ABSTRACT

This project will explain about implimation of fayol's principles, which is based on an
organization named CAFE COFFEE DAY .An extension review of public works on implimation of
Fayol's Principle was conducted. Permission to conduct the face to face interviews was obtained
and data got from the respondand were recorded, collected and analyzed. Results revealed that
developed comprehensive business plan, determine their suitability, advantages and disadvantages
and how much adoption affected to the organization performance. We conclude that the principles of
management are well applied in CAFE COFFEE DAY. It provides an insight into its performance and
efficiency.It pays high attention to its valued customer by providing high quality beverages at
affordable prices in a pleasant enviornment. CAFE COFFEE DAY has achieved huge success and
emerged as pioneer in the beverage industry.
 CONTENT

S.L PARTICULARS Page No.

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NO
1 INTRODUCTION 1

2 ABOUT HENRY FAYOL 2

3 OBJECTIVE OF THE STUDY 3

4 SELECTION OF THE ORGANIZATION 3

5 ABOUT COMPANY 4

6 SUBJECT MATTERS OF STUDY 5

7 APPLICATION OF PRINCIPLES IN CAFÉ COFFEE 6-14

DAY

8 CONCLUSION 15

9 REFERENCE 16
 INTRODUCTION

Principles of management are fundamental statements of truth which explains the

relationship between two or more sets of variables under a given situation. They prescribe
certain norms, guidelines and cause and effect relationships that act as guides for thinking or
action. They also form the basic elements of management theory. However, management
principles are neither absolute nor totally static as the study of management advances,
new principle emerge and old principles are modified.

Henri Fayol explored this comprehensively and, as a result, he

synthesized the 14 principles of management. These principles of management serve as a
guideline for decision-making and management actions. They are drawn up by means of
observations and analyses of events that managers encounter in practice.

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About Henri Fayol

Henri Fayol

Born: July 29, 1841

Died: November 19, 1925, Paris, France.

Education: Mining Engineering (mining Academy of

Saint- Etienne,1860)

Books: General and Industrial Management

Identity: Father of General Management

Founder: Functional management

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Objective of the study:-

(i) The main purpose of study are to see how the principles of management
are applied in real life situations.

(ii) examine whether application of such principles actually enhances the

managerial capacity.

Selection of the organisation:-

In order to achieve the objectives of the project A large retail organisation is selected
which performs a number of activities. On the advice of my project guide 'Cafe Coffee
Day' is selected as;
(i) It is a large organisation which is capable of attaining the objectives of the study.
(ii) It is situated nearby.

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ABOUT COMPANY :-

Café Coffee Day (CCD) is an Indian café chain. It is a subsidiary of Coffee Day Enterprises
Limited. Coffee Day serves 160 crore (1.6 billion) cups of coffee annually in six countries.
Internationally, CCDs are present in Austria, Czech Republic, Malaysia, Nepal and Egypt.

History of the Ca fé Co ffe e Da y

 It is an established brand image in India.
 Launched in11, July 1996 in Bangalore, Karnataka,
India.
 Awarded the ‘Exclusive Brand Retailer of the Year’ by ICICI Bank in its
Retail Excellence Awards 2005 for the organized retail sector.
 CCD has 620 cafes at present and it has ambitious plans to launch more
than 900 cafes by the end of the current financial year.

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  CCD also has three cafes in Vienna, and two in Karachi,
Pakistan.
 It rapidly expanded across various cities in India adding more stores
with more than 1000 cafés open across the nation by 2011.

Subject matters of study:

Under this project the following principles of Henry Fayol are studied.

(i) Division of work

(ii) Authority and responsibility
(iii) Unity of command
(iv) Remuneration to employees
(v) Scalar chain
(vi) principles of equity
(vii) Esprit de corps

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Henri Fayol’s 14 principles of management and its application in
cafe coffee day

(1) Division of work

Meaning:-
a) Work is divided according to the specialization of workers or
employees.
b) Increases the output and efficiency of the employees.
c) Each and every employee should be trained to perform their
tasks on the basis of specialization

Result of Empirical Investigation:-

(Q)Are you ever asked to perform a task of other department ?
(A) Yes No N.R. Total
5(6%) 70(88%) 5(6%) 80

Observation:-
The above data clearly indicate that 88% of employees have worked in one department. Only 6%
of employees worked in other department casually in order to fill the vacancy of temporary
absentees.

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 It is also marked that the security at main gate guides the customer to a particular section as
per his needs. When customer reaches the section, concerned sales person assist the customer in
choosing the articles. Then the sales person carries the beverages to the billing counter. After
receiving the payment beverages are sent to the packaging counter and finally the goods are
handed to the customer

Findings:-
It is found that the company is following the principle of divison of work which brings work
specialization.

(2) Authority and responsibility

Meaning :-
a) Authority means the power to give orders and to ask for
obedience.
b) Responsibility means the sense of dutifulness which is correlated with
authority.
c) There must be parity between these two.

Result of Empirical Investigation:-

(Q)Do you have all the authority relating to your work?
(A) Yes No N.R. Total
60(75%) 8(10%) 12(15%) 80

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Observation:-
The data collected reveals that of the total number of employees 75% have full authority tp
discharge their work while 10% replied negatively. 15% of the employees preferred to remain
silent.

Findings:-
The above fact proves that the principle of authority and responsibility is being followed in Cafe
Coffee Day.

