MANAGEMENT PRINCIPLES

APPLIED TO A SMALL-
SCALE INDUSTRY

210803 – Hamza Khan

210818 – Imaad Shaikh
210827 – Haaris Ansari

11/03/2024
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 Henri Fayols Principles of Management

1. DIVISION OF WORK: 2. AUTHORITY AND 3. DISCIPLINE: 4. UNITY OF COMMAND: 5. UNITY OF DIRECTION:

SPECIALIZATION RESPONSIBILITY: EMPLOYEES MUST OBEY EACH EMPLOYEE SHOULD ACTIVITIES WITHIN THE
INCREASES EFFICIENCY MANAGERS MUST HAVE AND RESPECT THE RULES RECEIVE ORDERS FROM ORGANIZATION SHOULD BE
AND PRODUCTIVITY BY THE AUTHORITY TO GIVE AND AGREEMENTS THAT ONLY ONE SUPERIOR TO DIRECTED TOWARDS
FOCUSING ON SPECIFIC ORDERS, BUT THEY MUST GOVERN THE AVOID CONFUSION AND COMMON OBJECTIVES.
TASKS. ALSO TAKE ORGANIZATION. CONFLICTS.
RESPONSIBILITY FOR
THEIR EXECUTION.

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 Henri Fayols Principles of Management
6. Subordination of
Individual Interests to the
General Interest: The
interests of the organization as
a whole should take
precedence over the interests
of individual employees or
groups.
7. Remuneration: 8. Centralization: The degree
Compensation should be fair to which authority is
and provide satisfaction to concentrated at the top of the
both employees and organization should be
employers. determined by factors such as
the nature of the task and the
skills of the employees.
9. Scalar Chain: There should
be a clear and unbroken line of
communication from the top
to the bottom of the
organization.
10. Order: Materials and
personnel should be in the
right place at the right time to
ensure smooth operation.
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Henri Fayols Principles of Management

11. EQUITY: EMPLOYEES 12. STABILITY OF TENURE OF 13. INITIATIVE: EMPLOYEES 14. ESPRIT DE CORPS: TEAM
SHOULD BE TREATED WITH PERSONNEL: EMPLOYEES' SHOULD BE ENCOURAGED TO SPIRIT AND HARMONY
KINDNESS AND JUSTICE. JOB SECURITY AND TAKE INITIATIVE AND AMONG EMPLOYEES ARE
OPPORTUNITIES FOR CONTRIBUTE TO THE ESSENTIAL FOR
ADVANCEMENT SHOULD BE ORGANIZATION'S OBJECTIVES. ORGANIZATIONAL SUCCESS.
ASSURED TO ENCOURAGE
LOYALTY AND COMMITMENT.

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STUDY OF
MANAGEMENT
PRINCIPLES APPLIED
TO AN E-COMMERCE
WEBSITE

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Principles applied to the business

Authority and Responsibility: Clearly define

Division of Work: Assign specific tasks to
roles and responsibilities for each team
different departments or individuals within the
member, granting them the authority needed to
e-commerce business, such as website
carry out their tasks effectively, whether it's
development, marketing, customer service, and
updating product listings, managing social
logistics.
media accounts, or handling customer inquiries.

Discipline: Establish and enforce rules and

Unity of Command: Ensure that each
guidelines for conduct within the e-commerce
employee receives instructions and guidance
business, ensuring adherence to deadlines,
from only one supervisor, preventing confusion
professional communication with customers,
and conflicting directives.
and ethical business practices.

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Principles applied to the business

Subordination of Individual Interests to the

Unity of Direction: Align all activities and
General Interest: Encourage teamwork and
efforts within the e-commerce business towards
collaboration among employees, emphasizing
common goals, such as increasing sales,
the importance of working towards the overall
improving customer satisfaction, or expanding
success of the e-commerce business rather than
market reach.
individual achievements.

Centralization: Determine the appropriate

Remuneration: Provide fair and competitive
level of centralization for decision-making
compensation to employees, including salaries,
within the e-commerce business, balancing the
bonuses, and benefits, to motivate and retain
need for centralized strategic planning with
talent within the e-commerce business.
decentralized operational decisions.

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 Principles applied to the business
SCALAR CHAIN: ESTABLISH CLEAR
COMMUNICATION CHANNELS AND
REPORTING STRUCTURES WITHIN THE E-
COMMERCE BUSINESS TO FACILITATE THE
FLOW OF INFORMATION AND DECISION-
MAKING FROM TOP MANAGEMENT TO
FRONTLINE EMPLOYEES.
ORDER: ORGANIZE THE RESOURCES,
PROCESSES, AND WORKFLOWS WITHIN THE
E-COMMERCE BUSINESS EFFICIENTLY TO
ENSURE SMOOTH OPERATION, FROM
MANAGING INVENTORY AND PROCESSING
ORDERS TO MAINTAINING THE WEBSITE
AND FULFILLING CUSTOMER REQUESTS.
EQUITY: TREAT ALL EMPLOYEES OF THE E-
COMMERCE BUSINESS FAIRLY AND
IMPARTIALLY, PROVIDING EQUAL
OPPORTUNITIES FOR ADVANCEMENT,
RECOGNITION OF MERIT, AND A
SUPPORTIVE WORK ENVIRONMENT.
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 Principles applied to the business
STABILITY OF TENURE OF PERSONNEL:
AIM TO RETAIN TALENTED AND SKILLED
EMPLOYEES WITHIN THE E-COMMERCE
BUSINESS BY OFFERING JOB SECURITY,
OPPORTUNITIES FOR GROWTH AND
DEVELOPMENT, AND A POSITIVE COMPANY
CULTURE.
INITIATIVE: ENCOURAGE EMPLOYEES TO
TAKE INITIATIVE AND CONTRIBUTE THEIR
IDEAS AND SUGGESTIONS FOR IMPROVING
PROCESSES, PRODUCTS, AND SERVICES
WITHIN THE E-COMMERCE BUSINESS.
ESPRIT DE CORPS: FOSTER A SENSE OF
TEAMWORK, CAMARADERIE, AND SHARED
PURPOSE AMONG EMPLOYEES WITHIN THE
E-COMMERCE BUSINESS, PROMOTING
COLLABORATION AND MUTUAL SUPPORT
TOWARDS ACHIEVING COMMON
OBJECTIVES.
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Conclusion

• In conclusion, Henri Fayol's 14 Principles of Management provide a comprehensive framework for

organizing and managing an e-commerce business effectively. By applying these principles, e-
commerce businesses can streamline operations, enhance productivity, foster a positive work
environment, and ultimately achieve their goals of delivering exceptional products and services to
customers. From division of work and unity of command to equity and esprit de corps, each
principle plays a vital role in ensuring the success and sustainability of an e-commerce venture in
today's competitive market landscape.

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 THANK YOU
•210803 – Hamza Khan

•210818 – Imaad Shaikh

•210827 – Haaris Ansari

11/03/2024
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