FACULTY OF ADMINISTRATIVE SCIENCE AND POLICY

STUDIES
BACHELOR OF ADMINISTRATIVE SCIENCE (HONS)

ADS460
MANAGEMENT PRINCIPLES AND PRACTICES

MC DONALD SURIA SABAH

PREPARED BY:

MUHAMAD SUHAILY BIN MUHAMAD TANG 2021871174

YUSUF ‘IZZUDDIN BIN AZIZ 2021494226
FARAH NURUL IZZAH BT MD ZAKI 2021617928
JOSIE VERONIKA JONATHAN AGONG 2021481256
CHERYLYANA NATASHA BT ABDULLAH 2021829176

CLASS :
ADS460G2

PREPARED FOR:
PROFESOR MADYA DR. HAJAH ZURAIDAH BINTI ZAABA
 ACKNOWLEDGEMENT

First of all, praises and thanks to God, The Almighty because with His bounty
and blessing throughout our research we can complete the given task successfully.

We would like to express our big thank to our lecturer of Management Principles
and Practice (ADS460), Prof. Dr. Hajah Zuraidah Binti Zaaba for guiding and helping
us a lot in completing the given project. Her guidance was very helpful to us and her
patience and motivation also lead for a better performance for her students in achieve
the goals.

Apart from that, we would also like to give a million thanks to our fellow friends
who helped to make this project success either directly or indirectly. This really
helpful friends would not be complete without the consist ideas and opinions from
Muhammad Suhaily, Yusuf ‘Izzuddin, Farah Nurul Izzah, Josie Veronika and
Cherylyana Natasha.

Lastly, we would like to thank to our family members who are very helpful in
providing support, love, encouragement and constant prayers to us for always strive
and do not easily give up in completing the tasks given.

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TABLE OF CONTENT

Num. Particulars Page

1. Acknowledgement i
2. 1. Introduction 3-5
a. Industry Restaurant
b. Quick Service Restaurant
c. McDonald Restaurant
d. McDonald in Malaysia
e. McDonald Suria Sabah
3. 2. Management Approaches In Mcdonald 5-6

4. 3. Management Principle Application In McDonald 6-7

Suria Sabah
5. 4. Organization Chart 7-8
6. 5. Services 8-11
7. 6. Conclusion 12
8. Documentation of Presentation (Draft)
9. Template A 13
10. Template B 14-15
11. Template C 16

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1. INTRODUCTION

1.1. RESTAURANT INDUSTRY

The restaurant industry is typically considered as a part of the hospitality

industry and employ a number of different type of employees starting from chefs
and waiters to managers and bartenders. Restaurant industry is the professional
industry such as restaurant, bars and other type of food service providers that
allow customers to enter, order food and eat at the premises.

1.1.1 QUICK SERVICE RESTAURANT/FAST FOOD

From its beginnings in Ancient Rome, quick service restaurants have gone a
long way. Food trucks, which are proving to be an excellent method for
restauranteurs to join the market with lower operating expenses, have fueled
quick service restaurant development in recent years, as have new ideas inspired
by exotic cuisines and traditional favourite. Street merchants in Ancient Rome
developed stationary food carts with counters where customers could order food
and drinks to go. This is the first known example of what would eventually
become the typical quick-service restaurant style.

1921: Walt A. Anderson and Billy Ingram conceived of a chain restaurant

that would elevate food stalls to new heights. They planned to open a restaurant
that serves conventional diner fare in a more relaxed and speedy atmosphere.
White Castle was born as a result of this. Following in their footsteps were a
plethora of quick-service restaurants, the earliest of which were A&W and
McDonald's, which permanently changed the way Americans regarded casual
eating. The first complete drive-thru package was established in 1948 by a burger
restaurant in California. Customers could order meals over an intercom system
without ever leaving their automobiles when In-N-Out started doing so, and it
spurred every fast-food business to follow suit.

