Presented By:-Pooja AgarwalClass:-XII(d)

Application of Henri Fayol’s Principle of

management by McDonald’s

Henri Fayol(29 July 1841-19 November 1925) was a French industrialist. He joined a French Mining Company in 1860 as an engineer and rose to the position of its managing director in 1888.He contributed a lot in turning the future of the company. He retired in 1918.

Mc Donald’s Corporation is the world’s largest chain of hamburger fast food restaurant, serving around 64 million customer daily. The business began in 1940, with a restaurant opened by brothers Richard and Maurice McDonald.

Principles of Management• Division of Work• Authority and Responsibility• Discipline• Unity of Command• Unity of Direction• Subordination of Individual interest to General

interest• Remuneration of Employees• Centralisation and Decentralisation• Scalar Chain• Order• Equity• Stability of Personnel• Initiative• Espirit De Corps

Division of Work-It refers to dividing the work into compact jobs and allocating these compact jobs to different individuals.Mc Donald’s trains each employee to do one job, thus each becomes increasingly skilled and efficient.Authority and Responsibility-

According to this principle, there should be a proper balance between authority and responsibility.Managers in Mc Donald’s have authority to give orders and responsibility for the operation of the business.

Discipline-It refers to obedience to rules and regulations of the organisation,which is necessary for systematic working of the organization.Mc Donalds’s employees follow complete discipline to the rules and regulation prevailing in the franchise.

Unity of Command-According to this principle, each subordinate should receive orders and be accountable to one and only one superior.In Mc Donald’s employees have one direct supervisor.

Unity of Direction-It implies that there should be one head and one plan for group of activities having same objectives.Mc Donald’s follows this principle as teams with the same objectives work together.Subordination of Individual

Interest to General Interest-According to this principle, interest of the organization as a whole must prevail over the interest of the individuals or employees.This principle is followed by Mc Donald’s as the interests of one employee are not more important than the interests of the group.

Remuneration of Employees-According to this principle, overall pay and compensation should be fair to both employees and organization.Mc Donald’s is fair to all employees.Centralisation and

Decentralisation-According to this principle, there should be proper balance between centralisation and decentralisaton in the organization.Mc Donald’s follows a balanced policy of centralisation and decentralisation in which top level management only takes most significant decisions and the small decisions can be taken by lower level of management and its employees.

Scalar Chain-It is the chain of superiors ranging from the highest authority to the lowest level in the organization.In Mc Donald’s employees are aware of where they stand in the organization's hierarchy or chain of command.

Order-According to this principle, there should be a place for everything and everyone.The workplace facilities are clean, tidy and safe for employees in Mc Donald’s .i.e. everything has its place.

Equity-According to this principle, there should not be any discrimination among the employees on the basis of religion,language,caste,belief or nationality.This principle is applied in Mc Donald’s as managers are fair to their employees.

Stability of Personnel-According to this principle, there should be proper efforts to achieve stability and continuity of tenure of personnel.Managers of Mc Donald’s strive to minimize employee turnover.

Initiative-According to this principle, workers should be encouraged and given an opportunity to take some initiative in making and executing the plans.Mc Donald’s gives it employees the necessary level of freedom to create and carry out plans.Espirit De Corps-According to

this principle, management should take reasonable steps to develop a sense of belongingness and feeling of team spirit among employees.In Mc Donald’s managers strive to promote team spirit and unity.

ConclusionThe management principles suggested

by Fayol are universally accepted by modern authorities on management and are treated as valid even to this day. This is because these principles

are practical in nature and also result-oriented. These basic principles are useful for effective management of

business activities and thus are used by many companies.