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Principles Of Management Project On McDonald’s

PREFACE

I chose to visit McDonald’s, New Delhi. It took me 3-4 visits of McDonald’s to observe and analyze the application of Fayol 14 principles of management. For this, it took an interview with the Branch Manager, a survey from employees of McDonald’s, and also from the customer visiting, to know that is their respective view regarding management. It also gave me an idea of the customer’s expectations and viewed concerning management. It was a nice experience, I must mention, because it was a knowledge gaining and a partial project.

INTRODUCTION TO MCDONALD’S

The history of McDonald’s is an overview of the original restaurant and the chain. The McDonald family moved from Manchester, New Hampshire to Hollywood, California in the late 1930s, were brothers Richard and Maurice McDonald began working as set movers and handymen at Motion – Picture studies. In 1937, their father Patrick McDonald opened “The Airdrome,” a food stand, on Huntington Drive near Monrovia Airport in the Los Angeles country city of Monrovia, California, with hot dogs being one of the first items sold.

Hamburgers were later added to the menu at the cost of ten cents with all-you-can-drink orange juice at five cents. In 1940, Maurice and Richard moved the entire building 40 miles (64 km) east, to West 14th and 1398 North East Streets in San Bernardino, California. The restaurant was renamed “McDonald’s” Bar-B-Que’ and has 25 menu items, mostly barbecue.

In October 1948, after the McDonald brothers realized that most of their profits came from selling hamburgers, they closed down their successful carhop drive-in to establish.

HENRI FAYOL

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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.

BIRTH: 29th July 1841.

DIED: 19th November 1925

Paris, France

EDUCATION: École Nationale supérieure des mines de Saint – Étienne (1860)

He and his colleagues developed this theory independently of scientific management! But roughly contemporaneously.

14 PRINCIPLES AND THEIR APPLICATIONS

DIVISION OF WORK

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The division of work means every department should become best in their work and should be divided their specialized work.

Example: In McDonald, there are some department as below-

(a) Packing Department

(b) Makers of foodstuff in McDonald’s.

Application in McDonald

McDonald’s follows the principle of division of work.

Organization

  • Finance Debt.
  • HR Dept.
  • Sales Dept.
  • Marketing Dept.
  • Production Dept.

AUTHORITY AND RESPONSIBILITY

pinciples Of Management Project On McDonald's, Principles Of Management Project On McDonald’s, HSC Projects, HSC Projects

Authority is the power to give orders and get it obeyed, or in other words, it is the power to make decisions.

Responsibility means a state of being accountable or answerable for any obligation, trust, debt, or something or in other words, and it means an obligation to complete a job assigned on time and in the best way.

Mcdonalds has given both authority and responsibility to the employees.

Employee: I have to sell 20.000 products, but if a customer asks for a discount, I need to take permission from the boss.

DISCIPLINE

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A sense of discipline is needed in all employees at all levels in the organization for the smooth functioning of the organization as well as the achievement of the organizational objectives. Some employees inherently possess this quality. Still, some employees need to be induced with a sense of discipline, and the manager must give proper attention to this type o individual to maintain discipline.

Application in McDonald’s

McDonald’s has complete discipline in the organization, and also every employee tries to maintain it.

UNITY OF COMMAND

pinciples Of Management Project On McDonald's, Principles Of Management Project On McDonald’s, HSC Projects, HSC Projects

The principle of unity of command is applied throughout the world today in the organization ranging from the military, government bureaucracies, and companies, from small businesses up to multinational corporations. Learning about the unity of command will help you understand how a great many private and public organizations operate and may make you a better employee or manager.

Application in McDonald’s

McDonald’s has one and only one superior for every employee.

UNITY OF DIRECTION

Management principle based on the concept that all team members involved in the same activities must share the same objective. Team members all work towards a common goal using the same plan to reach the shared objective.

Application in McDonald’s

In McDonald’s, the structure consists of different kinds of employees from different backgrounds with different styles. Employer unifies all their efforts to lead towards the common direction.

SUBORDINATION

of Individual interest to General Interest

Subordination of individual interest to general interest is the principle where any individual’s interest that conflicts with an organizational interest must be subordinated to the interests of the organization,

Application in McDonald’s

Every employee’s working pattern is towards the goal of an organization rather than their personal goal.

REMUNERATION

Every individual joins the organization to earn carrying his bread and butter; Fayol is of the aim that each employee must get fair remuneration so that the employee, as well as the owner, gets the same amount of satisfaction.

Application in McDonald’s

Fair remuneration is given to the employees of McDonald’s. They are provided with the equivalent amount of reward for their work.

CENTRALISATION AND DECENTRALISATION

The two teams “centralization and decentralization refer to a philosophy of organization and management that focuses on either the selective concentration (centralization) or the dispersal (decentralization) of authority within the structure of an organization. The question of where authority resides with such a structure is of the crucial importance of organization.

