Leadership and Management Theories in KFC's Post-Merger Structure

This report discusses the application of various leadership and management theories to address challenges faced by a fast-food firm undergoing a merger, specifically focusing on KFC. It highlights issues such as lack of communication, motivation, and poor teamwork, suggesting the implementation of transactional, participative, and relationship-oriented leadership theories. The report also covers management theories like Human Resource Management, System Management, and Contingency Theory, emphasizing their role in improving teamwork, resource utilization, and conflict resolution. Furthermore, it recommends a divisional organizational structure for the merged entity, explaining how dividing the business into departments like accounts, sales, and IT can enhance coordination, communication, and decision-making. The conclusion emphasizes the importance of these theories and the organizational structure in achieving business goals and ensuring smooth operations post-merger.

LEADERSHIP AND MANAGEMENT
THEORIES
CONCLUSION
The firm undergoing with merger with another firm should implement the above mentioned leadership as well as management theories for easy
operation and to avoid the issues faced by the firm in its current operations. The report also cover the organizational structure which is the best
suitable for the new firm formed after the merger. And how it will help the newly formed form to manage the operations
Suitable organizational structure for KFC
Organizational structure is a process of organizing, dividing and
coordinating the organizational activities. The organization structure for
KFC is designed in order to coordinate with the employees and to control
the performance of the members.
The KFC divides its business in different divisions or departments such as
accounts department, sales department, production department, IT
department, HR department, cooking department etc.
MANAGEMENT THEORIES
Human Resource Management Theory:
Human Resource Theory specifically focuses on the individual
needs and behaviour of group. It main aim is on worker satisfaction
and employee productivity.
System Management Theory:
According to system management theory the success of organisation
depends on number of key elements which include interdependency,
interrelations between the subsystems
LEADERSHIP THEORIES
Transactional Theory:
The management theory focuses on supervision of
organisation with group performance.
Participative Theory:
Participative theory of leadership suggest that employee
is involved in decision-making process of the
organisation. Also known as democratic leadership
Relationship Theory:
It is the leadership theory which focuses on maintaining
the relationship among the employee themselves as well
as with the leaders or other authority in the organisation

