Leadership and Management: Analysis of McDonald's Operations

This report provides a detailed analysis of leadership and management principles, exploring the differences between leaders and managers, and examining various leadership theories such as situational, system, and contingency theories. The report uses McDonald's as a case study to illustrate the practical application of these concepts, analyzing the roles of managers and leaders within the organization, and the distinct functions performed. The report further discusses the evolution of leadership theories, including classical and neo-classical approaches, and the relevance of each theory in contemporary organizational settings. The operational aspects of management, including planning, organizing, controlling, and their impact on efficiency and customer satisfaction are also explored, offering a comprehensive overview of the subject matter.

Management
and
Operations
[Type the author name]

Table of Contents
Task 01 .....................................................................................................................................3
Task 01-(a) ............................................................................................................................3
Task 01(b): ............................................................................................................................4
Task 01(c): .............................................................................................................................5
Task 2 - Case problem ...............................................................................................................7
Task 2(a): ...............................................................................................................................7
Task 02(b): ............................................................................................................................7
Task 02(c) ..............................................................................................................................8
Bibliography...............................................................................................................................9

Task 01
Task 01-(a)
According to (Gold, 2010), leaders are those who can develop a form of collective
consciousness inside themselves and can express the same feeling with a clearer manner and
creative manners where people also gets reflexion of their thoughts and so, leaders inspire
people before and while lead. On the other side, manager is a person who manages resources
by planning, organisation, controlling and managing in a effective fashion so that whole
initiatives can bring desired and targeted level of outcomes.
Discussion on the difference between leaders and managers, Mintzberg developed a model of
managing which provides clear understanding on the difference between leaders and
managers. There is very common academic conception that managers are the policy
implementer and follow the path of leader in where leaders want to go or reach. All of these
can happen only because, leaders has greater extend of freedom and independence to do
things in their way along with executive power to do that. Managers in organisations are
more linked to day to day operation but also engage in planning, organising and controlling
all the resources need to employ in order to engage these to day to day operation such as in a
restaurant manager need to make weekly schedules, always keeping eyes on stocks and
availability of materials in stock and in use so that they not become run out of stock,
supervision of cleaning outcomes every day, fix the problems if any anything occurs, etc.
Leaders on the other hand, is has little intension to remember who is work in which day and
what will be each employees role neither what is the situation with stock and inventory in
every day. Leaders look critically to the works of employees and managers to find suitability
of the current flow of work with organisational goals and objectives. Leaders do things
differently as they do think differently. They are the people who understand the overall
circumstances of the organisation against market conditions, investor expectations and all
other stakeholders expectation; thats why, in the first part of this part author has said that
leaders holds collective consciousness and do things according to that. To be leader one bno
need to have specialist knowledge in one areas pof business operation but need to have an

leadership skills and attitude so that he can integrate all the bsueinss operations in the line
with overall organisational goals and objectives. Leadership can be various types and styles
based on the difference between organisation, cultural aspects of that country where the
company is operating, is it military organisation or business organisation or social care
facilities; profit or non-profit organisations, etc. the types of management also depends such
kinds of internal and external factors however, there are major similarities exising among
managers in all organisation. The primary role of a manager in a organisiton is doing things
in a organised way so that managers and all people can keep track of it and make control over
the situation. continuous production without any idea about market demands, existing orders
has placed, the situation of stock and inventory, the level of quality, situation in distribution
channel can lead a company towards total disaster. So managers role in organisation, are
various such as a planner, organiser, controller, director.
Task 01(b):
McDonalds is the biggest fast food chain restautant in the world has operating more than 177
countries. All of its store has store manager and all of the region Mcdonands operating its
bsueinsss are spotted as different division lead by regional managers and leaders. On the
above, all region has also corporate office where the leaders with ebormosus power to dictate
are working. In this complex form of organisation, the role of managers and leaders are
complex too as one place managers is subordinate of high rank officials in this very large
corporation. The role of managers in each of McDonald’s stores is making sehedules for its
employess. Store managers does not have power to recruit people from outside except
provide some recommendation for internal recruitment. On the other hand, leaders have
power to recruit people or terminate jobs for people they find are ultimately not productive.
The role of leaders is to inspire people and leaders do come in the staff meeting or training
programmes or visiting the stores and talks with people and make a good relation with its
people and helps them to find an internal organisational solution to do better where any
employees are showing weakness. Instead of putting fear of termination or financial
punishment, leaders in McDonalds inspire people by consultation and linking them with the
balance of work and personal life. Leaders of the organisation spend a lots of time on
understanding investor situations, current market situation in terms of competitions,
availabilitity and access to resources, familirazing themselves with new ideas and making a

