PROJECT 4 Principles of Management| - PROJECT Report A project report is a written statement of what the analyser analyses in his/her evaluation. The project report needs to be prepared with great care and consideration Aproject report should «be handwritten be concise « beclear have diagrammatic presentation have a length of 25 to 30 pages have topics with suitable headings end up with condusion Elements Ty to ensure that your report contains the following elements Title Page This should include the project title, name of the company on which you are conducting your research and name of the student. You can also list the name of your school, class and subject teacher, Acknowledgement Itis usual to thank those individuals, who have provided particularly useful assistance, technical or otherwise, during your project. In this, you pleased your supervisor as he/she will have invested quite a lot of time in overseeing your progress. You can also give a note of thank to the department of the company, which provides you a relevant data. Content Page This should list the main sections and sub-sections of your report. Choose self- eplanatory titles with their respective pages and use double spacing for clarity. Content should be impressive and explanatory so that the reader would clearly understand the motto of the project. Ty to avoid t00 many levels of sub-headingIntroduction rt, It should begin with This is one of the most important component of the project Tepor rnd scope of the a clear statement of what the project is about, so that the nature ane OF project can be understood by a reader. It should summarise everytl 7 of relevance and out to achieve and provide a clear summary of the project’s backgrounty Pr tg main contributions, The introduction should set the context for the ny Dee aindet of provide the reader with a summary of the key things to 1ook out for iny ER® A the report. It is useful in stating the main objectives of the project as Part 0! introduction. Background “ ‘fies the The background section of the report should set the project into action, it specl © 1 problem of the company, what remedial actions were taken by the company, W! its effects. It proposes the layout of whole project. Body of Report The central part of the report usually consists of three or four sections detailing the technical work undertaken during the project. The structure of these sections is highly project dependent. They can reflect the chronological development of the project. It includes the detailed description regarding the matter of the project. Evaluation This might involve quantitative and qualitative evaluation such as expressibility, functionality, ease-of-use, etc of a product. At some point, you should also evaluate the strengths and weaknesses of what you have done. It includes certain questionnaires, sampling test which help in evaluating the result on the basis of truths and facts. Conclusion The conclusion should list the things, which have been learnt as a result of the work you have done. It shows the ultimate response of the project undertaken by a student. It should be expressive and impressive so that a reader would clearly evaluate the result and rated you on the basis of your presentation.title of the project company Chosen for the Project Name school Year Class Submitted to PROJECT WwoRK Project Re eport on Application of Principles of Management Domino's 2018-19 XILAcontents Topic __ [Link]. | 7, | Acknowledgement Introduction Henri Fayol , Principles of General Managemen About Domino's + Barly Years * International Expansion International Operations Sale of the Company * Current Era * Innovations © + Menu Corporate Governance Philosophy * Charitable Activities | + Advertising | * Sponsorship | | Applications of Fayol's Principles in Domino's Questionnaire Observation | Conclusion opeAcknowledgement eae fe express my profound gratitude towards many : : is, as without their kind support, it would not be possible for me to complete this project report. I would like to extend my sincere thanks to my teacher, who gave me the golden opportunity in enhancing my hidden capabilities. Unfortunately, I addressed several difficulties in coordinating the activities of the project but I am highly indebted to Mrs ......------ for her guidance and constant supervision, as well as for providing necessary information regarding the project and also for her support in completing the project. I would also like to express my gratitude towards my parents and subject teacher for their kind co-operation and encouragement as they helped me a lot in completion of this project. I would love if you appreciate the quality and performance of this work, At last, end up by thanking all who helped me in finalising the project within the limited time frame.Introduction of Henri Fayol (1841-1925) nagement theorist, whose organisation of labour were ing of twentieth century. He demy of St Etienne in 1860 in gineer started at the Henri Fayol was a French mai theories concerning scientific widely influencial in the begin: graduated from the Mining Aca mining engineering, The 19 year old en, mining company, ‘Compagnie de Commentary- Fourchambean-Decazeville, ultimately acting as its managing director during 1888-1918. Fayol was the first to introduce four functions of management - Planning, Organising, Directing and Controlling, although his version was a bit different - Plan, Organise, Command, Coordinate and Control. According to Fayol, all activities of an