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McDonald’s in Jordan: A Case Study of International Business Organization in

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Published in The Proceedings of the Tenth International
Conference of Public Private Sectors Partnerships,
University of Algarve, Faro-Portugal, 4-7 April, 2004

McDonald’s in Jordan: A Case Study of

International Business Organization in a
Developing Country

Prepared by
Adel M. AL –Rasheed, PhD
Associate Professor
Department of Business Administration
Yarmouk University
E–mail:arasheed@yu.edu.jo

Acknowledgment: The author would like to thank management students

Mr. Laith Zumot and Mr. Yazin Haddad from Yarmouk
University, Jordan for their efforts into conducting the interviews
and transcribing them.
 Abstract
This study attempts to explore key managerial systems and
organizational practices of McDonald’s the largest international fast food
organization with reference to its operations in Jordan.
The findings which basically derived from seven in–depth
interviews with managers at McDonald’s in Jordan confirm the
polycentric orientation of McDonald’s regarding its strategy, its HRM, its
marketing and its operations and production management.
Specific lessons which demonstrate better management practices
and the know-how of an international business organization were
deduced based on McDonald’s experience in Jordan and were considered
for developing Jordanian (and similar developing countries’) managerial
systems and organizational practices. These include: The significant role
of planning in directing the enterprise and to guard for its security; the
significant role of HRM in building the organization capabilities and its
competitive advantage; the creation of positive perception towards the
low perceived jobs in society; equal opportunities between men and
women at work; and some grounds of the institutionalization of better
management practices such as: Managers’ role model to enhance their
accountability towards subordinates; training audit to verify skills
building; and strict adherence to rules and regulations to curb the adverse
impact of the traditional managerial practices such as wasta.

Key words: McDonald’s in Jordan, International Management,

Methodology, International HRM, Better Management Practices.
 McDonald’s in Jordan: A Case Study of International Business
Organization in a Developing Country

Introduction:
Conducting business internationally has flourished and has become
a norm following globalization and subsequent liberalization policies.
Research attempts to explore the multifaceted and the intricate features of
management and organization of international businesses. Most of
research is conducted in developed countries and a few research is
conducted in developing ones. A few research is also conducted on
McDonald’s the well known and the largest international fast food
organization. Moreover, research related to international business
management in Jordan is rare and recent.
Within the confines of the widely acknowledged theoretical
framework “globalization vis-à-vis localization”, this study aims at
exploring key issues related to McDonald’s management and
organization in Jordan. These issues include McDonad’s strategy, its
marketing policies, its human resource management policies and its
operations and production management systems.
The study also aims at assessing McDonald’s role in transplanting
the “know-how” and “better management practices” into the Jordanian
managerial environment. Moreover, the study draws attention to how
McDonald’s attempts to mitigate the implications derived from
implementing developed (advanced) managerial practices in developing
managerial context.
Theoretical background:
Theoritical arguments related to conducting business
internationally are linked to Perlmutter’s (1969) framework. In this
framework three broad tendencies of handling business internationally are
addressed: Polycentric which refers to the application of similar
managerial practices by International Business Organizations (IBO’s) at
their subsidiaries; ethnocentric which refers to the application of varied
managerial practices at subsidiaries; geocentric which refers to the

1
application of combination of polycentric and ethnocentric managerial
practices.
In parallel terms and with reference to Human Resource
Management (HRM), Tayler and Beechler (1996) identified three generic
strategic international HRM orientations that firms may pursue when
setting up overseas subsidiaries (or affiliates): Adaptive which indicates
the adaptation of HRM systems at affiliates in order to meet the demands
of the environment of the host country; exportive which indicates to the
exportation of the wholsale of the parent’s firm HRM systems to overseas
affiliates; integrative which indicates the integration of the “best
practices” of both local and home country for applying them throughout
the organization.
In parallel conceptualization, McGaughy and De Cieri (1999)
adopted the convergence and divergence hypothesis to view IBO’s
human resource management activities abroad. The convergence
hypothesis argues that similar managerial practices emerge worldwide as
a result of the impact of industrialization regardless of cultural and
political differences. Factors such as technological convergence, the
growing importance of multinational enterprises and the diffusion of
international corporate standards like ISO 9000 contribute to isomorphic
tendencies which lead to the application of similar managerial practices
(Muller 1994; Meyer and Scott 1992; quoted in Woywode 2002: 497). On
the other hand, the divergence hypothesis postulates that managerial
practices would vary according to cultural and institutional differences.
Institutional differences at the national level cause persistence
heterogeneity among organizations across countries, even if they operate
in the same industry and are subject to the same external influences
(Whitly and Kristensen 1996; quoted in Woywode 2002: 497).
In a relevant argument, Hoecklin (1995) differentiated between low
end products and high end products. Impact of cultural diversity on the
former such as fast food is limited according to this classification.
In a relevant argument too, Bartlett and Ghoshal (2001)
differentiated three types of business organizations. International
represents polycentric or exportive/convergence tendencies; multinational