NOTES:
The firm engaged in fast-food sector is facing the number of challenges and issues related to management as well as in leadership. Issue include lack of communication,
staff of motivation, cultural issues, lower job retention, poor teamwork and many more. Due to all those several issues and problem the firm has decided to merge with
another firm. In business management there are several numbers of leadership and management theories which result in solving those issue and help in ease operations.
The theories which can be used to resolve the issues is below discussed.
Leadership Theories and how they help to resolve the various issues
Leadership theories reflects how the certain people become leaders. It includes traits and behavior which can be adopted to increase the leadership
capabilities. There are several numbers of leadership theories (Ferreira and et.al, 2018). The most effective theories which can help in resolving the above discussed
issues are as below:
Transactional Theory: The management theory focuses on supervision of organization with group performance. It is also called transactional theory. It is one of the
effective leadership theory. Transactional theory refers to system of reward on successful compilation of task and it also manages the work flow in the organization.
When members of the team perform and take good actions, leader reward them and vice-versa. This theory helps the firm to overcome with the issue of lack of
motivation among the employee and in managing the work. Because the reward is the one of the motivation factors which is used to keep motivate the employee
(Brown and et.al, 2019).
Participative Theory: Participative theory of leadership suggest that employee is involved in decision-making process of the organization. It is also known as
democratic leadership. The advantage of this theory is that employee fell more engaged and motivated when are asked for their point in decision-making process. They
fell like they are important part of organization and their view play a vital role in the decision-making process. It helps in increasing the job security in their mind and
make them feel like important authority or part of the organization (Chan, 2019).
Relationship Theory: It is the leadership theory which focuses on maintaining the relationship among the employee themselves as well as with the leaders or other
authority in the organization. The relationship oriented leader gets better result from their team members. This leadership theory helps leaders to make employee to feel
confident and working together rather than focusing on cultural factors. It also improves the team work in order to get better work efficiency. Theory also helps new
employee to fell them comfortable in new environment. It encourages employee to work hard and help in solving the problem in the organization (Uhl-Bien, 2018).
Management theories:
Human Resource Management Theory: It gives importance to two-way communication and help to relate better with others. This theory focuses on people rather
than machines. The successful implementation of theory helps in great teamwork, and increase morale of individual employee. It also keeps eye on utilization of
resources in effective manner. This theory help in building the motivation among the employees and provide the job satisfaction as well as security (Bratton and Gold,
2017).
System Management Theory:. Employee is one of the important components for the organization and plays a vital important role in success of organization. It helps
the manager to evaluate the pattern and the situation of the firm in order to determine the best management practice. This theory helps in managing the teamwork and
improve the work efficiency. It also results in avoiding the conflicts among the team member.
Contingency Theory: This management theory helps in managing the resources as well as their effective utilization. As it does not focus on single technique to manage
the business organization. It can be changed or formed according to the situations. The successful implementation of this theory in the business organization reduces the
waste of resources and their effective utilization (Velinov and et.al, 2018).
Suitable organizational structure for a KFC-
These activities include the responsibility, rules, relationships, regulations and the roles of the KFC in order to achieve the goals and objectives of the
business (Riebe, Kaufhold and Reuter, 2021). The organization structure for KFC is designed in order to coordinate with the employees and to control the
performance of the members. There are several types of organizational structure such as hierarchical, horizontal or flat, functional, divisional, matrix, team-based and
network organizational structures. Out of these structures divisional organizational structure is the best suitable for the KFC after merger in following ways-
Divisional Structure-
In this structure the KFC divides its business in different divisions or departments such as accounts department, sales department, production department,
IT department, HR department, cooking department etc. (Jafari Songhori and Nasiry, 2020). It is suitable for new companies as it divides the authority and the
responsibility of the managers, employees or the team members of the enterprise in order to reduce the confusion among them. Divisional structure also facilitates clear
and effective communication between the top level management and the workers. It also helps the institution to make quick, immediate and adequate decision making
process as every division has a power to take decisions on the basis of current situation. This structure divides the work load of the members of the firm. There are few
variations of divisional organizational structure such as-
Market-based divisional structure: In this structure divisions are divided according to the industry, market or customer such as goods division, food and beverages
division, etc. Most of the institutions work on the basis of market-based divisional structure.
Product-based divisional structures: In this structure divisions are separated on the basis of products such as packaging, veg, non-veg etc. This structure is relevant for
the businesses that have a wide variety of products.
Geographic divisional structure: This structure is based on the different localities, regions or territories, etc. It can be used for the globalization of the business and to
maintain the close communication with the customers. Companies use this structure to establish satellite offices.
So divisional structure is relevant or appropriate for the large companies like KFC and improves coordination among the team members (Onyuma, 2020). It
helps in motivating the employees and give them freedom to develop the interest of creative thinking so that they can implement the new ideas and strategies according
to the situation or problem arise in their respective department. It helps the organization in managing the resources and also helps to manage the cultural issues between
the two firms which may arise after the merger and with the giving of power to take decision in case of divisional structure the organizational can achieve success . It
also reduces the communication gap between the management level and the workers and facilitate clear and effective communication among them. As in this structure
every division has its own team so good coordination and interaction results in better teamwork and also reduces the conflicts and confusion between the team
members.
CONCLUSION
The above discussion covers the leadership and management theories which is used to overcome or resolve the issues like lack of motivation,
communication, cultural issues, poor teamwork, etc. To solve or overcome with above discussed issue is important because it can become hurdle in achievement of
business goal. The firm undergoing with merger with another firm should implement the above mentioned leadership as well as management theories for easy operation
and to avoid the issues faced by the firm in its current operations. The report also covers the organizational structure which is the best suitable for the new firm formed
after the merger. And how it will help the newly formed form to manage the operations.

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