Burger King's History

Burger King is an American multinational chain of hamburger fast-food restaurants. Founded in 1953
as Insta Burger King in Jacksonville, Florida, the company faced financial difficulties and was later
purchased by David Edgerton and James McLamore in 1954. They renamed it Burger King and
expanded the business.

Over the years, Burger King changed hands four times, eventually going public in 2002. In 2010, 3G
Capital of Brazil acquired a majority stake in the company, valued at $3.26 billion, and initiated a
restructuring to revive its fortunes. Today, Burger King is part of Restaurant Brands International, a
Canadian-based parent company that also owns Tim Hortons. Despite its successes, the company's
advertising efforts have had mixed results, with the 1970s being considered its "Golden Age."

Why I Selected Burger King

In order to achieve the objective of this project, we needed an organization where business is
conducted on a large scale and various activities are performed. Therefore, Burger King was selected
because it is capable of fulfilling the purpose of the project. It is situated nearby, making it easy to
visit.

Division of Work

The division of work is a principle that promotes efficiency and productivity by specializing
employees in different areas. According to Henri Fayol, specialization increases accuracy and speed.
In practice, employees are assigned tasks based on their skills and expertise, ranging from generalist
to specialist. Personal and professional development supports this approach.

Application at Burger King

Burger King applies the division of work principle by assigning employees to specific roles based on
their capabilities. Front staff are responsible for customer service, while kitchen staff focus on food
preparation. This division of labor enhances employee skills and productivity, allowing them to excel
in their designated areas. By leveraging individual strengths, Burger King improves overall efficiency
and customer satisfaction. This approach enables the company to deliver high-quality service and
products consistently.

Authority and Responsibility

Authority and responsibility are two interconnected concepts in management. According to Henri
Fayol, authority gives managers the right to give orders, but it also comes with responsibility. When
managers delegate authority to subordinates, they must also assign corresponding responsibilities.
This ensures that tasks are completed efficiently and effectively.

Application at Burger King

At Burger King, managers delegate authority to staff members to manage specific areas, such as
customer service or front counter operations. Along with this authority, staff members are given
corresponding responsibilities to handle customer behavior and manage their designated areas. This
approach enables staff to work efficiently and effectively, ensuring that tasks are completed to a
high standard. By linking authority and responsibility, Burger King promotes accountability and
effective management.

Unity of Command

The management principle of unity of command means that an individual employee should receive
orders from one manager and that the employee is accountable to that manager. If tasks related to
the employee's responsibilities are given by more than one manager, this may lead to confusion and
potential conflicts. By using this principle, the responsibility for mistakes can be established more
easily.

Application

According to my research, I have learned that this principle is not equally applied at Burger King
because there are instances where team members receive commands from more than one manager,
but not at the same time. This principle is not consistently followed.

Unity of Direction

Unity of direction is a management principle that emphasizes focus and unity in achieving
organizational objectives. According to this principle, all employees working on similar activities
should be directed towards a common goal, with a single plan of action and a unified team. The
manager is responsible for monitoring progress and ensuring that efforts are coordinated.

Application at Burger King

At Burger King, unity of direction is applied in the front-of-house operations, where staff are directed
by a single manager who oversees their work and provides instructions. This ensures that all
employees are working towards a common goal of serving customers efficiently and effectively. By
having a unified team with a clear plan of action, Burger King can deliver consistent service and
achieve its objectives. This principle is particularly important in large enterprises like Burger King,
where coordination and focus are crucial to success.

Centralization and Decentralization

Centralization and decentralization refer to the distribution of decision-making authority within an

Application at Burger King

At Burger King, a balance between centralization and decentralization is achieved. Key decisions are
centralized at the top management level, while certain authorities are delegated to lower levels,
such as store managers. This balance enables the company to maintain consistency in its operations
while also allowing for flexibility and adaptability at the local level. By striking a balance between
centralization and decentralization, Burger King can respond effectively to customer needs and
market trends.

Remuneration

Motivation and productivity are closely related to the smooth running of an organization. This
management principle argues that remuneration should be sufficient to keep employees motivated
and productive. There are two types of remuneration: non-monetary and monetary; ultimately, it is
about rewarding the efforts that have been made.

Application

Burger King provides equal pay rates to their employees, which are standard pay rates according to
IRD. Additionally, Burger King offers annual leave and other medical benefits. Fair remuneration
creates a positive environment within the organization among staff.

