Leadership, Management, and Operational Strategies at McDonald's

This report provides an in-depth analysis of leadership and management practices within McDonald's. It begins by defining the roles and characteristics of both leaders and managers, outlining their functions within the organization, and differentiating between them. The report then examines how these roles are applied in various organizational situations, such as stable, slow-changing, and fast-changing environments. It explores several leadership theories, including situational leadership, system theory, and contingency theory, and discusses their relevance to McDonald's operations. Furthermore, the report delves into different approaches to operational management, such as total quality management, and explains the importance of operations management in achieving business objectives. It also identifies factors impacting operational management and decision-making. The report concludes with recommendations for McDonald's and emphasizes the significance of effective leadership and management in the company's success.

Management And
Operation

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK...............................................................................................................................................1
P 1 Roles and characteristics of a leader and manager ..............................................................1
P 2 Roles of leader and function of manager applied in different situational context ...............4
P 3 Various theories and models of leadership ..........................................................................5
P 4 Approaches of operational management and roles of leaders and managers.......................6
P 5 Importance and value of operations management in achieving objectives of business........8
P 6 Factors that impact upon operational management and decision making..........................10
RECOMMENDATIONS...............................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Operation management is considered as a heart of each and every organisation. It is the
set of those activities that convert inputs into desired outputs. This helps in generating value to
the company and also to consumers. Management of operations describes several operation
activities that are similar to characteristics such as planning, manufacturing, locations, layouts,
controlling, coordinating and operation strategy which are associated with the strategies of
business (Mohammadi and et. al., 2013). The present report is based on McDonald's that was set
up by Richard and Maurice McDonald in San Bernardino, California, USA in the year of 1940 as
a restaurant. They are offering different varieties of food items like cheese burgers, chicken
products, soft drinks, milk shakes, French fries, breakfast items, wraps and desserts. In this
project, roles of a leader and functions of a manager are described in detail. Apart from this,
various theories and approaches of leadership are also discussed here that can be used for
McDonald's for improving the quality of their leaders.
TASK
P 1 Roles and characteristics of a leader and manager
Managers: They are those individuals in an enterprise who are having the responsibility
of designing and managing work in such a direction so that predetermined aim and objectives
can be attained. For the successful completion of goals, duty of managers is to create and apply
relevant strategies and rules and to plan the working of the employees having the motive that
they do their respective jobs as per the defined objectives (Handschin and Petroianu, 2012).
Employers are distributed on different level in a corporation so that tasks of different
departments can be managed effectively. Besides this, they are also being concerned about the
appraisal of performance of workers and they perform this task via executing an appraisal
process which is based on the presentation or contribution of employees in attaining goals and
objectives of venture. This activity is carried on regular interval of time.
Some of the primary functions of management given by Henri Fayol are described as below: Planning: He said that managers have to plan future situations, create strategic objectives
and also need to secure the achievement of upcoming goals. Thus, it is important for a
manager to evaluate future contingencies which is affecting the venture and is responsible
for shaping future strategic and operational landscape of firm. For example: in
McDonald's, managers should predict create schemes for the future conditions so that no
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conflicts would emerge in upcoming days. Various risks that may occur within company
should be determined by them and they are also responsible for removing those risky
factors so that goals can be achieved appropriately. Organizing: This is another function of employer where they are required to organise
their workforce in an effectual way and structure so that activities can be aligned in a
correct manner (Eyal and Haim, Clarizen 2014). They also have to recruit the
appropriate person and provide training as well as development programmes to the newly
joined candidates so that they get familiar about their job roles and contribute in
achievement of aim or objectives of company. Employers present in McDonald's need to
organise their workers in a proper manner so that no disputes would take place among
them. Commanding or leading: Managers have to supervise their associates in their day to day
work and should encourage them to attain goals of firm. So, it is the obligation of an
employer to communicate all goals and policies to their workers so that they will work in
accordance with that. For instance, employers of McDonald's should formulate their
objectives and goals as well as convey this to all of their workforce so that work is
carried on as per this.
