A PROJECT

REPORT ON

BUSINESS

STUDIES-XII ON

‘Principle of Management’

Submitted to, Submitted by,

Acknowledgement

I would like to convey my heartiest thanks to

………………. (Name of the teacher), my

Business Studies teacher who always gave me

valuable suggestions and guidance during the

competition of this project. She/ He has been

a source of inspiration and helped me

understand and remember important details

of the project. My project has been a success

only because of her/his guidance.

(Name of the student)

Certificate

This is to certify that …………… (Name of the

student) of Class XII of

……………………….….(Name of the school) has

completed his/her project file under my

supervision. He/ She has taken proper care

and shown utmost sincerity in completion of

the project. I certify that this project is up to

my expectations and as per the guidelines

issued by CBSE.

Index

S.No.

Content Page No.

1. Introduction of Management

2. About Henri Fayol

3. Details of Nathu’s Sweet

4. Objectives of Study

5. Application of Fayol’s

Principle of Management in Nathu’s Sweet

6. Analysis & Observations

(Questionnaires)

7. Conclusion

Introduction of Management

Management is universally necessary in all organization. It is the force that holds everything in nation. Management is the mobilization of an organization’s resources to meet a goal. Management is virtually applied to every type of organization, whatever its size or purpose.

For Example: - An auto plants, a state governor, a cricket team, a typing service, all requires management.

When a group of people work together to accomplish some common goal, they can work efficiently only, when there is mutual co-operation and co-ordinate between them.

Therefore, a Central directing and Controlling agency is required for guiding and integrating the efforts of the numbers of the group. This agency comprises the managers and the activities of managers are collectively called management. Anything minus management is nothing.

Henri Fayol

Born : 29 July 1841, Istanbul, Turkey

Died : 19 November 1925, Paris, France

Profession: Mining Engineer and Management the unit (French

National).

Education: Graduated from the mining academy "École Nationale

Supérieure des Mines" in Saint-Étienne in 1860.

Position Held: Founded the mining company “"Compagnie de Commentry-Fourchambault-Decazeville" and became its

managing director in 1888. At that time the company was nearly bankrupt. By the time of his retirement after 30 years in 1918, the company grew into a large coal steel company with strong financial position and a long record of profit and dividends.

Writings: Administration industries at generate

Contributions: He classified all activities of an industrial

undertaking into technical, commercial, financial, security, accounting and managerial.

He suggested that qualities of a manager must possess should be physical, moral, education, experience etc.

He was the first to identify four function of management:

1.Planning

2.Organizing

3.Staffing

4.Directing

5.Controlling

Type : Sweet Shop

Industry : Retail

Founded : Since 1939

Head Quarter : Delhi, India

Key People : Navita & Anand Gupta

Website : www.nathusweets.com

Nathu’s Sweets have its place amongst famous

sweet shop one may come across in Delhi. It has 13 branches which offer varieties of sweets and other preparations.

Nathu’s sweets are well known for sweets

maintaining quality which always being updated as per consumers taste. It has employees who are with this

chain shop for years and pouring their skills in improving quality.

We will carry forward the goodwill of NATHU’S

QUALITY & TASTE further following the footsteps of our elders and constantly improving the service, quality and taste of our products.

Treating every individual customer as a very special

and meeting their requirements to the best possible situation is the motto of this generation.

Objectives

of Study

The main objectives behind the preparation of this project was to collect knowledge of an organization.

As I choose to make the project on Nathu’s, I come to know about many facts which were very useful to me.

The meaning of the principle of fayol’s were

theoretically clear out, preparation of such a wonderful project helped me a lot to clear them by practically experiencing their existence in Nathu’s Sweets.

Application of Fayol’s

Principle of Managemnt in

Nathu’s

Henri Fayol developed the following 14 principles of general management which provide guidelines for managerial decision making and action.

