COVER PAGE -

ACKNOWLEDGEMENT –
CERTIFICATE –
INDEX –

Page 1 - Introduction
Page 2 - Nature
Page 3 - Significance
Page 4 - Henry Fayol’s Principles of Management
Page 12 - F.W Taylor’s Scientific Techniques of Management
Page 16 - Comparison between Fayol and Taylor’s Principles
Page 17 - Industry Visit
Page 39 - Conclusion
Page 40 - Bibliography

INTRODUCTION –
• Management has been defined by several theorists in their own way. Henri
Fayol defined management as, “Management is to forecast, to plan, to
organize, to command, to coordinate and control activities of others.” 
• In simple terms, management is a means of organizing and delegating the
work that needs to be done among people who can do it, and then ensuring
that said work is done diligently and timely.
• Management is universally necessary in all organization. It is the force
that holds everything in nation. Management is the mobilization of an
organization’ s resources to meet a goal. Management is virtually applied
to every type of organization, whatever its size or purpose.
• Managers who were leading the way in the early 1900s had very little
external resources to use and develop their management practices.
Theorist Henri Fayol recognized this gap and built what is now the
foundation of modern management theory.
• A principle refers to a statement which reflects the fundamental truth
about some phenomena based on cause-and-effect relationship. In
Management, principles are broad and general guidelines for decision
making and behaviour of managers.
• When Fayol published “14 principles” in 1914 in the book called
“Administration Industrielle et Générale,” managers started to get the
tools they needed to lead. The management process became more
effective.
• He also created a list of the 6 primary functions of management. The
functions go hand-in-hand with the principles.
• We also have the contributions of Fredrick Winslow Taylor, who was an
American mechanical engineer. While Fayol emphasised the
‘Administrative Principles’, Taylor was primarily concerned about the
efficiency of workers and effective use of resources and the concept was
known as ‘Scientific Management’.
NATURE OF PRINCIPLES OF MANAGEMENT –
The Principles of Management have been developed on the basis of live
experiences and happenings of the past. Depending upon how they are derived
and their effectiveness, they contribute towards the development of
management both as a science and as an art.

The main features of management principles are:

• Universal Applicability - The principles of management are universally
applicable, to all types of organizations irrespective of their scale and
nature of business. However, the extent of their applicability depends on
the nature of the organization.
• General Guidelines – The principles are guidelines to actions but these
principles do not provide readymade solution for any problem. Business
situations are complex and dynamic and are a result of various factors, so
they need to be used accordingly.
• Formed by practice and experimentation – The principles are
developed after thorough research work and based on experiences of
managers as well as experiments. They cannot be created overnight and
thus; they are experimental in nature.
• Flexible – Management principles are not to be followed absolutely and
can be applied differently under different conditions. Some changes can
be made according to the requirement of the company. The managers can
modify them when the situation so demands.
• Mainly Behavioural – The objective of these principles is to guide and
influence the behaviour of the employees, and this is what the
management does. They improve the relationship between the superiors
and their subordinates.
• Cause and Effect Relationship – The principles are intended to establish
relationship between cause and effect so that they can be used in similar
situations. They tell us the likely effect of the application of a particular
principle in a particular situation.
• Contingent – These principles are contingent or the application of these
principles are based on the prevailing situation at a particular point of
time. A change in the situation calls for a change in the application of the
principle.
SIGNIFICANCE OF MANAGEMENT PRINCIPLES –
Proper understanding of management principles is very necessary and helpful
for managers as these principles act as guidelines for managerial activities. By
practising principles, managers can avoid various mistakes while dealing with
people in the organization.
The importance of management principles is due to:
• Providing managers with useful insight into reality – Principles of
management act as guidelines for managerial activities. They improve
knowledge, ability and understanding of managers under different
managerial situations.
• Optimum utilization of resources – As resources of a company, both
human and material, are available in a limited amount, these principles
insist on planned and systematic working of an organization. Resulting in
maximum benefits from human efforts and resources.
• Scientific decisions – Managers have to take number of decisions every
day. These decisions must be based on facts, thoughtful and justifiable
ones, in terms of the intended purposes. So, these principles enable
managers to take scientific and systematic decisions.
• Meeting Changing Environment requirement – As we already know,
principles are flexible in nature. So, the application of these principles by
a manager, can be modified to meet changing requirements of the
business environment.
• Effective Administration – Administration of a company is the function
of the top-level management. Management principles act as guidelines
and base to form various administrative policies to have systematic
working in the organization.
• Fulfilling Social Responsibilities – A business is a creation of society
and also makes use of resources from the society. Management principles
not only act as guidelines for achieving organizational objectives but also
help the managers fulfil social objectives.
• Management training, education and research – The principles are the
basis for management training, education and research. They provide the
necessary groundwork for the development of management as a
discipline.
FAYOL’S PRINCIPLES OF MANAGEMENT –

• Henry (Henri) Fayol was born in Turkey in 1841. He got a degree in

mining engineering in 1860 and started working as engineer in coal
mining company. He was promoted as the company’s managing director
in 1888 and at that time the company was facing insolvency.