2
represents ethnocentric or adaptive/divergence tendencies; transnational
represents geocentric or integrative (a combination of polycentric and
ethnocentric tendencies).
Related Research
Related to McDonald’s(1): Royle (1995) compared McDonald’s strategy
related to worker involvement in decision making and unionization in
U.K. and Germany subsidiaries. The study revealed that McDonald’s
HRM policies in the two countries were polycentric and were subject to
highly centralized control. McDonald’s operations in the two countries
were heavily dependent on automation, part time and shift worker. The
study concluded that the philosophy of McDonald’s particularly its anti-
unionization policy can be interpreted from the perspective of its
polycentric (international) policies of management and organization (2).
Solomon’s (1996) study which is based on interviews with senior
managers at McDonald’s confirmed the polycentric features of
McDonald’s HRM policies which are represented in similar procedures in
recruitment, training, part time employment and promotion from within.
Moreover, the study pointed out that these policies are substantiated by
strong global culture that advocates quality, cleanliness and customer
satisfaction.
Vikhanski and Puffer’s (1993) study also revealed that
McDonald’s utilized its global HRM policies at Moscow branch
regarding recruitment, training and development, performance appraisal
and the flexible working patterns.
Related to Jordan: Said and McDonald’s (2001) study identified formal
and informal constraints that face Foreign Direct Investment (FDI) in
Jordan. The study was conducted on 15 multinational companies of
Western and Japanese nationalities operating in Jordan (3). It applied a
simple format of yes or no type of questionnaire which contained general
questions and interviews too. The study revealed that unlike these
companies preference for fully owned subsidiaries, the mainstream of the
activities of these companies was based on licensing and franchising. The
study attributed this form of investment to the formal constraints

3
represented in red tape and other bureaucratic procedures and to the
informal constraints such as tribalism and family connections.
Al-Rasheed and Qwasmeh’s (2003) study investigated the role of
the strategic partner French Telecom in the management development
process at Jordan Telecom. The study revealed that the partnership was
successful and contributed to the development of Jordanian managers’
competencies. These include: Skills of time management, performance
appraisal, job design, training programmes design; leadership and
supervision styles; learning skills such as: Self development, response to
change and knowledge exchange; participation and cooperation.
Moreover, the study revealed that Jordanian managers’ abilities and
expertise contributed to the success of the partnership.
In the same context, Al-Husan and James’ (2003) study revealed
that the strategic partnerships at Jordan Cement Co. and Water Co.
employed expatriates who utilized HRM strategies in order to reform
management systems and to achieve more business-and-target-oriented
companies. The reforms covered performance appraisal, selection
procedures, linking pay to performance, training and development and
decentralized management structure.
In another recent study, Al-Rasheed’s (2004) study assessed the
organizational culture of Jordanian business organizations. The study
revealed that the type of organizational culture prevailing in these
organizations is moderate. That is to say it relatively concentrates on
results, job, profession, open communications, tight control and
pragmatic conduct. In other words, it does not contradict with the
implementation of developed managerial practices.
Methodology
This study is an exploratory and descriptive one. It applies the case
study methodology. As mentioned in the introduction, the choice of
McDonald’s as the subject of the study derived from the fact that a few
research conducted on this largest international fast food organization.
Another reason behind choosing McDonald’s as the subject of the study
is represented in its full scale operations in Jordan which enable to deal
with various organizational and managerial issues.

4
 Based on the general notion of pertinent literature which postulates
that international fast food organizations tend to apply polycentric
strategies overseas and as supported by cited research (Royle 1995; 2000;
Vikhanski and Puffer 1993; Solomon 1996) that McDonald’s applies
similar international management and organization policies, the central
inquiry of the current study attempts to explore how McDonald’s
polycentric policies in regard to: Strategy, human resource management,
marketing and operations and production management are implemented
in practice in a developing country like Jordan.
Several attempts were made to convince the management of
McDonald’s in Jordan to participate in the study. A conditional
agreement was reached to. Only a limited number of interviews with
designated managers was allowed. No questionnaires were allowed. No
access to other employees rather than the designated managers for the
interviews was allowed. No tape recording of the interviews. Schedule of
the interviews had to be flexible according to managers’ available time.
Interviewed managers preserve the right not to answer what they would
consider sensitive questions.
Only seven interviews were conducted with McDonald’s managers
over four months in 2001. Four scheduled interviews were cancelled by
McDonald’s management due to non availability of time. Each interview
took more than two hours. Interviews were conducted by two trained
management students in Arabic in the company premises. In each
interview, one student was asking questions and was running the
dialogue. The second student was taking notes. Each interview was
transcribed immediately after interviewing in order to complete the
missing points.
The interviews took the form of semi–structured type. Most of the
relevant aspects of each of the four main dimensions raised in the
interviews were based on priori (ex-ante) basis. A few number of these
aspects were reached to based on posteriori (ex-post) basis. Relevance of
these aspects to local practices particularly human resource management,
the know-how perspective, their relevance to international management