 Controlling: It is also a function of managers that they should control that the activities
conducting within organisation should be in line with common policies and objectives
defined by firm (Bahn, 2013). For example, managers in McDonald's should control all
the actions of their personnel and examine that whether they are following the policies
and rules of venture or not.
Leaders: They are people who have power to get the work done from workers on the basis of
targets of corporation. They also motivate employees via their leadership and skills of
communication and inherent in them the vision of venture. The primary motive of team heads to
influence and encourage personnel towards giving better performances so that productivity and
efficiency can be increased. Three groups of leadership roles proposed by Mintzberg are
described below:
Informational roles: This leadership role includes processing information like:
 Monitor: As per this role, a leader should monitor the activities of workers and they have
to provide them information that are needed in accomplishing any task. For example,
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McDonald's should give their personal information about the taste or preferences of the
customers so that they can manufacture food item as per that and also need to observe
their activities.
 Discriminator: This sates that team heads should communicate potentially relevant
information to their followers. Spokesperson: Leaders should speak and represent their company. In McDonald's, it is
the responsibility of team heads to represent their firm by talking about main mission and
objectives.
Interpersonal Roles: Leaders in this category provide information and ideas to their team
members. This includes the following points:
 Figure head: Leaders present in organisation should have social, legal and ceremonial
responsibilities. They are expected as a source of inspiration and members look them as a
figurehead. Liaison: Leaders should communicate with external and internal contacts. They should
establish a good network on the behalf of their venture (Niknam, Meymand and
Mojarrad, 2011). Leaders of McDonald's should make contacts with various users and
make healthy relationship with them.
Decisional roles: Leadership in this category involve using information.
 Entrepreneur: Leaders should act as an entrepreneur by giving new ideas and
implementing those so that upliftment of company can be done. For example: In
McDonald's, leaders should develop new ideas like new dish of food items that can be
liked by large number of consumers.
 Disturbance handler : They should handle all kind of disputes or disturbances
occurring in corporation (Pinkerton, 2011). For instance, leaders in the given company
should remove all hindrances existing at work place so that tasks can performed
effectively.
 Resource allocator : Leaders of McDonald's should allocate all the funds or resources
to their workers so that they can start their work and do not face any type of difficulties.
 Negotiator : Team heads of McDonald's should act as negotiator and have know how to
bargain or negotiate with members so that all disputes can be resolved easily.
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Difference between a leader and a manager is listed below :
Manager Leader
Manager set the objectives of the corporation. On the other hand, leaders carry out the
objectives developed by the managers.
They used to communicate legislation and
policies to the leaders.
Whereas leaders needs to make sure that those
policies are followed by their team members
(Neck and Manz, 2010).
They organise whole work force of company. They motivate overall workers to accomplish
the goals of venture.
Therefore it can be concluded that leaders are managers are two different working in a
organisation but are having the same motive of achieving aims and objectives of company.
Without them, a company cannot run appropriately. So, McDonald's should recruit suitable
employers as well as leaders so that all activities within company can be completed efficiently.
P 2 Roles of leader and function of manager applied in different situational context
Organisational situation can be simply defined as that condition that occurs within an
enterprise while performing work by various team members. There are three organisational
situation that are listed below
 Stable situation : This can be referred as those situation that are kept stable or remain
consistent within organisation for a long time period (Nakayama and Bucks, 2012).
 Slow to moderate changing situation : This is defined as a condition when some
changes occur as per the need of market or customers. But these modifications occurs in a
slow and steady rate.
 Fast changing situation : This is referred as a situation where changes occurs but at fast
rate.
In McDonald's, there is a situation of slow and moderate change as they are obeying all
the rules and regulations of government. The emergence of new norms are followed slowly. In
addition to this, it has been noticed that some of the modifications in the team organisation,
changes in financial situation, alternation in size of venture, etc. are happening in smooth and
slowly fashion so that workers do not feel pressure on their heads.