• He took the challenge of resolving the issues and applied his managerial
techniques to bring out the company from this situation and eventually,
he succeeded.

• When he retired after 30 years in 1918, the company was a leading coal
and steel company with strong financial background.

• Henry Fayol became famous as ‘’Father of Management Studies and

Thoughts’’, because he made clear distinctions between technical and
managerial skills.

• His theories deal with organization of production in the context of a

competitive enterprise that has to control its production costs.

• Fayol was the first to identify four functions of management:

Planning, Organizing, Directing and Controlling, his version was a bit
different (Plan, Organize, Command, Coordinate and Control).

• He developed fourteen principles of management which act as guidelines

for managers to perform managerial activities, based largely on his own
experience. It was published in a book called ‘General and Industrial
Management’ in 1949 (English version).
 • Fayol explained what amounts to managers work and what principles
should be followed in doing this work. If workers’ efficiency mattered in
the factory system, so does the managerial efficiency.
FAYOL’S 14 PRINCIPLES OF MANAGEMENT

1) Division of Work –

 This principle of management is based on the theory that if workers are

given a specialized task to do, they will become skilful and more efficient
in it than if they had a broader range of tasks.
 Therefore, a process where everyone has a specialized role will be an
efficient one. In order to do so, the work is divided into small tasks or
jobs. For instance, a trained specialist who is competent is required to
perform each job.
 Thus, division of work leads to specialization. As per Fayol, ‘’The intent
of division of work is to produce more and better work for the same
effort, Specialization is the most efficient way to human effort’’.
 For example, in a bank, one person is receiving cash, one is giving cash,
one is making entry in pass book, one is giving loan, one is doing F.D,
etc. So work is divided and bank operates efficiently.
2) Authority and Responsibility –
 This principle looks at the concept of managerial authority. It looks at
how authority is necessary in order to ensure that managerial commands
are carried out. If managers did not have authority, then they would lack
the ability to get work carried out. Managers should use their authority
responsibly and ethically.
 According to Fayol, ‘’Authority is the right to give orders and obtain
obedience, and responsibility is the corollary of authority. The two types
of authority are official authority to command, and personal authority
which is the authority of the individual manager.’’
 Excess of authority without matching responsibility may bring negative
results and excess of responsibility without matching authority will not
allow the worker to complete his job on time.
 For example, a person is given responsibility to produce 100 units in one
week time but he is not given authority to purchase the raw materials. If
 there is no raw material available in the storeroom as a result, he could
not complete the target on time.

3) Discipline –
• This principle relates to the fact that discipline is needed within an
organization for it to run effectively. Organizational rules, philosophies,
and structures need to be met. In order to have disciplined workers,
managers must build a culture of mutual respect and motivation.
• Fayol insists that discipline is required at superior as well as subordinate
level. The disciplinary rules shall not be applicable only on subordinates
but discipline requires good superiors at every level.
• Discipline refers to following code of conduct, rules and regulations of
employment agreement. Clear and Fair agreement among subordinates
and superior and judicious application of penalties.
• For example, suppose management and labour union have entered into an
agreement whereby workers have agreed to put in extra hours without
any additional payment to revive the company out of loss.
• In return the management has promised to increase wages of the workers
when this mission is accomplished. Here discipline when applied would
mean that the workers and management both honour their commitments
without any prejudice towards one another.
4) Unity of Command –
 According to Fayol, there should be one and only one boss for every
individual employee. If an employee gets orders from two superiors at a
same time the principles of unity of command is violated.
• There should be a clear chain of command in place within an
organization. An employee should know exactly whose instructions to
follow.
• The principle of unity of command states that each participant in an
organization should receive orders from and be responsible to only one
superior.
 • By following this principle, there is no confusion in the minds of
subordinates and no ego clashes between two parties. It also improves the
effectiveness in the working of the business.
• Suppose a sales person is asked to clinch a deal with a buyer and is
allowed to give 10% discount by the marketing manager. But finance
department tells him not to offer more than 5% discount. Now there is no
unity of command. This can be avoided if there is coordination between
various departments.
5) Unity of Direction –
 Work should be organized in a way that means employees are working in
harmony toward a shared objective or goal using a shared method or
procedure. Each group of activities having the same objective must have
one head and one plan.
 This principle ensures unity of action and coordination. The purpose of
this principle is to direct the efforts of employees of one department in
achieving the main objective of that department.
 By following this principle, efforts of all the employees get unified
towards one direction only. If there are two division within a business, on
no account should the working of the two divisions overlap.
 For example, If an organization is producing different lines of products:
cosmetics, medicines and confectionery items, each product has its own
market and its own business environment.
 So, in this case, each division must plan its target and every employee of
that division must put his efforts towards the achievement of plan of their
division under the direction of one head only.

