Principles of Henri Fayol applied in McDonald’s

Theory Principles of Management” have been a significant influence on modern management theory. His practical list of principles helped early 20th century managers learn how to organize and interact with their employees in a productive way. Although the 12 Principles aren’t widely used today, they can still offer guidance for today’s managers. Many of the principles are now considered to be common sense, but at the time they were revolutionary concepts for organizational management. Payola’s work was one of the flirts comprehensive statements of a general theory of management.

He proposed that there were five primary functions of management and 12 principles of management. Payola’s work has stood the test of time and has been shown to be relevant and appropriate to contemporary management.

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McDonald's Case Study

12 Principles of Management

  1. Division of Work – Work should be divided among individuals and groups to ensure that effort and attention are focused on special portions of the task.
  2. Authority- Managers must have the authority to give orders, but they must also keep in mind that with authority comes responsibility
  3. Disciple- Employees must obey unity of Command- Workers should receive orders from only one manager.
  4. Unity of Direction- The entire organization should be moving towards a common objective in a common direction.
  5. General Interest- The Interests of one person should not take priority over the Interests of the organization as a whole. I
  6. Centralization – This is a matter of degree depending on the condition of the business and the quality of its personnel
  7. Scalar Chain -Scalar chain refers to the number of levels in the hierarchy from the ultimate authority to the lowest level in the organization. It should not be over- stretched and consist of too-many levels.
  8. Order- For the sake of efficiency and coordination, all materials and people related to a specific kind of work should be treated as equally as possible.
  9. Equity- All employees should be treated as equally as possible.
  10. Stability of Tenure of Personnel- Employees work better if Job security and career progress are assured to them.
  11. Initiative – Management should take steps to encourage workers
  12. Spirit De Corps- Promoting team spirit will build harmony and unity within the organization 4functions of management
  • To forecast and plan- Examining the future and drawing up a plan of action. The elements of strategy.
  •  To organize- Build up the structure, both material and human, of the undertaking.
  • To command or direct- Maintain the activity among the personnel.
  •  To coordinate- Binding together, unifying and harmonize all activity and effort