, 2011). In this position, Kroc acquired the exclusive rights to a new milkshake machine that could make five milkshakes at once and promoted it across the United States (Mattern, 2011). He got big orders for the new milkshake machine and because of the savings he got from the sales, Kroc approached the McDonald brothers to start a number of restaurants. As a result, he opened two restaurants in Illinois when he was fifty-two years old (Mattern, 2011). He consequently bought the McDonald’s legal rights to the restaurants in 1961 and ensured that they spread quickly in the United States using franchising. Ray Kroc had a characteristic of identifying the needs of the public and had a fuss over restaurant details. However, in 1974 he invested in professional baseball team in California where he bought the San Diego Padres. Ray Kroc died in 1984 (Mattern, 2011). Indeed, I have worked for McDonalds for over 10 years as a Supervisor. Actually, I started my stint at the company as a Crew Member and worked my way up where I am now a Training Manager at the same company. As such, I have fundamental information about the company. Notably, McDonalds is the world's largest chain of restaurants based in San Bernardino, California. Ray Kroc discovered the McDonalds at a hamburger stand in California, owned by Dick & Mac after they purchased the multiple mixers milkshake machines in 1954 (McDonald's, 2013). Ray Kroc started the first McDonalds restaurant in 1955 after experiencing the effectiveness of the multiple mixers milkshake machines that convinced him to open several restaurants to the McDonald brothers. The Des Plaines, Illinois restaurant was the first McDonalds restaurant launched in 1955 and selling a legendary brand. The company recorded immense success and in 1958, McDonalds sold its 100 millionth burger. The company continued opening more restaurants and by 1965, it had 700 restaurants and decided to offer its shares on the stock exchange (McDonald's, 2013). Notably, McDonalds opened its first restaurant outside the U.S in Richmond, British Columbia in 1967. The Company continues to open more restaurants that sell the same brand and quality of the world’s favorite foods, which include Fries and Chicken, Big Mac sandwich, and Nuggets (McDonald's, 2013). McDonalds seeks to continue improving its social and environmental performance by working together with its suppliers and independent restaurant franchisees with an aim of achieving a sustainable future for McDonalds and its communities (McDonald's, 2013). More so, it seeks to become a source of employment, a community partner, a role model for other restaurants, adopt new technologies in fulfilling our brand promise of quality, service, cleanliness, and value. McDonalds is the world’s leading foodservice retailer with more than 34,000 local restaurants and about 1.8 million employees in 118 countries. The company serves about 69 million every day (McDonald’s, 2013). Don Thompson who is the President and Chief Executive officer leads McDonalds although we also have Executive Vice Presidents and branch Presidents leading various regions where McDonalds operates. The company engages in and values community service where it serves the community through initiating sporting activities, charity work, environmental conservation, and inspirational activities that boost the lives of its communities (McDonald's, 2013). As a result, the company has won many awards and recognitions, which include the Most Innovative Food Company in 2011 and the Most Admired Company in 2010 among others (McDonald’s, 2013). Notably, Kroc played various roles and responsibilities in McDonalds. Indeed, he was the first franchisee appointed by the McDonald brothers in 1954. Consequently, he opened the first McDonalds restaurant in Des Plaines, Illinois leading to the creation of McDonalds Corporation in 1955 (McDonald's, 2013) when he became the president of the company. Under his leadership, Kroc led the McDonalds past the archrival Burger King and he reassigned himself to the role of senior chairperson in 1977. He ensured the consistency of the original assembly line approach to hamburger preparation and contributed in innovation, standardization, and discipline in McDonalds. He equally ensured the growth of the company in suburban areas and sought for new markets. Moreover, he ensured consistency in preparation, portion sizes, cooking methods and, packaging of McDonald’s foods across all outlets. Notably, his business ability propelled the company to international success. Chapter 2: Leadership Practices Ray Kroc manifested different leadership practices in his position as the president and chairperson of McDonalds as well as in his position as a sales person and manager at Tulip Cup Company. He was synonymous in propelling the McDonalds food chain from a simple hamburger restaurant to the world’s largest food chain restaurant. Indeed, Kroc devised a strategy that sought to sell a thousand multi-mixers to the burgeoning restaurant chain. More so, through his leadership practices, Kroc approached and convinced the McDonalds brothers on the need to expand the restaurant chain (Baldoni, 2006). In fact, he even volunteered to start the expansion because he foresaw a