6) Subordination of Individual Interest to General Interest -

 The interest of an organization should take priority over the interest of
any one individual employee. Even the manager’s interests come after the
interest of the organization.
 In an organization, all the employees are working with some objectives
and there is always an objective of organization. If the objectives of the
individual are in the same direction of organization, then there is no
problem.
  But if the objectives of both the groups are in different directions then
manager must try to reconcile individual interest with the organizational
goal and that is very difficult in some cases.
 Manager must take all the decisions in the organization by giving priority
to organization’s interest and not his personal interest. The manager can
ensure this by his exemplary behaviour by not misusing his authority for
personal favours.
 For example, the company would want maximum output from its
employees at a competitive cost. The employees would want to get
maximum salary while working the least. The company’s interests cannot
be sacrificed for individual’s interest.

7) Remuneration of Persons –
 The overall pay and compensation should be fair to both employees and
the organization. Fair remuneration gives them maximum satisfaction and
they would also get a reasonable standard of living through it.
 At the same time, it should be within the paying capacity of the company.
In other words, Remuneration should be just and equitable.
 Remuneration includes both financial and non-financial compensation.
There are many variables which should be considered before deciding a
worker’s rate of pay. Some of the variables are; Cost of living, Supply of
qualified personnel, General business conditions, Success of the business.
 The fair wage is determined according to: Financial capacity of the
concern, by keeping in mind the minimum wage act of government and
the wages and salaries paid by the competitors.
 For example, if in a particular year the organization has earned more
profit then apart from giving extra profit to shareholders and owners,
some parts of the profit must be given to employees in the form of bonus.

8) Centralization and Decentralization –

 Centralization means concentration of decisions making authority in few

hands at top level. Decentralization means evenly distribution of power at
every level of management. Both should be balanced as no organization
can be completely centralized or completely decentralized.
  According to Fayol, ‘’There is a need to balance subordinate involvement
through decentralization with managers’ retention of final authority
through centralization’’
 A balance should be maintained in an organization based on the size and
nature of the organization. In general, decentralization is seen more in
large scale organizations than small organizations.
 By following this principle, an organization can avail all the benefits of
centralization and decentralization. It can take fast decisions at
operational level and strict control by top level.
 For example, panchayats in our country have been given more powers to
decide and spend funds granted to them by the government for welfare of
the villagers. This is decentralization at a ‘National Level’.

9) Principle of Scalar Chain –

 The formal lines of authority between superiors and subordinates from

the highest to the lowest ranks is known as scalar chain. This chain
should not be violated but in emergency employees at same level can
contact through Gang Plank by informing their immediate superiors.
 Employees should know their position in the organization’s hierarchy.
Where they stand in the chain of command is critical. Managers in
hierarchies belong to a chain like authority scale. Each manager has a
certain amount of authority.
 The President has the highest authority. The first-line supervisor has the
least authority. It is important for lower-level managers to inform upper-
level managers about their work activities. The existence of a scalar chain
is essential. It is necessary to adhere to it.
 Fayol insists that this chain must be followed strictly in the organization.
Every information must pass through every key of the chain, no skipping
of any one key should be followed.
 In practice, you find that a worker cannot directly contact the CEO of the
company. If at all he wants to, then he has to go through foreman,
superintendent, manager, director, etc to do so. In terms of emergency he
can contact the CEO directly through ‘gang-plank’.

