IIPS

Principles & practices of management(PPM) Assignment

Topic – Principles Of Management

Guided By: Submitted By :2013-2014

INDEXSir Henri FayolReliance FreshIntroduction to Management

Principles of management and its description in brief

Sir Henri FayolHenri Fayol ( 29 July 1841 –  19 November 1925) was a Frenchmining engineer & director of mines who developed a generaltheory of business administration.Fayol's work was one of the first comprehensive statementsof a general theory of management.

Fayol was a successful mining engineer and senior executiveprior to publishing his principle of administrative science. Hewas not primarily a theorist , but rather a successful senior asuccessful senior manager who sought to bring order to hispersonal experiences.

Fayol’s five principle roles of management are still actively practised today he has found

“ Plan , Organise, command, co-ordinate and control “ written on more than one manager’s whiteboard during his career.

Fayol ideas had a major effect on how mgt functions in most established organisation .

In many ways, they are the bible of mgt and the source of idea is even today is certainly used by all managers

Reliance fresh is the convenience store format which forms part of the retail business of Reliance Industries of India which is headed by Mukesh Ambani. The company already has in excess of 1000 reliance fresh outlets across the country. These stores sell fresh fruits and vegetables, staples, groceries, fresh juice, bars and dairy products.

Rekiance Fresh stores are already selling over 1000 tonnes of fresh products and 250 categories. Reliance fresh is aggressively workink on introducing a pan-india network of retail stores with world class enviroment, state of technology and seamless supply chain.

ManagementManagement is a universal phenomenon. It is a very popularwidely used term. All organisations whether social or political are involved in mgt as it helps and direct the various effortstowards a definite purpose. It is an art of creating an environ-ment in which can perform and individual can co-operate towards attainment of group goals. “Acco. to H.Fayol , Mgt isTo forecast , to plan , to organise , to command, to coordinateand to control ‘ .

It establises cause and effect relationship b/w two or more variables under given state. They serve as a guide to thoughts and actions. Thr4

mgt principles are the statement of fundamental truth based on logic which provides guidelines 4 managerial decision making and actions.

Hence we can say that good mgt includes both being effective

$ efficient i.e; fiiting square pegs in square holes and round

ones in round.

Principles Of Management

1) Division of work2) Authority and Responsibility3) Discipline4) Unity of Command 5) Unity of Direction6) Subordination of individual interest to

general interest7) Remuneration of employees 8) Centralisation and Decentralisation9) Scalar chain10) Order11) Equity12) Stability of personnel13) Initiative14) Espirit de Corps

Division of workAccording to this principle, the whole work must be divided into small task

or units and instead of assigning the whole work to one person . One task or job should be assigned to one person according to the capability , qualification and experience of the person .

When a person is performing a part of job again and again he will become perfect and specialised ine that job and efficiency will improve . This principle is very useful for any ognisation be it private or public. It enhances overall performance of an organisation because specialists perform consistently .

For example an orgaisation having different departments.

Authority $ ResponsibilityAuthority means power take decision. Responsibility means obligation to

complete the job on time. So according to principle there should balance and parity b/w authority and responsibility . Excess of authority may bring negative results and Ecess of responsibility will not allow the worker to complete the work on time.

Balance b/w both of them will result in no misuse of authority and it also helps in meeting responsibility on tie without any delay.

DisciplineDiscipline refers to general rules , regulation for systematic working of an

organisation. It doesn't mean only rules and regulation but it also means developing commitment in the employees towards organisation . It also means obedience to organisational rules that are necessary for functioning of an organisation. It includes –

• Good supervision at all level• Clear and fair agreement• Application of penalties judiciouslyEmployees must honor the commitment made by them and management

must meet its promises. On one hand it enforces orderliness and motivates on other side.

Unity of CommandThere should be one & only one boss for every individual employees working

in an organisation. If employees get order from 2 superiors at same time then they will get confused and not able to understand that whose orders must be executed .

Thus unity of command avoids confusion and conflicts. It also helps in harmonious relations and fixation of responsibility. If this principle is violated then there will be ego clashes as employees should receive order from one boss only. this principle helps to create peace in same level and to subordinate.

Unity of DirectionEfforts of all the members and employees of an organisation must be directs

towards one direction that is achievement of common goal. This helps in bringing unity of action and coordination in an organisation. Each department and groups having common objective must have one head and one plan only.

All the units of an organisation should be moving towards the same objectives through coordinated and focused efforts. Positive effects are –

Achievement of organisation goal Efforts of all the employees get unified towards one direction only.