plan to do what they think will best for the whole organisaition. Leaders holds the power of
making strategic decision for the organisation.
There are mainly four dinstinct functions a manager do in this company. Planning is one of
the key managerial fuinction whch need to carried out daily, weekly, mothly and yearly basis
depends on the various functional areas. Managers has a tall hiiwearchy where top managers
has more power of planning and expecuting the plan whereas lower level managers closely
works with employees to support them in achieving organsiaitonal objectives in various
period it can be daily, weekly or monthly. Managers in all section ensure that they maintain
good control aover all kinds of bsueinss operations and divide their responsibilitiues based on
the functional areas and Stategic Busienss Units(SBUs).
Task 01(c):
Over the last few centurines, in organisational level there are many leadership theiories has
developed based on the interpretation of the internal and external bsueinss environment. each
of the leadership theories is the products of thoughts and theory implication of that time and
more past of their time. Organiastiona nd people takes those theioreis which is best suit with
them. The early types of leadership theories is lknown as classical leadership theories such as
great man theory, trait theory, etc. neo-classical theories such as behavioural theory, path-
goal leadership theories, etc was developed in the time of the movement for better welfare for
people. In the modern time a number of theories has introduced. In this part of study we are
going to focus on three ltheories and models for leadership approach which are; situational
leadership, system leadership and contingency theory.
Situational theory: this theory was developed by Paul Hersey and Ken Blanchard in 1969 by
introducing their book of Life cycle Theory of Leadership which is later reknowed as
‘Situational model of leadership’. The main idea of situational leadership model is that
companies should not rely on one leadership theories as situation change, the application of
leadership functions and roles also need to change in order to handle that situation in a more
productive way. There are four behavioural models underpinning this leadership approach
referred by S1 to S4. In the S1 leadership styles where leaders tell subordinate what to do and
what they should not do in the form of instruction and consultation. In the part of S2, leaders
provides the direction to employees and managers how to sells and the direction of their
selling activities. In S3, leaders do participate with number of activities so show employees

and other staffs how to do things in order to boost their confidence and competence in work.
The last one is S4- delegating where leaders don’t interfere with all kinds of activities and but
get engaged in decision making process. In an organisation the maturity leavel of all
employees are not same so the the implication of leadership can not be same for all kinds of
staffs. Based on this notion, Paul Hersey and Ken Blanchard has divided maturity level from
M1 to M4
High Moderate Lo
w
M4 M3 M2 M1
Subordinates are
very capable and
confident to do
things
They are Capable but
unwilling to do things
as the level of
engagement is very
low.
they are Unable to
accomplish work
efficiently but shows
high level of confident
People are less skilled and
Unable to accomplish
things and feels a high
level of insecurity of
losing their jobs
Sutuational model of leadership suggest that employees in M4 level are core asset for the
organisaiton and McDonald’s invest a lots of resources to develop them as future leaders and
managers for the organsiaiton however, they are offered more challenging jobs in order to
cope with extreme pressure of work. The problem with M3 level is that they are less engaged
and committed to work in this case situational approach of leadership inspire them in a way
that they can gets more engaged and can promoted themselves in the M4 level. For this level
of M3, leaders need to provide huge support in increase their level of skills as leaders finds
that the level of moticvation to work is higher among them so the potential of doing good if
theuy get training support from company will make them more competent. In the M1 level
people are not skilled and they are insecured as they know the possibility of losing their jobs
is higher then other grwoup of employees. In this case, leaders put same effort to them as
they provide to M3 level of employees.

System model of leadership: in model of leadership, leaders consider all of his or her
operational areas is a whole system like a living organism. This model understand that failure
or less efficiency in one areas of system can lead turmoil in other areas and it is also true for
Mcdonald’s. If the delivery of foods in the restaurant hamper, then it create a shortage of
products and serives and the whole system gets collapsed if this
Task 2 - Case problem
TASK 2(A)
Operations management concerns with production controlling process and the
operations in such a manner of efficiency. Operations management has involvement of a lot
of responsibilities. Some one has the duty to see whether the business is operating efficiently,
in terms of an amount of least resources that are necessary for the operations of the business.
It also consists the function of meeting requirements of the customers to a standard that is
highly viable for the economy (Chase & Zhang, 1998). Operations management consists of
the management of processes in which the raw materials, energy of labour are used to
convert into goods and services. The skills and creativity of the people are used for the
rational analysis and their technological knowledge are the significant base for successful
operations management.
The people who are professionally working in the operation management section of
any company must be knowledgeable every manager, in the operations management section
or even though in the other sections or departments of the organization is an operational
manager as they have to handle the responsibilities for the contribution they need to make in
the activities which is required in the functions for creating and delivering the product, that
is, a good or service, that is being produced by the organisation. An operation manager's duty
is to produce the right amount of goods or service as per the plan and strategies they made
before their implications in the operations and functions of the organization. The duties of an
operations manager is to manage the whole process of operations, handling the designing
part, planning, controlling, improving the performance and creating strategies for the
operations. The responsibilities also indirectly involves the interaction of operations mangers
with the managers of other functional departments of the organizations who has their roles
in the operational section too in order to cooperate and coordinate their efforts into the
operational functions too. Operations management also includes other responsibilities such
as:

 Management of human resources: The employed people in an organization mostly
works in case for the creation of a good or a service or for the provision of support to
those who create them. Management of Assets: The buildings , facilities, machineries and stocks owned by an
organization are involved in the support of operational functions of the organization.
 Cost management – Most of the costs of producing goods or services are directly
related to the costs of acquiring resources, transforming them or delivering them to
customers.
TASK 2 (B)
Someone defined operations management as “overseeing, designing and controlling
of the production process and redesigning of the operations in business as for the production
of goods or the services done by the organization”. The operations management is
functioned differently according to the various purposes of the organizations. In a factory and
within its setting of manufacturing, the management of operations will include the designing
of operations in an efficient way and proceed to the process of production of the good or
service by the timely acquisition of raw materials insuring adequate quantity of the workers
who are properly trained and the equipments need to be maintained well.
If operations management have been in a setting based on the production of service, it
will be focusing on insurance of the employees working in this case are to be properly trained
and the locations selected for the customer service are to be equipped with the requirements
of the safety of the employees and the customers who are involved in the provision of service
(Gupta & Boyd, 2008). The revision of the services are to be done as for the proper input of
customers and the forces of competition.
The accounts department of the organization also supports in the smooth operation for
the payment of materials and supplies bills promptly since a well-run operation plans ahead.
Payroll can be easily handled with predictable costs. But in case of the poor operations in
the organization, predictable costs such as these are difficult to ascertain, making it difficult
for the accounting department to do its job well.
The organization's finance department, which is responsible of finding capital, either
through debt or financing of equity, can help to raise money far more easily with a smooth-
running, successful division of operations, the ability to focus on high productivity, trimming

of costs, and the demands are to met at perfect schedules. On the other hand, if the finance
department can only show a record of inefficiencies, too much or too little inventory, and
productivity which is, it is tough for the raising of capital for the organization.
TASK 2 (C)
Different theoretical models of strategic decision processes, which reflect different
conceptions of organization, have been suggested by various literatures (Voss et al., 2002).
These models are definitely different as substantially in terms of their underlying assumption
about the decision context and the characteristics of the process of decision making are
usually influenced by different factors.
Generally, decision making process for the leaders are like the other qualities and the
functions that a leader does to offer an ongoing creativity and new insights which are
important for the leadership and managerial activities in all the operations in the
organization. Organization is undoubtedly a systemic network that is both complex and
dynamic in nature. In organizations, tough quality and sound decision making are the major
element and essence of leadership. The other goal of this work is to discover a scientific
break-through which is based on the experience, knowledge, and the skills of the selected
participants of this study with the aim of improving quality decision making among leaders
and overall accomplishment of organizational goals, objectives, and performance.
The exact functions and responsibilities for a operational manager to be fulfilled
depend on the way an organization defines the boundaries of the operations within the firm.
The standard of the functions of an operations manager has a list of activities that should be
applied to all types of operation irrespective of what they are serving, manufacturing, whether
in private or public sector, and no matter operations are defined as the functions of the
organization. We classify operations management activities under four classification as per
the characteristics of the functions: direct, design, deliver and develop. Directing the operational activities and the workers involved in the overall nature and
strategy of the operation. A general understanding of operations and processes are
kind of necessary for their strategic purpose and performance, together with an
appreciation to the strategic purpose is to be converted into the reality for the
organization.

 Designing the services provided in the operations in the organization ivolved in the
production of products and processes in the way of the creation of the goods or
activity that are being produced. Designing is an essential activity for determining the
physical form, shape and composition of operational functions and processes that is to
be configured within the system of the organization, together with the services and
products that they create.
 Delivery, its planning and controlling involves several complications. After the
designing of the operational functions and they come in to action, the services and
products are to be delivered from suppliers and after the result of total operational
process reaching to the customers must include a planned and controlled procedure.
 Developing process performance is post operational activity but is to be managed by
the operational manager himself with the assistance of the developing team. It is
recognized that operations managers, or sometimes any of the process managers,
cannot simply routinely deliver services and products in the same way that they
always have been doing. They have a responsibility to develop the capabilities of their
processes to improve process performance by putting in creative formats of delivery.

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