10) Principle of Order –

• The workplace should be clean and safe for all employees. Everything
should be in its place.  All the people related to a specific type of work
should be treated as equally as possible. This is good for efficiency and
coordination.
 • A place for everything and everyone and everything and everyone should
be in its designated place. People & material must be in suitable places at
appropriate time for maximum efficiency.
• According to Fayol, ‘’People and materials must be in suitable places at
appropriate time for maximum efficiency’’. The principle essentially
means ‘orderliness’.
• If there’s a fixed place for everything and it is present there, then there
will be no hindrance in the activities of the business. This will lead to
increased productivity and efficiency.
• For example, if a worker needs a took, he must know in which box or
tool-room it will be found and if he needs guidance from supervisor, he
must know the fixed cabin of supervisor. It saves time and ensures
smooth and systematic working of organization.
11) Principle of Equity –
 The working environment of any organization should be free from all
forms of discrimination (religion, language, caste, sex, belief or Basis
Unity of Command Unity of Direction nationality) and principles of
justice and fair play should be followed.
 Managers must always be fair to staff. They are expected to maintain
discipline when needed and act with kindness when it seems right. No
worker should be unduly favoured or punished.
 According to Fayol, ‘’Good sense and experience are needed to ensure
fairness to all employees who should be treated as fairly as possible’’.
This principle emphasises kindliness and justice in the manager’s
behaviour towards workers.
 This will ensure loyalty and devotion for the organization. But Fayol does
not rule out the use of force sometimes. Lazy personnel should be dealt
with sternly to send the message that everyone is equal in the eyes of the
management.
 For example, in Multinational companies, people of various nationalities
work together without any discrimination. Sundar Pichai became CEO of
Google.
12) Stability of Tenure of Personnel –
 Managers must make an effort to reduce employee turnover. They should
give priority to Personnel planning. Recruitment and Selection Costs are
 usually related to hiring new workers. Increased product reject rates also
cost a lot.
 After being selected and appointed by rigorous procedure, the selected
person should be kept at the post for a minimum period decided to show
results. Retaining productive employees should be a high priority of
management.
 According to Fayol, “Employee turnover should be minimized to
maintain organizational efficiency”. Stability of Tenure has to be
provided to perform positively and it is also good for the business.
 Frequent turnover of employees is bad for the organization and such
decision must be taken only when necessary. The management must
provide the feeling of job security without which an employee cannot
contribute their maximum for the organization.
 Frequent rotation or transfer should also be avoided because it takes some
time for a person, to learn and get settled on a job and by the time he gets
settled and he receives transfer order, it will be a wastage of resources
and reduced efficiency of the employee.
13) Initiative -
 Employees should have the necessary level of freedom they need to make
and conduct plans. Management should encourage worker initiative. 
New or extra work activity undertaken through self-direction is an
example.
 According to Fayol, “Workers should be encouraged to develop and carry
out their plan for improvements”. Initiative means taking the first step
with self-motivation. It is thinking out and executing the plan.
 It is one of the traits of an intelligent person and it also gives immense
satisfaction to the employees, to have contributed to the organization in
his best way. Managers must welcome the suggestions and idea of
employees before framing the plan.
 But initiative does not mean disobedience or going against the established
practices of the company for the sake of being different. Once decisions
are taken by the management then every employee must follow it whether
it is according to employee’s suggestion or not.
 A good company should have an employee suggestion system whereby
initiative/ suggestions which result in substantial cost/ time reduction
should be rewarded. It also develops a feeling of belongingness in
employees.
14) Espirit De Corps –
  According to Fayol, “Organizations should always attempt to promote
team spirit and unity. Management should inspire harmony and general
good feelings among the workers.”
 Management should promote a team work, especially in large
organizations because otherwise objectives would be difficult to realize.
It will also result in a loss of coordination.
 Managers should replace ‘I’ with ‘We’ in all his conversations with
workers to foster team spirit. This will give rise to a spirit of mutual trust
and belongingness among team members. It will also minimize the need
for using penalties.
 For example, if the production manager assigned a target of
manufacturing 100 units to a group of 10 members, workers divided the
target among themselves to produce 10 units each.
 Principle of team spirit says that each member of the group should not
concentrate only on achieving individual target of 10 units but they must
concentrate on achieving group target of 100 units.
 So, if two members from the group fall sick, then their work should be
divided among the other group members.
F. W Taylor and his Scientific Techniques of Management –
 Fredrick Winslow Taylor was born in 1856 in USA. He was an American
mechanical engineer who sought to improve industrial efficiency. In
1878, he joined Midval Steel Company as a mechanical engineer.
• Before being appointed as a mechanical engineer, he became an
apprentice mechanist in 1874, learning factory conditions at the grass
roots level. Shortly after that he earned a degree in mechanical
engineering.
• Using his engineering background, Taylor set out scientific studies and
techniques. He was primarily concerned about the efficiency of workers
and optimum utilization of resources.
• Taylor’s principles and techniques were based on the observations he
conducted in factories where methods of production lack planning and
working methods were haphazard.
• Scientific Management can be defined as ‘’Application of science for
each and every element of management’’. It is an important stream of one
of the earlier schools of thought of management referred to as the
‘Classical’ school.
 • Taylor was one of the intellectual leaders of the efficiency movement and
was highly influential in reshaping the factory system of production. He
belonged to the era of industrial revolution characterized by mass
production.
• His contribution must be seen in the light of the efforts made to perfect
the factory system of production. He thought that by scientifically
analysing work, it would be possible to find ‘one best way’ to do it.
• He also believed that contemporary management was amateurish and
should be studied as a discipline. He also wanted the workers to
cooperate with the management and thus there would be no need of trade
unions.
• His article regarding ‘Scientific Management’ was published in 1911. He
became an executive at Midvale Steel Company by demonstrating his
leadership abilities. He joined the Bethlehem Iron Company in 1898 and
was fired from the same company later.
• In 1910, his health started deteriorating and he died in 1915 due to
pneumonia. His contributions to the “Scientific Management” is
significant even after his death.
TAYLOR’S TECHNIQUES OF SCIENTIFIC MANAGEMENT –
1) Functional Foremanship –
 Functional foremanship is essentially an administration system that is
somewhat based on the principle – ‘Division of Labour’, to establish
specialization in an organizational setup. This is an extension of the
principle of ‘Division of Labour’.
 Taylor suggested the division of factory in two departments, planning
department and production department. He felt that workers should be
free from planning and hence, he suggested appointing minimum 8
functional experts(foreman) to guide the workers.
 Foreman represents the managerial figure with whom the workers are in
face-to-face contact on a daily basis. A foreman should have intelligence,
education, tact, grit, judgement, special knowledge, honesty, energy and
good health.
 As all this cannot be found in one foreman, he advised a minimum of 8
foremen, one for each department. Each specialist (foreman) is to be
assigned work according to his/her qualities. Those with technical
 mastery can be given planning work and those with energy, the execution
work.
2) Standardisation and Simplification of Work –
 Standardization and simplification of work can be looked at as a means to
establish efficiency standards for every activity in an industrial setup.
Elements like time, production manner, machinery, raw material, product
and its processing can be standardized under this method.
 Scientific management emphasises on maintaining standards relating to
every step of business operation. To step up standard the managers must
make use of work study technique which includes time study, motion
study and fatigue study.
 Standardization of output is possible if standard is maintained right from
selection of tools, equipment and machine to use, maximise the output by
keeping in mind the quality standards. As standardization includes setting
up of standards for size, type, weights, measures and quality.
 The main objectives of standardization are, to reduce a given line of
product to fixed type, size and characteristics and to allow
interchangeability of manufactured parts and output among different
departments and branches.
3) Work Study (consists of four parts, Method Study, Fatigue Study, Time
Study and Motion Study) –
 Method Study tends to help producers to pick the most suitable method to
finish a particular organizational activity. It helps identify the best
method or way of performing the job keeping production cost minimum
and maximum use of resources.
 Fatigue Study helps to find out the acceptable rest intervals that can be
given to prevent the onset of mental fatigue among workers. However,
the prospect of completing work on time is also the main priority of this
study.
 Time study determines the standard time taken to perform a well-defined
job. The objective of time study is to determine the number of workers to
be employed, frame suitable incentive schemes & determine labour costs.
 Motion study is the science of eliminating wastefulness resulting from
using unnecessary, ill-directed and inefficient motions by workers and
machines to identify best method of work.
4) Differential Piece Wage System –
 This system links wages and productivity. The standard output per day is
established and two-piece rates are used: higher for those who achieve up
to and more than standard output i.e., efficient workers and lower for
inefficient and slow workers.
 Thus, efficient workers will be rewarded & inefficient will be motivated
to improve their performance. This technique is a strongest motivator for
employees to perform efficiently.
 For example, if standard target is 10 units per day and standard rate is 50
per unit. The worker who produces 10 units should be paid 500 rupees.
The worker who produces 12 units must be paid with a higher rate than
standard, say 60 per unit, then he should be paid 12 x 60 = 720 rupees.
 The worker who is producing 8 units (less than standard output) must be
penalised by paying less than standard rate, say 40 per unit, then he is
paid 8 x 40 = 320 rupees. The difference in wages will motivate to
become efficient and earn more.