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Some of the roles of leaders and functions of manager are described below :
Role of leader Function of manager
 Leaders should motivate their workers
so that they become ready to work upon
changes.
 They need to guide their members so
that task of change can be completed
effectively.
 Managers needs to plan such changes.
 They allocate resources to all work
forces.
 They assign job roles to workers.
P 3 Various theories and models of leadership
There are various theories of leadership that can be used by McDonald's which is
discussed below :
 Situational leadership theory : This theory was given by Kenneth Blanchard and Paul
Hersey in the year of 1969. They said that no single leadership is best so leaders should
know how to tackle with all kind of situation. They should follow various activities that
helps in developing skills of their followers (Leadership Theories, 2017). Styles of
leadership should be changed regularly in order to full fill the requirements of others
within venture on the basis of specific situation. For instance, Leaders of McDonald's
should take decisions on the basis of various situations and can be changed as per that.
 System theory : This model was developed by Ludwig von Bertalanffy in 1954 and
Peter Senge in 1990. Their theory was majorly based on the principles and policies of
organisation in order to deal with various conditions. For example, By making some
laws, leaders of McDonald's can perform their roles like organising, planning, leading
and controlling very easily. This theory helps in maintaining discipline at work place and
in turn work get accomplish smoothly without any disturbances.
 Contingency theory : It was proposed by Lawrence and Lorsch in the year of 1967. they
claimed that there is no best way to organise a firm for leading a company or making any
decisions. In spite of this, optimal course of action is contingent or relies on various
external contingent leader. Thus, it can be said that a contingent leader efficiently applies
its own style of leadership as per the right situation.
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(Source : Key Leadership Theories, 2017)
P 4 Approaches of operational management and roles of leaders and managers
Operation management can be simply defined as the process of maintaining or
controlling of various operations by some individuals so that it get completed effectively. Some
of the approaches that can be used for doing the same are discussed below :
 Total quality management : The main motto of this approach is to maintain complete
quality within organisation so that no complaints may come from side of customers
regarding the quality of product. As McDonald's is offering food items so they need to
maintaining best quality as any faults in products can affect adversely on health of
people. Managers or leaders should monitor works of their associates and ensure that
foods are preprepared by maintaining safety and security (Moghaddam, Seifi and
Niknam, 2012).
 Just in time : As per this model, tasks should be completed with in a given time frame.
In McDonald's, Leaders are responsible for accomplishing the orders before dead line so
that products are delivered without making any delay.
 Continuous improvement : This states that given corporation should focus on
improvement of their goods or services and its quality in regular basis as any
carelessness can cause huge damage to that. Thus, employer should supervise their sub
ordinates continually.
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Illustration 1: Key Leadership Theories

 Six sigma : This is a collection of tools and techniques that is utilised for upgrading the
quality of products and services. This was coined by Bill Smith and Mikel J Harry in the
year of 1986. Commonly, this is the method of eliminating all defects and faults present
in food items and services (Mendis, Muttaqi and Perera, 2014). Thus, McDonald's can
use this approach for handling quality related issues in their goods or services. Managers
should also ensure that appropriate and adequate amount of raw materials and
machineries should be provide their work force so that at the time of manufacturing no
issues may occur.
 Lean production : Lean manufacturing or production is another approach that can be
utilised by companies in minimising the waste within system of manufacturing but it is
to be noted that this do not effect on productivity or sacrificing would be done in context
with production. Therefore, McDonald's should use this model in decreasing the amount
of wastes and utilise their resources at best level.
 Queuing : This is one of the approach of maintaining operations within an enterprise. In
this method, managers and leaders play an eminent role. They used to arrange or
organise different works so that at the time of implementation or execution, they are
performed in proper manner. For example, McDonald's should assure that leaders or
managers present at their workers have to organise and control all the operations related
to business in right order so that all the actions are taken appropriately (López and et. al.,
2015). For instance, works like research or surveys for determining the demands of
customers, allocation of job, arrangement of raw materials, manufacturing process,
packaging, delivering, etc. are queued in proper order so that each of this task performed
as per the need and development of best quality goods and services occurs.