(3)Unity of Command

Meaning :-
a) One individual employee must receive orders from one
individual superior only.
b) Employees should be answerable to only one superior.

Result of Empirical Investigation:-

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

(A) Yes No N.R. Total

8(10%) 64(80%) 8(10%) 80

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Observation:-
All employees of Cafe Coffee Day were asked the above mentioned question. Of the 80
employees 64 i.e 80% replied negatively. 10% said Yes while 10% didn't provide any answer.

Findings:-
The figures given in the above table make it clear that 80% of the employees get orders from
single officer. Thus,it can be concluded that principle of unity of command is being followed in
Cafe Coffee Day.

(4)Remuneration

Meaning :-
a) Remuneration should be fair and satisfactory to both the
employees and the employer.
b) The method of justice must be equitable for all employees.
c) Sufficient salary should be given for the satisfaction of basic needs of
the employees to stop them for getting shifted to other organisations for
better remuneration.

Result of Empirical Investigation:-

(Q)Are you getting reasonable remuneration ?
(A) Yes No N.R. Total
35(44%) 40(50%) 5(6%) 80

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(Q)Is your remuneration at par with other similar firms ?
(A) Yes No N.R. Total
15(19%) 60(75%) 5(6%) 80

Observation:-
The primary data relating to the first question that almost half of the employees complained that
they are not getting reasonable remuneration which act as an hindrance of maintaining a
reasonable standard of living. Connecting the answers of second question with the first one , it is
found 75% of employees are of the opinion that Cafe Coffee Day is not offering the same
package as other similar firms do.

Findings:-
The result of analysis of data collected through questionnaire reveales that the company under
study is not paying reasonable remuneration to the employees. Further the pay package offered is
not at par with other similar firms so the company should take some measures to improve it
keeping in view the financial position of the company so that employees dissatisfaction can be
removed.

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(5)Scalar chain

Meaning :-

a) It is the chain where the flow of authority and

communication from top level to lower level management in
the form of hierarchy.
b) In the hierarchy, orders and instructions flow downwards.
c) It is said to be scalar when subordinates report to their
immediate superior.

Result of Empirical Investigation:-

(Q)Does the boss of your boss directly communicate with you ?
(A) Yes No N.R. Total
50(63%) 15(19%) 15(18%) 80

Observation:-
All employees of cafe coffee day were asked the above questions relating in the scalar chain. A
total of 50 employees i.e about 63% replied positively. 15 employees replied negatively. While
15 employees preferred to remain silent.

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Findings:-
The above analysis reveals that when the boss of the boss communicates, it violates the scalar
chain which is not a good sign. It is high time for management to take steps so that this
important principle not being overlooked.

(6)Equity

Meaning :-
a) It refers to combination of fairness, kindness and justice.
b) Workers increment and promotion should be evaluated on
the basis of their performance.
c) Everyone is equal in the eyes of management

Result of Empirical Investigation:-

(Q)Does your company give same remuneration to the similar job holders?
(A) Yes No N.R. Total
45(56.25%) 30(37.5%) 5(6.25%) 80

(Q)Do you feel that work efficiency is neglected while giving promotion ?
(A) Yes No N.R. Total
50(62.5%) 30(37.5%) ---- 80

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Observation:-
In respect of question number (1), 45 employees responded with 'Yes' . While 30 employees
replied 'No'. And 5 employees didn't give their response.

In respect of question number (2), 50 employees i.e 62.5% admitted that work efficiency is
neglected while giving promotion.

Findings :-
The above analysis establishes the fact that the company is not serious in following the principle
of equity. The violation of such an important principle brings down the moral of the efficient and
hardworking employees and kills their incentives to hardwork

(7)Esprit de Corps

Meaning :-
a) All the employees of the organization are put together as a team.
b) Managers enhance the team spirit in the organization by giving credit to
the workers for their performance.

Result of Empirical Investigation:-

Personal investigation has been made by the researchers in order to
know whether Café Coffee Day following this principle . A few
questions were asked to the subordinates as well as the group managers
.

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 Observation:-
During the course of interrogation,it is observed that

(i) Mangers frequently used the word 'I' instead of 'we'.

(ii) Manager have superiority complex and don't mingle with their subordinates.
(iii) managers do not show any interest for their sub-ordinates.

Findings:-
Thus the principle Espirit de corps is not being followed in Cafe Coffee Day. In this situation,it
is furtile for the managers to expect cooperation from the subordinates.

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 CONCLUSION
 It is evident from the analysis of the project; CCD applies almost all general
principles as developed by Henry Fayol.
 It pays high attention to its valued customers by providing high quality
beverages at affordable prices in a pleasant environment.
 Employees are respected, valued, recognised and professionally groomed by
rewarding various incentives in different ways.
 It meets all safety norms and respects the sentiments of the people and laws of
the land.
 CCD has achieved huge success and emerged as a pioneer in the beverage
industry.
 CCD has spread across the world in almost all the major cities of the globe.
 It is essential for an organization to concentrate on its resources viz. people,
environment and the theories of organizational behaviour.

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 REFERENCE
 http://www.cafecoffeeday.com

 http://www.slideshare.net/nanditasadani/cafe-coffee-day-9229382

 R.K. Sharma, Shashi K. Gupta ,Rahul Sharma, Kalyani

Publishers,Business Studies and Management

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