1.Division Of Work

2.Authority & Responsibilities

3.Discipline

4.Unity Of Command

5.Unity Of Direction

6.Subordination Of Individual Interests To The General

Interests

7.Remuneration of Employees

8.Centralization & Decentralization

9.Scalar Chain

10. Order

11. Equity

12. Stability Of Personnel

13. Initiative

14. Espirit De Corps

Division Of

Work

Meaning: According to this principle, as far as possible the whole work should be investigated, should be divided into small parts and each individual should be assigned only one part of the work according to his ability and tested repeatedly, so that the benefits of specialization may be achieved. When employees are specialized, output can be increased because they become increasingly skilled and efficiency.

Observations: During the course of personal

observation regarding the Principle of Division of labour whatever was observed in the company may be described as follow:

• In front of the entry gate, the selling and billing

counter is located.

Applicability in NATHU’S

• The order is given to the salesman standing at the

counter and the bill is generated. The money is paid by the customer.

• The order is then passed to the kitchen

department where prepares the food.

• The food then goes to the packaging department.

Here the food is packed and sent to the billing counter again.

• The food is collected by the customer after that.

It shows that the work is divided into many parts and the principle of division of work is being followed.

Authority &

Responsibilities

Meaning: According of this principle, authority and responsibility should go hand in hand. Manager must have the authorities to give order, but they must also keep in mind that with authority comes responsibility.

Observations: Q. Do you have all the authority connected with your

work?

Ans: Yes

Explanation: About the principle of management ‘Authority & Responsibility’, the shift manager was asked to give her opinion to the question indicated above. The shift manager replied in favor of the principle as she had the authority to take decision. She was responsible for the performance of the working.

Therefore a balance of authority and responsibility was maintained. It can be said that this principle is implemented in this company.

Applicability in NATHU’S

Discipline

Meaning: According to this principle, the organizational rules of employment should be obeyed by both the superiors and subordinates, which are necessary for the successful working of the organization. Discipline must be upheld in the organization.

Observation: During the course of personal observation regarding the principle of discipline it was observed that the employees usually got into personal conversation the movement they found an opportunity of doing so.

They indulged in long conversation on the telephonic in a joyfully mood. Sometimes, even the customers were seen being ignored, it shows that the employees are not honestly for it. Therefore, it can be said that this principle of management is being violated in this company.

Applicability in NATHU’S

Unity of Command

Meaning: According to this principle, there should be one and only one boss for every individual employee.

Employees should have only one direct supervision.

Observation:

Q. Do you get an order from more than one boss?

Ans: Yes

Explanation: The shift manager of the industry was asked to respond about the principle of unity of command. The manager replied that dual subordinations existed. I.e. she received order from more than one boss. It clearly states that the principle of unity of command is not being implemented in the organization.

Applicability in NATHU’S

Unity of Direction

Meaning: According to this principle, teams with the same objective should be working under the direction of one manager, using one plan. This will ensure that action is properly co-ordinated.

Observation:

1)The store is divided into three sections of departments-

a)Operations b) Training c) Human Resource

Development(HRD)

2)All the three units were headed by three different

individuals.

3)Every head kept a watch on the activities of their own

unit.

This situation tells us that THE PRINCIPLE OF UNITY OF DIRECTION is being implemented in the company.

Applicability in NATHU’S

Subordination Of Individual Interest To General Interest

Meaning: According to this principle, the interests of an organization should take priority over the interest of any one individual employee. The interest of an employee should not be allowed to become more important than interest of the organization.

Observation:

Q. Do you give top priority to the interest of the company?

Ans. Yes.

Explanation: With respect to this principle of management, the shift manager i.e. at the time of training, they taught the employees to keep the unit of the organization at the top level on the basis of this organization at the top level on the basis of this response, it can be arrested that the individual employees of the company gave priority to general interest of the organization on the individual interest.

Applicability in NATHU’S

Remuneration of

Employee

Meaning: According to the principle the employee should be paid fair remuneration which gives them atleast a reasonable standard of living. Employees’ satisfaction depends on fair remuneration for everyone.

