This document discusses Henri Fayol's 14 principles of management and how they apply to McDonald's. It provides background on Fayol and how he developed a general theory of business administration. It then discusses each of Fayol's 14 principles in turn, with examples of how McDonald's employs those principles. The conclusion states that McDonald's success is partly due to following Fayol's principles since its founding.

1. UMESH MALI
FYBMS SEM-2 ROLL NO- 66 DIV-A
BHAVANS COLLEGE 2016-17
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HENRI FAYOL’S
14 PRINCIPLES OF MANAGEMENT
WITH RESPECT TO

2. OVERVIEW
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 About HENRY FAYOL
 About Mcdonald’s
 14 principles of management
 Conclusion
 Reference

3. HENRY FAYOL (1841-1925)
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 Henri Fayol (Istanbul, 29
July 1841 – Paris, 19
November 1925) .
 He developed a general
theory of business
administration that is
often called Fayolism.
 “Industrial and General
Administration” 1916.

4. Mcdonald’s
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 It was founded in 1940 as a barbecue restaurant operated
by Richard and Maurice McDonald. In 1948.
 The first McDonald's franchise opened in Phoenix,
Arizona in 1953 using the arches logo.
 serving approximately 68 million customers daily in 119
countries across approximately 36,615 outlets
https://www.google.co.in/search?q=macdonald&biw=1366&bih=662&source=lnms&tbm=isch&sa=X&ved=0ahUKEwiM_
mrqMnRAhWCr48KHe6ZBroQ_AUIBygC#imgrc=qrcYf15zclmf4M%3A

5. 1. DIVISON OF WORK:
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 The work in organisation
must be divided among
individuals and
departments.
 It leads to specialisation.
 improvement in quality,
quantity, and reduction
in cost
https://www.google.co.in/search?q=mcdonald%27s+management

6. 2. AUTHORITY AND RESPONSIBILITY
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 Authority is the right to
give orders and obtain
obedience, and
responsibility is the
corollary of authority.
http://www.referenceforbusiness.com/management/L
og-Mar/Management-Levels.html

7. 3. DISCIPLINE
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 Employees must obey and
respect the rules that
govern the organization.
 Good discipline is the result
of effective leadership,
regulation.

8. 4. UNITY OF COMMAND
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 Every employee should
receive orders from only
one superior or behalf of
the superior.
 Every employee should
follow orders from superior
as per the instructions.

9. 5. UNITY OF DIRECTION
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 directed by one manager
using one plan for
achievement of one
common goal.
 Particular activity must be
directed with single plan.

10. 6. SUBORDINATION OF INTEREST
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 Every employee or a group
should work in the interest
of the organisation.
 They should not work for
their own self interest.

11. 7. REMUNERATION
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 All Workers must be paid a
fair wage for their services.
 Value of the employee.

12. 8. CENTRALISATION
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 degree to which
subordinates are involved
in decision making.
 There should be a central
power to guide and take
decisions.

13. 9. SCALAR CHAIN
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 Communications should
follow this chain.
 Chain can be broken as per
the situation or demand in
interest of the organisation.

14. 10. ORDER
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 This principle is concerned
with systematic
arrangement of men,
machine, material etc.
 There should be a specific
place for every employee
in an organization.

15. 11. EQUITY
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 Managers should be kind
and fair to their
subordinates.
 There must not be partiality
in transfers, promotions,
etc.

16. 12. STABILITY OF TENURE
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 Employee should not be
temporary for long period
of time.
 Employee should be made
permanent so that they do
not leave the organisation.

17. 13. INITIATIVE
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 Superior must sacrifice his
own vanity to encourage
and inspire those under
him to show initiative.
 Employees who are
allowed to originate and
carry out plans will exert
high levels of effort.

18. 14. ESPRIT DE CORPS
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 Promoting team spirit will
build harmony and unity
within the organization.
 Loyalty, dedication and
commitment.

19. CONCLUSION
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 Henry fayol’s all 14 principles are important to
control an organisation.
 They helps to improve manage organisation with
control, status, positive results.
 McDonald’s follows this all 14 principles from the
beginning, resulted McDonald’s is the one of the
famous and most suggested fast food restaurant in
the glob.

20. REFERENCE
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 Principles of management textbook (manan
prakashan).
 www.google.com/principlesofmanagement
 https://en.wikipedia.org/wiki/McDonald's
 https://en.wikipedia.org/wiki/Henri_Fayol
 https://en.wikipedia.org/wiki/Fayolism

21. …..THANK YOU…..
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