Application in McDonald’s

In McDonald’s, there is a balance between both in McDonald’s kind of big organization for smooth working.

SCALAR CHAIN

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A scalar chain is the formal line of authority that moves from highest to lowest rank in a straight line. This chain specifies the route through which the information is to be communicated to the desired person.

Fayol also stated that there should be no overlapping of steps during communication progress.

ORDER

Order means anything and everything should be kept at its respective place. It means the right arrangement of things and activities. There should be a proper order for everything. It facilitates smooth working and avoids wastage of resources.

Application In McDonald’s

All the material has its specified place and is kept at its place. This makes it easier and saves time for the employees to work.

EQUITY

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The principle of equity often occurs in the core values of an organization. According to Henri Fayol, employees must be treated kindly and equally. Employees must be in the right place in the organization to do things right!

Application in McDonald’s

All the employees of McDonald’s are treated in the same manner. They are not discriminated against based on gender, caste, sex, religion, etc. This brings harmony in their work.

STABILITY OF PERSONNEL

It is the principle stating that for any organization to such smoothly, personnel (especially managerial personnel) must not frequently enter and exit the organization. Consequently, an organization must take steps to obtain as much stability in its management and workforce as possible.

Application in McDonald’s

In McDonald’s, the employer does not back their staff by providing the feeling of job security.

INITIATIVE

Henri Fayol argued that with this management principle, employees should be allowed to express new ideas. This encourages interest and involvement and creates added values for the company. Employee initiatives are a source of strength for the organization, according to Henri Fayol.

ESPIRIT DE CORPS

pinciples Of Management Project On McDonald's, Principles Of Management Project On McDonald’s, HSC Projects, HSC Projects
Esprit De Corps Group Loyalty People Graphic Concept

Espirit De Corps stands for striving for the involvement and unity of the employees. Managers are responsible for the development of morale in the workplace, individually and in the area of communication.

It contributes to the development of the culture and creates an atmosphere of mutual trust and understanding.

Application In McDonald’s

McDonald’s is doing good because of the key factor of ‘team spirit. Doing work in team spirit can do a miracle. Mc Donalds better productivity, efficiency & effectiveness is the result of using Fayol’s Principle in their works.

Check-List

  • Division of Work
  • Authority & Responsibility
  • Discipline
  • Unity of Command
  • Unity of Direction
  • Subordination of Individual Interest to General Interest
  • Remuneration
  • Centralisation & Decentralisation
  • Scalar chain
  • Order
  • Equity
  • Stability of Personnel
  • Initiative
  • Espirit De Corps

CONCLUSION

It is evident from the analysis of the project, Mcdonalds apply almost all general principles of Henri Fayol.

It pays great attention to its valued customers by providing high-quality beverages in a pleasant environment. Employees are respected, valued, recognized, and professionally groomed by various incentives.

It meets all norms and respects the sentiments of people and dews of land.

McDonald’s has proved that it is essential for an organization is concentrate on its resources viz people, environment, and the theories of organizational behavior.

CERTIFICATE

This is to certify that the present project report is the outcome of my efforts, and my indebtedness to other works/ publications has been duly acknowledged at the relevant places.

It has not been submitted in part or full for any other diploma or degree of any University

Teacher’s                                                                                                                                               Examiner’s

Signature                                                                                                                                                    Signature

ACKNOWLEDGMENT

I am very thankful to my business Studies teacher, who helped in analyzing the application of principles of management. It made my concepts more clear, enhanced my skills, and helped me realize the importance of principles of Management. I am also thankful to CBSE for giving me an opportunity of making and giving suitable guidelines for the project.

BIBLIOGRAPHY

  • https://www.mcdonalds.com.
  • http://business alligator.com/medonalds-success–story-2technique
  • http://www.google.com/search?q=mcdonalds & wiki & clients =ms-android-micro mass – Lourie/nms=5 il

QUESTIONNAIRES

NAME                                                              

AGE

Gender

  • Male
  • Female

How long have you been working here?

  • Less than six months
  • Six months one year
  • More than one year

What is your monthly income?

  • 5000-10000
  • 10000-50000
  • Above 50000

Do you have the rights to make decisions in your job?

  • Yes
  • No
  • No response

Do you receive orders from more than one superior?

  • Yes
  • No
  • Sometimes

Have you served this company for more than one year?

  • Yes
  • No
  • Sometimes

Is the burden of work divided among the employees?

  • Yes
  • No
  • Rarely

Do you give topmost priority to the interest of the company?

  • Yes
  • No
  • No response

Are you satisfied with the salary you are getting?

  • Yes
  • No
  • No response

Do you face frequent transfers or terminations?

  • Yes
  • No
  • Rarely

About Nawaf Gantare

Nawaf, An Twentieth-something savvy Web Designer / Social Media Manager / SEO Strategist based In India. He is Passionate about Web Designing, Programming, And Web Security. He is currently learning Management Studies and is in the Second Year

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