Management Theory Of Ford and KFC Samples †MyAssignmenthelp.com

Question: Discuss about the Management Theory Of Ford and KFC. Answer: Taylors Scientific Management Theory The theory ofscientific management was initiated by Fredrick W. Taylor. Thismanagement theory is applied for ascertaining the organizational workflow effectively. The main objective related toscientific management is to increase the economic efficiency of the organization and raise its labor productivity (Gafiyatullina et al 2015). In the recent times, this theory is mostly applicable in the firms, where repetitive tasks are practiced. It helps in managing the employees to achieve the business goals more effectively by implementing the theories. The theory is well-defined set of rules needed by the managers and leaders to control the entity. Taylor theory was first incorporated due to Henry Ford for his automobiles industry, Fords. The principles helped in achieving the desired target as the rate of productivity of the workers increased. Benefits: Pay system: Taylors scientific theory followed piece work pay method for the employees. It helped in providing increased wages to the workers with higher outcome and productivity. The incentive plans through piece wage system provides maximum satisfaction to the employees (Kapur 2016). Enhanced production: this scientific theory leads to improved and enhanced production required for the business operations improvement (Powers 2014). This also led to harmonious and cordial relationship between employees and the leaders. Quick Decision-making: Taylorsmanagement theory facilitates effective and quick decision making process for the organization. Efficient use of resources: the scientific theory provides adequate utilization of resources. Moreover, increases the standards of the organization through technological developments. Limitations: Time consuming: This theory is very time consuming as the theory when adopted by the organization requires enough time for improved standardization and specialization within the organization (Meyers and van Woerkom 2014). Huge capital requirements: the scientific theory is very costly moreover excess capital is required for standardization as well as training of the workers in the organization. Negligible bargaining: this approach practices piece work system for payment, hence the chances of bargaining is low or negligible. Organization that adopted the theory: The reputed automobile industry, Ford adopted the theory that led to the growth of the organization. The change in the techniques or process in the assembly line facilitated the company in generating cars very quickly and at an affordable price. The change in the process of assembly line through management principles of Taylors resulted in increased market demand for Fords automobile industry. Moreover, this theory was first implied by Ford and leads to gain recognition and approval all over the world (Ford.com. 2018). In the current times, the factories managers also consider the significance of welfare of the factory employees. This has resulted in strengthening the workers relationship in the factory. Furthermore, this also has led to increase in team spirit and reliance among the employees for achieving the common goal. Ford applies scientific management theory by solving the organizational issues by its rue of thumbs. Evaluation: The scientific theory practices piece rate system, which enforces the employees to perform their assigned task under unnecessary pressure. This leads to the exploitation of workers to complete their tasks more fast (Ranjan 2017). Moreover, Taylor has laid more emphasis in differentiating the planning process of its organization from their actions. It is advised that the managers should plan more effectively by making realistic plan for their organizations. Fayols Administrative Management Theory This management theory was developed by Henry Fayol and this management model describes the organizational interactions with its personnel. In the recent times, the business organization regards Henry Fayol's classical theory as a vital guide that is responsible for the proper guidance and management of the organization and its staff. Fayols management theory consists of its 14 major principles that involve organizing, coordinating, planning and controlling. Benefits: This theory is highly comprehensive administrative theory that relates to the efficient management techniques. It helps in raising the efficiency and productivity within the business structure. The main managerial function includes authority, discipline, centralization, division f work and equity. Moreover, Fayols management theory facilitates major emphasis on the controlling and management techniques through monitoring, forecasting and controlling. This management theory ensures high success of an organization. Limitations: In the recent times, it would be highly unwise to generalize the situations especially for new and high- technology companies. As it become quite difficult to deal with the changes according to their competitors products and services. This theory fails to recognize the employees needs and wants that is unrelated to the organization. It assumes that the best and effective measure to know the performance of its organization is through the workers productivity (Gnanamkonda 2015). Moreover, this theory is still related to humans and it is quiet natural for the individuals to commit mistakes to create unity that is related to management team. Organization that adopted the theory: KFC, one of the leading fast food restaurants in the world follows this Fayols principle of management. KFC changed its organizational structuring after practicing Fayols principles of management to increase its efficiency (Kfc.com 2018). The command and control from the higher authority as per Fayols theory is made to ensure employees tasks are efficiently performed. Proper monitoring helps the organization to provide feedback that brings changes that is required for better and effective applications in future. Fayols principles are followed by KFC and major relevance is given to the employees opinion that leads to increase in the confidence level of the workers. As per the Fayols principles of management, both responsibility and authority are two sides of a same coin. KFC effectively implements the principles in the organization through authority. Moreover, the employees are responsible towards their assigned duties. Evaluation: The organization practicing the Fayols management theory fails to emphasize the labor productivity rate. As, KFCs labor turnover rate is increasing gradually affecting its growth in the long-run. The major values related to Fayols principles should also be a significant stabilizing force related to modern workplace (Samuel, Found and Williams 2015). Moreover, major emphasis of the KFC employees is given on individual interest rather than the general interest of the company. Due to the increase in globalization, the organizations nowadays are more prone to instability and uncertainties (Bird and Mendenhall 2016). It is important for the organization to follow an effective management theory. References: Bird, A. and Mendenhall, M.E., 2016. From cross-cultural management to global leadership: Evolution and adaptation.Journal of World Business,51(1), pp.115-126. Ford.com 2018.Ford New Cars, Trucks, SUVs, Crossovers Hybrids | Vehicles Built Just for You | Ford.com. [online] Ford.com. Available at: https://www.ford.com/ [Accessed 14 Feb. 2018]. Gafiyatullina, A.Z., Nikonova, T.V., Vagin, S.G., Kharisova, R.R., Pavlova, E.I., Khayrutdinov, R.R. and Ishmuradova, I.I., 2015. Organization of controlling the intellectual potential of company personnel.Review of European Studies,7(4), p.13. Gnanamkonda, V., 2015. Cases in Marketing Management.South Asian Journal of Management,22(4), p.204. Kapur, R., 2016. Managerial functions and job satisfaction within an organization.International Journal of Information, Business and Management,8(4), p.317. Kfc.com 2018.KFC: Finger Lickin Good. [online] KFC: Finger Lickin Good. Available at: https://www.kfc.com/ [Accessed 14 Feb. 2018]. Meyers, M.C. and van Woerkom, M., 2014. The influence of underlying philosophies on talent management: Theory, implications for practice, and research agenda.Journal of World Business,49(2), pp.192-203. Powers, E.L., 2014. Innovating our thinking about management: A new model.SAM Advanced Management Journal,79(1), p.40. Ranjan, P., 2017. Human Resource Management and Organizational Behaviour.Journal of HR, Organizational Behaviour Entrepreneurship Development,1(1), pp.8-12. Samuel, D., Found, P. and Williams, S.J., 2015. How did the publication of the book The Machine That Changed The World change management thinking? Exploring 25 years of lean literature.International Journal of Operations Production Management,35(10), pp.1386-1407.