A Study Of MANAGEMENT PRINCIPLES GIVEN BY FAYOL

it is easy to understand that principles given by henry fayol it is applicable on the business enterprise or not ity helps you to understand the fourteen principle of the henry fayol deeply


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A Study Of
MANAGEMENT PRINCIPLES GIVEN BY FAYOL
With reference to
GOKUL SUPER BAZAR


PROJECT REPORT
IN
BUSINESS STUDIES FOR CLASS 12
TH

(2017-18)

SUBMITTED BY: Under the guidance of:
Name: Prateek Shrivastava Mr.R.k Thakur
Roll No. : “10”



KENDRIYA VIDYALAYA NO.2 RAIPUR

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CERTIFICATE
This is to certify that m/s. prateek shrivastava has completed his
project work entitled ‘principle of management ’as a part of the
paper of business studies under my supervision and guidance in the
department of commerce. To the best of my knowledge it is an
original piece of work and is worthy of consideration in partial
fulfillment of the requirement of CBSE, Delhi for the award of senior
school certificate in commerce.







Place: Raipur (c.g) name and signature
Date: of guide


ACKNOWLEDGMENT
I take this opportunity to express my profound gratitude’s deep
regards to my teachers & guide Mr.R.K Thakur for her exemplary

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guidance, motivation & constant encouragement throughout the
course of this project. I also express my gratitude to Mr.Rameshwar
Vicky and all the employees of goluk departmental store.
I thank almighty, my parents for their
constant encouragement without which the project would not be
possible.







Name of student: prateek Shrivastava
Roll no. : ‘10’
Year: 2017-18
CONTENTS
S.NO. INDEX
01. INTRODUCTION
02. ABOUT DEPARTMENTAL STORES
03. HENRY FAYOL
04. PRINCIPLES

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05. CONCLUSION
06. BIBLIOGRAPHY
07. APPENDIX













INTRODUCTION
About this topic: the title of the study is project report on Henry
fayol’s principles of management with reference to gokul super
bazaar.
According to counts and o’ Donnelly
“management principles are fundamental truth of general validity
which has value in prediciding the result of management action.”

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This day’s business has assumed wider
dimension as a result of which numerous problems arises in day to
day activities and the manager of the organization has to solve these
problems. A manager needs guidelines to grapple with the problems
and run the organization efficiently. The principals of management
guide the managers. That is why the study of principal of
management is important.
The study plan: - the following are the contents of the study plan:-
 Objective of the study
 Selection of organization
 Subject matters of the study
 Period of the study
 Observation tools used
Objective of the study: - The chief purpose of this project is to see
the principals of management being implemented in real life with its
help we shall get the information weather the principals of
management which we come across in the books are actually true?
And weather by following the principal of management the efficiency
of the managers is actually enhanced.

Selection of organization: - in order to archive the objective of this
project we need an organization where business is carried on a large
business and. various activities are performed. On the advice of the
project guide Ms.shurbhi S. pradhan, gokul super bazaar was
selected. The following were the chief reason for selecting this
company: -
1) It is capable of fulfilling the purpose of the project.

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2) It is situated war by and visiting it would be easy.




DEPARTMENT STORE
A department store is a retail establishment offering a wide range of
consumer goods in different product categories known as
‘departments’ in modern major cities the departments store made a
dramatic appearance in the middle of the 19
th
century and
permanently of service and luxury similar developments were under
way in London in Paris and new York.
Departmental stores today have sections that sell the
following: clothing, furniture, home appliances, toy, cosmetics, house
ware, gardening, toiletries, sporting goods, do it yourself electronics,
stationary, photography equipment, baby product & product for pets.
Customer check out near the front of the stores, while others may be
independently retails. In the 1970s they came under heavy pressure
from discounters. Since 2010. They have come under even heavier
pressure from online stores such as Amazon.

