Business StudiesProject on

Principlesof

Management

Submitted to: Mrs. Yavnika

Submitted by: Chandan

Class : XII Commerce

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title

Main Elements

• Introduction

• Conclusion

• Analysis section

Introduction

About the topicHenry fayol

Selection of organization

Objective

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3 4

Henry Fayol

Henry fayol, a famous industrialist of France, has describes fourteen principles of management in his book General and Industrial Management. Those fourteen principles of management are referred to as administrative in nature and have top-down approach.

About the topic

The title of study is – “A detailed study of the principles of management with special reference to Parle pvt. ltd., Neemrana.”

According to Knootz and O’Donnell, “Management principles are fundamental truth of general validity which have value in predicting the results of management action.

These days business has assumed wider dimensions as a result of which numerous problems arises in day-to-day activities and the manager has to solve these problems. A manger needs guidelines to grapple with problems and run the organization efficiently. The principles of management guide the manager. That’s why, Principles of Management are important.

ObjectivesThe chief purpose of this project is to see the principles of management being implemented in real life. With its help we shall get information whether the principles of management which come across in the books are actually true? And whether by following principles of management the efficiency of the managers and workers is actually enhanced. The objective is not to get good marks but to see that the principles are actually implemented.

Selection of OrganizationIn order to achieve the objectives of this project we needed an organization where business is carried on a large scale and various activities are performed. On the advice on the project guide Parle Biscuits pvt. ltd., Neemrana was selected. The following were the chief reasons for selecting this company:i. It is capable of fulfilling the purpose of the

project.ii. It is situated nearby and vising is would be easy.

• Founder : Chauhan Family• Founded : 1929• Head office : Vile Parle (East), Mumbai

• The most well known biscuit company of India.

• Company Type : Private Limited• Industry type : Food• Annual Turnover : 2000 crores and above

About Parle

Website : www.parleproducts.com

Analysis Section

Division of WorkAccording to this principle, “as far as possible the whole work should be divided into small parts and each individual should be assigned only one part of work according to his ability and taste repeatedly so that the benefits of specialization may be achieved.”

Principle Yes NoNo

Response

No. of Person Respon

dedDivision of

Work 12 07 06 25

Authority & Responsibility

According to this principle, “authority and responsibility should go hand in hand. It means that a person is given a particular work and he is made responsible for the results, this can be possible only when he is given sufficient authority to discharge his responsibility.”

Principle Yes NoNo

Response

No. of Person Respon

dedAuthority &

Responsibility

10 08 07 25

DisciplineAccording to this principle, “the organizational rules and employment agreement should be obeyed by both the superiors and subordinates which are necessary for the successful working of the organization.”

Principle Yes NoNo

Response

No. of Person Respon

ded

Discipline 19 02 04 25

Unity of CommandAccording to this principle, “an individual employee should receive orders from only one superior at a time and that employee should be answerable only to the superior. There should be one and only one boss for every individual employee.”

Principle Yes NoNo

Response

No. of Person Respon

dedUnity of

Command 08 12 05 25

Unity of DirectionUnity of Direction means that there should be one head for one plan for a group of activities having the same objectives. Activities having similar objectives should be completed under the supervision of one person and with one action plan.

Principle Yes NoNo

Response

No. of Person Respon

dedUnity of Direction 10 07 08 25

Subordination of Individual interest to General interest

According to this principle, “the interest of an organization should take priority over the interests of any one individual employee.” If it is not done than this will profit manager personally, but the company will incur heavy loss. That situation would be undesirable.

Principle Yes NoNo

Response

No. of Person Respon

dedSubordination of

Individual interest to General

interest14 06 05 25

Remuneration to EmployeesAccording to this principle, “employees in

the organization must be paid fairly or adequately to give them maximum satisfaction. The remuneration must be just and fair because if employees are underpaid they will not be satisfied and an unsatisfied person can never contribute his maximum.”

Principle Yes NoNo

Response

No. of Person Respon

dedRemuneratio

n to Employees

07 09 09 25

Centralisation & Decentralisation

Centralisation refers to concentration of authority or power in few hands at top level. Decentralisation means evenly distribution of power at every level. According to Fayol, “there should be proper combination of Centralisation and Decentralisation at different levels.

Principle Yes NoNo

Response

No. of Person

Responded

Centralisation &

Decentralisation

08 11 06 25

Scalar ChainScalar Chain means line of authority or chain of superiors from highest to lowest rank. Fayol insists that this chain must be followed strictly in the organization. Every information must pass through every key of this chain, no skipping of any one key should be allowed.

Principle Yes NoNo

Response

No. of Person Respon

ded

Scalar Chain 13 05 07 25

Principle of OrderAccording to this principle, “a proper and orderly arrangement of men and material should be there, that is a fixed place for everything and everyone in the organization.” Fayol insists that there must be a fixed place to keep every material used.

Principle Yes NoNo

Response

No. of Person Respon

dedPrinciple of

Order 10 11 04 25

Principle of EquityEquity refers to kind, fair and just treatment to employees. Employees will put their maximum efforts only when they are treated with kindness and justice. The manager should take care of the satisfaction of his employees.

Principle Yes NoNo

Response

No. of Person Respon

dedPrinciple of

Equity 09 12 04 25

Stability of PersonnelAccording to this principle, “the management must provide the feeling of job security among the employees because with the feeling of insecurity for the job, the employees cannot contribute their maximum. Frequent turnover of employees is bad for organization.

Principle Yes NoNo

Response

No. of Person Respon

dedStability of Personnel 15 06 04 25

InitiativeInitiative refers to chalking out the plan and then implementing the same. Fayol suggested that employees in the organization must be given an opportunity to take some initiative in making and executing a plan. It gives immense satisfaction to employees.

Principle Yes NoNo

Response

No. of Person Respon

ded

Initiative 12 05 08 25

Esprit de CorpsEsprit de Crops means union in strength. Fayol emphasized on the team work. He suggested that every employee in the organization must consider him as a part of a team and try to achieve the team goal because team contribution is always better.

Principle Yes NoNo

Response

No. of Person Respon

dedEsprit de

Corps 16 07 02 25

Observation TablePrinciple Yes No No

ResponseNo. of Person

RespondedDivision of Work 12 07 06 25

Authority & Responsibility 10 08 07 25Discipline 19 02 04 25

Unity of Command 08 12 05 25Unity of Direction 10 07 08 25

Subordination of Interest 14 06 05 25Remuneration of Employees 07 09 09 25

Centralisation & Decentralisation 08 11 06 25

Scalar Chain 13 05 07 25Order 10 11 04 25Equity 09 12 04 25

Stability of Personnel 15 06 04 25Initiative 12 05 08 25

Esprit De Corps 16 07 02 25

ConclusionThe 14 principles advocated by Henry Fayol were subjected to observation and on the basis of which we can include that only 09 principles are being observed in this company and only 05 principles are being ignored or violated. In case the managers want to ensure success of the company they shall implement the other principles of management which they have been ignored. It was, indeed, a pleasant experience to find the principles of management being implemented.Therefore, we cannot say that these principles are simply theoretical or meant only for being incorporated in the books and have no relevance in the field of practically.

Thank You