5
literature and McDonald’s management readiness to respond were
decisive factors in determining them.
The overall aspects of the four main dimensions are as follows:
Strategy: Local recruitment policy, interaction with local society, the
competitive advantage, the transfer of experience from one
country to another, design of restaurant and cultural background
as a basis of overseas assignment.
Human resource management: Recruitment and selection, wages,
training, performance appraisal, promotion and incentives,
termination of servies, and gender issues.
Marketing: Acceptance of fast food meals in Jordanian society,
promotion policies and modifications of products to suit
Jordanian consumers’ tastes.
Operations and production management: Product design and production
systems.
Exploration of above issues was basically based on interviewees’
quotations as well as on the two student interviewers’ observations. Cite
tours were arranged for the two students at McDonald’s premises.
The content of the interviews was flexible. Some of the above
mentioned aspects were raised with all the seven managers. Other aspects
were raised with a number of the seven managers depending on the
relevance of these aspects to the interviewed managers’ functions and
specialization.
Table no. (1) below provides some key characteristics of the
interviewed managers. Managers names are disguised to comply with
research norms.
Place Table (1) about here
McDonald’s Worldwide
McDonald’s is an American corporate established in 1937 by two
brothers in California, USA and began franchising in 1955. The first
outlet outside USA was established in Canada in 1967. The first outlet in
the Middle East was established in Moroco in 1993.
McDonald is the largest international fast food organization in the
world. It was estimated that number of employees of whom almost 70%

6
are temporary would be about 2,000,000 in the year 2000 (Solomon,
1996). It was estimated that more than 54% of McDonald revenues come
from overseas operations (Solomon, 1996).
McDonald’s is known for its strong corporate culture which is
reflected in the similar managerial style and management practices
worldwide. Centralized policies and regulations are applied globally and
cover employees’ recruitment, job design, strategy, product design and
outlet design (Royle 1995; Ritzer 1996; Solomon 1996).
It is estimated that over 70% of McDonald’s restaurants inside
USA and abroad are operated on franchising basis (McDonald Fact File
1998). It is estimated that 40,000,000 are served by McDonald’s daily
worldwide (McDonald’s Fact File 1998).
Ritzer (1996) views McDonald’s organization as a rational
bureaucracy that exhibits efficiency, calculability, predictability and
control. According to the author, McDonald’s enjoys a strong image
among people worldwide and is viewed as a phenomenon. That is to say
people recognize McDonald’s way of doing business.
McDonald’s is well known for its tendency for secrecy (Royle
2000). In comparison with leading international business organizations,
McDonald’s is less researched(4). Based on the outcome of available
research and McDonald’s own publications, training, education,
management development, health and safety, preserving environment and
involvement in community are emphasized in McDonald’s policies.
From the perspective of a developing country like Jordan such policies
can be viewed as a vehicle of transplanting the know-how, building
preferred managerial systems and demonstrating better management
practices.
McDonald’s in Jordan
Although McDonald’s started its official operations in Jordan in
1996. However, McDonald’s was registered as a tourist company in 1976
which indicates its early thinking to operate in Jordan when preferred
conditions exist.
McDonald’s selected Mr. Ahmed Amroush as a franchisee in
Jordan. Mr Armoush is a well established Jordanian business man. The

