IIPS

Principles & practices of management(PPM)

Assignment

Topic – Principles Of Management

Guided By: Submitted By :

2013-2014
 INDEX
Sir Henri Fayol
Reliance Fresh
Introduction to Management
Principles of management and
its description in brief
 Sir Henri Fayol
Henri Fayol ( 29 July 1841 – 19 November 1925) was a French
mining engineer & director of mines who developed a general
theory of business administration.
Fayol's work was one of the first comprehensive statements
of a general theory of management.

Fayol was a successful mining engineer and senior executive

prior to publishing his principle of administrative science. He
was not primarily a theorist , but rather a successful senior a
successful senior manager who sought to bring order to his
personal 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.
 Management
Management is a universal phenomenon. It is a very popular
widely used term. All organisations whether social or political
are involved in mgt as it helps and direct the various efforts
towards 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 is
To forecast , to plan , to organise , to command, to coordinate
and 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 work
2) Authority and Responsibility
3) Discipline
4) Unity of Command
5) Unity of Direction
6) Subordination of individual interest to general
interest
7) Remuneration of employees
8) Centralisation and Decentralisation
9) Scalar chain
10) Order
11) Equity
12) Stability of personnel
13) Initiative
14) Espirit de Corps
 Division of work
According 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 $ Responsibility
Authority 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.
 Discipline
Discipline 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 judiciously
Employees 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 Command
There 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 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. 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 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 .
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 & 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. 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 level
II. Benefits of centralisation as well as decentralisation.
 Scalar Chain
Scalar 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.
 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 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 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.
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 Corps
Management 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_princ
iples_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