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Principle of Managment CBSE Class 12th

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Fayol's Principles of Managemet with example of TATA ltd.

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Principle of Managment CBSE Class 12th

  1. 1. ALL INDIA SENIOR SECONDARY CERTIFICATE EXAMINATION – 2014-15 Project Of Business Studies PRINCIPLES OF MANAGEMENT SUBMITTED TO: AMIT RAJPUT (P.A Commerce) DPS SUBMITTED BY:YASH AGARWAL XII- Commerce
  2. 2. CERTIFICATE This is to certify that Yash Agarwal of Class XII Commerce of Delhi Public School, Moradabad, has completed his project file under my supervision. He has taken proper care and shown utmost sincerity in the completion of this project. I certify that this project is upto my expectation and as per the guidelines issued by C.B.S.E. Mr. Amit Rajput (Dept. of Commerce) DPS Moradabad Signature:_________
  3. 3. ACKNOWLEDGEMENT I am very thankful to my Business Studies Teacher, Mr. Amit Rajput, who helped me in analyzing the application of Principles of Management. It made my concepts more clear, enhanced my knowledge and help me realize the importance of Principle of Management. I am also thankful to the C.B.S.E. for giving me such an amazing opportunity of making this project, and giving a suitable instruction and guidelines for the project. Yash Agarwal XII Commerce
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  5. 5. Henri Fayol (Istanbul, 29 July 1841 – Paris, 19 November 1925) was a French mining engineer and director of mines who developed a general theory of business administration that is often called Fayolism. He and his colleagues developed this theory independently of scientific management but roughly contemporaneously. Like his contemporary, Frederick Winslow Taylor, he is widely acknowledged as a founder of modern management methods.
  6. 6. • Fayol was born in 1841 in a suburb of Istanbul, Ottoman Empire. His father (an engineer) was appointed superintendent of works to build the Galata Bridge, which bridged the Golden Horn. The family returned to France in 1847, where Fayol graduated from the mining academy "École Nationale Supérieure des Mines" in Saint-Étienne in 1860. • In 1860 at the age of nineteen Fayol started the mining company named "Compagnie de Commentry-Fourchambault-Decazeville" in Commentry as the mining engineer. In 1888 he became managing director, when the mine company employed over 10,000 people, and held that position over 30 years until 1918. By 1900 the company was one of the largest producers of iron and steel in France and was regarded as a vital industry. • Based largely on his own management experience, he developed his concept of administration. In 1916 he published these experience in the book "Administration Industrielle et Générale", at about the same time as Frederick Winslow Taylor published his Principles of Scientific Management
  7. 7. • Division of Work - Fayol presented work specialization as the best way to use the human resources of the organization. • Authority - Managers must be able to give orders. Authority gives them this right. Note that responsibility arises wherever authority is exercised. • Discipline - Employees must obey and respect the rules that govern the organization. Good discipline is the result of effective leadership. • Unity of command - Every employee should receive orders from only one superior. • Unity of direction - Each group of organizational activities that have the same objective should be directed by one manager using one plan for achievement of one common goal. • Subordination - The interests of any one employee or group of employees should not take precedence over the interests of the organization as a whole. • Remuneration - Workers must be paid a fair wage for their services. • Centralization - Centralization refers to the degree to which subordinates are involved in decision making. • Scalar chain - The line of authority from top management to the lowest ranks represents the scalar chain. Communications should follow this chain. • Order - this principle is concerned with systematic arrangement of men, machine, material etc. there should be a specific place for every employee in an organization • Equity - Managers should be kind and fair to their subordinates. • Stability of tenure of personnel - High employee turnover is inefficient. Management should provide orderly personnel planning and ensure that replacements are available to fill vacancies. • Initiative - Employees who are allowed to originate and carry out plans will exert high levels of effort. • Esprit de corps - Promoting team spirit will build harmony and unity within the organization.
  8. 8. The specialization of the workforce according to the skills of a person , creating specific personal and professional development within the labour force and therefore increasing productivity; leads to specialization which increases the efficiency of labour. By separating a small part of work, the workers speed and accuracy in its performance increases. This principle is applicable to both technical as well as managerial work,. this can be made useful in case of project works too. Planning is to decide what to do before . Division of Work
  9. 9. The issue of commands followed by responsibility for their consequences. Authority means the right of a superior to give enhance order to his subordinates; responsibility means obligation for performance. This principle suggests that there must be parity between authority and responsibility. They are co-existent and go together, and are two sides of the same coin. and the authority must be commensurate with responsibility. Authority and Responsibility
  10. 10. Discipline refers to obedience, proper conduct in relation to others, respect of authority, etc. It is essential for the smooth functioning of all organizations. This will also help shape the culture inside the organization. Discipline
  11. 11. This principle states that every subordinate should receive orders and be accountable to one and only one superior. If an employee receives orders from more than one superior, it is likely to create confusion and conflict . Unity of Command also makes it easier to fix responsibility for mistakes and the authority should be commensurate with responsibility Unity of Command
  12. 12. All those working in the same line of activity must understand and pursue the same objectives. All related activities should be put under one group, there should be one plan of action for them, and they should be under the control of one manager. It seeks to ensure unity of action, focusing of efforts and coordination of strength. Unity of Direction
  13. 13. The management must put aside personal considerations and put company objectives first. Therefore the interests of goals of the organization must prevail over the personal interests of individuals. Subordination of Individual Interest
  14. 14. Workers must be paid sufficiently as this is a chief motivation of employees and therefore greatly influences productivity. The quantum and methods of remuneration payable should be fair, reasonable and rewarding of effort. Remuneration is paid to worker as per their capacity and productivity. The main objective of an organization is to maximize the wealth and the net profit as well. For this purpose, the organization has paid wages, salary, and benefit to their staff properly and scientifically so that organizational efficiency can be ensured. Remuneration
  15. 15. The amount of power wielded with the central management depends on company size. Centralization implies the concentration of decision making authority at the top management. Sharing of authority with lower levels is called decentralization. The organization should strive to achieve a proper balance. Degree of Centralization
  16. 16. Scalar Chain refers to the chain of superiors ranging from top management to the lowest rank. The principle suggests that there should be a clear line of authority from top to bottom linking all managers at all levels. It is considered a chain of command. It involves a concept called a "gang plank" using which a subordinate may contact a superior or his superior in case of an emergency , defying the hierarchy of control . However the immediate superiors must be informed about the matter. Scalar Chain
  17. 17. Social order ensures the fluid operation of a company through authoritative procedure. Material order ensures safety and efficiency in the workplace. Order should be acceptable and under the rules of the company. Order
  18. 18. Employees must be treated kindly, and justice must be enacted to ensure a just workplace. Managers should be fair and impartial when dealing with employees, giving equal attention towards all employees. Equity
  19. 19. The period of service should not be too short and employees should not be moved from positions frequently. An employee cannot render useful service if he is removed before he becomes accustomed to the work assigned to him. Stability of Personnel
  20. 20. Using the initiative of employees can add strength and new ideas to an organization. Initiative on the part of employees is a source of strength for organization because it provides new and better ideas. Employees are likely to take greater interest in the functioning of the organization. Initiative
  21. 21. This refers to the need of managers to ensure and develop morale in the workplace; individually and communally. Team spirit helps develop an atmosphere of mutual trust and understanding. Esprit de Corps
  22. 22. Photo Gallery

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