Subordination of individual interest to general int.

The interest of an organisation should take priority over the interest of any individual employee. If objectives of both organisation and individual are in different directions then managers must try to reconcile individual interest with organisation goal and if it is not possible then individual goal must be sacrificed for achieving organisational goal.

Employees are required to give up carelessness, selfishness, lethargy and personal interest. it ensures no ego clashes as credit goes to group and coordination between individual and organisation.

Remuneration of employeesThe overall pay and compensation should be fair to employees and workers

to give them at least a reasonable standard of living. Remuneration paid to employees must be fair because if employees are unpaid they will not be satisfied and an unsatisfied person can never contribute his maximum. Dissatisfaction will lead to increase in employees turnover .

This ensures congenial atmosphere b/w the management and workers. In healthy atmosphere , workers put there best efforts to contribute maximum. it ensures smooth functioning and motivates them.

Centralisation & DecentralisationCentralisation refers to concentration of authority in few hands at the top

level.Decentralisation means evenly distribution of power at every level of

management. According to fayol, a company must not be completely centralised or completely decentralised but there must be both depending upon the nature and size of the organisation. A company must be properly balanced i.e.; it should not be completely centralised or decentralised. This principle leads to positive effect that are –

I. Fast decision at operational level and strict control by top levelII. Benefits of centralisation as well as decentralisation.

Scalar ChainScalar chain means line of authority or chain of superiors from highest to

lowest rank. Organisation should have a chain of authority and responsibility that runs from top to bottom and should be followed by manager.

Every info. must pass through every key of this chain , no skipping of any one key should be allowed. In case of emergency when information has to be passed so fayol has permitted a short cut in the chain which is called “ gang – plank”. Gang plank permits direct communication between the employees working at the same level of authority without following scalar chain. It leads to systematic flow of chain.

OrderPeople and material must be in suitable place at appropriate time for

maximum efficiency. In other words, there must be orderliness in the organisation

a) Material order – arrangement of things is called material order. It ensures proper & fixed place for various materials , tools , and equipments.

b) Social order – arrangement of people is referred to as social order. It ensures proper & fixed place for each employee in an organisation.

It results in increase in productivity and efficiency and smoothly functions without hindrance.

Equity Good sense and experience are needed to ensure fairness to all employees ,

who should be treated as fairly as possible.Equity means to be kind, fair , and just treatment to employees. Employees

will put their maximum efforts when they are treated with kindness and justice. This will ensure loyalty and devotion.

There should be no discrimination against anyone on a/c of sex, religion, language, caste, belief or nationality. If a manager is biased in dealing with employees then they will get dissatisfaction and will not contribute to their maximum capacity. Employees seek to become loyal and devoted if equally treated .

Stability of PersonnelEmployees turnover should be minimized to maintain organisational

efficiency. In an organisation the employees should be selected and appointed after following a due and rigorous procedure. Once they are appointed they should be for fixed period.

Management must provide the feeling of job security among the employees because with the feeling of insecurity they can’t contribute to maximum. Frequent turnover of employees is bad for organisation and should be done when necessary. Not only turnover but frequent transfer or rotation should be avoided as it takes some time for a person to learn and settle for the job and it also reduces wastage of time and money

Initiative Workers should be encouraged to develop and carry out their plans for

improvement Initiative means first step with self motivation. Fayol said that employees

must be given an opportunity to take some initiative in making and executing a plan. so managers must welcome the suggestion and ideas of employees before framing plan. Employees must be given freedom to come ahead and use their skills to achieve expected goal. Positive effects are –

i. Develops feeling of belongingness in employees.ii. Employees achieve target on time if they are set up with their

consultation.

Espirit De CorpsManagement should promote a team spirit of unity and harmony among

employees. In order to achieve organisational goal, mgt should promote team work and coordination. Espirit De Corps means union is strength. Fayol suggested that every employee in the organisation must consider him as a part of a team and try to achieve team goal because team contribution is always better than individual.

The feeling of “I” should be replaced with “WE”. It helps to develop a feeling of mutual trust and understanding and achieve goal with efficiency and effectiveness.

Bibliography• 14 Principles of Management. (2008,

Aug 29). Retrieved 10 2008, from www.12manage.com: http://www.12manage.com/methods_fayol_14_principles_of_management.html

• Drucker, P. (2007). Management Tasks, Responsibilities, Practices. New Jersey: Transaction Publishers.

• Wikipedia.com• Google.com• Ril.com• 12th management by poonam gandhi