industrial undertaking could be divided into — Technical, Commercial, Financial, Security, Accounting and Managerial He also suggested that a manager must Possess qualities like Physical, moral, education, knowledge and experience. Based on his experience, hie developed his own concept of edminiesation The Principles propounded by Fayol were Published in 1917 in his book ‘Administration Industrielle at Sen For his contribution, he is also known as ‘Father of el i i neral Management’. Henri Faye developed 14 principles of ri general management, which i i mana ich provide 8uidelines for decision-principles of General Management 1. Division of Work Fayol has ad ah Hed ints Nocated the division of work. According 6 him, if work is help in taki fi asks and assigned to trained specialists, then it will The int ‘ing the advantage of specialisation. a aaa ina eames division of work is to produce more and better work with ofthis ort. It is the most efficient way to use human effort. Because principle, an organisation is divided into separate departments, Viz production, sales, finance, marketing, ete. 2. Authority and Responsibility Authority means the right to give orders a other hand, responsibility means obligation on time. According to Fayol, there must be a balance between authority and responsibility. Excess of authority without matching responsibility may result in misuse of authority, whereas excess responsibility without adequate authority may lead to failure of organisational goals. nd obtain obedience. On the to complete the assigned task 3. Discipline It is the sincerity and obedience towards organisational rules and regulations, as these are necessary for the smooth functioning of an ‘According to Fayol, good superiors at all levels, fair organisation. plication of penalties are helpful in agreements and judicious ap maintaining discipline. It means obedience on part of workers, as well as managers. 4. Unity of Command of command states that each participant in a formal The principle of unity ; organisation should receive orders and is responsible to only one superior. orders from two superiors at the same time, employee gets and is violated and it will result in Tfin any case, £ unity of commé the principle of confusion and chaos.. Unity of Direction ‘oup of activities Jan for a group It implies that there should be one head and one P’2! id activities should be put having the same objective. In other words, the relate Se ei tey sina under one group, there should be one plan of action be in the control of one manager. st Subordination of Individual Interest to General pie vata dt achieved The interest of an organisation is to achieve its goals. The: eee tn the after integrating the efforts of different individuals who are organisation to satisfy their own personal needs. Thus, the interests of various stakeholders, i.e. owners, sha! i financers and the society cannot be sacrificed for one individual. shareholders, creditors, Remuneration of Employees ; According to Fayol, the quantum and methods of remuneration payable to employees should be fair and reasonable. It should be satisfactory to both employers and employees, which gives them a reasonable standard of living and should be within the paying capacity of the company. . Centralisation and Decentralisation The concentration of decision-making authority is called centralisation whereas its dispersal among more than one person is known as decentralisation. According to Fayol, an organisation should strive to achieve a proper balance between centralisation and decentralisation according to size of organisation, ability of superiors, ability of subordinates, etc, . Scalar Chain According to Fayol, scalar chain refers to the chain of authori gto ‘ority and. communication that runs from top to bottom and % managers and their subordinates, Should be followed by Gang plank refers to an arrangement in which : two i sane lvl can communicate with cach ther dca a| 10- i. 12. 13; Esprit De Corps Order As per this principle, thy ‘ aby at tere Shot material which implies tld be an orderl the organisation, that there isa fixed plac. vail acoso xed place for everything and everyone in Aplace for everything, social order, ensures arin Material order, anda place for everyone, called organisation ere is no hindrance in the activity going on in the Equity This principle emphasi: indlii vomards workers Tt iL, Kindliness and justice in the behaviour of managers employees and th » bring loyalty and devotion in the behaviour of ee aids ‘ey will put their best to achieve the targets. ee fe 0 nis a eae against anyone on account of sex, religion, guage, or belief and equal opportunities should be available for all. Stability of Personnel According to Fayol, employee turnover should be minimised to maintain organisational efficiency. Therefore, suppose an individual gets selected for a post, then he should be given appropriate time to prove his abilities. kept at the post fora minimum fixed tenure. This We can say, he should be he can get proper time to explore his skills. ensures stability and thus, Initiative Fayol suggested that employees at all levels should take initiatives or actions wuld be encouraged to develop and without any force or boundations. They sho sear 7 carry out plans for improvements. Initiative means taking the st step witl sal moti at, This will help to motivate them and they will work hard for the betterment of the organisation. th. Fayol emphasised on team work. He suggested