A PROJECT ON:

“APPLICATION OF PRINCIPLES OF MANAGEMENT IN DOMINO’S”

In compliance to partial fulfillment of the marking scheme, for Semester- I

Of
2019-20, in subject of MANAGEMENT 1

SUBMITTED TO:
Prof. Mitali Chogle,
NMIMS School of Law

SUBMITTED BY: Unnati Maheshwari

Roll No.- D010
Course- BBA L.L.B (hons.)
 TABLE OF CONTENTS

SERIAL NO. CONENT PAGE NO.

1. ABSTRACT 1

2 INTRODUCTION 2

3. CONCEPTUAL FRAMEWORK OF THE 3

STUDY

4. NEED FOR THE STUDY 4

5. OBJECTIVE OF THE STUDY 4

6. RESEARCH METHODOLOGY 4

7. TYPES OF DATA USED 5

8. FINDINGS OF THE STUDY 6-10

9. SUGGESTIONS AND RECOMMENDATIONS 11

10. CONCLUSION 12

11. BIBLIOGRAPHY 13
ABSTRACT-

Principles of Management are brought as general guidelines for decision making and behavior of
managers given by Henri Fayol, who is well known as Father of General Management. These
principles are applied creatively, reason being the dynamic human behavior as they deal with
humans and are not rigid in nature as pure science principles. Application of these principles is
dependent upon the prevailing situation at a particular point in time and have a universal
applicability. Principles provide managers provide with a useful insight in the reality and helps
the managers to optimally use the available resources and do effective administration.

The focus of the present study is to find the applicability in a well known organization,
Domino’s ,and how the application of these principles have impacted the behavior of employees
and managers and most importantly, in achievement of organizational goals.
INTRODUCTION

A managerial is a broad and general guideline that regulates decision making and behavior
within a group or organization. These principles extensively deals with human behavior , thought
and actions which never remains static, which means, the keep on changing. Because of this
reason , the principles are not rigid as the principles that govern science or other principles.
These principles are guidelines that are used when applying the techniques of management.

These principles can be applied universally, in all types of organizations whether profit making
organizations of non profit organizations such as NGOs. The principles are a result of
observations and experimentation and are used to establish a cause and effect relationship , that
is, what causes something such as an event or action and the effect of such action or event on
something else.

ABOUT HENRI FAYOL

Henri Fayol was a prominent scientist who was considered to be among the first few who laid a
foundation for scientific management. He gave us 14 principles of Management which are based
on certain fundamental truths and act as guiding principles for decision making and other
managerial responsibilities. Henri Fayol's "14 Principles of Management" have been a significant
influence on modern management theory. His practical list of principles helped early 20th
century managers learn how to organize and interact with their employees in a productive way.
He was born in Istanbul in 1841. When he was 19, he began working as an engineer at a large
mining company in France. He eventually became the director, at a time when the mining
company employed more than 1,000 people.

Through the years, Fayol began to develop what he considered to be the 14 most important
principles of management. Essentially, these explained how managers should organize and
interact with staff.

In 1916, two years before he stepped down as director, he published his "14 Principles of
Management" in the book "Administration Industrielle et Générale" Fayol also created a list of
the six primary functions of management, which go hand in hand with the Principles
CONCEPTUAL FRAMEWORK OF THE STUDY

Principles of Management are brought as general guidelines for decision making and behavior of
managers. These were given by Henry Fayol. Fayol's principles are listed below:

1. Division of Work – When employees are specialized, output can increase because they
become increasingly skilled and efficient.
2. Authority – Managers must have the authority to give orders, but they must also keep in
mind that with authority comes responsibility.
3. Discipline – Discipline must be upheld in organizations, but methods for doing so can vary.
4. Unity of Command – Employees should have only one direct supervisor.
5. Unity of Direction – Teams with the same objective should be working under the direction
of one manager, using one plan. This will ensure that action is properly coordinated.
6. Subordination of Individual Interests to the General Interest – The interests of one
employee should not be allowed to become more important than those of the group. This
includes managers.
7. Remuneration – Employee satisfaction depends on fair remuneration for everyone. This
includes financial and non-financial compensation.
8. Centralization – This principle refers to how close employees are to the decision-making
process. It is important to aim for an appropriate balance.
9. Scalar Chain – Employees should be aware of where they stand in the organization's
hierarchy, or chain of command.
10. Order – The workplace facilities must be clean, tidy and safe for employees. Everything
should have its place.
11. Equity – Managers should be fair to staff at all times, both maintaining discipline as
necessary and acting with kindness where appropriate.
12. Stability of Tenure of Personnel – Managers should strive to minimize employee turnover.
Personnel planning should be a priority.
13. Initiative – Employees should be given the necessary level of freedom to create and carry out
plans.
14. Esprit de Corps – Organizations should strive to promote team spirit and unity
NEED FOR THE STUDY

To find whether the Principles of Management given by Henri Fayol are being followed in the
organization Domino’s or not. If being followed, then what is the impact of it on the
organizational performance.