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 The Merriam Webster dictionary recognizes the word "fast-food restaurant"
in 1951. Fast-food restaurants are now worldwide enterprises, and new locations
open on a regular basis, introducing fresh concepts for how people dine informally.
1991: While eating at a San Francisco restaurant, Steve Ells noticed individuals
ordering at the counter and receiving rapidly prepared food without sacrificing
quality. He built the first Chipotle Mexican Grills business two years later, and the
notion of "fast casual" was created.

2. MCDONALD RESTAURANT

This case study focus on McDonald by studying how this fast food industry
manages the demand of society for the food supplies. McDonald’s is a huge success
company around the world. This company began with the brothers operated by
Richard and Maurice McDonald, in San Bernadino, California, United States. This
brother open a franchise to serve their customer. Later in April 1955, Raymond Albert
Kroc as a salesman launched McDonald’s Systems, Inc and known as McDonald’s
Corporation. The first restaurant opened in Des Plaines, Illinois. Although McDonald
is best known for the instant food and day by day the menu choices in McDonald
increasingly according to the demands of society. Now McDonald’s is one of the
quick service restaurant with more than 36 000 restaurant in the world and also
growth into the largest restaurant. This quick service restaurant had serve more than
69 million customer a day in over 100 countries.

2.1 MCDONALD MALAYSIA

The McDonald’s operations in Malaysia are now in the hands of Saudi Arabia’s
Lionhorn Pte Ltd. Lionhorn’s owners and McDonald’s franchise was first brought
to Malaysia in the early 1980s by Tan Sri Dato’ Vincent Tan from his Berjaya
Corporation Group in a joint venture under the name Golden Arches Restaurants
Sdn Bhd. After that, the chain was managed by Mohamad Shah bin Tan Sri Abdul
Kadir. For about 20 years, the franchise reverted back to McDonald’s Corporation
which directly ran the Malaysian operations until the transfer of rights to Lionhorn.

2.1.1 MC DONALD SURIA SABAH MALAYSIA

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 McDonald Suria Sabah (figure 1) is a Sabah franchise that caters to
inhabitants in the Kota Kinabalu area. This Mcdonald's is located at Suria Sabah
Shopping Mall, No. 1, Jalan Tun Fuad Stephens, 88000 Kota Kinabalu, Sabah,
Malaysia, Lot G-Ext 1 & Part of Lot G35, Ground Floor, Suria Sabah Shopping
Mall, No. 1, Jalan Tun Fuad Stephens, 88000 Kota Kinabalu, Sabah, Malaysia.
McDonald Suria is one of the largest of nine McDonald's locations in Kota
Kinabalu, Sabah. McDonald Suria previous hours of operation were 24 hours,
however owing to the Covid-19 pandemic, McDonald Suria hours have been
reduced to 7 a.m. to 10 p.m. only.

Figure 1 : McDonald Suria Sabah Branch

3. MANAGEMENT APPROACHES IN MCDONALD

McDonald's uses division of labour and power to exemplify Fayol's

management concepts. The most popular management style in the fast food sector is
classical management. McDonald's has a management style that is based on
traditional management. McDonald's has a collaborative management strategy that
brings together all of the global franchisees under a single corporate umbrella (Long,
2006). McDonald's business plan aims to make fast food available to its consumers at
a very low competitive price while still making a profit by lowering product costs and
expanding the business globally. An organization may control and sustain all of its

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activities by employing these tactics. McDonald's has a management technique that
attempts to optimize product quality within restrictions such as expenses and pricing
limits. McDonald's utilize a production line system to ensure uniformity in product
quality. In this strategic decision area of operations management, consistency meets
consumers' expectations about McDonald's and its brand.

