Management Evolution: Ford and KFC Management Theories Analysis

This report examines the evolution of management, focusing on two prominent theories: Taylor's Scientific Management and Fayol's Administrative Management. It provides an executive summary outlining the significance of management in modern times, followed by a detailed analysis of each theory, including their benefits, limitations, and practical applications within organizations like Ford and KFC. The report delves into the core principles of each theory, such as Taylor's emphasis on efficiency and productivity through standardized processes and Fayol's focus on organizational structure and management functions. It evaluates the effectiveness of these theories, considering both their contributions to organizational success and their potential drawbacks, such as the exploitation of workers and the challenges of adapting to modern, dynamic business environments. The report concludes by highlighting the importance of effective management approaches for long-term business growth and provides recommendations for optimal implementation of these theories.

Running head: MANAGEMENT EVOLUTION
MANAGEMENT EVOLUTION
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Executive Summary:
The report throws light on the significance and evolution of management in the recent
times. The report elaborates on two different management theories and its application. The
theories benefits and limitations have been discussed. Organization using the two theories
namely, scientific theory and Administrative theory are Ford and KFC respectively. Furthermore
after analyzing the two theories proper recommendation has been provided. It has been proved
that effective management approach is the vital element for the growth of the business in the
long-run.

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Table of Contents
Theory 1: Taylor’s Scientific Management Theory........................................................................3
Benefits:...........................................................................................................................................3
Limitations:..................................................................................................................................4
Organization that adopted the theory:..........................................................................................4
Evaluation:...................................................................................................................................5
Theory 2: Fayol’s Administrative Management Theory.................................................................5
Benefits:.......................................................................................................................................5
Limitations:..................................................................................................................................6
Organization that adopted the theory:..........................................................................................6
Evaluation:...................................................................................................................................6
References:......................................................................................................................................8

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Theory 1: Taylor’s Scientific Management Theory
The theory of scientific management was initiated by Fredrick W. Taylor. This
management theory is applied for ascertaining the organizational workflow effectively. The main
objective related to scientific management is to increase the economic efficiency of the
organization and raise its labor productivity (Gafiyatullina et al 2015). In the recent times, this
theory is mostly applicable in the firms, where repetitive tasks are practiced. It helps in managing
the employees to achieve the business goals more effectively by implementing the theories. The
theory is well-defined set of rules needed by the managers and leaders to control the entity.
Taylor theory was first incorporated due to Henry Ford for his automobiles industry, Fords. The
principles helped in achieving the desired target as the rate of productivity of the worker’s
increased.
Benefits:
Pay system: Taylor’s scientific theory followed piece work pay method for the
employees. It helped in providing increased wages to the workers with higher outcome and
productivity. The incentive plans through piece wage system provides maximum satisfaction to
the employees (Kapur 2016).
Enhanced production: this scientific theory leads to improved and enhanced production
required for the business operations improvement (Powers 2014). This also led to harmonious
and cordial relationship between employees and the leaders.
Quick Decision-making: Taylor’s management theory facilitates effective and quick
decision making process for the organization.

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Efficient use of resources: the scientific theory provides adequate utilization of resources.
Moreover, increases the standards of the organization through technological developments.
Limitations:
Time consuming: This theory is very time consuming as the theory when adopted by the
organization requires enough time for improved standardization and specialization within the
organization (Meyers and van Woerkom 2014).
Huge capital requirements: the scientific theory is very costly moreover excess capital is
required for standardization as well as training of the workers in the organization.
Negligible bargaining: this approach practices piece work system for payment, hence the
chances of bargaining is low or negligible.
Organization that adopted the theory:
The reputed automobile industry, Ford adopted the theory that led to the growth of the
organization. The change in the techniques or process in the assembly line facilitated the
company in generating cars very quickly and at an affordable price. The change in the process of
assembly line through management principles of Taylors resulted in increased market demand
for Fords automobile industry. Moreover, this theory was first implied by Ford and leads to gain
recognition and approval all over the world (Ford.com. 2018). In the current times, the factories
managers also consider the significance of welfare of the factory employees. This has resulted in
strengthening the workers relationship in the factory. Furthermore, this also has led to increase in
team spirit and reliance among the employees for achieving the common goal. Ford applies
scientific management theory by solving the organizational issues by its rue of thumbs.

