CEO of McDonald’s causes cascading effect
McDonald’s Chief People Officer Resigns After CEO Fired for Violating Company Policy
In recent news, the CEO of McDonald’s was forced to resign after a series of events. This has caused a cascading effect because employees tend to follow after what their CEO does. Once they observe that the CEO is no longer a part of the company, they must make adjustments to deal with the changes that come to the company. An obvious solution to this is to just leave the company and work somewhere else that is more similar to the environment which the company had with the previous CEO in place. This is exactly what’s happening at McDonalds, not with the workers in the individual restaurant, but with the other executives of the company who have expressed significant interest in leaving the company.
This cascading effect is most similar to an information based cascade – when one’s CEO leaves the company, it provides the information to those under the CEO that there will be major changes in the way things operate. It also provides the information that there may be changes in pay and other benefits that employees enjoy by being at a certain company.
While this article is specific to McDonald’s and what is being observed at the company due to recent events, this is not unique to McDonald’s. This has of course happened at other major companies, such as Facebook during the recent allegations against Mark Zuckerberg and Facebook in general. While many people often say that the CEO of a company does not influence the culture of the workers, it is actually a major component of how a company operates and that is reflected in these cascades.