7
first outlet was established in Amman the capital in 1996. Number of
outlets are eight now: Six are in Amman, one in Irbid and one in Aqaba.
Numbers of employees is around 300. The substantial majority of them
are temporary. Number of managers is around 30 which reflects a narrow
scope of supervision (see table no. (2) below).
Place Table no. (2) about here
International competitors of McDonald’s in Jordan comprise:
Burger King, Chili House, Quick Burger and Kentucky. These operate
beside fast food local competitors.
McDonald’s advertising policy in Jordan depends on television and
brochures. Its advertising campaign, as in many parts of the world, targets
children and other members of the family. A wide range of meals is
offered beside the main hamburger meal.
As revealed by the current study, McDonald’s organization in
Jordan is highly formalized. It applies centralized policies and regulations
covering activities of human resource management, marketing, operations
and strategy. Moreover, McDonald’s commitment to the Jordanian
community is reflected in its recruiting policy. All employees except one
manager are Jordanian.
The study findings
The strategy dimension:
McDonald’s strategy in Jordan was formulated based on primarily
studies covering the political stability, economic ability, the selection of
the franchisee and the assessment of the location of the outlets. As a top
level manager put it:
“First McDonald’s views the political situation and the political stability
in the country it enters. The selection of the country is not arbitrary but is
based on careful studies. Despite the turbulent Middle East, all conditions for
entry in Jordan exist. The franchisee had also been selected after a careful
scrutiny. His commercial reputations and his history as a successful business
man were checked. Income of Jordanian individuals was also studied. How
many people go out to take a meal outside was also estimated. The readiness of
people to go out in the first place was also looked into …... and other relevant
issues were also taken into consideration.”

8
 The local recruiting policy constitutes a component in the strategy
formulation and implementation. It aims at enhancing McDonald’s
commitment and loyalty to the local community. As the head manager
pointed out:
“The registration of McDonald’s in Jordan took the form of a tourist
agency and no body oblige it to recruit local employees . It can recruit guest
workers(5) at less wages. But McDonald’s is keen to benefit the local
community and contributes to the reduction of the unemployment in the
country”.

The interaction with local community has weight in the strategy

building which aims at ensuring McDonald’s social commitment. This
took the form of free parties to the poor and orphans and the participation
in the school’s various activities. The head manager indicated:
“The first customers served at McDonald’s in Jordan free of charge
were charity orphans. This happens in each new restaurant when it opens”.

The competitive advantage of McDonald’s strategy emphasizes the

quality of human resources, their training, their motivation and
development. Hence, employees who guarantee the quality of products,
cleanness, and customer satisfaction. As a restaurant manager put it:
“Human resources are the key component of competitive advantage.
Because they provide customers with quality, cleanness and service based on
their experiences. This makes customers return. They who make customers
happy and satisfied. Our competitors offer a bigger and cheaper meal but they
do not have distinguished manpower like us. We respect our employees and
we treat them as internal customers. If we care for them we guarantee that they
serve very well our external customers”.
Another restaurant manager added:
“The staff of managers and employees are the generators of McDonald’s
competitive advantage. This staff enjoy high caliber, excellent training,
experiences and other distinct features. They care for themselves therefore
they are distinguished. The entire absence of favourism rule out any chance for
non qualified persons at McDonald’s in Jordan”.

The strategy also accounts on McDonald’s global experiences and

the lessons derived from that. The transfer of the global experiences took

9
the form of worldwide regular managerial meetings and regional
conferences. A top level manager explained:
“Yes, experiences are exchanged and are beneficial. This is one of the
advantages of an international company. For example, if McDonald’s has not
successfully experienced the opening of branches in commercial complexes in
more than one country, Amman Mall branch will not be opened in Jordan in
such a speed. In general, feedbacks are taken from all McDonald’s branches in
the globe in order to benefit from them”.

The restaurant design at McDonald’s is also a strategic issue. As

the interviews revealed, it substantiates McDonald’s image throughout
the unified form which facilitates marketing. However, the interior design
is usually modified to suit the local particularities. A top level manager
elaborated:
“Each McDonald’s restaurant concentrates on a specific idea. The
Hashimate Square restaurant concentrates on tourism and it contains antiques
pictures because its customers are tourists. Irbid branch the most elegant
concentrates on family. Jordan University branch concentrates on youth. Al-
Swayfiya branch concentrates on Rock–and-Roll music because it is in an
upper class area and its customers are youth. The external shape of all of these
restaurants is particular to McDonald’s. It represents a marketing style. Any
person in Irbid, for example, sees the restaurant knows it is McDonald’s even
without seeing the M letter or the sign. This provides the image for
McDonald’s”.
The cultural background of managers is not given particular
attention in McDonald’s strategy. The interviewed managers disregarded
the relationship between managers cultural background and their
assignment in a particular country. They attribute the decision of the
assignment to performance, qualifications and promotion. This
phenomenon is a reflection of McDonald’s highly polycentric
(international) orientation as illustrated in the theoretical background part.
A top level manager who is Jordanian and has an American nationality (6)
commented:
“The first Arab country McDonald’s entered was Morocco. The reason
for transferring me to Morocco was my experience and my performance. The
move aimed at developing my skills and competencies. It is not the cultural
background”.

