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, Project Report On Henry Fayol’s Principles Of Management With References To V-Mart, HSC Projects

Project Report On Henry Fayol’s Principles Of Management With References To V-Mart

INTRODUCTION:

About All Topic:

The title of the study is –“Project Report on Henry Fayol’s Principles of management with reference to V-Mart.”

According to Koontz and O Donnell. ”Management Principles are fundamental truth of general validity which have value in predicting the results of management action.

These days business has assumed wider dimensions as a result of which numerous problems arise in day to day activities and the manager of the organization has to solve these problems. A manager needs guidelines to grapple with the problems and run the organization efficiently. The principles of management guide the manager. That is why the study of Principles of management is important.

The Study Plan:

The following are the contents of the study plan:

  • The objective of the study
  • Selection of the organisation
  • Subject Matter of the study
  • Period of the Study
  • Observation tools used

The Objective of the Study:

The chief purpose of this project is to see the principles of management being implemented in real life with its help we shall get important whether the principles of management which we come across in the books are actually true? And whether by following the principles of management the efficiency of the managers is actually enhanced.

Selection of the Organisation:

To achieve the objective of this project, we need an organisation where the business is carried on a large business and various activities are performed. On the advice of the project guide Mrs Monica Sehgal, V-Mart was selected. The following were the chief reasons for selecting this company.

  • It is capable of fulfilling the purpose of the project.
  • It is situated nearby and visiting it would be easy.

About the Organisation:

, Project Report On Henry Fayol’s Principles Of Management With References To V-Mart, HSC Projects

Name of the company

V-Mart LTD

Head officeNew Delhi
Industry TypeRetail Sector
Year of Establishment2002
Founder(S)Mr Lalit Agarwal
Mr Hemant Agarwal
Area ServedLocal
No. of Employees80
Annual SalesRs-80 Crores
Annual ProfitRs-20 Crores
Fixed AssetsRs-10 Crores
Company TypePrivate Limited

Subject Matter of the Study:

Under this project, the 14 principles of management advocated by Henry Fayal were studied. These principles are as follows:

  • Division of Work
  • Authority of Responsibility
  • Discipline
  • Unity of Command
  • Unity of direction
  • Subordination of Individual Interest to General Interest
  • Remuneration of Employees
  • Centralisation + Decentralisation (Effective centralisation)
  • Scalar chain
  • Order
  • Equality
  • Stability of Personnel
  • Initiative
  • Esprit de Corps

Period of the Study:

The period of study happens to be one year. So far as the class is concerned, 30 periods have been provided.

Observation Tools Used:

  • Authority + Responsibility
  • Unity of Command
  • Subordination of Individual Interest to General Interest
  • Remuneration of employees
  • Centralisation + Decentralisation
  • Scalar chain
  • Equity
  • Stability of personnel
  • Initiative
  • Division of Work
  • Discipline
  • Unity of Direction
  • Order
  • Esprit De Corps

QUESTIONNAIRE (USED FOR REPORT MAKING):

, Project Report On Henry Fayol’s Principles Of Management With References To V-Mart, HSC Projects

S. No.QuestionsYNN.RT
1.Do you have all the authority connected with your work?
2.Do you get orders from more than one bass?
3.Do you give top priority to the interests of the company?
4.Do you get reasonable remuneration?
5.1.As the daily decision made by the people concerned?
2.Are the major decision 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 one year?
9.Does your boss give importance to your suggestion?

ANALYSIS (BASED ON QUESTIONNAIRE):

, Project Report On Henry Fayol’s Principles Of Management With References To V-Mart, HSC Projects

1.Authority + Responsibility:

Meaning:

According to this principle,

“Authority and responsibility go hand in hand.”

Result of empirical investigation:

Q-Do you have all the authority connected with your work?

A

YesNoNoNo. of
ResponseRespondents
60101080

Explanation:

About the principle of management – “Authority + Responsibility.” So the employees of the company were asked to give a reply to the question indicated in the table. A total number of 80 respondents in favour while 10 respond with a negative reply. However, 10 people did not express any opinion.

