BUS 101: McDonald's Case Study - Management Theory Application

This case study examines McDonald's application of management theories to improve organizational efficiency and employee relations. It analyzes the use of classical, behavioral, and contingency theories within the company. The classical theory is applied through restructuring, centralizing operations, and leveraging experiences of the leaders. The behavioral approach focuses on enhancing employee performance by streamlining tasks and improving customer service. The contingency theory is suggested as the best approach, integrating elements of both classical and behavioral theories to address the company's mechanistic structure and the need for employee development in an increasingly automated environment. The analysis emphasizes the importance of work specialization, span of control, and standardization while highlighting the need for employee preparation for future automation, contributing to McDonald's competitiveness in a rapidly changing market. The provided references include works by Scott (2013) and Witzel & Warner (2013).

Running head: BUSINESS MANAGEMENT 1
McDonald Case Study
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BUSINESS MANAGEMENT 2
McDonald Case Study
Question one
Classical Elements- The classical theory of management seeks to increase organizational
production that is based on efficiency. The classical theory is based on three main assumptions;
lower levels of management, administrative management and bureaucratic management (Witzel
& Warner, 20130. The lower level management focused on improving productivity while the
administrative focus was on improving efficiency of the whole organization. The bureaucratic
management eliminates managerial hurdles and ensures continuity in the office.
McDonald has used the classical approach in improving organizational efficiency when it
restructured the organizational structure. The five top performing markets were reconfigured into
one unit. This was a radical departure from the previous consideration of geographical grouping.
This has allowed for the countries to learn from each other’s experiences and this has improved
organizational efficiency. The experiences of the leaders in the market are being leveraged as it
charts the way forward into new markets.
Behavioral Elements- The behavioral theory is based on the assumption that organizational
productivity is based on improved human relations at the work place. The employee and their
productivity are influenced by factors such as motivation, group dynamics, conflict and
expectations (Witzel & Warner, 2013). Other factors include collaboration and coordination
between employees as well as self-management in order to improve efficiency and productivity
by employees. They are viewed as resources that need to be developed in order to improve
production and efficiency.
McDonald has used the behavioral approach in making it less complicated for its employees to
deliver customer expectations. The focus has shifted from the cozy functionality of its restaurants

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to the employee. The increased nimbleness of the employee in serving the customer faster has
become the new focus. Employees are no longer all-things-to-all people, but they are paired with
what they do best.
Question two
The best approach that McDonald can use is the contingency theory that integrates
considerations of the classical and behavioral theories. The company is mechanistic being in the
fast food industry where most processes are repetitive and mechanical. The classical approach is
helpful in improving efficiency in the areas of centralization, work specialization, span of control
and centralization (Scott, 2013).The work specialization and span of control is narrow, while the
centralization is centralized. The formalization is high in McDonalds with most of the services
globally being standardized. The classical theory will help standardize the and globally in terms
of quality and service delivery.
The behavioral theory can be utilized in improving the welfare of the employees who are
considered as input resources in the organization. The input of human resources is what
transforms the goods or services that form the business process of the company into the brand
that can be identified (Scott, 2013). With greater mechanization projected in the future, proper
preparation of employees to work with automation is critical for McDonalds. Couple with the
classical approach of management, the two theories can help the company to transform its
organizational process while improving relations with its employees. This will help to keep the
company competitive an environment that is rapidly changing.

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References
Scott, J. (2013). The Concise Handbook of Management : A Practitioner's Approach.
Binghamton: Routledge.
Witzel, M., & Warner, M. (2013). The Oxford handbook of management theorists. Oxford:
Oxford University Press.