Mcdonald's Contingency Theory Case Study

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They refer to Fielder’s contingency theory, path-goal theory, Hersey and Blanchard’s Situational Leadership theory, and Vroom and Yetton’s normative decision model. Each theory is distinctive and different from each other. In the case of McDonald’s, it practices each theory to a certain degree. Fieldler’s contingency theory states that in order to maximize work group performance, leaders must be matched to the right leadership situation (Williams, 2007). Different managers have different styles that do not change and are better suited for different tasks. Relationship and task oriented leaders can be distributed depending on the task structure, leader’s position power and their relations with members. In McDonald’s, restaurant managers are mostly task oriented who handle structured task like overseeing sales and controlling profitability. Area (frontline) managers however are more relationship oriented and specialize in unstructured task since the restaurant promotes good working relationship and friendship among each other. These leaders are more qualified as they need to be patient in teaching and building a good relationship with their employees. How well a manager does and how well he is being used to the fullest depends on the situation he is placed in. In path-goal theory, it is stated that leaders can increase subordinate satisfaction and performance by clarifying and clearing the paths to goals, and by increasing the number and kinds of rewards available

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