“Study of management principle applied to small scale

industry”

1.0 Rationale

The objective of this project is to study of management principle

applied to small scale industry. Small scale industries (SSI) are those
industries in which manufacturing, providing
services, productions are done on a small scale or micro scale. For
example, these are the ideas of Small scale industries: Napkins,
tissues, chocolates, toothpick, water bottles, small toys, papers,
pens. Small scale industries play an important role in social and
economic development of India. These industries do a one-time
investment in machinery, plants, and industries which could be on
an ownership basis, hire purchase or lease basis. But it does not
exceed Rest. 1 Crore. Let us discuss in detail about in this micro
project.

2.0 Literature Review

Small Industrial management is the organizational process that

includes strategic planning, setting; objectives, managing resources,
deploying the human and financial assets needed to achieve
objectives, and measuring results.

• Management also includes recording and storing facts and

information for later .use or for others within the organization.
The concept of management planning involves direction,
planning, adjustment, control,’ and cooperation.

• Management functions are not limited to managers and

supervisors. Every member of the organization has some
management and reporting functions as part of their job.

VMP, Tehu /Elect, Dept. 1

 SCOPE OF SMALL INDUSTRIAL MANAGEMENT

The scope of, Industrial relations includes all aspects, of

relationships such as bringing cordial and healthy labour
management relations, creating industrial peace and developing
industrial democracy.

• By safeguarding the interest of workers.

• By fixing reasonable wages
• By providing good working
• By providing other, social security measures
• By maintaining healthy trade unions
 By’ collective bargaining

3.0 Proposed Methodology

Procedure to do the micro-project:

1. Collect the information about Principles applied to small
industry.
2. We check the information about proper principle follow of
small scale industry.
3. Divide the total work in all group members for make micro
project.
4. Make the report.
5. Observe the management principle of small scale industry.
6. We draw the chart of principle applied to small scale industry.

VMP, Tehu /Elect, Dept. 2

4.0 Action Plan

Name of
Sr. Planned Planned
Details of Activity Responsible
No Start Date Finish Date
team member
1 Search the
information about 22/07/2019 27/07/2019 Vishal
small scale
industry.
2 Observe the proper
principle follow of 29/08/2019 29/08/2019 Laxmi
small scale
industry.
3 Collect the
information about
principle applied to 05/08/2019 12/08/2019 Vishal
small scale
industry.
4 Draw chart on
principle applied to 13/08/2019 21/08/2019 Laxmi
small industry.
5 Make the report on
Principle applied to 22/08/2019 09/09/2018 Vishal
Small industry.

VMP, Tehu /Elect, Dept. 3

5.0 Resource Required

Sr. Name of Quantity Remark

No Material
1 Computer with 1 Available
internet
connection
2 Books various Available
3 Card sheet paper 1 Available
4 Scale 1 Available
5 Pencil 1 Available
6 Eraser 1 Available
7 sketch pen 1 Available

VMP, Tehu /Elect, Dept. 4

 Micro Project
Report

VMP, Tehu /Elect, Dept. 5

1.0 Brief Description

The purpose of this micro project is to see the Principles of

management being implemented in real life in a small scale
industry. With its help we shall get the information whether the
principles of management which we have come across in the books
are actually true? & whether by following the Principles of
Management the efficiency of the management is actually
enhanced. Organization small scale industry. In order to achieve the
objective of this project we needed an organization where business
is carried on a small scale & various activities are performed.

 NEED OF INDUSTRIAL MANAGMENT

 To ensure maximum output with minimum cost of production.

 To ensure that activities of different individuals are

Coordinated to attain the common purpose in the factory.

 Goods are produced and delivered on the promised dates.