OBJECTIVES FOR THE STUDY

1. To find the applicability of principles of management in Domino’s.

2. To notify the impact of principles of management being followed.

RESEARCH METHODOLOGY

This research is purely based on a Case- Study. The case study was taken and analysed after
several visits to Domino’s is a period of time, also taking into consideration analysis from
previous non- formal visits as a customer to Domino’s.
TYPES OF DATA USED

1. Observational Data- Observational data are captured through observation of a behavior

or activity. It is collected using methods such as human observation, open-ended
surveys, etc.
2. Questionnaire- A questionnaire is a research instrument consisting of a series
of questions (or other types of prompts) for the purpose of gathering information from
respondents. Some of the questions from the questionnaire are presented below :
 Is there a proper work division among the employees?
 Are general rules and regulations enough for maintaining systematic working?
 Is there a common goal for the organization?
 Are the employees happy with their remuneration and incentives?
 Do all the employees come at a particular time in the organization?
 Do all the employees receive orders from the boss only?
FINDINGS OF THE STUDY : AN ANALYSIS

To achieve the research paper’s goal and to analyze the implementation of Henri Fayol's
Management Principles, I have taken Domino’s Pizza as the organization on which I would want
to research as it is a large scale organization and has been in the business since a long period of
time.

Domino’s Pizza is the second largest franchised pizza chain in the USA, and the history of
Domino’s Pizza is similar to its rival Pizza Hut. Two brothers started it with borrowed equity in
the sixties.The first Domino's Pizza in India opened in New Delhi in
1996. India was Domino's third-largest market in 2013, behind the United States and United
Kingdom. In December 2014, India became Domino's 2nd largest market.

Following are the findings :

Division of Work -

This principle of Fayol suggests that as far as possible the whole work should be divided into
different parts and each individual should be assigned only one part of the work according to his
capability and taste rather than giving the whole work to one person.

In Domino’s Division of Work is done according to the capacity and qualification of the
employees. There are separate persons for each job. If one cuts Pizza, the other bakes it and a
specific person delivers it. By following the principle, the workers have become an expert in
their area of work and there is a scope of invention as a man doing the same work is bound to
come up with new ideas.

Authority and Responsibility -

According to this principle, Authority and Responsibility should go hand in hand. It means that
if an individual is given a work and he is made responsible for the results, then sufficient amount
of authority should be given to that person to let him fulfill his responsibility.
In Domino’s, the branch manager has full authority to give orders to the employees. He is the
one who ensures that the work is done on time and as per the requirements. By doing so, it
enables the manager to complete his word effectively and efficiently and for any non-
completion of work, a particular individual can be held accountable.

Discipline -

Discipline is necessary for any successful work performance. Fayol considers Discipline to mean
obedience , respect for authority and observance of established rules.

The principle of Discipline is followed in Domino’s as all the workers have a sense of
understanding of their job and have do wear particular uniforms and do treat their customers and
seniors with respect. By following this principle. There is a better working environment in
Domino’s and organizational goals are achieved with ease.

Unity of Command –

This principle states that an individual employee should receive order from only one superior at a
time and that employee should be answerable to that superior.

There are multiple bosses to whom an employee is answerable, still Unity of Command is
followed. Unity of Command is well defined and streamlined such that each employee reports to
shift manager, who in turn reports to the store manager. This results is no confusion in the mind
of subordinated and there are less chances of ego clashes.

Unity of Direction –

It means that there should be one head for one plan or a group of activities having the same
objective. In other words, there should be one plan of action for a group of activities having same
objective and there should be one manager controlling them.

All the units of Domino’s strive to develop products which best cater to the need of their
customers. They introduce new flavors of pizzas according to the area of the outlet and set their
goals accordingly. By backing this principle, There is timely completion of goals and less chaos
Subordination of Interest –

This principle states that the interest of an organization should be primary and that of an
employee should be secondary or subordinate. Every employee of the firm should work in the
interest of the organization and not for their own self interest.