From classical management. McDonald’s has applied some of the Fayol’s 14

Principles of Management. Firstly, the principle management that has been applied is
Division of work. McDonald’s applied the principle to all employees. This is due to
increases the output by making employees more efficient. Secondly, Authority.
McDonald’s has their own manager for every branch. Where this principle is applied
to the Manager to give orders. Not just that, the manager also will take all the
responsibility towards all the staff. Scalar of Chain is one of the principle
management that McDonald’s applied for all the employees. This is to prevent
overlapping work from all the staff. The employees that working at McDonald’s is
follow the order that has been provided. All the employees and materials should be on
the right place at the right time. Last but not least unity of command. All the
McDonald’s employees should receive any command from only one superior. This is
to avoid from the employees get confused with all the order that they have been told
from other top manager other than the superior one.

4. MANAGEMENT PRINCIPLE APPLICATION IN MCDONALD SURIA

SABAH

In their line of business, McDonald Suria Sabah employs a number of

management principles. The Division of Work is one of them. This seeks to identify
their employees' skills and provide them jobs that play to those strengths. Next,
allowing their personnel to focus in one or two related talents each day allows them to
get more practise and time to master them. They will improve more quickly than if
they learned a variety of talents. And the better they work, the better their team
performs, as well as their own work performance.

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 Authority is the second management principle that has been implemented.
McDonald's Suria Suria also has its own manager, who not only gives them orders but
also assists the other employees. As a manager, your role is to come up with an
overarching plan for your team and work with your staff to figure out the most
efficient and realistic approach to put that strategy into action.

The scalar of chain is the next management principle. This is to make

communication between senior management and lower-level representatives easier.

The next management principle is Unity of Command. Each McDonald has a

leader in their particular sector as well as the McDonald Suria Sabah was led by Mr.
Albert Mathew. Only one supervisor should be assigned to all McDonald's
employees. This is to prevent staff from becoming confused by all of the directives
they've received from other top supervisors.

Last but not least is discipline. Employees at McDonald Suria Sabah have shown
that they are very disciplined in performing their respective duties. The staff used to
follow the dress code and seems politely serving their customer.

5. ORGANIZATION

Figure 2 : Organization Chart (courtesy McDonald Suria Sabah)

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 McDonald Suria led by Mr Albert Mathew who is the general manager that
controls all matters such as food safety, scheduling, safety and security, training and
business planning. He is the highest person in the organizational chart that responsible
for all matters pertaining to McDonald Suria in terms of employees, service, food and
customers.

The General Manager is assisted by three assistants who managed the division of
labor according to specific fields. This shows that McDonald Suria applies proper
management principles where employees are divided according to their respective
fields. Based on Henri Fayol with his 14 Principles of Management, division of work
is the main principles for making the employees more efficient and increase the
productivity based on the specialization of work.

The first assistant is to manage matters related to customer management, namely

Ms. Aziah. She will be responsible for specified field such as service and internal
communication. Under her supervision, she was assisted by Ms. Zulaikha and Mr.
Auzaie.

Meanwhile, for the field related to food quality manager, it is under the
supervision of Ms. Marzirah. She is assigned to take responsibility for matters related
to production, inventory management and planner and daily maintenance. She was
assisted by Mr. Abdul Rahman and Mr. Azmi Surain.

The last management that is prioritized in McDonald Suria Sabah is related to

people managers. The people manager is supervised by Ms. Maliah Otip who is
responsible for matters related to people practice, training for crew and scheduling for
employees. She has two assistants, Mr. Haerum Abdullah and Ms. Olivia.

6. SERVICES

Quick service restaurant known as have the best services to customer. Customer
must be served well because quick service restaurant is to provide best services to
customer. Customer that often come to quick restaurant like McDonald Suria Sabah

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Malaysia are always served well based on the observation that already done. The
customer is satisfied with the services that shown by McDonald Suria Sabah
Malaysia.