INDIA

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In India, companies like big bazaar, shopper’s stop, pantaloon, ezone,
starbazar and D.mart are entering into retail.
Small time department store or convenience store as they
are better known in most western countries are also upcoming
although these store are much bigger in size than a usual size
convenience in e.g. us. They are much smaller than a regular sized
department’s store. India’s lulu hyper market is considered as one of
the biggest shopping stores in Asia









HENRY FAYOL
Henry Fayol (Istanbul, 29 July 1841- Paris, 19 November 1925) was a
French mining engineer mining executive, author and director of
mines who developed general theory of business administration that
is often called fayolism. He and his colleagues developed this theory
independently of scientific management but roughly

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contemporaneously. Like his contemporary, Frederick Winslow
Taylor, he is widely acknowledgement as a founder of modern
management methods.
BIOGRAPHY
Fayol was born in 1841 in a suburb of Istanbul. His father (an
engineer) was in the military at the time and was appointed
superintendent of workers to build Galati Bridge, which bridged the
golden horn. The family returned to France in 1847, where fayol
graduated to from the mining academy “Ecole national superior des
mines” in Saint Etienne in 1860.
In 1860 at the age of 19 fayol started working at the
mining company named “compagine de commentary- fourchambault-
dacazeville” in commentary as the mining company engineer.
During his time at the mine, he studied the cause of underground
fires, how to prevent them. How to fight them how to red aim
mining areas that had been burned, and developed a knowledge of
the structure of the basin, in 1888 he was promoted to mining
director. During his time as director he made change to improve the
working situation in the mines such as allowing employees to work in
teams and changing the division of labor later more mines were
added to his duties.
Eventually. The board decided to abandon its own and
steel business and the coal mines. They chose Henry fayol to oversee
this as the new managing director. Upon receiving the positions fayol
presented the board with a plan to restore the firm. The board
accepted the proposal. When he retired in 1918, the company was

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financially strong and one of the largest industrial combines in
Europe.
Based largely on his own management experience he developed
his concept of administration. In 1916 he published this experience in
the book “administration industrially et generate” at about the same
time as Frederick Winslow Taylor published his principal of scientific
management.

1) division of work :- according to this principal the whole work
must be divided into small task or units and instead of
assigning the whole work to one person one task or unit of
work should be assigned to one person according to the
capability, qualification 7 experience of the person. When a
person is performing a part of job again and again he will
become perfect and specialized in doing that and the efficiency
level will improve.
Ex. In a furniture manufacturing company one person can asked to
cut the wood pieces one to join them one to polish, one to give
finishing touch to furniture with this division each person will
become specialized in his part of job and his effectiveness and
efficiency improves.
Observation: - in the store all the workers have different work and
they are doing their work. Store has divided the total work into many
parts on the basis of communication skills all the people perform
particular job repeatedly therefore it can be said that the principal of
work i.e. division of work is actually being observed meticulously.

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2) Authority and responsibility: - authority means power to take
decision. Responsibility means obligation to complete the job
assigned on time. According to this principal there must be
balance between the authority and responsibility. Excess of
authority without matching responsibility may bring negative
result and excess of responsibility without matching authority
will not allow the worker to complete his job on time there is
need to bring parity between both for best result.

Ex. If a person is given responsibility to produce 100 units in a week
time but he is not given authority to purchase the raw material. If
there is no raw material available in the store room as a result he
could no complete the target of producing 100 units in a week. The
worker could not blame for not completing on time because he was
give only the responsibility 7 not the matching authority to carry on
the work. Excess of responsibility and not the matching authority to
carry on the work excess of responsibility with less authority results
in non completion of job.
Observation: - authority and responsibility principle of management
is applicable in the store as owner has power to take decision and
workers complete their work on time.
3) Discipline: - discipline is the obedience to the organizational
rule and employment agreement which are necessary for the
working of the organization according to fayol discipline
require good superiors at all levels, clear and fair agreements
& judicious application of penalties.

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Ex. The employees must honor their commitment towards the
organization by working effectively & efficiently on the other hand
superior must also meet their commitment by meeting their
promises of increments, promotions, wages revisions etc.
Observation: - the employees were honored by working effectively &
efficiently. They were fulfilling their commitment. There is clear and
fair agreement between workers and managers and judicious
application of penalties.





4) Unity of command :- according to this principal an employee
should receive order from one boss only because if he is
receiving order from more than one boss then he will get
confuse & will not be able to understand that whose order
must be execute first and one the other hand if employees is
receiving order from more bosses he gets chance to give
excuse by saying that he was busy in executing the orders of
other boss. To avoid confusion and to give no chance of
excuses to employee, the order must come from one boss only.
If there are more bosses it can create problem of clash among
the superiors as every superior wants his order to be executed
by the employee.