10
Human Resource Management (HRM) dimension:
International management literature gives particular attention to
HRM function due to its importance in achieving other managerial
functions and because of its significant role in building the competitive
advantage. From the perspective of the transfer of managerial practices,
HRM enable more than other functions the demonstration of the know-
how and the learning of better management practices. This becomes
more important when it is viewed from a developing managerial context
like the Jordanian, particularly when we know that Jordanian HRM
practices are characterized as traditional and suffer from the lack of
institutionalization (Al-Rasheed 2000; 2001; 2003b) (7).
These considerations in addition to the willingness of the
interviewed managers to provide more views about this dimension led to
give it wider space in the presentation and to deal with it under subtitles
as follows:
Recruitment and selection: At McDonald’s, announcement for new
employees begin through existing employees who recommend potential
persons to be recruited. This aims at enhancing employees loyalty and to
save costs. Announcement also target customers. If no response public
media is used.
Selection is based on written exams, interviews and testing
candidates’ compatibility to McDonald’s policies regardless of other
factors. The human resource manager explained:
“Selection of employees is based on choosing the best and the most
capable after careful scrutiny of applications and after interviewing. We do not
hire any one for his/her religion or age or colour or gender or university degree
or English proficiency. We only view his/her compatibility to McDonald’s
specifications”.
Favourism (wasta or mediation)(8) has no impact on the selection
process at McDonald’s. The second assistant manager clarified:
“Wasta contradicts with performance. If a person is your relative you
tend to be biased toward her/him at work. I have learned not to mediate for
anybody neither at McDonald’s nor in other places. I can only recommend
somebody. But as a manager I do not push for his/her assignment. There is no

11
wasta at McDonlad’s, there are regulations and procedures which rule out
wasta”.
Wages: McDonald’s implements a competitive wage policy in Jordan. It
is based on substantial pay differences according to management levels.
The human resource manager commented:
“The gaps between levels of salaries are set up to reflect competition
among employees, motivate them and contribute to their management
development. In addition to that level of salaries at McDonald’s is the highest
among food organizations in Jordan …. I challenge”. (9)

Training: Training covers temporary and permanent employees. Various

training programs are available for permanent staff particularly those who
are promoted to managerial positions. These include the opportunity to
study at McDonald’s hamburger university in the USA. Training covers
all related areas of jobs and diversified training methods are used. The
human resource manager illustrated the training process of the crew:
“After acquainting themselves with McDonald’s employees’ guidebook
and are introduced to the general atmosphere of McDonald’s, employees take a
3/30 training programme. This means 3 main locations at work in 30 days.
Then the trainee is assigned to a coach who guides him/her at work. The
period of training is considered for compensation purposes. Each trainee has to
stick to him/her coach in order to avoid confusion of what is being learned. At
McDonald’s the new employee is viewed as crude material which can be
shaped in the form we wish. Training comprises conduct and tasks. It
comprises simple things such as shaving and expands until it covers
administrative issues. All possible training methods are implemented: courses,
lectures, role play, cases. All trainees exchange roles with each others until
they become competent in all the tasks they are trained at”.

Training at McDonald’s is reviewed regularly to insure high level

of competence at each stage of learning. Training audit is conducted by
the supervisor of human resource and training function from time to time
who assesses the accurate application of the training program. A
restaurant manager explained:
“I conduct audit on training. I go to the concerned restaurant regularly
and I compare the activities of training month by month via the computer to
assess the training results based on a specified program. The training program

12
of the concerned month is closed after reaching complete outcome and the
training program of the following month starts”.

The sexual harassment section of McDonald’s training program is

exempted when delivered to Jordanian employees. This modification is
made because of the conception that it is of minimal significance and
because of the thinking that it might adversely affect Jordanian girls
trainees who belong to a conservative society. However, research
revealed that sexual harassment is one of the managerial problems
women employees suffer from in the Jordanian public sector (AL–
Adayleh 1998).
Performance appraisal: Evaluation of employees performance is
conducted regularly every six months after the primarily three months at
the beginning. Evaluation is based on job description and assigned tasks.
It comprises all employees and managers. The grading of non managerial
employees is classified into four categories and are rewarded accordingly.
These are: outstanding, excellent, good and need developments whom are
given one month to improve performance and re-evaluated after that.
Promotion and incentives: Criteria of promotion at McDonald’s
comprises employees attitudes for learning, cooperation, developing
others and performance. The human resource manager substantiated:
“No manager at McDonald’s is promoted if he/she does not train and
develop his/her subordinates. Our slogan at McDonald’s is: “You will be
developed through developing others”.