Conclusion:

The figures given in the table are a clear indication of the fact that the employees have got the authority to discharge their responsibility regarding the work entrusted to them. It can therefore be said that this principle of management is being implemented in this company.

2.Unity of command:

Meaning:

“There should be one and only one boss for every individual employee”-according to this principle.

Result of Empirical Investigation:

Q-Do you get orders from more than one boss?

A

YesNoNoNo of
ResponseRespondents
10660480

Explanation:

80 employees of the company were asked to respond about the principle of management – unity of command, to the question given in the table. Only a total of 10 employees responded with ‘yes’ while 66 responded negatively. The remaining 04 employees did not give any reply.

Conclusion:

The figures given in the table tells us that out of 80 employees, 66 employees said that they received orders from a single officer at a time It can, therefore be said that the company has really understood the importance of this principle of management.

3.Subordination of Individual Interest to General Interest:

Meaning:

According, to this principle “the interest of an organisation should take priority over the interest of any one individual employee.”

Result of empirical investigation:

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

A

YesNoNoNo. of
ResponseRespondents
67080580

Explanation:

For the principle of management,  ”subordination of individual interest to the general interest, “ 80 employees of the company were asked to respond. Out of 80 employees, 67 responded in favour while the other 08 respondents replied in the negative. The remaining 05 employees did not give a response.

Conclusion:

Based on the figures available in the table, it can be asserted that the employees of the company gave priority to general interest over the individual interest.

4.Remuneration of employees:

, Project Report On Henry Fayol’s Principles Of Management With References To V-Mart, HSC Projects

Meaning:

According to this principle, “the employees should be paid fair remuneration, which should give them at least a reasonable standard of living.”

Result of empirical investigation:

Q-Do you get reasonable remuneration?

A

YesNoNoNo. of
ResponseRespondents
35400580

Explanation: Regarding the principle of management. ‘Remuneration to the employees 80 respondents were asked to express their opinion 40 employees said that they were not getting reasonable remuneration. On the other hand, 35 employees are expressing a positive opinion about it the employees who remained numb on this issue, numbered only 05.

Conclusion: Based on the above analysis nearly 50% of the employees of the company are not happy about the remuneration policy of the company. Therefore, it can undoubtedly be said that the company lags in observing this principle of management.

5.Centralisation + Decentralisation:

, Project Report On Henry Fayol’s Principles Of Management With References To V-Mart, HSC Projects

Meaning:

According to this principle, the superiors should adopt effective centralization instead of complete centralization and complete decentralization.

Result of empirical investigation:

Q1-Are the daily decisions made by the people concerned?

Q2-Are the major decisions taken only by the higher authorities?

A

Sr. No.YesNoNo ResponseNo. of
Respondents
1.66090580
2.75000580

Conclusion:

The above analysis clearly shows that the company does not adopt a complete centralisation. Neither does it do so in the case of decentralisation. Instead, it can be said that the company follows the principle of centralisation in an effective way.

6.Scalar chain:

, Project Report On Henry Fayol’s Principles Of Management With References To V-Mart, HSC Projects

Meaning:

According to this principle, the Organisation should have a chain of authority and communication that runs from top to bottom and should be followed by managers and subordinates

Result of empirical investigation:

Q-Does the boss of your boss directly communicate with you?

A

YesNoNoNo. of
ResponseRespondents
61120780

Explanation:

All the employees were asked the question given in the table regarding the principle of ‘scalar chain’. A total of 61 employees answer was in the negative. The number of employees who did not express any opinion was only 07.

Conclusion:

The above analysis shows that the majority of the employees vouch for the fact that they have direct communication with the boss of their boss. Obviously, it is an indication of the fact that while communication between the two-person takes place in this manner a step being overlooked. It should be our inevitable conclusion that the principle of scalar chain is being violated this situation is certainly not in favour of the company.

7.Equity:

Meaning:

According to this principle, “The managers should treat their subordinates as fairly as possible so that they develop a feeling of dedication for their work.