Observation:

Q. Do you get reasonable remuneration?

Ans: Yes

Explanation: Regarding this principle of management, the shift manager was asked to express her opinion. She was satisfied with the remuneration which she was receiving.

We can conclude that the employees of the company are happy about the remuneration policy of the company.

Therefore, it can be said that this principle of management is implemented in the company.

Applicability in NATHU’S

Centralization & Decentralization

Meaning: According to this principle, the superiors should adopt effective centralization instead of complete

decentralization.

Observations: Q. Are the daily decisions made by the person concerned?

Ans. Yes Q. Are the major decision taken only by the higher authorities?

Ans. Yes Explanation: Regarding this principle, the shift manager was asked two questions. First was about the routine decision and other was regarding the major decision. The shift manager said that the routine decisions were taken by her and the concerned employees. On the other hand, the major decisions were taken by higher authorities. This shows that the company does not adopt a complete centralization on a complete decentralization. It can be said that the company follows the principle in an efficient way.

Applicability in NATHU’S

Scalar Chain

Meaning: According to this principle, one organization should have a chain of authority and communication that runs from top to bottom. It should be followed by the managers and the subordinates both. Employees should be aware of where they stand in the organization’s hierarchy on the chain of command.

Observations: Q. Does the senior of your boss directly communicated with you?

A. No Explanation: A particular chain has t be followed in the company as said by the shift manger.

The chain is as follows: Owner – Marketing Manager – Area Couch – Restaurant General Manager

(RGM) – Assistant

Restaurant

Manager(ARM) – Shift Manager – Internal Development Programme (IDP) – sustain team member, house keeper. In any case, the chain can’t be broken. It shows that the higher officials of the company cannot be broken. There scalar chain is implemented in the company.

Applicability in NATHU’S

Order

Meaning: According to this principle, a right person should be placed at the right job, right place, and time according to their skill. The work places facilities must be clean, tidy and safe for employees. Everything should have in its place.

Observations:

1.It was observed all the units had arranged their goods in

a proper and orderly maintain.

2.Whenever the material/goods got scattered because of

the rush of the customers, it was immediately reserved in a proper place.

3.All the employees were observed to be working in their

divided place of work.

Explanation: Therefore, it can be concluded that the principle of order is being observed in the company.

Applicability in NATHU’S

EQUITY

Meaning: According to this principle, the managers should treat their subordination as family, as possible so that they develop a feeling of dedication for their work.

Both maintaining discipline and acting with kindness.

Observations: Q. Does your company give equal remuneration to all the employees doing a similar job?

Ans. Yes.

Explanation: Regarding this principle, the question gives above was put to the shift manager. She responded positively i.e. equal wages were given to people doing similar job. But appraisal was given to the person whose performance was the best during the month. It can be said that the company is conscious about observing this principle of management.

Applicability in NATHU’S

Stability Of Personnel

Meaning: According to this principle, there should be a stability of tenure of the employees, so that work continues efficiently. Managers should strive to minimize employees’ transfers and frequent terminations.

Observations: Q. Have you served this company for more than one year?

Ans. YES

Explanation: The shift manger was asked the above question regarding this principle and she responded positively. The employees of the company continue to be in the service of the company for a long period. This situation reflects good management in the company. Therefore, the company has to take care of the stability of the personnel in its own interest.

Applicability in NATHU’S

Initiative

Meaning: According to this principle, employees in the organization must be given an opportunity in making and exciting plans.

Observations: Q. Does your boss give importance to your suggestion?

Ans. YES

Explanation: Regarding this principle, many employees were asked the above question. Most of them were in favor of the question while some were not. This shows that employee’s opinion mattered in the company. This helps in encouraging initiative and developing confidence among the employees.

Applicability in NATHU’S

Espirit De Corps

Meaning: According to this principle, organizations should strive to promote unity and controversy make efforts to develop to team spirit among the subordinates.