Goods are manufactured instruct specification of customer
order

VMP, Tehu /Elect, Dept. 6

 APPLICATION OF INDUSTRIAL MANAGMENT

1. Planning Function

 For Designing Conversion System

 For scheduling conversion system

2. Controlling Function

 Quantity
 Quality
 Time
 Inventory

3. Organizing Function

• Structuring of Operation Staking

• Job & Work Design.
• For Production & Operation Standard.
• For Payment system.
• Time
• Inventory
• Cost
• Maintenance

(i) Horizontal or Left to Right:

In this chart highest positions are put on the left side and those
with diminishing authority move towards the right. The
organizational levels are represented by vertical columns, the
flow of authority from higher to lower levels being represented by
movement from left to right. In other words it presents scalar
levels in a vertical position and functions horizontally.

VMP, Tehu /Elect, Dept. 7

The same levels of authority as shown in vertical chart can be
depicted in a left to right chart as follow In horizontal chart the
supreme authority Le. Board of Directors is shown on the left and
chief executive and functional managers and other levels move
towards right.

VMP, Tehu /Elect, Dept. 8

 (i) Vertical or Top to Bottom:
In this chart major functions are shown at the top and subordinate
functions in successive lower positions. In this chart scalar levels
run horizontally and functions run vertically. The supreme
authority is shown at the top while lowest authority at the bottom.

The vertical chart is shown in the following diagram. In this

diagram Board of Directors is at the top of the organization. The
chief executive controls various functional managers, who in turn
have downward staff as the requirement of respective departments.

VMP, Tehu /Elect, Dept. 9

Principles of Organization Charts:

Following principles should be kept in mind while framing

organization charts:
Of every position.

(i) The top management should faithfully follow the line of authority
while dealing with subordinates. Any attempt to buy pass the
organization chart will make it meaningless.

(ii) The chart should define lines of position. The lines of different
individuals should be so defined so that there is no overlapping
and no two persons should be given the same position.

(iii) The undue concentration of duty at any point should be

avoided.

(iv) The organization chart should not be influenced by

personalities. Balance of organization should be given more
importance than the individuals.

(v) The organization chart should be simple and flexible.

VMP, Tehu /Elect, Dept. 10

2.0 Aim of Micro-project

 Demonstrate the personal abilities and skills required to

produce and present an extended piece of work.
 Engage in personal inquiry, action and reflection on specific
topics and issues.
 Reflect on learning and share knowledge, views and opinions.

3.0 Course Outcome Integrated

This course will enable the student to adequately known as the

management principle follows to small scale industry.
This course contributes to the following program outcomes: ability
to use management of small scale industry and which principle
applied to small scale industry.

4.0 Actual Procedure Followed.

1. Collect the information about Principles applied to small

industry.
2. We check the information about proper principle follow of
small scale industry.
3. Divide the total work in all group members for make micro
project.
4. Make the report.
5. Observe the management principle of small scale industry.
6. We draw the chart of principle applied to small scale industry.

VMP, Tehu /Elect, Dept. 11

5.0 Actual Resources Used.

Sr. Name of Quantity Remark

No Material
1 Computer with 1 Available
internet
connection
2 Books various Available
3 Card sheet paper 1 Available
4 Scale 1 Available
5 Pencil 1 Available
6 Eraser 1 Available
7 sketch pen 1 Available

VMP, Tehu /Elect, Dept. 12

6.0 Outputs of Micro-Project.

1. An organization chart is a managerial tool. It helps in specifying

authority and responsibility

The relationships among different persons are also established for

smooth working of the organization.

2. As organization chart specifically defines authority and

responsibility of people in the enterprise there will be no duplication
and overlapping of duties etc. Even if it happens in a particular
instance it can be rectified immediately.

3. The organization chart will help in pointing out the faults,

deficiencies, dual command etc. in the organization. The
management will be able to take prompt remedial action in case of
certain lacuna.

4. The organization chart acts as an information Centre to the new

entrants and they can easily understand different levels of authority
and responsibility.

5. The charts are also helpful in decision-making process. They act

as a guide to the decision makers.

VMP, Tehu /Elect, Dept. 13

7.0 Skill developed / Learning outcomes of this micro-
projects.

This project is expected to develop the following skills for the

industry identified competency ‘Proper principle applied to small
industry’

• Demonstrate the personal abilities and skills required to produce

and present an extended piece of work

VMP, Tehu /Elect, Dept. 14