McDonald’s is successful because of the continuous equipment updating, improvement on serving time, and in finding more ways to satisfy customers. McDonald has a unique value chain because of the rare need to depend upon other companies for supplies. The firm owns nearly every portion of the value chain. McDonald's have their warehouses within a reasonable proximity to all of their restaurants. This, along with owning the warehouses allows the restaurants to get all of the needs met in one shipment and not deal with multiple suppliers.
The scientific management theory is being considered as a continuous improvement even in the 21st century. The scientific management theory is used by managers to improve efficiency and productivity. Managers analyze the basic tasks that must be done, use time and motion studies to eliminate wasted motions, hire the best qualified workers for the job, train them in a proper manner and also paying wage incentives for the increased output. Scientific management encouraged managers to seek the “one best way” to complete a task. (Stoner, Yetton ,Craig, & Johnston, 1994).
Those are some formal examples to management theory and below topics will be discussed about the several formal approaches to management theory. (www.historyofmanagement.com) 6 | P a g e 3.1. Classical Approach (1800-1920) Classical approach of management declares that the body of management thoughts based on the belief that employees have only economical and physical needs and the social needs and need for job satisfaction either does not exist or are unimportant. So this can be gained by management theoretical research to improve the management art which is an essential requirement. The qualities of managers can be sharpened by on the job training and formal education in business schools to develop them and also according to the managers’ experiences in several business organizations, the principles or the guidelines can be originated.
1.1 Scientific Management Scientific management was mainly developed by Frederick Taylor (1856-1915) and is the name given to the principles and practices that evolved out of the work of Frederick Taylor and his followers. Four basic parts of a series of ideas developed by Taylor are as follows: i) Each person’s job should be divided up into sections and a scientific way to perform each section should be determined. ii) Workers should be selected scientifically and trained to do the work in the prescribed
By using scientific management managers will assign employees to jobs that will suit them best and will have the greatest level of productivity in which will lead so both the manager and employee will be happy so there will be a good atmosphere in the business. Assigning employees to jobs that suit them best will also increase their motivation. When using scientific management managers monitor the performance of their employees which will increase employees performance and the manager will also have greater involvement in the business. Scientific management also
INTRIDUCTION This essay is related to principles of scientific management, human relation and system theories. The main aim of these theories is to achieve effective organisation outcomes. The theorists can be divided into two groups they are practicing manager and social scientist. The practice managers create principle depending on their practical experience of the management the importance of the practice management (scientific management) is division of work at each stage and controlling the authorities. It focuses on the work rather than human behaviour at work.
1. Scientific Management – F.W Taylor: Frederick W. Taylor was recognized as the father of the "scientific management" theory. Taylor 's Scientific Management Theory is not just a collection of purely technical principles and practices, but also the cooperation and harmonization of fundamental relationships between people and machines and techniques; between people in the production process, especially between the manager and the employee. Thanks to this theory applied in the industrial enterprises, the labor productivity has increased dramatically; The final result is high profitability, both employers and workers are high income. His scientific approach requires detailed observation and measurement of routine work, in order to find the best working way.
Scientific management, which is one of the four main paradigms of the twentieth century, is based upon rational control. In other words, Taylorism is a result of defined methods and procedures, everything is calculated and, in this theory, benefits are an important element of the organization. In fact, the organization was seen as a ‘’machine’’. Before going deeper with the scientific management itself, let’s try to understand why Taylor wanted to bring these new concepts and ideas into the organizations. In his time, Taylor reported that high productivity was rarely achieved.
Taylor “Scientific management means knowing exactly what you want me to do and seeing they do it in the best way and cheapest way”. (Principles of management and administration, D. chandra bose, 2012) Principles of scientific management: Taylor’s scientific management is based in the following principles 1. Replacement of old thumb rule
As well as that, McDonald also operates their business ethically, meaning that they are equal and truthful to their employees. They also provide a chance and development in their employee’s skills by training to provide them the experiences to become more successful. “….Our goal is to have people within our organization working and living to reach their full potential. We believe that leaders hold themselves accountable for learning about, valuing, and respecting individuals on both sides of the counter”. This means that McDonald uses scientific method to encourage their workers to succeed to their utmost potential, by giving them an internal program at Hamburger University, to educate their employees to become successful managers not only to run the multi-million dollar businesses but also in