BST PROJECT

Topic:- Principles of Management

A fastfood outlet:- KFC

Fayol’s principles
(
About The Outlet KFC Kentucky Fried Chicken )
It is an American fast-food restaurant chain headquartered in Louisville, Kentucky, that specializes in
fried chicken. It is the world's second-largest restaurant chain (as measured by sales) after
McDonald's, with 22,621 locations globally in
150 countries as of December 2019. The chain is a subsidiary of Yum! Brands, a restaurant company
that also owns the pizza hut, Taco Bell and Wingstreet chains.KFC was founded by Colonel Harland
Sanders an entrepreneur who began selling fried chicken from his roadside restaurant in the cabin,
Kentucky during the Great Depression. Sanders identified the potential of the restaurant franchising
concept, and the First “Kentucky Fried Chicken” Franchise opened in Utah in 1952. KFC popularized
chicken. In the fast-food industry, diversifying the market by challenging the established dominance
of the hamburger by branding Himself as "Colonel Sanders" Harland became a prominent figure of
American cultural history, and his image remains widely used in KFC advertising to this day.
However, the company's rapid expansion overwhelmed the ageing Sanders, and he sold it to a group
of investors led by Jhony Brown Jr. and Jack C. Massey in 1960s.

Vision & Mission Of kFC:

KFC, Which is short for “ Kentucky Fried Chicken," is the largest Fast-food Fried chicken chain in the
world. The company features more than 18,000 restaurants in 118 countries and territories.
Overseen by CEO Muktesh pant, the company recently posted revenue of $23 billion.

Vision: TO be leading integrated food services group in ASEANregion delivering consistent quality
products and excellent customer food.

Mission: To maximize profitability, improve shareholder value and deliver sustainable growth after
year.

Why KFC?

To order to achieve the objective of this project, we needed an organization where the business is
carried on a large scale and various activities are performed.

Therefore KFC was selected because it is capable of fulfilling the purpose of the project, It is suited
nearby and visiting it would be easy.
ABOUT HENRY FAYOL:

Biography:

Lifetime: 1841 to 19

Birthplace: Born in France

Profession: Mining Engineer and Management therapist Education: Graduation from mining
Academy at Ecole des Mines de Saint-Étienne in 1980.

Position Held: founded the mining company Compagnie de Commentry-Fourchambault-Decazeville'

and became its managing director in 1888. At that time the company was nearly bankrupt.

Writings: 'Administration Industrielle et Générale published in English as grand and Industrial

Management in 1949.

Fayol's work was one of the first comprehensive statements of a general theory of management. He
proposed that there were six primary functions of management and 14 principle management .
Fayol's six primary functions of management, which go hand in hand with the Principles, are as
follows:

1. Planning: Planning means deciding in advance on what, how, and when something is to be
done. It involves projecting the future course of action for the business as a whole and also
for the different sections within it. Planning is thus, the preparatory step for actions and
helps in bridging the gap between the present and the future.
2. Organizing: Organizing is the next function of management. Organizing involves breaking a
plan into activities, grouping those activities, and allocating resources to them. This is done
by structuring the functions and duties to be performed by a group of people for the
purpose of attaining the objective of the enterprise. Functions and activities of the
enterprise depend upon the objectives to be accomplished and are directed towards
fulfilment of such objectives. This necessitates the establishment of activity-authority
relationships in the enterprise.
3. Staffing: Organization, as a function of management, helps the executives to establish
positions and lay down their functional relations to each other. However, it is through
staffing function that different positions in the organizational structure are manned. The
staffing process, therefore, provides the organization with adequate, competent, and
qualified personnel at all levels.
4. Directing: May planning, organizing, and staffing are not sufficient to set the tasks in motion.
Management has well-coordinated plans, properly established duty- authority relations, and
able personnel, yet it is through the function of direction that the manager is able to make
the employees accomplish their tasks by making them integrate their individual efforts with
the interest and objectives of the enterprise.
5. Controlling: While directing, the manager explains to his subordinates the work expected of
each of them and also helps them perform their respective jobs to the best of their abilities
so that the enterprise objectives can be achieved. But even then, there is no guarantees that
work will always proceed according to plan. It is this possibility of actions deviating from
plans that calls for constant monitoring of actual performance so that appropriate steps may
be taken to make them conform to plans. Thus, the controlling task of management involves
compelling the events to conform to plans.
 6. Coordinating: Coordination, as a separate function of management, has been advocated by
many authorities including Henri Fayol. However, coordination, being all pervasive and
encompassing every function of management, is considered to be more an important
managerial essence than a separate management function. Poor coordination is attributed
to failure in performance of all the above-listed management functions.

14 PRINCIPLES OF MANAGEMENT AND THEIR APPLICATIONS AT KFC:

Division Of Work:

In practice, employees are specialized in different areas and they have different skills. Different
levels of expertise can be distinguished within the knowledge areas(from generalist to specialist).
Personal and professional developments support this. According to Henry Fayol specialization
promotes the efficiency of the workforce and increases productivity. Also, the specialization of the
workforce increases their accuracy and speed.