Scalar Chain

The scalar chain principle, as described by Henri Fayol, refers to the hierarchical structure of an
organization. It establishes a clear line of authority from senior management to the lowest levels.
This principle ensures that each employee knows their place in the hierarchy and can contact their
immediate superior or manager in case of need, without bypassing the chain of command.

Application at Burger King

At Burger King, the scalar chain is followed, where information flows through a clear hierarchical
structure. Employees communicate with their immediate supervisor, who then reports to the next
level of management, and so on. For example, an employee would report to the Assistant
Restaurant Manager, who would then inform the Restaurant Manager, and the chain continues
upwards. This structure maintains order and clarity in communication, ensuring that decisions are
made and implemented effectively.

Discipline

The third principle of the 14 principles of management is about obedience. It is often part of the core
values of a mission and vision in the form of good conduct and respectful interactions. This
management principle is essential and is seen as the oil that makes the engine of an organization run
smoothly.

Application

Changing the sanitizer every two hours, washing hands every hour, and updating fridge times are all
part of the discipline that employees must fulfill. Punctuality is crucial at Burger King, and while
serving customers, employees must be polite and kind. Discipline is strictly followed.
Order

The principle of order emphasizes the importance of having the right resources in place for
employees to function effectively. This includes a safe, clean, and tidy work environment. A well-
organized workplace enables employees to work efficiently and effectively.

Application at Burger King

At Burger King, the principle of order is applied rigorously. Before preparing food, ingredients and
equipment are organized and placed in their designated areas to avoid confusion and ensure
efficiency. The workplace is cleaned daily, and ingredients are replenished and stored properly. This
attention to order helps maintain a safe and productive work environment, enabling staff to provide
high-quality service to customers.

Equity

The management principle of equity is often reflected in the core values of an organization.
According to Henri Fayol, employees must be treated kindly and equally. Employees must be seen by
the organization to do things right. Managers should supervise and monitor this process, treating
employees fairly and impartially.

Application

Burger King treats its employees equally. No discrimination or racism is tolerated at the restaurant.
Each employee is given the same respect and honor. Grievances and problems are addressed
effectively by the management.

Initiative

According to Henri Fayol, the principle of initiative emphasizes the importance of encouraging
employees to take ownership and contribute new ideas. This fosters interest, involvement, and
creativity, ultimately adding value to the organization. Employee initiatives are a source of strength,
driving innovation and progress.

Application at Burger King

At Burger King, employee initiative is valued and encouraged. Employees are given the freedom to
share their ideas, suggestions, and feedback on various aspects of the business, including strategy
and operations. This open approach enables employees to feel involved and invested in the
company's success, leading to increased motivation and engagement. By tapping into employee
initiative, Burger King can leverage the collective creativity and expertise of its workforce to drive
innovation and improvement.

Esprit de Corps

Esprit de corps, a management principle by Henri Fayol, emphasizes the importance of fostering
teamwork, unity, and involvement among employees. Managers play a key role in developing a
positive work culture, promoting mutual trust, and encouraging effective communication.
Application at Burger King

At Burger King, esprit de corps is crucial for delivering excellent customer service. The coordination
between kitchen staff, production staff, and front staff is essential to ensure seamless service. When
teams work together in harmony, they can provide prompt and efficient service, leading to customer
satisfaction and a positive image of the organization. Effective coordination and teamwork enable
Burger King to achieve its service standards and build a loyal customer base.

Stability of Personnel

This management principle of the 14 Principles of Management represents the employment and
management of personnel, which should be balanced with the rules provided by the organization.
Management strives to minimize employee turnover and ensure that the right staff are in the right
place. Focus areas such as frequent changes in position and sufficient development must be
managed well.

Application at Burger King

Burger King ensures that the availability of the personnel they hire is long-term; otherwise, it will be
challenging for the organization to conduct another round of interviews and training.

Subordination of Individual Interest

According to Henri Fayol, the principle of subordination of individual interest to general interest
emphasizes that organizational objectives should take precedence over personal interests. This
principle applies to all levels of the organization, including managers. Employees should prioritize the
organization's goals and ethics over their own interests.

Application at Burger King

At Burger King, employees are offered benefits like meal discounts, free meals, and paid leave to
foster a sense of association with the organization. However, employees are also expected to
prioritize the organization's interests and work towards its objectives. By balancing individual and
organizational interests, Burger King aims to create a harmonious and productive work environment
where employees are motivated to contribute to the company's success.