great potential in the restaurant chain. Notably, the brothers did not see this opportunity. Most assuredly, Kroc demonstrated his visionary leadership when he first visited the restaurant of the McDonald’s Brothers. Indeed, upon seeing the effectiveness of the multi-mixers in the restaurant, Kroc envisioned having eight such restaurants using the same multi-mixers to make huge returns. In fact, he started to pursue the vision by establishing the first franchisee restaurant in Des Plaines, Illinois. Moreover, Kroc demonstrated his consistency by believing that the franchisees were to earn their profits before the franchisor. At the same time, Kroc practiced perseverance and objectivity where he kept moving on despite the obstacles that arose in the pursuit for success (Baldoni, 2006). For example, despite launching new brands, which failed terribly, Kroc kept surging on. Similarly, Kroc demonstrated absolute respect for his colleagues and controlled his ego despite being their leader. Indeed, we see him relating so well with the McDonalds brothers as well as with his colleagues at Tulip Cup Company where he was a sales representative. Most importantly, Kroc was flexible and embraced changes that would enhance performance in the company. We can see him introducing new products to the market like Big Mac as well as encouraging innovation by adopting automation to the company. As a good leader, Kroc delegated some authority and decision making to others. Actually, leadership is all about getting other people to our side (Bennis, 2009, p.147-148). Indeed, he kept his dream of McDonald’s restaurants and equated the success of the restaurant concept to the participation and compliance to the standards by all stakeholders. Actually, he maintained strict standards in food preparation, cooking methods, food delivery, and customer service throughout his leadership tenure at McDonalds. Furthermore, Kroc welcomed and valued new ideas from other stakeholders (Baldoni, 2006). Indeed, he bought the idea of new brands like Big Mac and Egg McGuffin from operators. In fact, Kroc cooperated with anyone who believed in success. He actually built the McDonald’s System on a universal philosophy that either all will succeed or all will fail. Kroc also used his leadership to mentor others. Indeed, when he was a sales person, he identified the talent of Fred Turner who was very fundamental in devising the McDonald’s operating system. We can also identify the optimism in Kroc where he wrote in in his autobiography, Grinding It Out that he always believed that each man makes his own happiness and is responsible for his problems (Kroc, 1978). Ray Kroc was more of a leader than a manager. Indeed, Ray Kroc initiated many initiatives in McDonald’s and demonstrated leadership practices in propelling the company to international success. However, Ray Kroc was task oriented than relationship oriented as he sought to achieve the task. Indeed, he first sought to establish the first McDonalds restaurant and later sought to establish more restaurants. Ultimately, he sought to maintain the standards and quality of the company’s brand as well as identifying new market. He is thus goal oriented as he sought to attain his goals despite the challenges that arose in the pursuit. To achieve this, he mostly took control of the day-to-day events as seen when he volunteered to start the first franchisee McDonald’s restaurant in Illinois. He however, rewarded the talented and the successful followers as seen when he promotes Fred Turner from Tulip Cup Company to a strategic position at the McDonalds. Notably, Kroc communicated in a passive manner as he clearly built a formidable relationship with his followers (Baldoni, 2006) Chapter 3: Leadership Style and Organizational Goal Achievement Five Leadership Theories Trait Theory of leadership assumes that people inherit traits at birth and such traits may include leadership traits (Bennis, 2009, p.33). As such, the theory assumes that the right combination of traits makes good leaders (Mind Tools Ltd, 2013). Notably, early studies on leadership focused on successful leaders with inherited traits with the assumption other people with such traits could also become successful leaders. Among the many identified traits, researchers seem to agree on four traits, which include admitting error, intellectual breadth, emotional stability, and good interpersonal skills (Changing Minds, 2013). Indeed, variant researches on leadership agree only in the general qualities of a good leader. On the other hand, Behavioral theories assume that we can make and that good leadership relates to a specific and learnable behavior. As such, these theories focus on the acts of a leader rather than on the inborn traits (Changing Minds, 2013). The theories derive that where certain action defines good leaders then other people should act that way to become leaders (George, McLean, & Craig, 2008). Seemingly, the behavioral theories accommodate leadership development and assess the leadership potential of everybody (Mind Tools Ltd, 2013). It is easy to develop and understand these theories as you only need to relate successful leaders with their actions and vice versa. We also have the Contingency theory, which