that sider himself as part of team. This spirit brings to work hard to achieve the targets of an place’ with ‘We’ in all his Itmeans union is strengt every employee must con’ ; harmony in the groups and they Po x organisation. For this, managers sho! conversations.About Domino's Domino's Pizza is an American restaura headquartere pizza delivery corporation, Domino's Pizzi (the campus being owned by Ann Arbor Charter Township, Michigan, United Stat Michigan ain and international franchise Farms Office Park Tom Monaghan) in Ann Arbor, int chi dat the Domino a co-founder es, near in the United han 10,000 sold to Founded in 1960, Domino's is the second largest pizza chain. idwide, with more t States (after Pizza Hut) and the largest wor corporate and franchised stores in 70 countries. Domino's Pizza was Bain Capital in 1998 and went public in 2004 Domino’s Pizza The current Domino’ 10'S logo introdk luced in 2012Ens ype Public qraded as NYSE; Dpz pounded Ypsilanti, Michigan on June 10, 1960 Headquarters Domino Farms Office Park, Ann Arbor Charter Township, Michigan, United States area Served Worldwide Key People Tom Monaghan, Founder; J Patrick Doyle, CEO Products Italian-American cuisine, pizza, pasta, chicken wings, submarine sandwihces, wraps, desserts Revenue $ 2.47 billion USD (2017) Employees 2,90,000 (January 2017) Website [Link] ([Link]| Sale of the Company In 1998, after 38 years of ownership, Domino's Pizza founder Tom | he announced his retirement, sold 93% ofthe company to Bain pital Inc, for about $ 1 billion, and ceased being involved in day-to-day operations of the company. A year | ‘ Brandon, as the CEO. esis — Adjustment (eft axis) — Dividends (et avs) — Revenue (ight axis) iad 100 25 140 ‘ 120 100 154 0 10. 6 40 ei 20 ° 0 2004 2005 2006 «2007 2008-009 2010 2011 2012 Current Era In 2004, after 44 years as a privately held company, Domino's began * trading common stock on the New York Stock Exchange under the ticker symbol ‘DPZ’. Industry trade publication Pizza Today magazine named Domino's Pizza ‘Chain of the Year’ in 2003, 2010, and 2011. Ina simultaneous celebration in January 2006, Domino's opened its 5000th US store in Huntley, Illinois and its 3000th international store in Panama City, Panama making 8000 total stores for the system. In August 2006, the Domino’s location in Tallaght, Dublin, Ireland, became the first store in Domino’s history to hit a turnover of $3 million (2.35 million) per year. As of September 2006, Domino's has 8238 stores worldwide, which totalled $1.4 billion in gross income.Innovations dream’ franchising + In 2007, Domino's introduced its ‘Veterans delivering the sites. Programme and also rolled out its online and mobile ordering inline application, that allows .d ‘real time’ progress bar, giving the * In. 2008, Domino's introduced the ‘Pizza Tracker’, an 0" customers to view the status of their order in a simulate s, + The first Domino's with a dining room opened in Stepheriville, Texas customers the option to either eat in or take their pizza home: pizza. It began a self-crticising ad + Domino's rel ‘s quali Domino's announced plans to entirely reinvent its rvcarrent pizza's qtalty campaign in which consumers were filmed criticising the the and chefs were shown developing a new pizza. + The new pizza was unveiled that same month. In 2012, Domino's Pizza removed the word ‘Pizza’ from their logo, o Pee their non-pizza products At the same time, Domino's introduced a new logo that removed the blue rectangle and text under the domino in the logo and changed the formerly all- ted domino to be blue on the side with two dots and red on the side with one dot. + In 2016, Domino's opened its 1000th store in India Menu The Domino’s menu varies by region. The current Domino's menu in the United States features a variety of Italian-American entrees and side dishes. Pizza is the primary focus, with traditional, crust styles and toppings. In 2011, Domino's launched artisan-style pizzas. Additional entrees include pasta, bread bowls, and oven-baked sandwiches. The menu offers chicken side dishes, breadsticks, as well as beverages and desserts, Domino’s constantly strives to develop products that suit the tastes of the consumers and hence delighting them. Domino's believes strongly in the strategy of “Think global and act local’. Thus, time and again they have been innovating with delicious new products such as crusts, toppings and flavours suitable to the tastegrea = sassy Saar Nea — Corporate Governance Philosophy ‘The corporate governance stakeholders and business Philosophy of the company is driven by the interest of needs of the DOE Ehals \e organisation. Aligning itself to this ed ceiaweeci sustain the shareholders hitta a has mance on a high priority. The highlights of th 8 fe company’s corporate governance regime are: « Atthe core of / ae a company’s corporate governance practice is Board of Directors, ce et ow the management serves and protects the long-term interests eball te al - ‘olders. The company believes that an active, well-informed and independent board is necessary to ensure high standards of corporate governance. To ensure the independence of the board, the majority of the Board members, four out of seven, are independent directors. Constitution of several committees, stich as Audit Committee, Nomination, Remuneration and Compensation Committee, Stakeholders. Relationship Committee, Sustainability and Corporate Social Responsibility Committee, etc for focused attention, enables the