Observations:

• The mangers were seen using the word “We” instead of

“I”.

• It was also observed that the manger shows interest for

their subordinates.

Explanation :

The above observation shows that the principle of ESPIRIT DE CORPS is being followed in the company.

Applicability in NATHU’S

ANALYSIS

&

OBSERVATION

SAMPLE

QUESTIONNAIRE

Name : ………….

Age

: ………………..

Gender: …………..

Designation: ………………

S. No.

Questions Yes No

1

2

3

4

5

6

7

8

9

10

Are you satisfied with your salary?

Do you report you superiors about your workings on

daily basis?

Are you satisfied with your working environment?

Is job rotation applicable in your job?

Have you ever received any complaints from your

customers regarding the services providing?

Do you get any bonus on occasions?

Does the organization give importance to the

suggestion given by the workers?

Is there any system of penalization in your

organization?

What is your working ours?

a) Less than 7 hours

b) 7 hours

c) More than 7 hours

How many leaves you are allowed to take in a

month?

a) Less than 4 days

b) 4 days

c) More than 4 days

QUESTIONNAIRE

Name: Kapil Age:27

Gender: Male Designation: Store Manager

S. No.

Questions Yes No

1

2

3

4

5

6

7

8

9

10

Are you satisfied with your salary?

Do you report you superiors about your workings on

daily basis?

Are you satisfied with your working environment?

Is job rotation applicable in your job?

Have you ever received any complaints from your

customers regarding the services providing?

Do you get any bonus on occasions?

Does the organization give importance to the

suggestion given by the workers?

Is there any system of penalization in your

organization?

What is your working ours?

a) Less than 7 hours

b) 7 hours

c) More than 7 hours

How many leaves you are allowed to take in a

month?

a) Less than 4 days

b) 4 days

c) More than 4 days

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QUESTIONNAIRE

Name: Shantanu Age:35

Gender: Male Designation: Sales Manager

S. No.

Questions Yes No

1

2

3

4

5

6

7

8

9

10

Are you satisfied with your salary?

Do you report you superiors about your workings on

daily basis?

Are you satisfied with your working environment?

Is job rotation applicable in your job?

Have you ever received any complaints from your

customers regarding the services providing?

Do you get any bonus on occasions?

Does the organization give importance to the

suggestion given by the workers?

Is there any system of penalization in your

organization?

What is your working ours?

a) Less than 7 hours

b) 7 hours

c) More than 7 hours

How many leaves you are allowed to take in a

month?

a) Less than 4 days

b)

4 days

c) More than 4 days

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QUESTIONNAIRE

Name: Vandana Age: 26

Gender: Female Designation: Shift Manager

S. No.

Questions Yes No

1

2

3

4

5

6

7

8

9

10

Are you satisfied with your salary?

Do you report you superiors about your workings on

daily basis?

Are you satisfied with your working environment?

Is job rotation applicable in your job?

Have you ever received any complaints from your

customers regarding the services providing?

Do you get any bonus on occasions?

Does the organization give importance to the

suggestion given by the workers?

Is there any system of penalization in your

organization?

What is your working ours?

a) Less than 7 hours

b) 7 hours

c) More than 7 hours

How many leaves you are allowed to take in a

month?

a) Less than 4 days

b) 4 days

c) More than 4 days

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√

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QUESTIONNAIRE

Name: Sameer Age: 35

Gender: Male Designation: Store Manager

S. No.

Questions Yes No

1

2

3

4

5

6

7

8

9

10

Are you satisfied with your salary?

Do you report you superiors about your workings on

daily basis?

Are you satisfied with your working environment?

Is job rotation applicable in your job?

Have you ever received any complaints from your

customers regarding the services providing?

Do you get any bonus on occasions?

Does the organization give importance to the

suggestion given by the workers?

Is there any system of penalization in your

organization?