Financial and non financial incentives at McDonald’s are given

close attention because of the strong believe in their role in performance.
Hence they enhance employees loyalty, commitment and motivation.
Incentives include: A trip for each restaurant employees every 3 months
and regular prizes for the best smile, the cooperative and the most
elegant. Particular prizes are also given to those who best serve
customers at the crowd time, and to the employee of the month. Parties
are arranged to celebrate employees’ birthdays. The human resource
manager elaborated:

13
 “At McDonald’s there is a motivating agenda for employees in each
month for each restaurant. A special budget is assigned for it. This comprises
merit medal and badges, gifts, birthdays presents, the prize of the employee of
the month… etc. These prizes are delivered in the monthly meeting in addition
to the trip each 3 months. The aim of all of these is to break the obstacles
between employees, to assure the team work spirit and to avoid boredom”.
Termination of services: The termination policy at McDonald’s is
restricted to two reasons: Stealing and desire for leaving the job which are
studied and required changes if necessary are applied. A restaurant
manager explained:
“The performance of an employee or a manager is not a reason for
terminating his/her service. A second and a third chance are offered for
improving performance. Training is offered after diagnosing reasons of low
performance. Termination is only applied if there is stealing”.
Gender issues: Jordanian society has conservative views towards women
workers especially at places such as restaurants. In general, Jordanian
society used not to view working at restaurants favourably. Because of
the misconception that jobs at restaurants are either serving food or dish
washing. Therefore, people used to feel ashamed if others would know
that they are working at a restaurant.
A quotation from the second assistant manager illustrated the
society’s low view towards working at a restaurant:
“Once, I was working at the car service department. A girl whom I
knew from the university was driving her car into the restaurant. She is the
daughter of an owner of a famous restaurant in Irbid. She asked me what are
you doing here? I replied I am working here. She said with a surprise in a
restaurant! I replied yes. I added: The restaurant afforded the study at private
universities for some people (he meant the girl). She stopped talking after that”.
McDonald’s helped in creating the appropriate environment for
respecting work at restaurants particularly for women in Jordan. A
restaurant manager illustrated:
“At every opening of a new branch, families of all employees (males
and females) are invited. Families are introduced to managers of the restaurant.
Families of the girls who will work at McDonald’s are briefed of its
environment where their daughters presume their duties. Through such parties

14
and relevant explanations society starts accepting women workers at
restaurants”.
McDonald’s influences people’s views particularly the working
girls’ families through: The family atmosphere, equal treatment between
men and girls(10), strict regulations which deal with sexual harassment or
misused of power, the open door policy to discuss arising problems and
the modification of working hours to suit social circumstances such as
limiting working hours for girls until 10 p.m.
Another way to attract girls to work at McDonald’s is through the
recruiting policy. As the human resource manager illustrated:
“A woman manager at McDonald’s gives lectures with the cooperation
of a university to the female students to introduce McDonald’s, its working
environment and the preferred conditions of work at it in order to attract female
students”.
Moreover, McDonald’s offers management development
opportunities for women on equal basis with men regarding promotion
and career path.
The marketing dimension:
Marketing beside strategy and financial matters are not allowed to
be discussed by employees at McDonald’s. Interviewed managers hardly
gave some informative information.
The interviews revealed that Jordanian society accepts fast food
meals at a high degree. The reasons for that is attributed by the
interviewed managers to Jordanian youth preference for foreign things
and because of the quality products and services, cleanness and facilities
available for children. The operations and production manager explained:
“Jordanian youth is attracted by non Arabic names. McDonald’s was
able to offer some things different from food at home or any other restaurants.
There are also places for children to play and employees do care for them. This
provides an excellent feeling and comfort and create an incentive for coming
again to McDonald’s”.
McDonald’s prime target is the children and the youth. Children
bring their families back to the restaurant . A restaurant manager put it
like this:

15
 “McDonald’s concentrates on children because they who cry and bring
their families back”.
At McDonald’s, the prime conveyer of advertising message is the
employees. International image of McDonald’s is also adapted through
proper advertising messages to suit Jordanian society. Advertising
concentrates on the meal satisfaction, its compatibility with the Arabic
taste and on quality.
Values of McDonald’s competitive advantage are conveyed in the
advertising messages. A restaurant manager illustrated:
“McDonald’s provides beside the hamburger a variety of services: The
clean atmosphere, the comfort, the elegant place, heating at winter and air
conditioning at summer, television, children play places, clean toilettes … in
addition to the excellent treatment and the continuos smile which differentiates
us from others”.
The globalized product with the same ingredients and shape is a
key foundation at McDonald’s and no modification on the main meals are
done. This enhances McDonald’s image and helps in quality control. A
restaurant manager illustrated:
“The global product came as a result of thorough and continuous studies
since 1954. The global product provides customer satisfaction and constitute a
competitive advantage. It enables to keep high quality product which convinces
customers”.
Operations and production management dimension:
Quality and cleanliness represents two key values at McDonald’s.
Criteria of training, control and performance evaluation assure adherence
to these two key values. Moreover, the computerized machines and
instruments and the standardized procedures in the production process are
also set up to assure these two values. In other words, quality and
cleanness are institutionalized at McDonald’s. The operation and
production manager elaborated:
“There is a basic training on the conditions and specifications techniques
of cleanness at McDonald’s. There is a criteria for evaluating performance
based on cleanness. Each manager at McDonald’s is required like any other
employees to enhance the criteria of cleanness. It would be a big problem if a