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Evaluation:
The scientific theory practices piece rate system, which enforces the employees to
perform their assigned task under unnecessary pressure. This leads to the exploitation of workers
to complete their tasks more fast (Ranjan 2017). Moreover, Taylor has laid more emphasis in
differentiating the planning process of its organization from their actions. It is advised that the
managers should plan more effectively by making realistic plan for their organizations.
Theory 2: Fayol’s Administrative Management Theory
This management theory was developed by Henry Fayol and this management model
describes the organizational interactions with its personnel. In the recent times, the business
organization regards Henry Fayol's classical theory as a vital guide that is responsible for the
proper guidance and management of the organization and its staff. Fayol’s management theory
consists of its 14 major principles that involve organizing, coordinating, planning and
controlling.
Benefits:
This theory is highly comprehensive administrative theory that relates to the efficient
management techniques. It helps in raising the efficiency and productivity within the business
structure. The main managerial function includes authority, discipline, centralization, division f
work and equity. Moreover, Fayol’s management theory facilitates major emphasis on the
controlling and management techniques through monitoring, forecasting and controlling. This
management theory ensures high success of an organization.

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Limitations:
In the recent times, it would be highly unwise to generalize the situations especially for
new and high- technology companies. As it become quite difficult to deal with the changes
according to their competitor’s products and services. This theory fails to recognize the
employee’s needs and wants that is unrelated to the organization. It assumes that the best and
effective measure to know the performance of its organization is through the workers
productivity (Gnanamkonda 2015). Moreover, this theory is still related to humans and it is quiet
natural for the individuals to commit mistakes to create unity that is related to management team.
Organization that adopted the theory:
KFC, one of the leading fast food restaurants in the world follows this Fayol’s principle
of management. KFC changed its organizational structuring after practicing Fayol’s principles of
management to increase its efficiency (Kfc.com 2018). The command and control from the
higher authority as per Fayol’s theory is made to ensure employee’s tasks are efficiently
performed. Proper monitoring helps the organization to provide feedback that brings changes
that is required for better and effective applications in future. Fayol’s principles are followed by
KFC and major relevance is given to the employee’s opinion that leads to increase in the
confidence level of the workers. As per the Fayol’s principles of management, both
responsibility and authority are two sides of a same coin. KFC effectively implements the
principles in the organization through authority. Moreover, the employees are responsible
towards their assigned duties.
Evaluation:
The organization practicing the Fayol’s management theory fails to emphasize the labor
productivity rate. As, KFC’s labor turnover rate is increasing gradually affecting its growth in the

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long-run. The major values related to Fayol’s principles should also be a significant stabilizing
force related to modern workplace (Samuel, Found and Williams 2015). Moreover, major
emphasis of the KFC employees is given on individual interest rather than the general interest of
the company. Due to the increase in globalization, the organizations nowadays are more prone to
instability and uncertainties (Bird and Mendenhall 2016). It is important for the organization to
follow an effective management theory.

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References:
Bird, A. and Mendenhall, M.E., 2016. From cross-cultural management to global leadership:
Evolution and adaptation. Journal of World Business, 51(1), pp.115-126.
Ford.com 2018. Ford – New Cars, Trucks, SUVs, Crossovers & Hybrids | Vehicles Built Just for
You | Ford.com. [online] Ford.com. Available at: https://www.ford.com/ [Accessed 14 Feb.
2018].
Gafiyatullina, A.Z., Nikonova, T.V., Vagin, S.G., Kharisova, R.R., Pavlova, E.I., Khayrutdinov,
R.R. and Ishmuradova, I.I., 2015. Organization of controlling the intellectual potential of
company personnel. Review of European Studies, 7(4), p.13.
Gnanamkonda, V., 2015. Cases in Marketing Management. South Asian Journal of
Management, 22(4), p.204.
Kapur, R., 2016. Managerial functions and job satisfaction within an organization. International
Journal of Information, Business and Management, 8(4), p.317.
Kfc.com 2018. KFC: Finger Lickin’ Good. [online] KFC®: Finger Lickin’ Good®. Available at:
https://www.kfc.com/ [Accessed 14 Feb. 2018].
Meyers, M.C. and van Woerkom, M., 2014. The influence of underlying philosophies on talent
management: Theory, implications for practice, and research agenda. Journal of World
Business, 49(2), pp.192-203.
Powers, E.L., 2014. Innovating our thinking about management: A new model. SAM Advanced
Management Journal, 79(1), p.40.

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Ranjan, P., 2017. Human Resource Management and Organizational Behaviour. Journal of HR,
Organizational Behaviour & Entrepreneurship Development, 1(1), pp.8-12.
Samuel, D., Found, P. and Williams, S.J., 2015. How did the publication of the book The
Machine That Changed The World change management thinking? Exploring 25 years of lean
literature. International Journal of Operations & Production Management, 35(10), pp.1386-
1407.