Result of empirical investigation:

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

A

YesNoNoNo. of
ResponseRespondents
45310480

Explanation:

Regarding the principle of ‘Equity’, the question given in the table was to pull all the employees. A total of 45 employees responded positively while a total of 31 employees responded negatively. Those who did not give any response was significant low i.e. yeast 04 persons.

Conclusion:

The above analysis clearly establishes the fact that the questions about the principles of equity elicited a mixed response from the employees. It can, therefore, be said that the company is not conscious about observing this principle of management. Principle of management gives a rude shock to the efficient and hard-working employees and they start losing their confidence in the company.

8.Slability of Personnel:

Meaning:

According to this principle “there should be a stability of tenure of the employees so that the work continues efficiently.”

Result of empirical investigation:

Q-Have you served this company for more than one year?

A

YesNoNoNo. of
ResponseRespondents
28510180

Explanation:

All the 80 Employees of the company were asked the question given in the table regarding the principle ‘stability of personnel.’ More than half the number of employees responded negatively, where 28 employees confirmed the fact that they have served the company for more than one year. Only one person did not express any opinion.

Conclusion:

The above analysis indicates that labour turnover rates in the company are on the higher side. In other words, the employees do not continue to be in the service of the company for a longer period. This situation reflects mismanagement in the company.

Therefore the company has to take care of the stability of the personnel in its own interests.

9.Initiative:

Meaning:

According to this principle, “employees in the organisation must be given an opportunity in making and executing a plan.”

Result of empirical investigation:

Q-Does your boss give importance to your suggestions?

 A

YesNoNoNo. of
ResponseRespondent
57180580

Explanation:

To check the implementation of this principle of ‘initiative’ in the company, all the employees were asked the question given in the table. A total number of 57 employees were in favour of the question, while 18 employees gave negative answers. The other 5 people remained numb on this question.

Conclusion:

The above experiment shows that more than 50% of employees felt that their opinion was given importance. This is a comfortable situation. This is encouraging initiative and confidence of the employees

ANALYSIS (BASED ON PERSONAL OBSERVATION):

, Project Report On Henry Fayol’s Principles Of Management With References To V-Mart, HSC Projects

10.Division of Work:

Meaning:

According to this principles, “as far as possible the whole work should be divided into small parts and each individual should be assigned only one part of the work according to his ability and tact reportedly do that the benefits of specialization may be achieved.”

Result of empirical investigation:

During the course of the personal observation regarding the principle of division of labour whatever was observed in the company may be described as follows:

  • Close to the entrance gate the company has located a reception counter. All the customers were being received here. They were being told where they could obtain the items they wanted to purchase and which section they should visit.
  • When the customer reaches the section concerned the salesman helps him choosing the items of his need here the sale is finalised the salesman hand over a token to the customer and directs him to the payment counter.
  • In the meantime, the goods sold are carried to the bill counter.
  • From the bill counter, the goods are sent to the packing counter.
  • From the packaging counter, the packed material and the bill is sent to the payment counter. The customer is already at the counter along with the token. Here the customer hands over the token make the payment and take delivery of the goods purchased.

Conclusion:

The above-stated facts indicate that the company has divided the total work into many parts. All the people perform particular Job repeatedly therefore it can be said that the principle of work i.e. divisions of work is actually being observed meticulously.

11.Discipline:

Meaning: According to this principle, ”the organisational rule and employment agreement should be obeyed by both the superiors and subordinates which are necessary for the successful working of the organisation.”

Result of empirical investigation:

During the course of personnel observation regarding the principle of ‘Discipline’ the following facts came to light:

It was observed that the employee usually got into personal conservation the moment they found any opportunity of doing so they indulged in long conversations over the telephone in a joyful mood. Sometimes the customers were seen being ignored.

Conclusion:

The above facts highlighting the important aspect of their conducted. It shows that the employees are not fulfilling their commitment with the company to work honestly for it. Therefore, it can be said that these principles of management are being violated in the company.

12.Unity of Direction:

, Project Report On Henry Fayol’s Principles Of Management With References To V-Mart, HSC Projects

Meaning:

According to this principle, “there should be one head and one plan for a group of activities having the same objectives.”

