Leadership, Management, and Operations at McDonald's: A Report

This report provides a comprehensive analysis of leadership and management within McDonald's operations. It begins with an introduction to the concepts of leadership and management, highlighting their significance in achieving organizational targets. The report then delves into a comparison of ...Read More

Management and Operations

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................4
a. Comparison of different roles and characteristics of a leader and a manager.........................4
b. The role of leader and the function of manager in different situations...................................6
c. Theories and models of leadership approach in specific situations........................................6
d. Differentiation in between the role of a leader and function of a manager by effectively
applying range of theories ..........................................................................................................7
e. Strength and weakness of different approaches to situations within the work environment. .8
f. Evaluation of different theories and approaches of leadership................................................8
TASK 2............................................................................................................................................9
a. Key approaches to operations management and the role that leaders and manager play........9
b. The importance and value of operations management in achieving business.......................10
c. The factors with in the business environment that impact upon operational management and
decision making by leaders and managers................................................................................10
d. Evaluation of efforts of managers and leaders can improve efficiencies of operational
management to successfully meet the business objectives.......................................................12
e. Different factors which affects the business environment of the company...........................12
f. Evaluation of application of operations management and factors that impact on the business
environment...............................................................................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
A process to manage activities and peoples in a manner which supports an organisation to
achieve their targets and objectives(Zhang, Wang and Shi, 2012.). It is a sector which works on
production of goods and service to increase their quality and quantity. A company can increase
their economical growth and as well as their brand image by increasing qualitative work in their
products and services. Manufacturing organisations are having a large production line which
helps them to make products on a large scale. These companies are having a strong
infrastructure of management which haves different management levels which helps them to
manage employees and flow of orders in each level. This report is concerning on McDonald's
which is having large chain of their stores in the UK and as well as in various countries. This
report is having brief on leader and manager, they are having their own significance and roles in
the organisation. Different leadership approaches can be used by the organisation in different
conditions like; system leadership, contingency model and situational leadership style. Dynamic
approaches, system approaches are the key approaches of operation management. These all
factors are having a huge significance to deliver their products and services to their target
customers. McDonald's is a public limited company which is providing their services on cost
based prices which helps to their customers and nation(Zhang and Bartol, 2010). As this is a
international company, it is having huge influences of world economical changes so they have to
make changes according to these changes.
TASK 1
a. Comparison of different roles and characteristics of a leader and a manager
As it is imperative for every company to set their vision and mission before starting a
business similarly company cannot run without leader and operational staff. Every leader get
themselves differ from their leadership quality. Leader is the person who set vision for their staff
on which they have to follow and motivate and inspire them to stuck with that. Every leader
should know how to get the work done. There is a difference between dictatorship and
leadership(Yang, Hong and Modi, 2011). Dictator take decision without consulting the staff
members however leaders take unilateral decisions. Managers are the one who works on the
vision set by leaders. Managers make goals to achieve that vision and responsible for achieving

that set targets. Managers take challenges while leader motivate them to make that challenge
possible.
Manager and leader are consider to be similar term but there is a difference:
Role and characteristics leaders managers
Orientation McDonald is food supply chain
whose vision is to provide best
and quick fast food service so
leaders encourage their
organisational staff to set targets
and achieve vision(Barratt,
Choi and Li, 2011).
managers plan about the targets
and organised it in such a way to
give staff their work according
to their field and coordinate with
them
decision making leaders take decision by keeping
in mind not only about the
internal environment but also
about the external environment
and make certain changers
accordingly.
mangers make decision only
related to their targets that how
effectively that can be achieved
there decision only related
internal environment.
influencer leader has the quality to
influence their co worker . This
is the personal quality of a
person that make him a leader.
No books can taught any one to
be a leader. leader can be a
manager but manager cannot be
a leader.
manager cannot influence the
mind or thinking of co worker .
He has only power to command
that is the positional
power(Müller and Turner,
2010).

focus leaders prime focus is not to
achieve goals set by mangers
but to have vision of McDonald
to be achieved(Sheu, 2010).
managers focus on to achieve
the target set by him in a very
optimise manner with a limited
resource
b. The role of leader and the function of manager in different situations
Both manager and leader word are interchangeably and consider to be same but both have
different work. Both carry different roles and function in McDonald
Decision making :McDonald vision is to provide a best and quick fast food service. initially
McDonald started with the supply of limited item like burger only (aloo tiki burger). Various
competitors emerge in the same chain and in order to achieve its vision certain decisions are
taken to increase their supply items(Wong and Laschinger, 2013). managers works to sets goals
that how this decision should be achieved.
Risk taking: no organisation can touch the sky and feel success without taking risk in their path.
McDonald who started their monopoly in fast food chain is so popular among the children .
McDonald have taken risk in targeting not only the children but also parents and old generation .
 Because of increase number of competitors in the same chain ,McDonald have lost their
loyal customer as they are providing more variety like KFC is providing non veg as well
as vegetarian and burger farm , subway etc. so McDonald also diversify their supply and
started offering non veg burgers McDonald is offering their products in a low price as compared to other competitors like
KFC ,subway(Wilson, Sin and Conlon, 2010).
Problem solving: both leader and manager have to solve their respective problem at their own
level.
 It is the responsibility of the manager to be in direct touch with the workers and solve
their query
 Recently McDonald has faced the problem of expired meat served so manager should
solve this problem by talking to their workers and take appropriate action

