PRINCIPLE OF MANAGEMENT ( MC DONALD'S)

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FRONT PAGE

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CERTIFICATE

This is to certify that I... Kanika student of XII here by certify that the project was undertaken by me as a part of CBSE curriculum. The data used in the project has been downloaded by me from the websites. of the company and therefore I take it to be authentic and reliable.

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Acknowledgment

I am very thankful to Studies teacher my Business who helped

me in analyzing the applications. of Principles. It made my concepts more clear, enhanced my knowledge and helped me in realising the importance of it.

I am also thankful to CBSE for giving. me such an amazing opportunity to make this and giving suitable. instructions.

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McDonald's Corporation

Type

Industry

Genre

founded

Headquarter

Area served

Founders

Public

Restaurants fast food restaurants

May 15, 1940 Chicago, illinois, US

World wide

Richard and Maurice McDonald (ast restaurant)

Ray Kroc (Founder of

McDonald's Corp.

Enrique Hernandez

(chairman), Chris Kemp

(president and CEO

Hamburgers wraps. chicken french fries. soft drinks milkshake Salads desserts. pancake coffee. -breakfast

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HENRY FAYOL

Henri Fayol was a French mining engineer. mining executive, author and director of mines who developed a general theory of business administration that is often called Fayolism. He and his colleagues developed this theory independently of scientic manage ment but roughly contemporaneously. He is widely acknowledge as founder of modern management method.

Born

29-July 1841

Died

19-Nov 1925 French

Nationality Occupation

Economist, Engineer Enterpreneur Fayolism

known for Books

The founder of modern Management Method

General and indutrial Management, Henri fayol's Classic General and Indus trial Management.

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Division of Work

Authority and Responsibility

Discipline

•Unity of Command Unity of Direction

Subordination of Individual interest into general Interest

Remuneration

Centralisation and Decentralisation

Scalar chain

Oxdex

Equity

Stability of Personnel

Initiatieve

Espirit De Corps

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My. Observation

PRINCIPLE 1. DIVISION of WORK

Mc Donald's certainly practices this principle of management as its employees are divided in department that match their capabilities

and expertise in order to produce efficiently and effectively I observed that there are

proper departments according to their

Specialisation

. HR Department

Marketing Department Sales Department

Payroll Department

•Accounts Department IT Department etc.

Hence Division of lalork is followed by McD.

Principle: 1 #Division of Work

DIVISION OF WORK

According to Fayol all work should be divi ded into small tasks or unit and instead of assigning the whole work to one...

Work should be alloted according to the capability, qualification and experience...

Each employce should be trained in the job which he has to perform, this is called division of work.

This helps in specialisation and results in inc reased output by making employees more efficient

Example: If a person with a degres of MBA 1. finance is assigned finance work as finance head, so daily clealing in the same subject will make him specialised and increase his expers encs This will lead to effective and efficient result.

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What I observed in Mc Donald's

This principle is also practiced in Mc Donald's as each employee or subordinate has given authority to perform their respective tasks. Thus the subordinates are able to work in more effective. and efficient way and the manager of the branch has the authority to give orders to its subordinates.

Hence, this principle is practised in Me.D.

AUTHORITY

Authority means power to take decision and right In give orders to the subordinates and Responsibility is the obligation to perform given tack within a specified period of time.

According to the fayalism, there should be balance between Authority and Responsibility.

Excess of authority without matching responsibility "may bring negetive results and misuse of power

Manager

Responsibility

Authority

Employee

Excess of responsibility without matching authority will not allow them to do their tarks in effective and efficient way

The production manager will only can Cxample: achieve the target if he is provided with job of producing the required product with given authority of wring the

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WHAT I OBSERVED IN MC. DONALD'S

All the employeer of McDonald's clearly. understand their tasks. The jobs are well defined and have a clear understanding of Company's vision. I obsewed that all the workers lemployees honour their commitments without any prejudice towards one onother.

Hence, This principle is practiced by Mc.-D.

DISCIPLINE

Discipline is action or inaction that is regulated to be in accordance (or to achieve accord) with a particular system of governance. Discipline is commonly applied to regulating human and animal behavior to its society or environment it belongs. In the academic and professional words a discipline is a specific branch of knowledge, learning, or practice. Discipline can be a set of expectations that are required by any governing entity including the self, groups, classes, fields, industries

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My observation

I observed that in Mc Donald's all the jobs are well defined and stromlined such that each employee reports a part cular manager and each individual subordinate receiver order from only one. superior and this helps in smooth werking in blanch

Hence, this principle is practised in Mc. D.

MANAGER

UNITY OF COMMAND

According to the Fayolism there should be one and only one boss for every individual employee...

This punciple days that in any formal organisation One individual subordinate should receive order from only one superior for gimooth functioning..

