Principles of Management – Henri Fayols Principles – Chaayos

PREFACE

I chose to visit Netaji Subhas Place, North Delhi outlet of Chaayos. It took me 3-4 visits of Chaayos to observe and analyze the application of Fayol’s 14 principles of management. For this, I took an interview with the Branch Manager, a survey from employees of Chaayos and also from the customers visiting, so as to know what is their respective views regarding management. It also gave me an idea of the customer’s expectations and views with respect to management. It was a very nice experience, I must mention, because it was a knowledge gaining and a practical project.

INTRODUCTION

The concept of Chai adda or ‘Tea Room’ took center stage in our country for many years with discussions on life, society and politics happening over chai. It was a place that brought together the young and old, rich and not-so-well to do. A Radak chai and Samosa shared after work, an irani chai with bun maska over meeting a prospective life partner, or a hot adrak chai in the morning to wake you up – chai was a part of every social setting for us. Yet somewhere along the line, this rich heritage of chai addas was lost and “Chaa” took a backseat – taken over by the multinational coffee chains, suddenly chai was no longer the beverage that we bonded over. Chaayos was born in November 2012 out of this premise – a contemporary interpretation of the chai adda, serving freshly made chai.

ABOUT Henri Fayol

LIFETIME:1841 to 1925 BIRTH: Born in France PROFESSION: Mining Engineer and Management Theorist. EDUCATION: Graduated from the mining Academy at St. Entinne, in 1880. POSITION HELD: Founded the mining company ‘Compagnei de commentary- Fourchambeau – Decageville’ and became its managing director in 1888. At that time the company was nearly bankrupt. By the time of retirement after 30 years in 1918, the company grew into a large coal steel company with a strong financial position. WRITINGS: ‘Administration industrielle et generale’, published in English as General and Industrial Management in 1949.

PRINCIPLES OF MANAGEMENT AND THEIR APPLICATION IN “CHAAYOS”

• DIVISION OF WORK

1. Work is divided according to the specialization of workers or employees.
2. Increases the output and efficiency of the employees.
3. Each and every employee should be trained to perform their tasks on the basis of specialization.

Organization

• Finance Dept.
• HR Dept.
• Production Dept.Marketing Dept.

Application in Chaayos

1. When you enter the outlet, the first thing you notice is that different job is being performed by different employees.
2. The tea maker, the bill maker, cleaning staff, each employee is specialized in his / her work which Increases the efficiency of employees.

• AUTHORITY AND RESPONSIBILITY

1. Authority means the power to give orders to ask for obedience.
2. Responsibility means the sense of dutifulness which is correlated with authority.
3. There must be parity between the two.

Applications in Chaayos. Authority: Authority flows from Top to Bottom, i.e., from Regional Head to Assistant Regional Management. Responsibility: Responsibility / Answerability goes from bottom to top; servicing team reports to outlet-in-charge and then he reports to his immediate superior.

• DISCIPLINE

1. Behaving in a desired manner.
2. Obeying the rules and regulations framed by the organization.
3. It is essential at all levels of management.
4. Discipline can be maintained by – Good superiors, clean and fair agreements and proper application of sanctions of penalties.

Applications in Chaayos

1. All employees are required to follow the rules and regulations of the organization.
2. Employees have a clear understanding of the dos and dont’s of organization.
3. Rules and regulations are clearly mentioned on the website as well as are given to employees.
4. Disciplinary action is taken against the employees who do not follow it.

• UNITY OF COMMAND

1. One individual employee must retrieve orders from one individual superior only.
2. Employers should be answerable to only one superior.

Application in Chaayos

1. All jobs at the outlet are well-defined and streamlined such as that each employee reports to his respective head.
2. Like, cafe manager has full command on his juniors and answerable to the cafe manager for their performance

• UNITY OF DIRECTION

1. An objective should be the same for the whole unit of the organization.
2. There should be one leadership and one plan.

Application in Chaayos

1. Direction flows from top management and each and every employee follows the direction set from the top.

• SUBORDINATION OF INDIVIDUAL INTEREST TO GENERAL INTEREST

1. Organizational Interest should be given more importance than personal interest.
2. Personal Interest should be kept aside.

Application in Chaayos

1. Employees of Chaayos always come for extra whenever needed in the interest of the organization.
2. They put hard efforts all the time but if some members are absent, others take responsibility and put their interest behind.

• REMUNERATION

1. Remuneration should be fair and satisfactory to both the employees and the employer.
2. The method of justice must be equitable for all the employees.
3. A sufficient salary should be given for satisfying the basic needs of employees to stop them from getting shifted to other organizations.