In addition to this, some of the main roles of managers and leaders in operation management are
described below :
 Policy formulation : This is one of the core duties of operations managers. They have
the responsibility of making some rules and regulation by considering the working
environment of work place so that tasks can be performed smoothly and in a disciplined
manner (Lind, 2013). Strict action should be taken against those workers who used to
violate those rules. Lean production is an example of this as rules should be made about
for which product what raw materials is used so that less waste generated.
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 Planning : Several plans and business strategies are formulated by the managers of
corporation as they have more knowledge about marketing and preferences of consumers.
Total quality management approach is the result of planning of managers as all the
processes are planned before executing it.
 Decision making : Decision is taken by some managers who are working in firm. Any of
the work is done by taking permission from them so that issues are handled by those
individuals. Any of the decisions like in six sigma approach should be made by managers
or leaders only.
Thus, it can be concluded that McDonald's should take use of some operational
management approaches like lean production, six sigma, total quality management, etc. These
models are used for maintaining quality by reducing waste materials so that large number of
people get attracted towards them. Apart from this, it is summarised that these approaches are
handled, planned and controlled by managers of corporation.
P 5 Importance and value of operations management in achieving objectives of business
There are some objectives of McDonald's that needs to be achieved and operation
management helps or supports in its accomplishment. Some of the main objectives and aims of
cited firm is listed below :
 Survival : McDonald's desires to survive in such a market place which is full of
competitions. It has been examined that various firms are emerging which are offering
same kind of products or food items (Heizer and Barry, 2013). So, completion is
increasing day on day and due to this, customers get segmented among all those ventures.
Thus, cited company wishes to secure their position in market place and remain popular
in front of their potential consumers.
 Increasing sale : The another objective of McDonald's is to increase the rate of their
sales rate so that turnover can be incremented. For this, the managers is obligated to
conduct promotional strategies so that large number of civilians in UK and USA come to
know about the new goods and services (Handschin and Petroianu, 2012).
 Maximising profits : The main motive of cited venture is to earn large sum of
profitability so that they can expand their business in various other places or in the entire
globe.
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 Satisfying customers : Another objective of McDonald's is to satisfy or meet the demand
and requirements of customers. This is the reason they are concerned about
manufacturing food items as per the taste and preferences of common people so that all
of them like their product and show encouragement to purchase that.
 Growth : The next aim of this company is to expand their market or business in more
and more countries so that their customers get increased drastically and in turn they earn
huge sum of profits.
There is a great importance and value of operation management as it helps in attaining
the business objectives of venture which are described above. This can be defined by explaining
the uses of six crucial functions of operation management which is stated below :
 Planning : It is very important to plan every thing in advance so that work can be
finished in given time frame. All of the objectives are designed by managers in advance
so that work is done as per that and it is easy to conduct all operations. For example,
Before manufacturing any kind of food items, McDonald's should make a plan about
what types of goods should be developed so that more and more people get attracted
towards that. This planning or scheming is done by examining the needs and demands of
consumers.
 Organising : This is second most vital function that should be done while converting raw
materials into finished product. All the process should be queued in right order so that
they are performed on the basis of that and no confusion will create such as which
activity should be performed when (Hammill and Tanner, 2011). Workers are also
organised as per the amount or quantity of work. In order to do so, managers recruit large
number of employees so that huge work load can be managed easily. This helps in
surviving the company in a competitive world as without good organisation or
arrangement of work, fruitful outcome can not be achieved.
 Controlling : It is also essential to control all the staff members so that they do not
violate any policy of the organisation. Managers of McDonald's should take care of this.
In addition to this, leaders have to supervise or monitor the work of their team members
so that they do not do any kind of fault (Eyal, Haim and Clarizen 2014). This helps in
increasing the sales of corporation as observation of work assists in improving quality of
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