Figure 1 : Cashless Payment Kiosk (McDonald Suria Sabah Malaysia)

McDonald Suria Sabah Malaysia have improve the services by having cashless
payment kiosk for customer. Customer now already have another option to make a
payment. Customer that would like to use cashless payment kiosk can make a
payment by using card and could avoid from infection like Covid-19. This is a great
upgrade that could make customer feel safe and would like to come again for the
service. Cashless payment kiosk are not only make customer satisfied but also make
the staff do the work smoothly. The staff will notice the order when customer use it
and do not need to make sure the money in the machine is enough that could lead to
many problems such as take time to make a payment. McDonald Suria Sabah could

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make the job quickly by using cashless payment as the staff will know the order by
using the technology.

Figure 2 : Drive in Park and Order services ( McDonald Suria Sabah Malaysia)

Another service that provide from McDonald Suria Sabah Malaysia is Drive in
Park and Order. Customer could just park the car and order when the staff come to the
car. The staff always there to take order from customer manually. The customer no
need to come out from the car and just easily order the food and beverages to the staff
that are ready to take order. Right after the order has been taken from customer, the
staff will be pass the order to another staff. This kind of services is one of the way for
McDonald Suria Sabah Malaysia to achieve a higher goal as they could get more
customer. Based on the observation that has been made, a lot of customers are using
this kind of service. The park are always full from time to time especially when the
peak hours hit. From experience, the staff are friendly with the customer that make the
customer happy and do not make customer hesitate to use the service.

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 Figure 3 : McDonald’s staff serve the order to customer

Despite McDonald Suria Sabah Malaysia have upgrading the service, yet the
older service are still remains. The staff will serve the order that customer made.
Customer could taken the order as usually or by using the technology ( Cashless
Payment Kiosk ) and the staff will served the order to the customer. Based from the
observation, although this kind of service is old-fashioned, the customer still satisfied
with the service. From the experience, the order will be done really quick otherwise
that was at peak hour, then the order might be delay a bit. But yet the customer are
still happy with the service. Scalar of chain are apply in this service as the order taken
by the staff at the counter and will pass to the people that in charge in the kitchen and
lastly will served by another staff that in charge of that. Scalar of chain is important
for ensure the company run smoothly.

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7. CONCLUSION

As a conclusion, McDonald Suria Sabah Malaysia have shown a great

management and lead the company to more achievement. McDonald is the biggest
company and was often on top in the fast food industry ranking either worldwide or in
Malaysia. According to the latest ranking, McDonald was ranked number one for fast
industry for worldwide and also Malaysia leaving 2 other companies behind which
Kentucky Fried Chicken ( KFC ) and Pizza Hut. From this it is clear that McDonald is
the great company which shows good management.

From this assignment, the application of management principles can be seen

through observation and could be useful in forward. Few of Henri Fayol’s principle
can be seen such as division of work, decision making, controlling, scalar of chain
and organizing. The principle is slightly help to achieve the task and make everything
run smoothly. McDonald Suria Sabah Malaysia has applied this principle in order the
goals and be the premier quick restaurant.

Last but not least, this assignment has developed manager skills such as
interpersonal skills, technical skills, decision making and conceptual skill. The skills
sharpened through doing the assignment by researchers and run the assignment
smoothly. Along with that, this assignment gives chances to learn from the mistake
and make correction and could lead to better management in future.

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 TEMPLATE A : GANTT CHART
Activities Week Week Week Week Week Week Week Week Week Week
2 3 4 5 6 7 8 9 10 11

21/10/2021
Group formation
and topic
selection
( Division of
work )
28/10–
11/11/2021
Brainstorming
presentation
outline
(Decision
making )
18/11– 9/12/2021
Searching for
reliable resources
and articles on the
Internet
( Organizing )
23/11/2021
Survey the study
area
( Controling )

16/12 –
23/12/2021
Drafting
assignments
( Organizing )
23/11/2021
Fix the errors in
the report
( Organizing )
6/1/2022
Report
presentation
( Organizing )

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 TEMPLATE B : PRESENTATION TOPIC SELECTION