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Ex. Suppose a sales person is asked to clinch a deal with b buyer and
is allowed to give 10% discount by the marketing manager. But
finance department tells her/him not to offer more than 5% discount.
In this situation employees will get confused as to whose institution
must be followed by him.
Observation: - this principal of management is followed by the store
the employees get order from a single officer at a time. So they are
not suffering from the consequences of this principle like confusion
among employees ego clash etc. therefore it can be said that the
store has realty understood the importance of this principles.
5) Unity of direction: - according to this principle ‘one unit
means one plan’, that is the effort of all the members and
employees of organization must be directed towards one
direction that is the achievement of common goal. If this
principle is applied it leads coordination. Each department and
a group having common objective must gave one and only one
plan only.
Ex. If a company is manufacturing motorcycles as well as cars then it
should have two separate division for both of them each division
should have its own in charge, plan and execution resource. On no
a/c should the working of two division overlap.
Observation: - I observe that all workers aimed were to achieve
common goal. One unit means one plan is also applicable in the
super bazaar. And also each department has one head and one plan
only.
All the workers of super bazaar directed towards one direction that is
entertain customers on time so that all the customers were satisfied.

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6) Subordination of individual interest to general interest: - The
interest of an organization should take priority over the
interest of any one individual employee according to fayol.
Every worker has some individual interest for working in a
company. The company has got its own objectives
Ex. The company would want to get max output from its employees
at a competitive cost on the other hand an employee may want to
get max salary while working the least in another situation an
individual employee meaty demand same concession which is not
admissible to any other employee like working foe less time.
Observation: - the main goal of the store is to achieve group goal
employees are giving 2
nd
preference to their individual goals so we
can say that they are applying this principle of management.





7) Remuneration of person: - the overall pay and compensation
should be fair to both employee & the organization the
employees should be paid fair wages, which should give them
at least a reasonable standard of living. At the same time it
should be within the paying capacity of the company in other
word remuneration should be just and equitable, this will

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ensure congenial atmosphere and good relations between
workers and management.
Ex. If in a practical year the organization has earned more profit than
apart from giving extra profit to share holders & owners, some part
of profit must be given to employees also in the form of bonus. This
will encourage and motivate to put more efforts and increase the
profit of the company.
Observation: - on the basis of the analysis nearly 50% of the
employees of the company are not happy about the remuneration
policy of the company therefore it can undoubtedly be said that the
company likes behind in observing this principle of management.



8) Centralization and Decentralization:- the concentration of
decision making authority is called centralization adhere as its
dispersal among more than one person is known as
decentralization according to fayol “there is a need to balance
subordinate involvement through decentralization with
managers retention of final authority through centralization”
the degree of centralization will depend upon the
circumstances in which the company is working in general
large organization have more description that small
organization.

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Ex. Panchayats in our country have been given more power to decide
and spend funds granted to them by the government for the welfare
of villages. This is decentralization at the national level.
Observation: - the analysis clearly shows that the store does not
adopt a centralization & decentralization principle instead it can be
said that the company follows the principle of centralization in an
effective way.



9) Scalar chain:- scalar chain means line of authority or chain of
superior from high to lowest rank fayol insist 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.
“According to scalar chain principle if E wants to contact O he has to move
through E-D-C-B-A-L-M-N & D. if this chain is broken then there are chance
of communication gap in the organization but sometimes following scalar
chain become a long process and if some important information has to be
passed. It gets delayed so in case of emergency and urgent information fayol
permitted a short cut in the chain which is called “GANG PLANK” Gang plank
permits direct communication between the employees working in different
position without following the scalar chain”
Observation: - the analysis shows that all the employees followed the
scalar chain principle they communicate level by level. The hierarchy
is
Team leader

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Department head
Asset. Store manager
Store manager
Owner
CEO
10) Principle of order: - According to faylo people and malarial
must be in suitable place at appropriate time for maximum
efficiency. “The principle of order state that” a place for
everything and everything in its place; Essentially it means
order every things in its fixed place for everything and it is
present there, then there will be no hindrance in the activities
of business/factory. This will lead to increased productivity and
efficiency.
Ex. If a worker is in need of a tool he must know in which box tool
room it will be found and if he need guidance from supervision he
must know the fixed cabin of supervisor if no fixed place is given
then worker will waste his time and energy in search of tools or
supervisor.
Observation: - the observation makes it clear that all the goods are
place in their decided place Simi all the employees work only on the
pre determined place of duty. Therefore it can be said that the
principle of order is being observed in the store.