company to ensure expedient resolution of diversified matters. The Code of Conduct for directors and senior management, along with the code for prevention of insider trading formulated in terms of the SEBI Guidelines, constitute strong parameters of company’s corporate governance philosophy. Establishment of whistle blower policy to ensure utmost transparency in business, This policy acts as a neutral and unbiased forum for the directors, employees and business partners of the company and its subsidiaries (both Indian and foreign) to voice concems in a responsible and effective manner without fear of reprisal. ’ Strong focus on hiring, retaining and nurturing best talent and on promoting a culture of excellence across the organisation, Exhaustive HRD policies cover succession planning, training and development, employee grievance handling, ,e stock option plans - to attract, reward and retain key senior executives. Employe + Regular commu performance, to e nication with shareholders, including e-mailing of financial wnhance the trust and confidence of the shareholders,Charitable Activities * In 2001, Domino's launched a two-year natiot Wish Foundation of America. That same year, aa tO Washington DC provided more than 12000 er ah 11th September attacks on the World Trade Ce nal partnership with the Make-a_ company stores in New York cy ang relief workers following the \d The Pentagon. i 3500 Through a matching funds programme, the corporation donated $351 e to the American Red Cross’ disaster relief effort. ee In 2004, Domino's began a partnership with St Jude Ciiscents Res ae eeeeet Participating in the hospital’s Thanks and Giving’ on 7 ign, paign began in 2004 and raising more than $ 1.3 million in Advertising 7 ts featuring the In the 1980s, Domino's Pizza was well known for its advertisement 1s Noid. That concept was created by Group 243 Inc who then hired Will Vinton. Studios, to produce the television commercials that they created. The catchphrase associated with the commercials was ‘Avoid the Noid’. Sponsorship Domino's sponsored CART’s Doug Shierson Racing, which was driven by Arie Luyendyk and won the 1990 Indianapolis 500. In 2003, Domino's teamed up with NASCAR for a multi-year partnership to become the ‘Official Pizza of NASCAR’ Domino's also sponsored Michael Waltrip Racing and driver David Reutimann during the 2007 season in the NASCAR Sprint Cup Series, International Store Growth Since YE 2008 g Domino's Pizza $B) Sacis Sv Dunkin Brandsapplications of Fa in Domino's 2. Authority and Responsibility 2 YOl's Principles 1. Division of Work This principle is ‘ertai divided into nese implemented in Domino’s as all employees are indulge in an activitity Dens to their capabilities and expertise to approptiate department opie with special talent are placed in the and achieve speci: ead 5 at they may practice such activities repetitively arnumber of [Link] this bss functioning hasbeen divided into «Hu " = resource department '» Marketing department Payroll department «Property department Complaint department As per my survey, the employees of Domino's work for two ot more jobs, ie job rotation, as it acts as an incentive to them and at the same time, they get an opportunity to learn newer activities. Thus, division ‘of work in Domino's is quite evident from the working of the organisation. In Domino's, it was observed that each employee is given adequate authority to perform his tasks along ‘with the responsibility to complete it in time. e.g. the chef in the outlet is given full authority to use the materials and products, but is responsible to p' thin the requisite time. Thus, there is repare the order wit a balance between authority and responsibility of each employee. The employees give efficient pel formance with the presence of required authority, but do not have scope for misuse of authority. Discipline Good discipline is an essential in all successful organisations. On the basis of my survey, [came toa realisation that Domino's has clear and fair agreements regarding working conditions and regulations in the organisation with respect to working hours, timings, leave gules, code of conduct, etc. Discipline ensures ent terms and conditions, in order to maintain obedience to the employm is i coordination in activities and ensures systematic working.4. Unity of Command An analysis of the organisation structure command, being followed at all levels of the & each level of individual subordinates. e.g; the “8: Ae particull control over the employees working in the pattcu 4 that each subordinay accountable to the higher level authorities. Thus itlen ys yeorfusion in the works tohe work under the command ofa superior, so that there 7 a smooth functioning of fai done and no conflict among superiors, which lead {0 ® organisation Domino's clearly exhibits unity o¢ o ‘There is a clear super, onion. There Petior at gan Fh managet of each Branch has fy brat far branch, While, he himsetf jg 5. Unity of Direction ective ., This principle is evident in the working of Domino's. The major ne ia is to maintain its position in the market and achieve spec A onal a ich, production and sales departments keep struggling, 80 that the eae to work forens achieved. This helps the employees to realise the goals that they have to work forand work for its success, They believe in unity is strength, whereas, teamwork and collaboration help to achieve even the unexpected. e.g: when the company undertook an advertising campaign of 30 minutes or free’ offer to broaden its customer base, the top level made the plan while the middle ‘and lower levels facilitated the implementation of such plan successfully. 