Do all organizations follow 14 Principles of Management by Henry Fayol? What are the application

and implication followed by the organization.

Submitted to: Dr.Rashmi GopinathanPresented by:

BBA core A Group 11.

Shlok Mane-BBA015051Sejal Gaikwad-BBA015052Nikita Mhatre-BBA015053Amita Patil-BBA015054Komal Todekar-BBA015055

Objective

The purpose of this project is to see the Principles of management being implemented

in real life. With its help we shall get the information whether the principles of

management which we have came across in the books are actually true? & whether by

following the Principles of Management the efficiency of the management is actually

enhanced.

Organization

In order to achieve the objective of this project we needed an organization where business is carried

on a large scale & various activities are performed.Therefore,INOX AIR PRODUCTS was selected

because it had following characteristics : It is capable of fulfilling the purpose of project. It is situated nearby &visiting it would be easy.

Introduction to Management• Management is the process of achieving goals and

objectives effectively and efficiently through and with the people.

• "Management is a process of designing and maintaining an environment in which individuals work together in groups to effectively and efficiently accomplish selected aims".

• Management is the process of achieving organizational goals and objectives effectively and efficiently by using management functions i.e.

» Planning»Organizing» Staffing»Controlling

• Management is a set of activities directed at an organization's resources with the aim of achieving organizational goals in an efficient and effective manner.

Henry Fayol

• Henry Fayol is considered as universalist and the father of administrative management.

• In1860 he started working as mining engineer in a French mining company.

• After his retirement in 1916,he developed theories and principles of management which are universally accepted.

Principles of management1. Principle of division of work2. Principle of authority and responsibility3. Principle of discipline4. Principle of initiative5. Principle of unity of command6. Principle of subordination of individual interest to general

interest7. Principle of equity8. Principle of stability of tenure9. Principle of scalar chain10. Principle of order11. Principle of unity of direction12. Principle of remuneration13. Principle of centralization and decentralization14. Principle of espirit de corps

Sample Questionnaire

Sr. No.

Question Yes No No Response No. Of Respondents

1 Do you have all the authority connected with your work ?

2 Do you get orders from more than one boss ?3 Do you give top priority to the interests of the

company ?4 Do you get reasonable remuneration ?5 Are the daily decisions made by the person

concerned ?

Are the major decisions taken only by the higher authorities ?

6 Does the boss of your boss directly communicate with you ?

7 Does your company give equal remuneration to all the employees doing a similar job ?

8 Have you served this company for more than 1 year ?

9 Does your boss give importance toyour suggestion ?

Principle of Division of work:

• According to this principle, work of all kinds must be divided & subdivided and allotted to various persons according to their expertise in a particular area.

• Fayol said that not only the production work but technical, managerial and skill jobs should also be divided into small parts to derive the benefits or specialization.

According to our observation, this company had divided work into small parts. All the people perform particular task

repeatedly.

Principle of Authority & Responsibility

• The concepts of Authority and responsibility are closely related.• Authority was defined by Fayol as the right to give orders and

the power to exact obedience. • Responsibility involves being accountable, and is therefore

naturally associated with authority. Whoever assumes authority also assumes responsibility.

Questions Yes No No Response No. Of Respondents

Do you have all the authority connected with

your work ?

14 3 3 20

The figures indicate that employees have got the authority to discharge their responsibility regarding the work

Principle of Discipline• According to Fayol, Discipline means sincerity, obedience, respect

of authority & observance of rules and regulations of the enterprise. Subordinate should respect their superiors and obey their order.

• A successful organization requires the common effort of workers. Penalties should be applied judiciously to encourage this common effort.

• Discipline needs to flow from top level to lower level in the organisation.

According to our observation,the principle of discipline is violated. Following of this principle could have resulted in greater customer

satisfaction. So employees should be kept under check.

Principle of Unity of Command• According to this principle, there should be one & only one

boss for every individual employees working in an organisation

• Unity of command avoids confusion and conflicts. It also helps in harmonious relations and fixation of responsibility.

Questions Yes No No.Response

No. Of Respondents

Do you get orders from more than one boss ?

2 16 2 20

It is concluded that company understands the importance of this principle and follows it.

Principle of Unity of Direction• Efforts 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.

• 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.

The observed fact is that the company has 2 units(Sheets, Blocks) which are held by different individuals.

So this principle applies here.

Principle of Subordination Of Individual Interests to the General Interests

• 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.

• Employees are required to give up carelessness, selfishness, lethargy and personal interest.

Questions Yes No No Response No. Of Respondents

Do you give top priority to the interests of the

company?

16 2 2 20

It is seen that employees care for company’s benefits, which is beneficial for the company.

Principle of Remuneration of employees

• The 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 . Questions Yes No No Response No. Of

Respondents

Do you get reasonable

remuneration ?

8 9 3 20

According to our observation company’s nearly half workmen are not happy with their remuneration. So company should use this principle and provide good remuneration to all its employees so that the may

work whole-heartedly for the company.

Principle of Centralisation & Decentralisation

• Centralisation 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.

Questions Yes No No Response No. Of Respondents

Are the major decisions taken only by the higher

authorities ?

18 0 2 20

According to our observation, employees of this company are happy with the decision making authorities. Therefore

the principles applies here.

Principle of Scalar Chain• Scalar chain means line of authority or chain of superiors

from highest to lowest rank.• Managers in hierarchies are part of a chain like authority

scale. Each manager, from the first line supervisor to the president, possess certain amounts of authority.

Question Yes No No Response No. Of Respondents

Does the boss of your boss directly

communicate with you ?

15 3 2 20

The study shows that the employees of the company have direct communication with the boss of their boss, which violates the scalar

chain principle.

Principle of order• People 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 equipment's.

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.According to our observation made it clear that all goods were

placed at their decided place and employees worked at their pre-determined place. Which is beneficial for the company.

Principle of Equity• 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.

Question Yes No No Response No. Of Respondents

Does your company give equal remuneration to all the

employees doing a similar job ?

11 7 2 20

Above facts tell that the company is not conscious about this principle. Following of this principle will lead to sense of belongingness in the hearts

of the employees of the company.

Principle Stability of Personnel

• Employees 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.

Question Yes No No Response No. Of Respondents

Have you served this company for more

than 1 year ?

8 12 0 20

This study shows that labour turnover of the company is high, which is not good for the company. If this could be brought down the labour

would feel job security and would work more efficiently.

Principle of Initiative • 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.

• 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

consultationQuestion Yes No No Response No. Of

Respondents

Does your boss give importance to your suggestion ?

14 4 2 20

This shows that most of the employees felt that their opinions were given importance. This is good, as it helps to encourage the

employees and increase their confidence.

Principle Esprit De Corps• Management should promote a team spirit of unity and

harmony among employees. In order to achieve organisational goal, met should promote team work and coordination.

• Esprit 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

According to our observation, the managers of the company are victims of superiority complex due to which the feeling of

employee is out of question. Managers should be told that they must take care of the employees in a good manner, so that it may

increase the confidence of the employee over the company.

Conclusion Our hypothesis was that Company would work better with

all the management principles applied. Our results do support our hypothesis.

We think the studies we did went smoothly and we had no problems, except for the fact that the people working in the

factory had very less free time. Therefore, we had to take the answers quickly.

An interesting future study might involve testing the working of the company without any management principle.