16
manager passes through a piece of paper on the ground and does not collect it
… even the general manager has to do that”.
The computerized machines provide the control required for
assuring high quality of the meal when are prepared by employees. This
is supported by the high level of employees training on all tasks and their
acquaintance of quality criteria and how to keep it. Standards of quality
are also supported by relevant employees’ performance evaluation.
McDonald’s worldwide chain facilitates the continuos provision of
quality products. A restaurant manager clarified:
“Once McDonald’s in Jordan was short of fish. We got to know that the
shipment from the supplier in South African would be delayed. A manager
traveled to South Africa and brought a quantity of fish from McDonald’s
branches there. This cannot happen if production quality is not highly assured.
These are the benefits of international organization too”.
The design of the hamburger is highly standardized. This exhibits
the benefits of standardized global products which comprise the
enhancement of image, comfort, familiarity and quality. Managers at
McDonald’s view this as competitive advantage of their organization. A
restaurant manager explained:
“If a customer enters to a McDoanld’s outlet in Jordan and is not
satisfied, he/she will not repeat it again at any other outlet worldwide.
Therefore, products specifications and measures at McDonald’s are accurately
calculated based on constant criteria in order to achieve the highest level of
customers satisfaction. You will find the same meal with the same taste and
the same ingredients in America and in Jordan”.
The quality control of products and services is also assured by non
announced visits of McDonald’s international inspectors.
Summary and conclusion
Despite the turbulent Middle East and the unstable circumstances
surrounding its operations, McDonald’s in Jordan represents a successful
international enterprise. Indications of this success comprise: Eight
outlets in less than eight years, profitable operations (11) and the
employment of about 300 Jordanian employees. The indications of
success also comprise two prizes of excellence at the Middle East region

17
level(12). One is for the best operations and production system and the
other is for the best competitor.
Factors which can be deduced in order to interpret this success
include: Jordanian people acceptance of fast food meals; McDonald’s
international expertise; advantageously global product derived basically
from the limited impact of cultural diversity on fast food industry;
capable Jordanian employees who perform in a business environment that
has moderate organizational culture and that enables successful strategic
partnerships; and facilitating governmental regulations(13).
In line with the outcome of the reviewed research that McDonald’s
adopts a polycentric (international) orientation, the findings of the current
study also reveal that McDonald’s in Jordan applies global managerial
policies and practices regarding its strategy, its human resource
management (HRM), its marketing and its operations and production
management.
The global policies and practices include: Recruitment policy
based on locals; concentration on quality, cleanness and customer
satisfaction; outlet design; HRM policies concerning recruitment,
training, performance appraisal, promotions and termination of services;
equal opportunities for men and women; advertising policies; product
design and production systems and procedures.
Within the confines of the exploratory and tentative nature of the
current study and from the perspective of better management practices
and the know–how of an international business organization (IBO), and
based on the outcome of in-depth interviews, specific lessons can be
deduced from McDonald’s experience in Jordan which can help in the
development of Jordanian (and similar developing countries’) managerial
systems and organizational practices, and which can enhance the
institutionalization of better management practices.
These include: The importance of planning and the required
primarily studies for an effective direction of the enterprise; the important
role of HRM in building the organization capabilities and its competitive
advantage; the role of social responsibility in achieving marketing
objectives; how to create positive perception towards work in places such
as restaurants –which suffer from the society’s low view–particularly for
women workers; how to provide proper atmosphere and facilities to

18
attract customers; how to build managerial systems and norms that
mitigate the impact of the disadvantageously managerial practices such as
wasta; the importance of managers’ accountability towards developing
subordinates’ capabilities and their relevant role model; how to enhance
equal opportunities at work between men and women; the role of
incentives in creating employees’ loyalty and commitment and in creating
team spirit; the role of training audit in institutionalizing the process of
the development of employees’ skills and capabilities; and the importance
of the strict compliance with rules and regulations in order to
institutionalize intended managerial practices.