5) Mental Revolution –
 It involves a complete change in mental outlook and attitude of workers
and management towards one another from competition to cooperation.
 The management should create pleasant working conditions & workers
should work with devotion and loyalty. Instead of fighting over
distribution of profits, they must focus attention on increasing it.
 As per this Management technique, a positive mindset is quite crucial for
promoting the feeling of cooperation and boosting proficiency. In its
absence, conflicts about the division of labour and delegation of
responsibility are bound to arise in an organization.
 Consequently, both employers and their workers should make an effort to
increase the overall productivity of their firm through cooperation and by
harbouring a positive outlook towards business operations.

ADVANTAGES OF SCIENTIFIC MANAGEMENT –

 It improves the efficiency of business through simplification and
standardization.
  It helps in reducing cost of production by eliminating all types of
wastages.
 Mutual understanding and cooperation brings workers and management
closer.
 Enables the workers to earn more with the introduction of differential
price wage system and improve their skills by taking part in the training
programmes offered by the business.
MODERN SCIENTIFIC TECHNIQUES –
 Operations research was developed during 2nd world war to optimize the
development of war.
 Lean manufacturing is a technique that focuses on reducing wastes of
overproduction.
 Kaizen is a Japanese word that means changes for better. It is a daily
activity which eliminates hard and difficult task by experimenting
scientific methods.
 Six Sigma refers to improving efficiency by reducing quality variations.
 Just in time manufacturing is an inventory management strategy to
improve return and reduce cost.
COMPARISON –
 Fayol’s principles are concerned with the efficiency of the management,
whereas Taylor’s principles and techniques are concerned with worker’s
efficiency.

 Fayol started his studies and approach from the highest level in the
organization. Taylor started his studies and approach from the lowest
level in the organization.

 Fayol’s focus was on development of principles for better management. It

focuses on improving overall achieve station. Taylor laid focus on
eliminating wasteful movements and saving energy of workers. It forces
on increase in productivity.

 Fayol’s main contribution was development of fourteen principles of

general management. Taylor’s main contribution was development of
scientific techniques and scientific principles.
  Fayol strictly followed the principle of unity of command i.e., only one
boss for one employee. Meanwhile, Taylor did not follow this principle
as he insisted on minimum 8 bosses for each employee.

