Management Theories of Mcdonalds free essay sample

McDonald’s and other fast food industry restaurant’s validate their effective use of management theory through their exemplary company standings throughout the world. Frederick Winslow Taylor, known as the father of scientific management, developed a theory for what he believes to be the most effective form of management. Three aspects of this theory include educating your employees, setting a standard for performing each task, and encouraging high production through incentives; all of which are used by McDonald’s today. Taylor believes that the employees need to be trained on how to be the most productive at each given task. At McDonald’s, each entry level employee must go through specific training before entering the work force. In order to advance to the next level of management, the employees must complete a course intended directly for their new level of management. In these courses, the employees learn to use leadership to develop high performance, get individuals and teams to use their full potential, and to improve profits and sales. We will write a custom essay sample on Management Theories of Mcdonalds or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page For employees that are serious about their management education, McDonald’s offers extensive training at their university called Hamburger University. These individuals first attend McDonald’s regional training centers then attend Hamburger University where they lean how to effectively run a business using McDonald’s classical management style. Also, Taylor believes that every individual should be trained how to perform each task in the most efficient style. In McDonald’s, every task is performed using a distinct method. For example, every cashier at McDonald’s has a set of standard questions including â€Å"Small, Medium, or Large† and â€Å"Would you like fries with that? † McDonald’s also uses a register to confirm, assemble, and check the order; in addition to using computer ystems to transmit the order into the holding bins for the kitchens use. In order to increase efficiency, McDonald’s has a specific technique for making its food. For example, the patties are seared on each side and then removed from the grilled when the system indicates, followed by the condiments bei ng applied in premeasured quantities, and the sandwich being wrapped. All of these tasks are performed by different individuals in order to make each task as effective as possible. Finally, Taylor believes in encouraging high production though incentives. Giving a set wage will only encourage low production because the employee is receiving the same payment regardless of their productive rate. In order to fix this problem, Taylor encouraged creating incentives through a reward system. McDonald’s motivates its employees through programs such as Employee of the Month, Company car program, and the recognition program; where the employees receive acknowledgement for their hard work. McDonald’s also includes programs that encourage motivated work through access to gift cards, free food, and merchandise. Lastly, McDonald’s will give top employees â€Å"bonuses based on the performance of their business and their individual performance† (Thinking Made Easy, 2010). Through educating, having a standard for performing tasks, and encouraging high production through incentives; McDonald’s demonstrates numerous aspects of Taylor’s scientific Management. Fayol believes his form of classical management principles demonstrates the most effective use of management. Two aspects of Fayol’s theory that McDonald’s uses today include division of labor and the use of authority. In respect to division of labor, Fayol believes that each employee should know exactly what their job entails and every item being created should have its own, particular area. At McDonald’s, the complete operation is divided into a number of set tasks, including cooking operations and operations of the deep fryer, where each food item has its own machine. Then, each person is assigned to carry out a given task where it is â€Å"laid out for maximum efficiency and minimum movement of the employees† (BIzcovering, 2008). Fayol also believes in authority and having a unity of command. McDonald’s establishes its authority through its managers. When entering McDonald’s, the employee begins as a floor crew member, then advance to trainee floor, then second assistant, and so on, until reaching Restaurant manager. Furthermore, in order to create a unity of command, McDonald’s uses a system where each employee reports to one particular manager. That particular manager then reports to the branch manager. McDonald’s demonstrates Fayol’s management principles through its use of division of labor and authority. In the fast food industry, the most common form of management style is classical management. Along with McDonald’s, Burger King and KFC also focus their management style on classical management. When these company’s begin to spread throughout the country, in order to stay successful, they must have a standard system for their productions and be able to keep all of their employees properly motivated. Thus, the use of classical management has become a very appropriate style of management for these companies, allowing for their success throughout the United States. Through its use of classical management, McDonald’s has established itself among the world’s most valuable brands. By ensuring that every McDonald’s franchise uses classical management, the company’s effective approach gained them the title of â€Å"leading share holder for the globally branded fast food segment of restaurants† (Thinking Made Easy, 2010). Because McDonald’s franchise is wide spread, using classical management ensures that every task performed is performed identically to every other franchise and in the most efficient manner possible. McDonald’s ranks number 1 in food service, receiving 27 million in revenue in 2011 which is up 12. 2 percent from the year before. McDonald’s use of classical management, along with Burger King and KFC, continues to prove appropriate and effective through its world and financial standings. Through different aspects of Taylor’s scientific management and Fayol’s management principles, McDonald’s has established classical management as its main form of management.