19
Table no. (1) : Key characteristics of the seven interviewed managers.
Management Job title Age Years of Social Education
level experience status
1 Top Operations & 45 19 Married Bsc. Electric
Production engineering
manager
2 Top HR and 29 4 Married Bsc. Business
Training Administration
manager
3 Middle Head manager 27 4 Single Bsc.
Economics
4 Middle Restaurant 28 4 Single Secondary
manager certificate
5 Middle Restaurant 27 4 Single Bsc.
manager Economics
6 Middle Restaurant 27 4 Single Bsc. Hotel
manager management
7 Supervisory Second 24 1 Single Bsc. Business
assistant Administration
manager
Notes:
 All managers are Jordanian.
 Manager no. (1) holds American nationality too.
 All managers except no. (1) and (7) receive their basic training at
McDonald regional training center in Egypt.
 Managers no. (1) and (7) received their training in USA.

20
Table no.(2): Distribution of employees at McDonald’s outlets in Jordan
Hashmite Abdullah Sweyfiya Abdoun Amman The Irbid Aqaba
Square Qousheh Mall University
Store Mgr - 1 1 1 1 1 1 1
1st Assistant - 1 1 - - - 1 -
2nd Assistant 1 - 1 1 2 - -
Full-time Swing Mgr 2 2 2 2 2 3
Part time Swing Mgr 1 1 1 1 3 1 1
Full-time Crew – Chief - 1 - - - - - 1
Part-time Crew Chief 1 3 2 2 1 3 2 1
Trainer 1 5 6 3 3 4 6 1
Crew 5 32 17 10 11 16 23 8
Maintenance 1 1 - - 1 1 -
Star - 3 2 1 - 23 3 -
Source: Internal: A student who is working at McDonald’s.

21
 Footnotes
(1) It is to be noted that only three empirical studies conducted on McDonald’s were
cited by the author. Moreover, a review of more than 10 prominent international
and strategic management textbooks revealed that McDonald’s was not studied
based on a case study method similar to leading international organizations.
(2) Royle extended his study later and covered another eleven European countries.
These are: Austria, Belgium, Denmark, Finland, France, The Netherlands, Ireland,
Italy, Norway, Spain and Sweden. Similar findings to his original study’s
regarding the polycentric orientation of McDonald’s HRM policies were revealed.
For a detailed analysis of McDonald’s work norms in Europe, see Royle (2000).
(3) There were 42 American, 50 British and 4 Japanese international companies in
Jordan when the study was conducted.
(4) See note no. (1).
(5) There are about 800,000 Egyptian workers in Jordan.
(6) The general manager of McDonald’s in Jordan is also an Egyptian and has an
American nationality.
(7) In AL –Rasheed’s (2001) study which is based on empirical comparative
research, key traditional characteristics of management and organization at
Jordanian Business Organizations (JBO’s) were formulated and interpreted.
These include: Limited future orientation, personalized superior/subordinate
relationship, primitive human resource management policies and limited
opportunities for women managers. In AL–Rasheed’s (2000) study which is a
theoretical study, specific propositions to transform JBO’s from their traditional
stand to contemporary management and organization position were developed.
These include: Institutionalization, resource building, techniques modification,
management teaching innovation and progressive legislation related to human
resources. In AL–Rasheed’s (2003) study, the institutionalization proposition
with reference to human resource management (HRM) policies was empirically
tested. The study revealed that low to moderate level of institutionalization of
HRM policies prevails at Jordanian public and private organizations.
Recommendations to deal with this situation included the suggestion to conduct
comparative studies with developed countries in order to learn from their
experiences. Detailed discussions of above relevant arguments are contained in
these three studies.
(8) It is to be noted that wasta which reflects the role of the patronage system rather
than the institutional systems prevails in management practices in Jordan at both
public and private organizations level. This phenomenon attracted management
scholars (e.g. Cunningham and Sarayrah 1993) and books were written
revealing factors contributing to its formation and suggesting solutions to
minimize its negative impact at work. For a deeper insight which deals with
wasta and relevant societal structure in the Arab world, see Sharabi (1988).
( ) This perhaps was true before. A student who is working for McDonald’s declared
9

that some competitors of McDonald’s in Jordan like Burger King pay more
competitive wages nowadays. The lower pay according to the student is a key
factor behind the increasing number of resignations from McDonald’s nowadays.
(10) Girls connote the unmarried women in Jordan. The label of a woman is related
to married women only in the Jordanian/Arab culture. With a few exceptions,
girls who work at McDonald’s in Jordan. It is rarely to find a married woman
working at McDonald’s (or other restaurants) particularly at non managerial

22
 level (crew level). Hence restrictions on married women working at restaurants
are much tighter in Jordan.
(11) Source is the local press.
(12) Source is the local press.
(13) As confirmed by the interviewed managers. It is also to be noted that the
official opening of McDonald’s in Jordan was patronized by prince Faisal bin
AL–Hussain, the current king deputy.

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