assumes that the ability to lead is contingent to the preferred leadership style as well as the abilities and behaviors of the followers Mind Tools Ltd, 2013). This theory believes that if one leadership style is effective in a given situation then it should also be successful in other situations (Changing Minds, 2013). However, this has a demerit in that successful leaders in one situation may not be successful in another situation and the change of factors may demean their leadership success. Ideally, the contingency theory assumes that there is no absolute right way of leadership (Changing Minds, 2013). The Participative theory is also significant in leadership and assumes that participation in the decision-making process by the concerned people improves their understanding of the issues at hand (Changing Minds, 2013). It also assumes that involvement derives commitment and objectivity derives less competition and more collaboration among people working together. It also assumes that people working together can make better decisions than any individual can. Ideally, a participative leader aims at involving other people in the decision making process, sells the idea to the team, and informs them of the objectives and lets them decide on the ways to achieve those objectives. However, the level of participation may vary with the significance of the decision at stake. Notably, of participative leadership have many merits (Changing Minds, 2013). Situational theories on the other hand suggest that leaders make decisions based on the situational variables. In this case, therefore, leaders will employ a different approach of leadership, depending on the type of situation they are faced with. Therefore, for one to ensure effective leadership, they must have a high level of adaptability. This is because; they will be forced to adjust their leadership style whenever they are faced with varying circumstances. The manner, in which a leader in this case will adapt to a new circumstance, depends on the assessment of the level of commitment of his or her followers, as well as their competence. After assessment of these aspects of the followers, the leader will then decide on the most appropriate style to adopt in the specific situation, whether the style will be supportive or directive in nature (Leadership-Central.com, 2013). Leadership Styles Various leadership styles relate to the leadership theories (Bennis, 2009, p.33). The leadership styles associated with participative theory includes democratic leadership, power-sharing, consultative leadership, and team involvement. On the other hand, leadership styles associated with contingency theory includes coaching, directing, supporting, flexible leadership, and delegating. Additionally, leadership styles associated with behavioral theory includes effective leader, opportunist, and executive. The leadership styles associated with Trait theory (Bennis, 2009, p.33) includes dependable, flexible, ambitious, persistent, self-confident, involving, cooperative, and volunteerism. Ultimately, the leadership styles associated with the situational theory include the authoritarian style and the democratic style. Here, a leader will choose the authoritarian style in situations where he or she is highly knowledgeable and experienced. On the other hand, he or she will choose the democratic style in cases where the followers are competent (Leadership-Central.com, 2013). Leadership Style of the Leader Ray Kroc had unique leadership styles that related to the leadership theories here in. Notably, Ray Kroc was an opportunist. Indeed, we can see him lying about his age to secure an opportunity as a Red Cross ambulance driver during the World War 1. More so, during his tenure as Tulip Cup Company manager, he visited a restaurant owned by the McDonald’s brothers where he witnessed the effectiveness of the multiple mixers milkshake machines and saw an opportunity of opening more franchisee restaurants using the same machines (Smith, 2009). In fact, he even volunteered to initiate the project, which resulted to more restaurants, more returns, and the creation of the McDonald’s corporation. He also seized the opportunity of opening new restaurants in the suburban areas as well as introducing new brands like Big Mac and Egg McGuffin from operators. He also opened restaurants in other countries seized the opportunity to buy out the McDonald’s legal rights to the restaurants to become the company’s president (Smith, 2009). Leadership Style and Organizational Goals McDonalds seeks to continue improving its social and environmental performance by working together with its suppliers and independent restaurant franchisees with an aim of achieving a sustainable future for McDonalds and its communities (McDonald's, 2013). More so, it seeks to become a source of employment, a community partner, a role model for other restaurants, adopt new technologies in fulfilling our brand promise of quality, service, cleanliness, and value. Notably, there are compatibilities and incompatibilities between Ray Kroc’s leadership style/practices and the organization’s goals. Indeed, Kroc sought to establish more independent restaurant franchisees with an aim of enhancing the company’s going concern