Subway and Fayol’s 14 Principles of Management: A Comprehensive Analysis

Subway, one of the world's largest quick-service restaurant chains, can be analyzed through the lens of Henri Fayol's 14 principles of management. These principles, developed over a century ago, are still applicable today in modern organizational settings, including franchises like Subway. This article explores how Subway applies Fayol's principles and highlights the role these principles play in enhancing organizational efficiency and employee satisfaction.

Division of Work

One of the key principles of management is division of work. At Subway, this principle is evident in the clear delineation of roles and responsibilities. Each employee has a specific job, from sandwich artists to cashiers to managers. This specialization enhances efficiency and ensures that tasks are performed accurately and consistently. By having a defined set of roles, Subway can ensure that all work is divided in a way that maximizes productivity and minimizes redundancy.

Authority and Responsibility

Authority and responsibility are integral to any well-managed organization. Subway's managers are granted authority to make decisions regarding operations and staff management, but this comes with a clear set of responsibilities. They are accountable for ensuring that the store operates smoothly and efficiently, adhering to company policies and procedures. This balance between authority and responsibility fosters a culture of accountability and trust within the organization.

Discipline

The principle of discipline is crucial to maintaining order in any business. Subway emphasizes the importance of discipline to maintain standards for employee behavior, customer service, and food safety. This is achieved through consistent training, policies, and clear expectations. A disciplined workforce is better equipped to handle challenges and ensure that customer satisfaction remains at the forefront of everything they do.

Unity of Command

Unity of command ensures that employees report to a single manager, thereby avoiding confusion and ensuring clear communication. This principle is important for maintaining a streamlined and cohesive organizational structure. At Subway, each employee has a single chain of command, which helps in resolving any conflicts and ensures that everyone knows who to report to, fostering a clear and unified direction.

Unity of Direction

Unity of direction is essential for aligning all efforts towards a common goal. Subway's mission to provide fresh, customizable sandwiches with a focus on quality and customer satisfaction is a clear example of unity of direction. All employees, from store staff to headquarters, work towards this common mission, ensuring that every aspect of the business contributes to the overarching goal.

Subordination of Individual Interests to General Interests

The subordination of individual interests to general interests encourages employees to act in the best interest of the company, not just themselves. Subway promotes a culture where individual actions align with the company's objectives, such as customer satisfaction and brand reputation. By doing so, Subway fosters a team-oriented environment that prioritizes the success of the organization over personal gains.

Remuneration

Remuneration is another critical principle that ensures fair compensation, which motivates staff and reduces turnover. Subway compensates its employees fairly based on their roles, which helps to maintain a motivated and satisfied workforce. Fair remuneration not only boosts morale but also ensures that employees are committed to their jobs, leading to higher productivity.

Centralization

Centralization is the extent to which decision-making is delegated to individual employees or kept at the higher management level. Subway maintains a centralized approach to branding, marketing, and operational procedures to ensure consistency across all locations. While individual franchises have some autonomy, the central office ensures that brand standards are maintained, leading to a cohesive and recognizable brand image.

Scalar Chain

Subway has a clear hierarchy from franchise owners to store managers to crew members. This scalar chain facilitates communication and decision-making, ensuring that information flows efficiently throughout the organization. This structure helps to minimize confusion and ensures that everyone knows their place in the organization, fostering a streamlined and effective operational environment.

Order

Order is crucial for maintaining a systematic approach to inventory management and food preparation. Subway ensures that everything is organized and easily accessible, reducing waste and promoting efficiency. This principle is particularly important in a fast-paced restaurant environment, where order and organization can mean the difference between success and failure.

Equity

Equity involves treating employees with fairness and respect, fostering a positive work environment. Subway aims to treat its employees fairly and with respect, which contributes to a positive workplace culture. A culture of equity and respect not only improves morale but also enhances customer satisfaction and reduces turnover.

Stability of Tenure of Personnel

The stability of tenure of personnel is another principle that emphasizes the importance of retaining skilled and experienced employees. Subway encourages employee retention by offering training and development opportunities, which helps to build a stable and knowledgeable workforce. By investing in its employees, Subway can ensure that they have the skills and knowledge needed to succeed in their roles, leading to better customer service and higher operational efficiency.

Initiative

Initiative is the willingness to take action and improve processes. At Subway, employees are often encouraged to take initiative in customer service and suggest improvements. This fosters a culture of innovation and continuous improvement, ensuring that the organization remains competitive and adaptable to changing market conditions.

Esprit de Corps

Finally, the principle of esprit de corps (team spirit) encourages collaboration and communication among employees. Subway promotes team spirit by emphasizing the importance of working together to create a positive workplace culture. This team spirit helps to build a sense of camaraderie and shared purpose, which contributes to higher job satisfaction and better performance.

In summary, while the implementation of these principles may vary across locations, Subway generally incorporates Fayol's principles to enhance operational efficiency, employee satisfaction, and customer service. By aligning with these time-tested management principles, Subway can continue to thrive in a competitive and dynamic market.