What is your working ours?

a) Less than 7 hours

b) 7 hours

c) More than 7 hours

How many leaves you are allowed to take in a

month?

a) Less than 4 days

b) 4 days

c) More than 4 days

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QUESTIONNAIRE

Name: Ashok Kumar Trivedi Age: 45

Gender: Male Designation: CSA

S. No.

Questions Yes No

1

2

3

4

5

6

7

8

9

10

Are you satisfied with your salary?

Do you report you superiors about your workings on

daily basis?

Are you satisfied with your working environment?

Is job rotation applicable in your job?

Have you ever received any complaints from your

customers regarding the services providing?

Do you get any bonus on occasions?

Does the organization give importance to the

suggestion given by the workers?

Is there any system of penalization in your

organization?

What is your working ours?

a) Less than 7 hours

b) 7 hours

c) More than 7 hours

How many leaves you are allowed to take in a

month?

a) Less than 4 days

b) 4 days

c) More than 4 days

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QUESTIONNAIRE

Name: Anmol Age: 28

Gender: Male Designation: Cashier

S. No.

Questions Yes No

1

2

3

4

5

6

7

8

9

10

Are you satisfied with your salary?

Do you report you superiors about your workings on

daily basis?

Are you satisfied with your working environment?

Is job rotation applicable in your job?

Have you ever received any complaints from your

customers regarding the services providing?

Do you get any bonus on occasions?

Does the organization give importance to the

suggestion given by the workers?

Is there any system of penalization in your

organization?

What is your working ours?

a) Less than 7 hours

b) 7 hours

c) More than 7 hours

How many leaves you are allowed to take in a

month?

a) Less than 4 days

b) 4 days

c) More than 4 days

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QUESTIONNAIRE

Name: Babita Age: 35

Gender: Female Designation: Chef

S. No.

Questions Yes No

1

2

3

4

5

6

7

8

9

10

Are you satisfied with your salary?

Do you report you superiors about your workings on

daily basis?

Are you satisfied with your working environment?

Is job rotation applicable in your job?

Have you ever received any complaints from your

customers regarding the services providing?

Do you get any bonus on occasions?

Does the organization give importance to the

suggestion given by the workers?

Is there any system of penalization in your

organization?

What is your working ours?

a) Less than 7 hours

b) 7 hours

c) More than 7 hours

How many leaves you are allowed to take in a

month?

a) Less than 4 days

b) 4 days

c) More than 4 days

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QUESTIONNAIRE

Name: Gagan Age: 28

Gender: Male Designation: Chef

S. No.

Questions Yes No

1

2

3

4

5

6

7

8

9

10

Are you satisfied with your salary?

Do you report you superiors about your workings on

daily basis?

Are you satisfied with your working environment?

Is job rotation applicable in your job?

Have you ever received any complaints from your

customers regarding the services providing?

Do you get any bonus on occasions?

Does the organization give importance to the

suggestion given by the workers?

Is there any system of penalization in your

organization?

What is your working ours?

a) Less than 7 hours

b) 7 hours

c) More than 7 hours

How many leaves you are allowed to take in a

month?

a) Less than 4 days

b) 4 days

c) More than 4 days

√

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QUESTIONNAIRE

Name: Manav Age: 30

Gender: Male Designation: Chef

S. No.

Questions Yes No

1

2

3

4

5

6

7

8

9

10

Are you satisfied with your salary?

Do you report you superiors about your workings on

daily basis?

Are you satisfied with your working environment?

Is job rotation applicable in your job?

Have you ever received any complaints from your

customers regarding the services providing?

Do you get any bonus on occasions?

Does the organization give importance to the

suggestion given by the workers?

Is there any system of penalization in your

organization?

What is your working ours?

a) Less than 7 hours

b) 7 hours

c) More than 7 hours

How many leaves you are allowed to take in a

month?

a) Less than 4 days

b) 4 days

c) More than 4 days

√

√

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QUESTIONNAIRE

Name: Hiten Age: 40

Gender: Male Designation: Chef

S. No.

Questions Yes No

1

2

3

4

5

6

7

8

9

10

Are you satisfied with your salary?