6. Remuneration of Employees On the basis of the information supplied by employees in the questionnaire, it is discovered that the remuneration paid to employees are just and equitable. Equal wages are provided to people working at the same levels. Employees are satisfied with the compensation and incentive plan of the company. This ensure employees @ reasonable standard of living, In case of work overtime, they are paid wages at a higher rate. Employees are encouraged to work for extra time to achieve targets because of such schemes. Atthe same time, itis within the paying capacity of Domino's 7. Centralisation and Decentralisation Domino's concentrates on centralised structure, their outlets with uniformity, It is necessa satisfaction, service and quality at each out 80 that control is maintained over al ry to ensure consistency of customer M let. Centralisation helps the management"® 8 ney uniformity all over its branches. Th* economies of scale, but leads to delayed decison te It faciitates in oe due to lack of authority to take decisions. The subor ene a en ck recognition authority and sense ofbelongingness in tho eons and emPONES organisation.8. Scalar Chain Comoany's Herarcticel Structure: Grown model | Financial/Marketi Operational Services | Managing Director [K— Company Secretary | ‘Sub-contractor Telecommuting ae Employee "Kitchen Services Customer Services Manager Assistant = Manager Assistant l Parttime Partstime Part-time Part | time Parttime Part-time Parttime Parttime Part-time Within each branch of Domino's, there is a formal organisation structure, defining clear relationships among superiors and subordinates. At the top is the managing director, wholly responsible and accountable for their branch, working along with a company secretary and other managers in financial, marketing and operational areas. Further, the structure is divided into kitchen and customer services, looked after by managers as well as assistants. 9. Order There is strict obedience of principle of order in Domino's, as there is a predetermined fixed place for all materials, food items, equipments, etc in each outlet. This helps the staff to do the work effectively and efficiently without any obstruction. 10, Esprit de Corps This principle is undoubtedly followed in Domino’s, as the staffin each outlet works with unity and harmony within the organisation. The reason behind the company’s success is enthusiastic participation of each member like a family in the attainment of company’s objectives. Since, there are clear lines of authority and opportunities provided to employees to take initiative, success of the company is an obvious occurence.Questionnaire ida ed by the ‘A questionnaire was developed by the investigator to be fi y employees: 1. Name of the employee ... 2. Job profile .... 3. Number of working years (in Domino's) ... 4. Are you satisfied with the working of the organisation? (@) Yes () No 5. Are you satisfied with your superiors? (a) Yes (b) No 6. Are you satisfied with your compensation? (a) Yes (b) No 7. Are you satisfied with the incentive plan of the company? (a) Yes ()No 8. Do you find that i i oeer rules and regulations equally applicable on all @) Yes ©) No 9 Any suggestion for improvement in working .observation ‘according to the survey and the informati i i throu; re questionnaire, I observed the followi ee gathered from the employees through 8: Number of Employees Level of to compensation Highly Satisfied = Satisfied Dissatisfied mead gs eRe So lel " ee ee Level of satisfaction with regard to working conditions Number of Employees n with regard Highly Satisfied Satisfied Dissatisfied Level of satisfaction with regard Number of Employees to discipline eine a De ee eMac eee Highly Satisfied Satisfied Dissatisfied Level of satisfaction with regard Number of Emp to working hours i loyees __toworking hours 00 Highly Satisfied npn Satisfied Dissatisfied _Dissatisfed Crand employees of icted for she at propounded by Hens manaéiws the principles of division of vommand, unity of direction, scalar chain, order Conclusion According to the survey, Domino's, I conclude that Fayol are applicable and foll work, authority and respons remuneration of employees, and esprit de corps. that I condw he 14 principles o lowed in Domino's: It fol : ‘ of ibility, discipline, unity centralisation and decentralisation, con, better working, systematic i lisati As a result, they have gained benefits of specials iter and discipline in he s, as the market leader in the operations, loyal employees, coordinated work and ord organisation. This is the base of the success of Domino industry. Viva Questions Who was Henri Fayol? State two major contributions of Fayol to management. Whaat is ‘division of work’? State its positive effects. principle of ‘discipline’? What are the adverse effects of violating 1 2. 3. 4. 5. What does ‘unity of command’ ensure? 6. What is ‘scalar chain’ meant for? Where is it used? 7. What are the positive effects of following principle of ‘order’ and ‘equity’? 8. Who was the founder of Domino’s and how it came into existence? 9. State two innovations in Domino's over the years. 10. List few countries where Domino’s has spread its operations. 11. List few reasons that you consider as the reason for its success. 12. State one example of a principle of management followed in Domino's