A. Area of interest : Fast Food industry

B. Nominated Topics:
a. Fast Food industry
i. McDonald’s
ii. Kentucky Fried Chicken
iii. Marrybrown
iv. Pizza hut

C. Final Topic chosen :

i. Fast Food Industry
 McDonald Suria Sabah

D. Reason(s) why the topic is chosen :

We choose this topic because we can get to know more about their services and what
are the work process straight from their worker and staff over here

E. References
1. A. (2020, June 22). Franchise opportunities – McDonalds - Fortune.My.
FORTUNE.My.
https://www.fortune.my/franchise-opportunities-mcdonalds.htm

2. Amir, M. B. (2022, January 3). Fast Food Statistics in Malaysia (Pre-Pandemic

and Current Times) [2022 ]. Trusted Malaysia.
https://www.trustedmalaysia.com/fast-food-statistics-malaysia/

3. E. (2021, May 18). Food Industry, Food Sector, Food Trade. Economy Watch.
https://www.economywatch.com/food-industry-food-sector-food-trade/

4. fast-food. (n.d.). The Merriam-Webster.Com Dictionary. https://www.merriam-

webster.com/dictionary/fast-food

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5. Fast Food Worker Job Description: Salary, Skills, & More. (2019, May 1). The
Balance Careers. https://www.thebalancecareers.com/fast-food-worker-525694

6. Keefer, K. (n.d.). How Quick-Service Restaurants Have Evolved Over Time.

Square. https://squareup.com/us/en/townsquare/evolution-of-qsr

7. McDonald’s | History, Ray Kroc, & Facts. (n.d.). Encyclopedia Britannica.

https://www.britannica.com/topic/McDonalds

8. McDonald’s® Malaysia | History. (n.d.). McDonald’s Malaysia.

https://www.mcdonalds.com.my/company/history

9. McDonald’s Malaysia. (n.d.). McDonald’s® Malaysia | Locate Us.

https://www.mcdonalds.com.my/locate-us

10. McDonald’s Malaysia franchise ops in Saudi’s Lionhorn group. (n.d.).

Array. https://www.sparrowsph.my/blog/mcdonalds-malaysia-franchise-ops-in-
saudis-lionhorn-group.html

11. Ranking The Top 50 Fast-Food Chains in America. (n.d.). QSR Magazine.
https://www.qsrmagazine.com/content/ranking-top-50-fast-food-chains-america

12. Robbins, S., Coulter, M., & Cenzo, D. D. (2016). Fundamentals of Management
(10th ed.). Pearson.

TEMPLATE C : WORK ORGANISATION AND DELEGATION

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 Target
Task Person in
Milestone completion Comments
description charge
date
Everything went
smoothly for the
selection of
Group Choosing group
group members,
formation and members and
Yusuf ‘Izzuddin Week 2 however it was
decide for focus
topic selection quite difficult to
topic
choose a title due
to differing
opinions.
This process is
quite difficult as
all group
Brainstorming Divide the members have to
All of the
presentation subtopic to Week 3,4 come up with
group members
outline group member ideas and divide
tasks fairly in
order to carry out
the next process.
Everything went
Collecting smoothly when
Searching for information
All the group all the
reliable about the Week 5,6
members information was
resources company from
obtained with
the internet.
the teamwork.
Several group
members have
made
Collecting  Cherylyana observations on
information Natasha location and
Survey the
about the  Josie everything is
study area Week 7
company Veronika
collection going smoothly
chosen by  Muhamad
when McDonald
observation. Suhaily
Suria Sabah
serve a great
service.
The process quite
difficult because
Include all the there is an
Drafting information and All group
Week 8,9 overlap of
assignments compile in one members
information but
document
still under
control.
Fix the errors Correcting the Farah Nurul Week 10 The process went
in the report errors Izzah smoothly with
the commitment

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 of other
members.
Report
Cherylyana Week 11
presentation
Presenting
Week 11
powerpoint

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