 Fayol developed the personality of a researcher and practitioner. He

became famous as the ‘father of general management.’ Taylor developed
a personality of scientist and became famous as the ‘father of scientific
management.’

 Fayol and Taylor’s principles are complementary to each other because

both have relevance in the business. The principles of both are used as
basis for research in the field of management studies.

 The main aim of Taylor as well as Fayol is to maximize efficiency of the

organization, and both of them insist on cooperation between employees
and employers.

 Both give more importance to organizational interest over the individual

interest and both of them suggested division of work for specialization.

INDUSTRY VISIT –

The following pages include-

1) Objective of the study

2) Introduction about the organisation
3) Subject matter of study
4) How are the principles of management followed and used? Along with
observations about the industry.

1) OBJECTIVE OF THE STUDY -

The main purpose of the project is to study and see the principles of
management implemented in real life. With its help shall get the
information whether the principles of management which we come
across the books are actually true and whether by following the
principles of management the efficiency of the managers is actually
enhanced.

2) INTRODUCTION ABOUT THE ORGANISATION -

In order to achieve the objective of this project we needed an

organisation where business is carried on a medium-large scale and
various activities are performed.
We had to choose VISHWAA APPARELS due to following reasons:

1) It is capable of fulfilling the purpose of the project.

2) It is situated nearby and visiting would be easy and there are
known contacts in the industry mentioned.

ABOUT THE ORGANISATION

Name of the company: VISHWAA APPARELS

Head office: Bangalore

Company type: Private limited company

Industry type: Retail apparel and fashion

Year of establishment/Date of incorporation: 2014

(Bommanahalli branch)

Founder: Armugam Mythili

No of employees: 410 employees (80% female-

20%male)

Address: 9th A Cross Rd, Kaveri Nagar,

Bommanahalli, Bengaluru, Karnataka 560068

3) SUBJECT MATTER OF THE STUDY -

Under this project 14 principles of Henry Fayol were studied, along

with the techniques of scientific management by F.W Taylor.
Through the industry visit and the information gathered from it, the
application of these principles in the industry.

OBJECTIVE TOOLS USED –

I) Questionnaire
II) Personal Observation

In this chapter the following principles of management have been

examined with the help of questionnaire -
4) ANALYSIS BASED ON QUESTIONNAIRE -
1) AUTHORITY AND RESPONSIBILITY:
Meaning- Authority and Responsibility go hand in hand.

Q) Do you have authority connected to your work?

Results- When asked to human resource head, the answer we got was
yes. All the duties of the employees are connected to higher authority.
Observation – The manager is a friendly and patient person who
ensures smooth flow of the business and there is assistance provided
for new employees, who are provided with basic instructions through
microphones and it can be heard by everyone as speakers are installed
in every floor.

Conclusion- This principle is implemented in the company.

2) UNITY OF COMMAND:

Meaning- There should be one boss for every individual employee

Q) Do you get orders from more than one boss?

Results- Head office gives all the order and the order are passed on by
only one boss.
Observation- There exists a good level of coordination between the
different stages of production. The person who keeps it the same is
the IE (Industrial Engineer) who provide each and every guideline for
the working of the industry. They provide the style and designs of the
garments as well.

Conclusion- It can be understood that the company has understood the

importance of this principle of management.

3) SUBORDINATION OF INDIVIDUAL INTEREST TO GENERAL

INTEREST:

Meaning- According to this principle the interest of an organisation

should take priority over the interest of any one individual employee.

Q) Do you give priority to the top level over interest of the company?

Result- Priority of the top is always the duty which is to be followed by the
employees, priority in the other sense is nothing but the goal to be achieved.
The same goes in other way, company takes every employee into
consideration and consider their interests as well.

Conclusion- On the basis of the answer given, we can declare that company
has top authority has interests over individual of the company, and at the
same time ensure that individual interests are not compromised either.

4) REMUNERATION TO EMPLOYEES:

Meaning- According to this principle the employees should be paid fair

remuneration for their work, which should at least serve their basic standard
of living.

Q) Do you get reasonable remuneration?

Results- HR head on behalf of the employees answered saying yes, the

remuneration of the workers depend upon the work they are doing,
according to the work given they get fair remuneration. There have been
some cases where employees aren’t happy about their remuneration.

Observation- In addition to regular wages or salaries, the workers get

compensation and benefits. The management has classified several polices
for the convenience of the employees.
For example, Grievance policy, Disciplinary policy, Discrimination policy
and Health and Safety Policy. Managers are fully responsible for the
implementation of these policies and proceedings.
They also have a yearly minimum wage policy, which is 10442 rupees and
their work shift is of 8 hours and half an hour for lunch.

Conclusion- By the above answer we can conclude that the company is not
fully successful in achieving this principle.