and presence in the market in line with the company’s goals. Moreover, he abhorred strict quality standards that made McDonalds a model restaurant and contributed automation in line with the quality and technology goals of the company. He equally employed many people like Fred Turner, who was very fundamental in devising the McDonald’s operating system thus complying with the company’s employment goals. However, his leadership style/practices were incompatible with the organization’s goals of improving its social and environmental performance with an aim of creating a sustainable future for McDonalds and its communities. Indeed, he makes no effort towards achieving this goal. Recommendations Ideally, to achieve the organization’s goals the leader’s leadership style and leadership practices must be compatible with the organization’s goals (Bennis, 2009, p.11-17). In this context, there are incompatibilities, which hinder the attainment of such goals. As such, Ray Kroc should have ensured that his leadership style incorporated community service and environmental conservation. He could have achieved this by ensuring that the company gave back to the society and the company operations met the environmental standards. More so, he should have ensured that the employees and the company’s products did not pollute the environment by initiating recycling plants where necessary. Moreover, he should have devised an environmental policy for the organization and focused more on sustainability than on expanded market presence. Chapter 4: Delegation and Development Levels Necessary Conditions for Effective Delegation According to situational leadership theory, there are two pillars of leadership, which include the leader’s leadership style and the followers the maturity level (Leadership-Central.com, 2013). Behaviors such as telling, selling, participating, and delegating define the leadership styles. Notably, the delegating behavior involves passing the leadership tasks to the group members with continued monitoring. However, the two most important conditions for delegation include high competence of followers and their committed (Leadership-Central.com, 2013). Development Levels of the Followers Fred Turner was one of Ray Kroc’s followers who were very fundamental in devising the McDonald’s operating system (Miller & Jargon, 2013). His development level was at D4 as Kroc got him from Tulip Cup Company because of his talent, which reflected high competence and high commitment (Leadership-Central.com, 2013). The franchisees of Ray Kroc were his followers too. These shared the same entrepreneurial spirit as Kroc. Most of them performed well, and Kroc would reward them. In addition, these exhibited a high level of creativity, with regard to their operations. Furthermore, the franchisees were committed to Kroc’s instructions, especially concerning the aspects of quality, cleanliness, service, and value in their operations. Therefore, their development level was at D4, as these portrayed high competence and commitment. Development Level of McDonalds Brothers The McDonalds brothers included Richard and Maurice McDonald. The two brothers were the first to develop a small but successful McDonald's fast food in California (Smith, 2009). They sought to make one million dollars before they were fifty and thus purchasing so many mixers. However, they had no idea on how to expand the business and relied on Kroc to initiate more restaurants (Smith, 2009). As such, Richard and Maurice McDonald are at the D2 level of development where they manifest low competence and high commitment (Leadership-Central.com, 2013). Delegation Practice of the Leader Ray Kroc delegated tasks and responsibilities to Fred Turner whom he mandated to devise the McDonald’s operating system (Miller & Jargon, 2013). As such, this was a lot of delegated authority to Fred Turner. On the other hand, we do not see Kroc delegating any responsibilities to the McDonalds brothers. However, he leaves the responsibility of managing the restaurant in California to them (Smith, 2009). Moreover, Kroc volunteers to take the responsibility of being their agent in Illinois and later buys out their legal rights to the restaurant. Development Levels and Delegation Practice Notably, Kroc’s delegation practice was compatible with Fred Turner’s development level in that the responsibility of devising an operating system required high levels of competence and commitments, which Fred Turner possessed. However, Kroc’s delegation practice was incompatible with the development levels of the McDonalds brothers Richard and Maurice McDonald. Indeed, managing a restaurant equally requires high levels of competence and commitment especially now that the restaurant in California was the mother of the McDonalds. The low competence and high commitment of the brothers was incompatible with Kroc’s delegation practice. Recommendations To improve the leader’s delegation practice, the leader should take time to analyze the potential and commitment of the follower towards the responsibility at hand (Bennis, 2009, p.149-152). For instance, Kroc should have only delegated to the McDonalds brother only when he was sure that they were both committed and competent. This way, the