Application in Chaayos

1. Employees at Chaayos are paid on a monthly basis.
2. Chaayos also follows the pay and reward policy wherein the better an employee performs, the more salary he/she receives.

• CENTRALIZATION AND DECENTRALISATION

1. Centralization means where all the key decisions taken by top-level management.
2. Decentralization means where all the key decisions taken by lower-level management.

Application in Chaayos

1. At Chaayos, there is Centralised Organisational structure
2. Authority is highly centralized and all tasks and rules are clearly specified.
3. Still, ideas are welcomed from team members and there is no red-tapism.

• SCALAR CHAIN

1. It is the chain where the flow of authority and Communication from top-level to lower-level management in the form of hierarchy.
2. In the hierarchy, orders and instructions flow downwards.
3. It is said to be scalar when the subordinates report to their immediate superior.

• ORDER

1. It is a systematic arrangement that there should be a place for everything and everything in its place.
2. It doesn’t mean giving the command.
3. Order contains two categories social

Order and material order.

1. Social order means there should be a specific place for work.
2. Material order means there should be a specific place material, etc.

Application in Chaayos.

1. At Chaayos, a high level of order is maintained.
2. Everything has its place, and everything is at its place all the time, be it machines, furniture, people.

• EQUITY

1. It refers to a combination of fairness, kindness, and justice.
2. Everyone is equal in the eyes of management.
3. Workers’ increment and promotion should be evaluated on the basis of their performance.

Application in Chaayos.

1. Managers treat their subordinates and crew members equally.
2. No discrimination is made on the basis of any manner, be it sex, education, caste, religion, position in the organization, etc.
3. An equal level of training, opportunity, and training is given as per performance.
4. An equal level of pay is given for an equal level of work.

• STABILITY OF PERSONNEL

1. An employee should be given sufficient time to adjust to the job designated to him.
2. He should not be transferred frequently from his work.

Applications in Chaayos

1. Chaayos pays a lot of attention to recruiting the employees for its restaurants.
2. Management spends a lot of time and effort in training the new recruits and is hired after “on-the-job experience” training sessions.
3. Proper time is given to employees to assimilate in the culture of an organization

• INITIATIVE

1. This principle refers to taking the first step in or eagerness to do something for the organization voluntarily.
2. Employees or workers should be given the opportunity to take the initiative to become different from others.

• ESPIRIT DE CORPS

1. All the employees of the organization are put together as a team.
2. Managers enhance the team spirit in the organization by giving credit to the workers for their performance.

Application in Chaayos.

• Chaayos inculcates team spirit amongst the employees of the cafe by providing performance on the basis of the same.
• This promotes a feeling of harmony and unity amongst the employees.

ACKNOWLEDGMENT

I am very thankful for my Business studies teacher, MRS. SHWETA MANDAWARA, who helped me in analyzing the application of principles of Management. It made my concepts more clear, enhanced my knowledge and helped me realize the importance of Principles of Management. I am also thankful to CBSE for giving me an opportunity of making this project and giving us suitable guidelines for the project. -SOMYA JAIN

CONCLUSION

• It is evident from the analysis of the project, Chaayos applies almost all the general principles of Henri Fayol.
• It pays high attention to its valued customers by providing high-quality beverages in a pleasant environment.
• Employees are respected, valued, recognized and professionally groomed by rewarding various incentives.
• It meets all safety norms and respects the sentiments of people and the laws of the land.
• Chaayos has proved that it is essential for an organization to concentrate on its resources viz. people, environment and the theories of organizational behavior.

QUESTIONNAIRE

NAME– AGE– GENDER–

1. Male
2. Female

• How long you have been working here?

1. Less than 6 months
2. 6 months-1 year
3. More than 1 year

• What is your monthly income?

1. 5000-10000
2. 10000-50000
3. Above 50000

• Do you have the right to take decisions in your job?

1. Yes
2. No
3. No response

• Do you receive orders from more than one superior?

1. Yes
2. No
3. Sometimes

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

1. Yes
2. No
3. Sometimes

• Is the burden of work divided among the employees?

1. Yes
2. No
3. Rarely

• Do you give topmost priority to the interest of the company?

1. Yes
2. No
3. No response

• Are you satisfied with the salary you are getting?

1. Yes
2. No
3. Not exactly

• Do you face frequent transfers o: terminations?

1. Yes
2. No
3. Rarely