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Institutionalism

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Institutionalism
Whenever I enter a McDonald’s restaurant I am driven by, of course, hunger and some certain expectations. Therefore you can find all expectations one has about eating at McDonald’s in the word that characterizes those kinds of restaurants: Fast-Food. The “Fast” has in my point of view two dimensions. The food should be cooked quickly and I want to be served quite fast at the counter. Furthermore it is easy for the costumer to make a fast choice due to the big picture above the counters showing all kinds of food they offer. The “Food” on the other side should always have the same quality and roughly the same shape as shown on the finger-liking tasty looking pictures above. In addition it should be warm and cooked freshly.
But looking back apparently something has changed with McDonald’s over the last few years. Not only that Ronald McDonald has stopped jumping around in TV commercials dancing happily around with children but also that there are a pack of new products. Now the TV spots show a farmer, who is a supplier of McDonald’s claiming that all potatoes processed to French fries are grown in Germany.
Up to this point I could not understand this change. When attending the second lecture talking about organizational designs this point became clear all the sudden: Institutionalism. This theory claims that companies decide according to what is expected from them and in order to have “legitimacy”. Consequently the organizations are shaped by a set of norms values and expectations. So I asked myself is following the expectations and beliefs of the society and acting legitimate the key success factor of McDonald’s?
According to this theory a change of society’s expectations and beliefs could be responsible for the transformation of McDonald’s. On the one hand the basic expectations people have to McDonald’s and its products (which I mentioned above) have only slightly changed. On the other hand the beliefs and attitude of people have changed quite severe and with that the business policy containing the norms and values of the firm. First people appreciate sustainability nowadays more than ever before. Therefore McDonalds changed its official values emphasizing the importance of sustainability for the company. Moreover they changed the production system of the foods’ ingredients coming allegedly mostly from Germany. Second there is a certain trend to individualism in today’s society which can be observed in many products from cars to clothes. McDonald’s contributes to this change by broadening the product range from Burgers to cake and from coffee to ice. Third people want to feel homelike when getting something to eat. Also this trend had an impact on McDonalds following the institutionalism theory. As a result you can find Nürnberger sausages and German apple pie in each McDonald’s in Germany.
An important point in the theory of institutionalism is to really have the organization shaped by the environment and change only the things that the environment wants to be changed and keep the rest. In the example of McDonalds this would be the standardized, universal norms characterizing their restaurants all over the world. Every restaurant looks the same and even all the details from the clothing to the deep fat fryer are standardized. That’s the way people want McDonald’s to be, that’s what they expect.
The global success of McDonald’s operating very close to the principles of the theory of institutionalism, whether the management is aware of this theory’s existence or not, implies that it seems to tell something true about successful organizations’ design.

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