If not followed authority will be undermined, discipline will be in danger, order will be disturbed, stability will be threatened and loyality of workers will be denied

One subordinate will not be able to carry out order of two bass at the same time properly. Efficiency and effectiveness of both the work will decrease and

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My Observation

As I observed in Mc Donald's the disection flows from top level to bottom. clearly. Each unit of Mc Donald's is having common objectives. All departments individualy directed in one direction

It helps in coordination and avoids confusion among employees. So there facis clearly shows that :

Unity of Direction principle is followed and practiced by Mc Donald's

Unity of Direction

According to fayor One head One Plon. It means one unit should have common objectives, so it can focus on one direction only."

It means that efforts of all employees and all department must be directed towards one direction that is achievement of organisation goal target

This principle leads to unity of action and better coordination

Duplication of efforts and confusion can be avoided by applying this principle

All the departments of the organisation should move towards the same objectives through Coordination and focused efforts.

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What g observed in Mc Donald's

I interviewed some of the employees. of Me Dohald's and come to know that at the time of training they were taught that the company's goal is more important than the interest of an individual. So employees here always give priority

to the Campony's interest and tasks.... Hence, ale can say that this principle is practiced in Mc Donald's.

Company Interest is superior then individual Interest.

Subordination of individual

interest to general interest

The interests of an organisation should take priority Over the interest of any individual employer.

Every marker has some individual interest for werking in a company

The interest of the group / company will supersede the interest of individual.

Large interest of statahalders and workers are more important then the interest of any person

Workers (employees want manimum wagu/salaver whereas company wants more earning profit, There interests clash

Company benefit is always more then employees interest

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My Observations. in Mc Donald's

As the branch monager told me that principle of Remuneration of employees is prevailing these. Employees of Mc Donald's are paid on hourly basis Mc Donald's also conducts pay and reward policy ado each employee here gets adequali amount of salary in relation the to

their job and given tasks. Hence Remuneration principle is also. practised by Mc Donald's

Remuneration of Personnel

Remuneration should be just fair and equitable.

Remuneration of work should be fair to both employees and employers.

Employees should be paid fair wages, which should give atleast a reasonable estandard of living.

At the same time it should be within the paying capacity of company.

If employees will leave company, appointment of o new employee will be costly process due to recruit ment, selection and training to new employee.

Fair and just payment will create and maintain Lagenial atmosphere and good relations of workers. and management..

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My observation about Mc Donald's

Mc Donald's has a mechanistic organised structure Authority is highly centeralised and the tasks and rules are clearly. especified. Yet every employee listens, communicates freely and honestly & acts in the company's interest

We can say Mc Donald's is not completely centralised but it is predominently centralised structure

Centralisation & Decentralisation

According to Fayol company must not be completely centralised or completely decentralised but their must be combination of both centralised and Lalecentralised.

Centralisation means concentration of authorities at the top level of organisation and it involves top level only.

Degree of centralisation will depend on the circum stances in which the company is working...

On the other hand Decentralisation means dispersal of authority to the lower levels of organisation and it involves roles up to lower level.

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INhat 9 came to

know about Mc Donald's

The principle of Scalare Chain profounded by Layol is followed and practiced by me Donald's employees. The lower level manager eshout always keep informing the under level manager about the tasks and activities. Hence, this principle is adequately follow by Mc Donald's.

gtar Chain a

Scalar Chain

The formal lines of authority from higher to lowest hanks are known as Seatas chain.

According to fagol Organisations should have a chain of authority and communication that runs from top to bottom and should be followed by managers and glubordinates

It should not be violated except under acule

Femergencies

GANG PLANK If there's eu an emergency thin F can directly communicate with "P" which is the shorter route and

is not delayed. This\

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What 9 came to know

about Mc Donald's

3

When I visited the Mc Donald's brach and 9 observed that the manager treat their subordinates, that includes

maintanance staff, training staff and the crew members equally.

Mc Donald's provides equal opportunities to their employees, there is no dicesimi nation and partial behaviour You are paid according to your performance.

Equity

According to Fayol This principel focus on kindli ness and justice in the behavior of monages toward workers

Good sense and experience are needed to ensure fairness to all employees.

There should be no duesimination and impartial on the basis of sex, caste religion language belief or nationality etc with any employee by their manager

Equal opportunities should be available for everyone in company to rise

The workers performing similar (xample: jobs should be remunerate at ssome wage rate

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UNITY IS STRENGTH

Mc Donald's inculcates team spirit among • employees. This principle is undoubtedly followed by McDonald's As per the information provided by the branch manager, the reason why it is successful today is harmony and unity within the organisation. So we can. definetly way the 'Espirit De Corps is followed by Mc Donald's.

Espirit de Corps

Management should promote team spirit of unity and harmony among the employees.

this will bring coordination and cooperation in organisation

A manager should replace I' with 'we' in all conversations with the employees to strengthen team spirit

This will give rise to mutual trust and belong. ingness among team members.

It will minimize the case of penallies in any organisation...

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Conclusion

The 14 principles profounded by Henry Fayol are mostly. applicable to Mc Donald's

So according to me fayoli principles exist in Mc Donald's and this is the reason behind the success of Mc Donald's and

its better productivity, efficiency and effectiveness. is the result of applying

Henry Fayol's principles in their organisation.

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