Do you report you superiors about your workings on

daily basis?

Are you satisfied with your working environment?

Is job rotation applicable in your job?

Have you ever received any complaints from your

customers regarding the services providing?

Do you get any bonus on occasions?

Does the organization give importance to the

suggestion given by the workers?

Is there any system of penalization in your

organization?

What is your working ours?

a) Less than 7 hours

b) 7 hours

c) More than 7 hours

How many leaves you are allowed to take in a

month?

a) Less than 4 days

b) 4 days

c) More than 4 days

√

√

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OBSERVATION

As per the survey, I conducted for the employee of NATHU’S I came to know about various aspects from an employee’s point of view….

• Foremostly, the level of satisfaction in respect of

salary provided is very important to study the applicability of principle of Remuneration and in same way equity.

OPTIONS

NO. OF EMPLOYEES

YES (SATISFIED)

NO (DISSATISFIED)

09 01

• My next question for them was that whether they

have reporting relationship between employees manager on daily basis.

OPTIONS

NO. OF EMPLOYEES

YES NO

7 3

• It is very important for any firm to maintain a good

standard and working environment for the employees working there so, thirdly I asked them that they are satisfied with working environment or not?

OPTIONS

NO. OF EMPLOYEES

YES NO

10 ---

• Applicability of Job rotation.

OPTIONS

NO. OF EMPLOYEES

YES NO

5 5

• It is assumed to be good for any organizations if its

customers are satisfied with the products and services provided to them. That’s why I asked; whether they have received any complaints from customers or not?

OPTIONS

NO. OF EMPLOYEES

YES NO

2 8

• Afterwards, I asked them whether they receive any

bonus on special occasions or not.

OPTIONS

NO. OF EMPLOYEES

YES NO

-10

• It is very important for any organization to have a

suggestion box or importance must be given to the suggestions given by workers. So, I further enquired that whether it is there or not.

OPTIONS

NO. OF EMPLOYEES

YES NO

8 2

• Further, I enquired that whether there is system of

penalization or not? Also, I come to know that the organization does not follow any specific system of penalization . But in case if there is loss to organization due to the carelessness of any employee then, his/her salary is deducted to cover the loss or he/she is fixed from the job.

OPTIONS

NO. OF EMPLOYEES

YES NO

6 4

* Six employees chose for yes because they are working as customer sales associate that have to handle the work of cashier. So, if there is any mistake in the amount/revenue generated from sales, than the difference is deducted from their respective salaries.

• It is very important to know that how much time on

employee is deducting in the organization or what are their working hours?

HOURS OF WORK

NO. OF EMPLOYEES

Less than 7 hours

7 hours

More than 7 hours

3 5 2

There is variations in the working hour of the employees because some of them are part timers who work for less than 7 hours others are permanent and work for at least 7 hours the remaining include store manager and shift manager of Nathu’s who look for more than 7 hours i.e. from 11am to 8 pm.

• Moreover, my last question was that how many

leaves they are allowed to take in a month?

Leaves Allowed

NO. OF EMPLOYEES

Less than 4 days

4 days

More than 4 days

3 5 2

Conclusion

According to the survey I conducted from the employees and the interview with the shift manager of Nathu’s Sweets, Sunder Nagar, the 14 principles by the Henri Fayol regarding management, are mostly applicable.

Nathu’s Sweets, follows the principle of general

management:-Division of work, Authority &

Responsibilities, Unity Of Direction, Subordination Of Individual Interests To The General Interests,

Remuneration of Employees, Centralization &

Decentralization, Scalar Chain, Order, Equity, Stability Of Personnel, Espirit De Corps. It partially follows the principle of Discipline and principle of Initiative & does not follow the principle of unity of command.

According to me, Nathu’s Sweets should become more stringent towards application of these principles in its general administration.

This project work has been helpful in studying the meaning, techniques and functions of principles of management given by Henri Fayol in a better manner.