 According to law no worker can more than 48hours a week on average. so manager' s
responsibility to maintain fundamental shifts.
Team building: no company can run a business without its team. Team coordination should be
there to achieve the set target successfully. competition between team boost the courage to do
better and best which indirectly helps in achieving the target(Ward and et. al., 2010).
c. Theories and models of leadership approach in specific situations
There are various theories and model of leadership style such as follows:
Situational leadership: manager and leaders have different role and function to perform. Both
have different visions so it bit obvious both perform differently. leaders work to create group
while manager is more carrier oriented and his motive is to achieve the target so may sound
abusive sometime. In McDonald managers work is to see that his co workers is performing their
task appropriately like customer complain regarding the food quality then manager responsibility
is to satisfy the particular customer by either providing fresh piece but leaders responsibility is
to get is to check the production department of their particular department so that the same
problem will not occur again(Tayur, Ganeshan and Magazine, 2012).
System leadership :the system of an organisation are common in all the franchise. McDonald
have numerous franchise all over the world but the logo of McDonald is same , the uniform and
the most important the taste of their items is same all over. however system leadership does not
say that no additional efforts can be made to attract more customer and earn profit.
Contingency leadership : this type of leadership approach has two dimensions which works
simultaneously. Leader role is to get the work done but also have to maintain cordial relation
with their employees. McDonald is a business entity whose motive of to earn profit and
McDonald leader responsibility is to achieve vision by maintaining trust and loyalty of their
employee.
d. Differentiation in between the role of a leader and function of a manager by effectively
applying range of theories
there are various role and function of manager such as follows:
Trait theory : This theory helps in differentiate between the successful and non successful
leader. leader should possess the quality of judging the people which helps them to find out the
personality of person(Shondrick and Lord, 2010). this is the primary factor to find out the

behaviour pattern, emotions which helps in builds the relation between the workers , employee
and manager.
Behavioural theory: leader main motive is to achieve the vision of organisation . This can be
achieved by making the employee to work in the right path. behaviour of leader determine the
capability of leader and tactics of how he made them follow their words. leaders motivate and
encourage employee to work for beneficial for the organisation(Sheu, 2010).
Human relation theory:there are two types of atmosphere in an organisation formal and
informal. maintaining friendlily relation with employees and manager make things more easy .
worker facing any problem or issue can say without hesitation to manager or leader this may help
in solving problem easily and in less time.
e. Strength and weakness of different approaches to situations within the work environment
There are various methods or approaches on the basis of which leader and manager make
their opinion.
Trait behaviour: this approach is used by higher authority to examine or to have some clue about
their personality. This approach has both advantage and disadvantage.
a) this approach tells a lot about person personality. this is the physiological test where leader
can judge whether the person is confident , creativity can also be judge d by his answer and is
aggressive nature.
b) however this approach carries a disadvantage that this is not 100% accurate. Situation make
person to act differently thus it is a very complex task.
Behavioural theory: Environment of organisation plays a vital role it may motivate or
demotivate the workers. cordial relation with the manager not only give the feeling of family but
also motivate to work harder and increase the productivity of organisation(Schyns and Schilling,
2011).
b) however it is not as simple as it seemed because sometimes friendly atmosphere may create
misunderstanding ,chaos and grudges with manager and demotivate them ton give there 100%.
Human relations theory: This theory has both advantage and disadvantage . having friendly
atmosphere in the workplace leads to motivate employee and misunderstanding between
employee and the manager can be sorted out easily.
b) Sometimes over friendliness may also cause problem and also make employee lethargy. over
friendliness lead to gossip and jealousy factor is concern for the atmosphere.

