Frederick Taylor's and Elton Mayo's theories applied in companies - McDonalds and Tesco.

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Company 1 : Mc Donald's

Introduction

     Mc Donald's is one of the world's reknown and valuable brand and holds a leading share among the fast food restaurant segment chains worldwide. They operate everyday around the globe serving serving nearly 50 million people in more than 119 countries each day. McDonald's primarily sells hamburgers, cheeseburgers, chicken products, french fries, breakfast items, soft drinks, shakes and desserts. The business began operation in 1940 in San Francisco, California and it was founded by Richard and Maurice McDonald and Ray Kroc.

Frederick W. Taylor's Scientific Management Theory applied by Mc Donald's

    McDonalds’s apply the Scientific Management principles by Frederick W. Taylor in their business operations. The Scientific Management principles in McDonald’s business operations are implemented from three perspectives namely the systems of rewards for meeting the goals, scientific education and development of the workman and standard method of performing each job. In his theory, Taylor stated that because the employees  receive the same amount of pay regardless of how much extra work is done or is produced, the non incentive wage systems causes productivity to be low. Taylor's concept of motivation is to diminish the system of inequitable pay for employees which are underpaid and a implement bonus system which will create monetary incentives. McDonald's encourages its employees through many effective ways where they offer a competitive wage and promotion program. Employees which are hardworking, dedicated and show performance results are recognized and rewarded at McDonald's.

     Mc Donalds conducts recognition programs such as ' Employee of the Month ' where it recognizes the best worker for the entire month and rewards them with some incentives and this gives motivation to the other employees to aim towards that too . McDonald's also offers great incentive programs with access to gift certificates, merchandise, free food, recognition programs and even company car program to increase monetary incentives. Moreover, Mc Donald’s has also implemented an incentive pay system where it gives its employees with the opportunity to earn compensation when their performance meets and exceeds the given target. On top of basic salary, the company also pays bonus based on individual and efficient performances. To reward and retain key employees who have shown consistent performance, they are granted long term incentives and this can impact long term creation at McDonald's.

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    On job training is also one of the most important principles of Scientific Management theory. Taylor stated that every company should train its workers scientifically rather than leaving them to train themselves as they might be prone to making mistakes. It aims to unearth and cultivate workmens endowment and let them have the best performance in their work to obtain the highest efficiency. McDonald’s have a strong tradition of training that is consistently applied to everybody in the business starting at crew level because they know its prominence to the bottom line of their business operation. All ...

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**** The writer has clearly understood the theories of Taylor and Mayo and has researched into how McDonalds and Tesco operate but they have not made a strong case that McDonalds follow Taylor and Tesco follow Mayo. They attempt to make the firms follow the theory but the reality for both companies is that they both motivate staff using a range of methods consistent with different theories.