The document discusses the application of Henri Fayol's management principles at McDonald's, highlighting key principles such as division of work, authority and responsibility, discipline, and unity of command. McDonald's incorporates these principles to enhance efficiency, employee satisfaction, and operational effectiveness. The conclusion emphasizes that Fayol's management principles remain relevant and widely accepted in modern management practices.

1. PresentedBy:-PoojaAgarwal
Class:-XII(d)
Applicationof Henri Fayol’s
Principle of management by
McDonald’s

2. 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

3. 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

4. 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.

5. 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.

6. Unity of Direction-It implies that there shouldbe
one head and one plan for group of activities having
same objectives.
Mc Donald’s follows this principle as teams withthe
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 followedby Mc Donald’s as the
interests of one employee are not more important
than the interests of the group.

7. 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

8. 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.

9. discrimination among
the employees on the
basis of
religion,language,cast
e,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.

10. 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.

11. Conclusion
The 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.