Result of empirical investigation:

During the course of the personal investigation the following facts came to our notice regarding the principle of ‘Unity of Direction’:

  1. The business of the company was divided into three main units-Ladies wear, Gents wear, and Kidswear.
  2. All three units were headed by three different individuals.
  3. Every head Kept a watch over the activities of his own unit. e.g. sales, purchase, the attitude or behaviour of the subordinates towards the customers, customers ‘satisfaction etc.

Conclusion:

The above facts make it clear that the company has mainly three units. Every unit has to deal with different kinds of customers with their efforts in different ways. Therefore it is clear that each is headed by a different individual and he is planning and regulating the activities of his unit in his own way. The situation tells us that the principle of unity of direction is being implemented in the company.

13.Order:

, Project Report On Henry Fayol’s Principles Of Management With References To V-Mart, HSC Projects

Meaning: According to this principle, “a right person should be placed at the right job and the right thing should be placed at the right place.”

Result of empirical investigation:

During the course of our investigation regarding, the principle of ‘order’ the following facts were observed:

  • It was found that all the units had arranged their goods in a proper and orderly manner
  • Whenever the material/goods got scattered because of the rush of the customers, It was immediately restored in its proper place.
  • All the employees were observed to be working in their decided place of work.

Conclusion:

The above description makes it clear that all the goods are placed in their decided place. Similarly, all the employees work only on the pre-determined place of duty. Therefore, it can be said that the principle of order is being observed in the company.

14.Esprit De corps:

, Project Report On Henry Fayol’s Principles Of Management With References To V-Mart, HSC Projects

Meaning:

According to this principle, “a manager should continuously make efforts to develop a team spirit among the subordinated.”

Result of empirical investigation:

During the course of personal investigation, the following facts concerning the principle of Esprit De corps came to light.

  • Usually, the managers were seen using the word ‘I’ instead of the word ‘WE’
  • It was also observed that the managers did not show any interest in their subordinate.

Conclusion:

The above facts make it clear that the managers in the company are the victims of the reason as to why they give importance to the word ‘I’ instead of the word ‘WE’. In the presence of such a situation, the question of the feeling of cooperation on the part of employees is simply out of question. The principle of management is surely being violated in the company. This is not a good situation.

CONCLUSION:

According to Professor W. H. Kilpatrick, “A project is a wholehearted purposely act proceeding in a social environment.”

A project from the point of view of students can be purposeful learning activities including practical problems, planned and carried out in a real-life manner to achieve specific goals. In other words project work refers to the successful completion of a study.

This project work has helped study the meaning, techniques and functions of principle of management given by Henry Fayol in a better manner.

Principles of Management are general and broad guidelines for decision making and behaviour of managers.

Thus this project work was of immense benefit for me.

BIBLIOGRAPHY:

Books:

  • NCERT-Textbox in Business Studies for Class XII
  • Business studies by R. k. Singla for class XII

Newspaper:

  • Hindustan Times
  • The Times of India
  • Dainik Jagran

Magazines:

  • Business and Economy
  • Business Today

Internet:

  • www.meritnation.com
  • www.topperbarining.com
  • www.mycbseguide.com

CERTIFICATE:

This is to certify that the content of this project entitled, ‘Project Report on Principles of Management by Henry Fayol in reference to ‘V-Mart’ by MUKUL GARG is the bonafide work of him submitted to BAL BHARTI PUBLIC SCHOOL LUDHIANA for considering in partial fulfilling of the recrement of CBSE, Delhi for the award of senior school certificate in commerce.

The original research work was carried out by him under my supervision in the academic year 2016-17 based on the declaration made by him, I recommend this period report for the evaluation.

ACKNOWLEDGEMENT:

I have taken efforts in this project. However, it would not have been possible without the kind support and help of many individuals and organizations. I would like to extend my sincere thanks to all of them.

I thank God for providing me with everything that I required in completing this project. I am highly indebted to the teacher in charge “Mrs Monica Sehgal” for his guidance and constant supervision as well as for providing necessary information regarding this project and also for his support in completing the project.

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