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11) Principle of equity: - equity refers to kind, fair &just treatment
to employees will put their maximum efforts only when they
are treated with kindness and justice if a manager is biased in
dealing with employee and will not contribute to their
maximum capacity. Equity does not mean equal salary to a
peon and supervisor but equity means application of same
disciplinary rule leave rules in the same way irrespective of
their grade position and gender equity means no
discrimination on account of sex, religion, language, cast, belief
or nationality.
Ex. In multinational company people of various nationalities together
without any discrimination as we find a person of India origin sunder
pichai become CEO of Google.
Observation: - principle of equity is present in super bazaar as there
is no racial discrimination of sex, religion, cast, language or state.
Some disciplinary rule is been applicable and the worker was
contributing to their maximum capacity.



12) Stability of tenure of personal: - it refers to no frequent
termination and transfer. According to this principle the
management must provide the filing of job, the employees can
not contribute their maximum frequent term over of
employees is bad for organization and such decision must be
taken when they are almost unavoidable into only turnover
but frequent transfer or rotation should also be avoided

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because it takes some time to a person to learn and get settled
and he receives transfer order then it will be wastage of
resource and employee will not be able to continue his best
for organization.
Observation: - The analysis indicates that labor turnover rate in the
store is on the higher side. In other words, the employees do not
continue to be in the service of the company for a longer period.
This situation reflects miss-management in the company therefore
the company has to take care of the personal in its own interests.




13) Initiative:- initiative refers to taking the first step with self
motivation fayol suggested that employees in the organization
must be given an opportunity to take same initiative in
making and executing a plan in gives immense satisfaction to
employees. So manager must welcome the suggestion and
ideas of employees before framing the plan the initiative does
not mean disobedience i.e. once decision are taken by
management than every employee must follow it weather it is
according to employees suggestion or not.
Ex. Before setting up of plan the manager must welcome the
suggestion and ideas of employees to allow their maximum
participation. But once the plan is made every employee must follow
it whether it is according to employee suggestion or not.

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Observation: - according to my observation the manager was
welcome the suggestion and ideas of employees to allow their
maximum participation Every worker were following what they have
suggested by their head. It gives satisfaction to the workers.


14) Esprit De Corps: - Management must encourage and
promote them spirit unit and harmony this will bring
coordination and cooperation in organization. A manager
should replace “I” with “we” this will give rise to mutual trust
and belongingness among team members. It will minimize the
need for using penalties.
Ex. If the production manager assigned a target of manufacturing 100
unit to a group of 10 members, divided the target among of 10
members, divide the target among themselves to produce 10 unit
each principle of team spirit says that each member of the group
should not concentrate only achieving his individual target of 10 unit
but they must concentrate on achieving group target of 100 units so
if two workers of that group fall sick, then the other eight members
must divide their individual target among themselves and try to
achieve the target of their group.
Observation: - this principle is present in super bazaar if one or two
workers of group fall sick then the other workers divide their
individual target among themselves and try to complete the task on
time and thus help to achieve final goals.

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CONCLUSION
According to the professor W.H Ripatric, ‘a project is a whole
hearted, purposeful activity proceeding in a social environment’
A project from the point of view of students
can be purposeful learning activity including practical problems,
planned and carried out in a real life manner to achieve specific
goals. In other word project work refers to a successful completion of
a study.
This project work has been helpful in studding the meaning,
techniques and function of principles of management given by the
Henry Fayol in a better manner.
Principle of management are generally and broad
guidelines for decision making and behavior of manager the project
had helpful in understanding the significance of principle
management which is as under:-
 Provide useful insight to managers.
 Optimum utilization of resource and effective administration.
 Scientific decision.
 Fulfilling social responsibility.
‘Thus this project work was of immense benefit for me’.
BIBLIOGRAPHY
BOOKS:-
 NCERT- text book in business studies for class XII
 BUSINESS STUDIES by Poonam Gandhi for class XII

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INTERNET:-
 www.maritnation.com
 www.wikipedia.org
 www.mycbseguide.com













APPENDIX
PROJECT NO. 1
AREA OF OBSERVATION- A DEPARTMENTAL STORE


Name of the Store:
Name of Manager:
1. When did store open?

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2. Has the business been satisfactory?
3. Is the work divide between employees?
4. What is the basis of division?
5. Who is the ultimate authority in the store?
6. What pattern of scalar chain or hierarchy exists?
7. Who does the employee report to?
8. Is there one head and one plan for a group of activities?
9. Is the employee committed to the organization?
10. Is the remuneration is fair and justified?
11. Who take the final decision?
12. Is order and discipline maintained in every aspect?
13. Is the term/tenure of employee stable?
14. Describe any new ‘initiative’ taken by the store to increase the sale?
15. How does the story maintain high moral among the employees?

Name of the student: - Date:-
“Prateek Shrivastava” Signature:-

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