f. Evaluation of different theories and approaches of leadership
Theories and evaluation of different approaches of leadership are as follows:
Situational theory: Action differ from situation to situation. leaders may get their work done by
being strictly or being friendlily. sometimes leader behaviour depends on workers attitude or
behaviour. however main focus of leader is to whatever the situation is he has to make the
employee focus on their goal(Salahuddin, 2010).
System leadership theory: Here leader role is to do all the activities related to McDonald within
the culture of the organisation. however various steps could be taken to attract and make
company mire profitable like McDonald installed l LED in some of their franchise.
Contingency leadership: contingency is consider to be uncertain or unpredictable in nature . so
leader should do various research and take appropriate action for example Govt. policies and
rules is contingent.
TASK 2
a. Key approaches to operations management and the role that leaders and manager play
Some of the key approaches are here to explain;
System approach; It is related to internal and external factors which is having a direct and
indirect influence on the business activities of the company. It supports to evaluate these
elements to manage profitability of cited business entity. McDonald's is using this to evaluate
their external environmental factors which are having huge impact on them(Müller and Turner,
2010).
Dynamic approach; This approach helps in to make modifications in the activities as per the
needs of the business entity. This management approach supports to the organisation when they
are having need of change in their business activities, this needs are created by external
environmental forces which makes a demand to make changes in their products and services. As
the McDonald's is working in the food industry, they are having huge competition in the market
so they have to make regular changes in their prices and products to make differentiation in their
products and services. They are using market informations to take a decision on market
contingencies(Morgeson, DeRue and Karam, 2010).
Role of leaders in operations management; Leader determines a goals and objectives of an
organisation and as well as their employees. As the McDonald's is having different management

levels which supports them to manage business activities. They helps to make integrated efforts
of employees to attain their objectives.
Role of managers in operations management; Manager supports to their leaders to implement
strategies in their employees. Managers are having knowledge of different management theories
and as well as they are having expertise in different subjects like; financial, cost management
which supports to the organisation to manage business activities as per their budget(Mayer,
Kuenzi and Greenbaum, 2010). McDonald's is having different managers for each department
which are having responsibility to manage their employees to achieve their task and objective by
the prescribed guidelines and in the given time.
b. The importance and value of operations management in achieving business
Significance of operations management; It is an important factor to attain business objectives of
the organisation, the operation management concerns on the design and control on the business
activities which helps to get business objectives. McDonald's is having tough competition in the
food industry, KFC and Subway so they has to control their cost to compete with them.
Management operations surely helps them to control their cost of products and as well as their
cost of management. As they are having different department which are having their different
roles in the organisation, it is impacting on their cost(Lin and McDonough III, 2011). By this
they can arrange their employees in different roles and work which can reduce their cost of
productions and as well as their expenses. The management operations supports to the
organisation to manage profitability and qualitative work in their products. As they are having
different workers which are having different skills, their managers can arrange them in distinct
work according to their skills which impacts on productions and as well as employee's
productivity.
Values of operations management; As the company wants to increase their market share and
reduce to their market competition, it is having huge value for them. The operation management
emphasis on the production line which determines the success and failure of the organisation.
McDonald's is having a large chain in the UK to distribute their products in different
demographics, it helps them to retain their market position by several stores in the
market(Kuruppuarachchi and Perera, 2010). The operations management emphasis on
production process which is the base of the McDonald's, it helps to improve production line as
per the requirements of the organisation to reduce their market competition.

c. The factors with in the business environment that impact upon operational management and
decision making by leaders and managers
Some factors are here which is having huge impact on the operational management and
decision making process by leaders and managers;
EXTERNAL FACTORS; These factors becomes from macro environment which creates a force
to make changes in the business activities and as well as in the products, here they are;
Suppliers; As the McDonald's is a manufacturing company which deals in foods, they are having
huge requirement of different types of raw materials to make their products like; Burger, Pizza
and Cakes etc(Krajewski, Ritzman and Malhotra, 2013). The company is highly focus to deliver
quality products to their customers so they are having some of the selected suppliers for their raw
materials like; flour, spices and vegetables etc. As they are having selected some of the suppliers,
sometimes they are unable to supply equal quantity which is demanded by the McDonald's, so
they have to make changes in their production quantity to manage their products delivery. It
impacts on their cost as well.
Market competitors; This is the biggest challenge for the company to reduce their market
competition which is impacting on their revenues and as well as their brand name. The
McDonald's was founded in 1940 and they are the oldest organisation in the food industry, now
many of companies like; Subway and KFC has adopted their market strategies and increasing
their market competition. So the managers and leaders of the McDonald's has to take some
important decisions to reduce their market competition by reducing their prices of their products
or by increasing quality in their products(Haider and Riaz, 2010).
INTERNAL FACTORS; Many types of internal factors make compulsion to change in operation
management and decision making of managers and leaders;
Employees; This is the work force of the organisation which makes their efforts to make
productions as per the demands of the customers and needs of the organisation. As the
McDonald's is having various departments where several employees creates their efforts, but
sometimes these peoples are making errors in their work which is not applicable to manage high
quality in products and services. So it makes a force on the management operations and as well
as on the managers and leaders to make some changes to remove these errors(Dekker, Bloemhof
and Mallidis, 2012). Leaders can provide training to rectify their mistakes and increase their
efficiency of work. Managers has to involve their subordinates in decision making to make better