This principle in Domino’s is being violated as while interacting with the employees, it came to
the account that the employees think of their personal gain prior to that of organizational goal.

Remuneration –

Fayol is of an opinion that every employee should get an equal remuneration and should be paid
on time. Also. The value of the employee must be taken into consideration.

Domino’s follows the performance based reward system. Also, employees are paid regular
salaries and on time. It also follows the pay and reward policy wherein the better an employee
performs, the more is the salary he receives. The employees get motivated to performs better by
following this principle.

Centralisation and Decentralisation –

Fayol stated that certain matters are to be centralized and others to be decentralized. There is a
need to have a proper balance between centralization and decentralization.

The authority is highly centralized in Domino’s. The tasks and rules are clearly specified by the
top management and are communicated to the lower level.

Scalar Chain –

Scalar Chain means a line of authority which runs from top level to the lowest level in the
organization. Every information must be passed through that hierarchy. Fayol suggested that a
Scalar Chain can be broken if the situation demand so and this can be done with the help of a
Gang Plank.

.
This principle is not followed in Domino’s, as on observing, I saw the manager giving
instructions in no particular order

Order –

Order means orderly or systematic arrangement of men and material which means, a fixed place
for everything and everyone in the organization.

To ensure that this principle is being followed, there have been specific places for all the
ingredients and even the employees are given a specific place to perform their task. It results in
less chaos in the outlet and time saving.

Equity –

Equity means justice. All the members of the organization must be given a fair and just
treatment, depending upon the performance and situation. There should be no partiality in
transfers, promotions, etc.

In Domino’s, the managers of the organization treat their employees indifferently. Everyone is
equal in the eyes of the management. By following this principle, Domino’s makes sure that their
staff is happy and satisfied and it inturn enhances the loyalty of the staff members.

Stability of Tenure –

This principle means that employees must not be kept temporary for a long period of time.
Employees must be made permanent so that they do not leave the organization.
The employee turnover rate of Domino’s is really low which means that the employees working
there are not frequently terminated and are made permanent after a particular span of time. This
step of Domino’s increases the confidence of the employees and the employees have a sense of
job satisfaction.

Initiative –

Initiative means the capacity to work while expressing one’s own thoughts. The subordinates
must be given freedom to come up with suggestions and new ideas.

The principle of initiative is followed as the chefs idea to do some improvisation in the pizza is
taken into consideration. By allowing the employees to take part in different matters, a sense of
belongingness is developed in the psyche of the employee.

Esprit de Corps –

It means Team Spirit. Fayol emphasized on team work. He suggested that every employee must
consider him as a part of team and should work to achieve team goal.

The Domino’s workers act as a family. This principle is being followed in Domino’s and by
doing so the employee morale boosts and there is cooperation in the organization.
SUGGESTIONS AND RECOMMENDATIONS

After analyzing the data, here are some suggestions that could increase the efficiency of the
Domino’s branch:

 There should be proper implementation of the Scalar Chain as by doing so, there would
be a systematic communication in the organization which will lead to proper
communication of the information and less chaos. Also, it would be easier to find
solutions to organizational problems.
 The Interests of the Subordinates should be given less important and achieving the
organizational goal must be given a priority as it will lead to harmony in the organization
and the respect of the employee would be increased in the organization.
CONCLUSION-

Domino’s Pizza follows the Principles given by Henri Fayol to a great extent. Domino’s
divides the work between the number of employees for attaining specialization and to
increase work efficiency and also provides equal amount of authority and responsibility
to every employee for work environment.
Domino’s provide just and fair remuneration to everyone. They do decentralization of the
authority to the level it is beneficial to them and also encourages the employees to take
initiatives and give ideas in plan making.
So, we can conclude that Domino’s Pizza follows the Principles of Management given by
Henri Fayol to the utmost extent possible.
BIBLIOGRAPHY-

1. Van Vliet, V. (2010). Henri Fayol. from ToolsHero:

https://www.toolshero.com/toolsheroes/henri-fayol/
2. Mason Andrew Carpenter (2009), “ Principles of Management”, Vol. 1, pp.- 156-71
3. Robbins Coulter DeCenzo (1995), “ Fundamentals of Management : Essential
Concepts and Application”, Vol. 1, pp- 256-79