desired results of delegation would have been achieved. More so, the leader should first evaluate the significance of the delegated responsibility to the entire organization. Therefore, important tasks in the organization should only be delegated to highly competent and committed individuals. Kroc ensured this by involving Turner, who was more competent and committed. Moreover, the leader should evaluate the best timing for the delegation to ensure maximum returns, low risks, and continued growth of the organization. Chapter 5: Conclusion McDonalds is the world’s largest food chain restaurant with more than 34,000 local restaurants and about 1.8 million employees in 118 countries. The company serves about 69 million every day. Ray Kroc started the first McDonalds restaurant in 1955 after experiencing the effectiveness of the multiple mixers milkshake machines that convinced him to open several restaurants to the McDonald brothers. He was synonymous in propelling the McDonalds food chain from a simple hamburger restaurant to the world’s largest food chain restaurant. Indeed, Ray Kroc is more of a leader who is goal oriented and very opportunistic. Notably, there are various leadership theories, which include the great man theory, the traits theory, situational theory, participative leadership, contingency theory, and behavioral theories. These theories incorporate leadership styles, which may be compatible or incompatible with the organization’s goals as seen in Kroc’s case. Kroc practices the delegation practice where the situational theory describes high competency and commitment to be the requirements of effective delegation. Notably, development levels may or may not be compatible with the leader’s delegation practice as seen in Kroc’s case. Personally, I have learnt what leadership entails. I have learnt about the different leadership styles and practices that we have as well as the distinct leadership theories that define them. I have also learnt the need to have the leadership styles being compatible with the organization’s goals. This, I will apply in my career, especially since I am at the management level. Moreover, I learnt of the different development levels of the followers and their relation to delegation practices. Therefore, I can be able to assess myself, including my competence and commitment levels, and determine my development level. As a leader, I can also ensure effective delegation by applying this knowledge. This is also core to my personal improvement. Indeed, I also learnt what entails an effective delegation. Hence as a leader in future, I will apply the important aspects to my delegations, in order to ensure successful delegations. Ideally, I learnt that there are different leadership styles and I will apply this to understand my leaders in school and in the society. I also learnt of the different leadership theories and I will apply that in my education to understand leadership. Additionally, I leant about the compatibility of leadership styles and organization’s goal and I will apply this in my career to evaluate the best leadership styles for distinct organizations. More so, I learnt about different development levels and their relation to delegation practices and I will apply this knowledge in my career to delegate duties. In conclusion, I plan to practice the effective leader leadership style in the future because to achieve the organization’s goals one requires leading effectively in all aspects. Indeed, effectiveness is subtle in leadership. References Baldoni, J. (2006). Ray Kroc: A Salesman's Leader. Retrieved from: http://www.lc21.com/directions/thoughts1.html Bennis, W. (2009). On Becoming a Leader. New York: Basic Books, 2009. Changing Minds. (2013). Leadership theories. Retrieved from: http://changingminds.org/disciplines/leadership/theories/leadership_theories.htm Kroc, K. (1978). Grinding it out: the making of McDonald's. London: Berkley Publishing Corp., 1978. Leadership-Central.com. (2013). Hersey-Blanchard Situational Leadership Theory. Retrieved from: http://www.leadership-central.com/situational-leadership-theory.html#axzz2Uorft86N Mattern, J. (2011). Ray Kroc: McDonald's Restaurants Builder. ABDO, 2011. McDonald's. (2013). A brief history of McDonald's .Retrieved from: http://www.mcspotlight.org/company/company_history.html McDonald's. (2013). Awards & Recognition. Retrieved from: http://www.aboutmcdonalds.com/mcd/our_company/awards_and_recognition.html McDonald's. (2013). Our Communities. Retrieved from: http://www.mcdonalds.com/us/en/our_story/our_communities.html. McDonald's. (2013). The History of the Golden Arches. Retrieved from: http://www.mcdonalds.ca/ca/en/our_story/our_history/ George, B., McLean, A. N., & Craig, N. (2008). Finding your true north: A personal guide. San Francisco, CA: Jossey-Bass. Miller, S., & Jargon, J. (2013). The Father of Chicken McNuggets. Retrieved from: http://online.wsj.com/article/SB10001424127887323706704578230040695757514.html Mind Tools Ltd. (2013). Core Leadership Theories. Retrieved from: http://www.mindtools.com/pages/article/leadership-theories.htm Smith, A. (2009). Eating History: Thirty Turning Points in the Making of American Cuisine. Columbia: Columbia University Press, 2009. Read More