5) CENTRALIZATION AND DECENTRALIZATION:

Meaning - According to this principle the superiors should adopt effective

centralisation instead of complete centralisation and decentralisation.

Q) Are the daily decisions made by the person concerned and are the major
decisions taken only by the top authorities?

Results- Daily decisions are taken by the concerned authorities as the

production process and the import of raw materials are to be executed by
the industry itself and the head office gives the budget and other financial
details necessary to order the raw materials. All the major decisions are
taken in the head office consisting of board of directors.

Conclusion- The above analysis clearly shows that company adopts

complete centralisation, the follow this principle in effective way.

6) SCALAR CHAIN:

Meaning- According to this principle, organisation should have a change in

the authority and communication that runs from top to bottom and should
be followed by managers and subordinates.

Q) Does the boss directly communicate with you?

Results- The reply given by the HR was that, only major announcements
come from the boss and nothing else from the head office where the boss
announces the decisions. The board of directors and other department
managers devise the best way of operating the business.

Conclusion- Communication plays an important role in management and the

above analysis clearly shows that they have partial communication with the
boss directly. This situation is clearly not in favour of the company. The IE
manager and the HR manager are completing the tasks properly and this is
what keeps the business going in the production stage.
7) EQUITY:

Meaning- According to this principle, the manager should treat their

subordinates as fairly as possible so that they develop a feeling of
dedication to their work.

Q) Does your company give equal remuneration to everyone who does the
same job?

Results- Answer was yes, there is fixed remuneration for certain job and it
depends on the work they do.

Conclusion- The above analysis states that the company is cautious about
this principle and has taken this into consideration.

8) STABILITY OF PERSONNEL:

Meaning- According to this principle there should be a stability of tenure of

the employees so that work continues efficiently.
Q) How many employees have been serving here for more than one year?

Results- Most of the employees have been newly recruited to work and only
few of them have been working from one year.
Observation- During the visit, we observed the recruiting process in the HR
room. We had seen worker profiles and application forms of the future
workers in the industry. They followed rigid operational rules in admission
of an employee.

Conclusion- According to the analysis we can say that the labour turnover in
this company is less, in other words we can say that we still need time to
study this principle completely.

9) INITIATIVE:

Meaning- According to this principle, employees in the organisation must be

given an opportunity in making and executing the plan.

Q) Does your boss give importance to your suggestion?

Results- The answer was yes, most of the suggestions were taken into
consideration and were implemented through employees.

Conclusion- Since the answer was yes, this would boost confidence of the
workers to work and encourage them to engage in more activities of the
company.

10) DIVISION OF WORK:

Meaning- This principle of management is based on the theory that if

workers are given a specialized task to do, they will become skilful and
more efficient in it than if they had a broader range of tasks.
Q) How is the work divided among the employees?
Results- The work is allotted as per the skill analysis conducted by the IE
manager. They form an operation-wise summary and divide according to
the grades of the employee in such a way that 100% efficiency is seen from
each individual operator.
Observation – There are different grades and zones for each garment that is
produced. The front grade or A grade as they call it is the presentation zone
in the cloth and only specialized worker is supposed to take part in
producing this grade. The back zone or B zone is the inner part of the
garment.
Conclusion- The division of work in this organization is suitable for the
scale of operation and it helps them achieve their production targets.

11) UNITY OF DIRECTION:

Meaning- Work should be organized in a way that means employees
are working in harmony toward a shared objective or goal using a
shared method or procedure. Each group of activities having the same
objective must have one head and one plan.

Q) Do you believe in ‘one head one plan’ which is working towards a

shared objective or goal?

Results- The answer we got was yes. They believe all workers of the
industry are working towards one goal, which is the successful operation of
the business, and profit maximization and growth. As long as these are
positive, their wants are satisfied without any obstructions.
Conclusion – This principle is followed and is also understood clearly by the
employees of the organization. Hence every one is benefitted by the
application of this principle in the organization.
12) PRINCIPLE OF ORDER:
Meaning - The workplace should be clean and safe for all employees.
Everything should be in its place.  All the people related to a specific type
of work should be treated as equally as possible. This is good for efficiency
and coordination.
Q) Is the workplace safe for you to work?

Results- The answer we got was yes. The workplace is safe and clean for the
employees to work and they have all the required tools and equipment for
working.
Observation – There is a lift that can be used by the employees and also a
fire exit in case of emergency. The machineries are clean and neatly
maintained and there is no ill treatment of workers that we could notice.
Water safety is ensured by 6 months/ Yearly once check-up by the industry
and government approval for the same is must.

Conclusion- The principle is followed well and there exists a good degree of
coordination between the managers and the workers. So this principle has
been helpful for the organization.

13) DISCIPLINE:
Meaning- This principle relates to the fact that discipline is needed within an
organization for it to run effectively. Organizational rules, philosophies, and
structures need to be met. In order to have disciplined workers, managers
must build a culture of mutual respect and motivation.

Q) What have you done to ensure uniformity in your organization?