decisions for their departments by this they can manage their activities as per the need to attain
their objectives. This type of decision making helps them to communicate with their employees
and to know about their problematic issues.
Investors; These are the essential part for the organisation to retain their financial activities,
finance is a need to continue their business activities like; purchase, salary and other expenses
etc(Cho and Dansereau, 2010). So it is essential for their managers and leaders to convey their
policies and market strategies to their investors to provide them finance as per the need of their
projects. Investors are having a power to make limitations on the company so they have to make
their operations according to their available finance. So managers and leaders have to include
their investors in their important business meetings and decision makings.
d. Evaluation of efforts of managers and leaders can improve efficiencies of operational
management to successfully meet the business objectives
The operation management is having so much importance to manage business activities
as per the needs of the organisation to meet their objectives. It is having different aspects which
emphasis on the production line and employees. As the company is having proper hierarchy
management and they are having different management levels in this which helps them to
manage their business action activities as per the needs of the organisation(Chin, 2010). Starting
from the top level management leaders are having their influence on this, they creates guidelines
for their employees and subordinates managers. These guidelines has to followed by their lower
level managers and employees to produce produce their productivity on their level. Different
types of department and their managers works in the middle level. At the last lower level
management works with production line and service staff which is having a direct touch with
their customers. So leaders have to involve their lower level managers in decision making
process to take a right decision which helps them to meet the needs of the customers. They have
to adopt consumers needs in their products and service to increase the efficiency of their
products and value of their products for their customers. Departmental managers have to take
regular meeting with their subordinates to take reviews and suggestions of them to make better
working conditions and as well as their action plan and strategies to achieve their departmental
goals(Brandon and Mullan, 2013). These all given suggestion helps to their managers and
leaders to increase their qualitative work in their products which helps them to reduce their
market competition which is a business objective of them.

e. Different factors which affects the business environment of the company
As the McDonald's is working in the international market, several factors are affecting
them and making compulsion to make changes in their strategies and business activities;
Political; As the company is working in different countries, they have to adopt their rules and
regulations in their work(Barratt, Choi and Li, 2011). They have to make changes in their rules
and regulations whenever the ruling party of the UK has make changes in policies for food
industry.
Technological; Technology is going advance better and more better so they have to use new and
advance advance technology to make their products. it helps to make the organisation advanced
as per the needs of the customers and as well as it creates a standard in production line. They
have to use advanced machines to make their products like; cakes and pizza etc. which is having
automatic censers which manage temperature levels in their microwave ovens. It helps to make
better products and manages equality in a same product range.
Economical; As the McDonald's is having a large range of their stores in the UK, they are
having so much needs of finance to manage their business activities. Change in economy is
making direct impact on their functions. So they have to aware about these changes and they
have to use their back up plan in these conditions(Baldwin, Allen and Ridgway, 2010).
Social; This is the main factor which impacts on the society, their products are having direct
influence on the human body so they have to manage quality in their products. They have to
manage standards level in their products which is decided by the government, if their products
are not meeting that standards, it creates a diversity of their customers.
f. Evaluation of application of operations management and factors that impact on the business
environment
Controls on the business activities and designing of production lines are done by
operations management in the organisations. As the organisation is working in the food industry,
they have to manage quality standards in all of products. Their employees are having
responsibility to produce better quality in their products. The company is having focus on to
reduce their market competition by using the management operations, they are controlling on the
their expenses and cost by which they can reduce their prices at competitive level(Arnold and
Loughlin, 2013). But they have to consider their standards in their products. The operation
management emphasis on designing of process so they can use this to make cost effective

production line and by this they can make proper control on their units. It divides responsibilities
in different level of management which helps to reduce work pressure and on their employees. It
emphasis on the performance and quantity of production which is a need of the McDonald's to
reduce market competition and increase their market share(Chin, 2010). They have to focus on
selection of place when they are planning to open a new restaurant in the market, they have to
select right place which is convenient for their customers and as well as to distribute their
products and services in the market. It helps to gain their market share and sale of their products.
This factor is having so much importance and having a huge impact on the business environment
of the company.
CONCLUSION
The above concluded report is having focus on the McDonald's which is a well known
brand in the food industry. This report contains the details on the company which is related to
management and operations. Leaders have a responsibility to make strategies and policies for the
company to produce their products and services according to these. Leaders and manager are
having their separate responsibilities in the organisation but they have to make proper
communication to make their collective efforts to meet business objectives. Systematic approach
is a concepts which emphasize on the profitability by the business activities which is used by
cited business firm. Along with this they have to use contingency approach to make adjustments
in their business activities according to these contingencies which can occur form external
sources. The organisation have to aware to internal and external factors which are having a direct
influence on the business environment of McDonald's.

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