Results- The answer we got was that, they have a code of ethics that is to be
followed by every worker in the industry. They are to be courteous and
considerate to co-workmen and staff, they should dress neatly and should
carry out the work assigned to him/her diligently in accordance with
specific instructions.

Observations - All the workers were dressed neatly and had uniforms on.
They were work-conscious and didn’t get distracted from their work.

Conclusion- The principle of discipline is followed in the organization and it

has a positive impact on the industry as working of the organization
becomes smooth and uniform.

14) ESPIRIT DE CORPS:

Meaning- Organizations should always attempt to promote team spirit and
unity. Management should inspire harmony and general good feelings
among the workers.

Q) Do you think you have a feeling of unity or oneness among your co-
workers?

Results- The answer we got was yes. They think that, all of their efforts and
work goes to the well-being of the organization and that is directly
influencing their standard of living. As they all work together, they develop
a sense of unity and have good feelings towards other workers in the
organization.

Conclusion- The principle holds good in the organization. Its application is

positive in the organization’s unity.
OTHER QUESTIONS AND OBSERVATIONS –

Q) When was the industry first established?

Answer- The company was first established in 2008 and then it expanded
into numerous other branches.

Q) What are the general rules and regulations given by the

Government that you must follow?
Answer- The company had to obtain certificate and license their
organization. They made an agreement with the government after doing so.
They also have to pay tax returns on time.

Q) Can you name your buyers or customers?

Answer- Wrangler, Marco Polo, Colour Plus.

Q) Who are your competitors?

Answer- Shahi, Jockey, Prem Textiles (A few industries located in the
same area, and are of the same type)

Q) How does the Head office coordinate with you?

Answer- The Head Office is mainly the financial or accounting section for
the organization. The targets for production are set by the industry and they
are discussed with the production manager. Head Office provides the
renumeration for the employees.
Q) How does the work proceed from each stage?
Answer- They plan as per each position, each sleeve, each assembly, part
of the garment and discuss with the production manager for the final plan.
While discussing with the production manager, technologies and
machineries necessary for the production are finalized.
After that, the production plan is set and all sections are given the plan.
After each section completes its task they move to another section, this
ensures maximum utilization of the labour. There are a total of 4
departments: Fabric, Cutting, Sleeving and Finishing Department.
The garment is then taken for recheck, flooring and ironing. They are
thoroughly checked 2-3 times; this ensures quality of the garment.
Q) How do you decide the targets and where do you get the raw
materials from?
Answer- The target we have decided for this year is an average of 360000
pieces. We decide this after talking to the merchants or buyers, for more
details. The planning department does this job and also prepare a target
sheet for the company.
Before the initial discussion, we conduct a study for each part of the
garment, the time taken, the efficiency of the worker. These details are
provided by the analysts in the industry. The analysts study the time taken
for producing each piece in a garment.
The raw materials are sorted into various types, and we purchase each type
of raw material from each dealer, depending on their quantity.

Q) How are the workers recruited?

Answer- The workers are recruited based on the requirement of the
industry. Experienced works require skilled workers. Freshers are provided
with trainings and then based on their skill; their job is decided. Higher
position works are given to well-educated and experienced employees.
Q) How would you say the company has grown from its initial stage to
its present stage?
Answer- 11 years before, the industry had 30 machines. 4 years later, they
had 200 machines (The second stage growth). 2 years before, they started
another branch in Andhra Pradesh which consists of 500 machines and is a
much bigger plant when compared to the Bangalore branch. At present,
they have 700 machines.

Q) What is the profit and annual turnover of the company?

Answer- The profit percentage Is 7-12% of the revenue. The annual
turnover of the organization is 100 crores (approx.)

Q) How does the work of two department go hand in hand? Can you
give us an example?
Answer- The factory has its manager who is known as Operation Manager.
The Marketing Manager is from the Head Office. The Business Head has a
team consisting of 20 members who market the products manufactured.
The Marketing Manager and Business Head do not interfere in the works of
the production manager and Operation Manager. This is how good the
coordination is, between the factory and the head office.
IMAGES –
(PHOTO IN FRONT OF THE INDUSTRY)
CONCLUSION –
  This project has been useful in studying the principles of management
and their implementation or application in an industry.

 It has been a purposeful activity which helps us in learning the

practical problems, and the implementation of theoretical solutions in
real life to achieve specific goals.

 This project has been helpful in studying the functions, significance of

the principles of management given by Henry Fayol and FW Taylor in
a better manner.

 Principles of Management are general and broad guidelines that

define the behaviour of managers towards employees and for decision
making process.

 Application of these principles ensure smooth flow of work in the

organization and also ensures the development of a good relationship
between the organization and its employees.

 These principles provide scientific insight, helps in meeting changing

requirements of the organization, helps in fulfilling the social
responsibility of the organization and many more.

 Hence, this project and the industry visit has proven to be of immense
benefit for us.

BIBLIOGRAPHY –