Application In KFC:

KFC is based on a concept of division of labour. It has a labour chart according to which positions are
assigned to every employee according to their capabilities. Those workers who are good at customer
service are assigned as front staff and those who are good in making and preparation are assigned in
the kitchen. This helps to Depression are assigned in the kitchen. This helps to enhance their skills at
particular work. Therefore, the principle is followed

Observations:

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

1. In front of the entry gate, the selling and billing counter is located.

2. The order is given to the salesman standing at the counter and the bill is generated. The money is
paid by the customer and the bill is received.

3. The order is then passed to the kitchen department which prepares thefood.

4. The food then goes to packaging department. Here, the food is packaged and sent to the billing
counter again.

5. The food is collected by the customer after that.

Conclusion: The above facts indicate that the company has divided the total work into many parts.
All the employees perform a particular job repeatedly. Therefore, it can be said that the principle of
division of work is actually being followed meticulously.

Authority & Responsibility:

To get things done in an organisation, Management has the authority to give orders to the
employees. Of course with this authority comes the accompanying power are authority gives the
management the right to give orders to the subordinates the responsibility can be traced back from
performance and it is, therefore, necessary to make agreements about this. In other words,
authority and responsibility go together and they are two sides of the same coin.

Application In KFC:

KFC has very well used this principle of authority and responsibility when a manager delegates his
authority to any staff member to manage the front counter & customer service and handling
customer behaviour he gives a certain amount of responsibility as well so that the worker can
manage everything efficiently and effectively, therefore, this principle is followed.

Observations:

QUESTON: Do you have all the authority connected with your work?ANS: Yes.Explanation: About the
principle of management ‘Authority and Responsibility’, the shift manager was asked to give her
opinion to the question indicated above. The shift manager replied in favour of the principle as she
had the authority to take decision. She was responsible for the performance of the workers.
Therefore, a balance of authority and responsibility was maintained.

Conclusion:By the interview with the shift manager, it is clear that the employees have got the
authority as well as the responsibility regarding the work entrusted upon them. It can be said that
this principle is implemented in this company.

Discipline:

The third principle of the 14 principles of management is about obedience. It is often a part of the
core values of a mission ad vision in the form of good conduct and respectful interactions. This
management principle is essential and is seen as the oil to make the engine of an organisation run
smoothly.

Application In KFC:

Changing the sanitiser after every two hours, washing hands after every hour, update fries time, this
all comes in discipline how employees full fill all these responsibilities punctuality matter a lot at KFC
and While Serving the customer the employee must be very polite and kind to them. Discipline is
followed.

Observations: During the course of personal observation regarding the principle of Discipline, the
following facts were observed: It was observed that the employees usually got into personal
conversation the moment they found any opportunity of doing so. They indulged in long
conversations over the telephone in a joyful mood. Sometimes, even the customers were seen being
ignored.

Conclusion: The above facts highlight the important aspect of their conduct. It shows that the
employees are not fulfilling their commitment with the company to work honestly for it. Therefore,
it can be said that this principle of management is being violated in the company

Unity Of Command:

The management principles 'unity of command' means that an individual employee should receive
orders from one manager and that the employee is avail answerable to that manager. If a task was
given to the employee and related responsibilities are given to the employee by more than one lead
to confusion which may lead to possible conflicts for employees. By using this principle, the
responsibility for mistakes can be established more easily.
Application In KFC:

According to my research. I have learnt that this principle is not equally applied at KFC because there
is more than one manager and therefore, the team members are getting commands from both of
them but not at the same time. This one is not followed.

Observations:

QUESTION: Do you get orders from more than one boss?

ANS: Yes

Explanations: The shift manager of the company was asked to respond about the principle of unity of
command. The manager replied that dual subordination existed i.e. she received orders from more
than one boss.

Conclusion: It clearly states that unity of command is not being implemented in the organisation.

Unity Of Direction:

This management principles of the 14 principles of management are all about focus and unity. All
employees deliver the same activities that can be linked to the same objectives. All activities must be
carried out by one group that forms a team. These activities must be described in a plan of action.
The manager is ultimately responsible for this plan and he monitors the progress of the defined and
planned activities focus areas are the efforts made by the employees and coordination.

Application In KFC

KFC is a beverage restaurant which aims to serve the customer at its best like the unity of command,
this principle is more applicable in big enterprises. The front staff which takes order are directed by
one manager who runs their order & instruction to the team members.

Observations:

1. The store was divided in three sections or departments- Operations,

Training and Human Resource Development (HRD).
2. All the three units were headed by three different individuals
3. Every head kept a watch over the activities of his own unit.

Conclusion: The above facts state that clearly the company has mainly three units. Therefore, it
is clear that each is headed by a different individual and he is planning and regulating the
activities of his own unit in his own way. This situation tells us that the principle of Unity of
Direction is being implemented in the company.

Subordination Of Individual Interest Into General Interest:

There are always all kinds of interest in an organization to have an organization function well, Henri
Fayol indicated that personal interest is subordinate to the interest of the organization(this) the
primary focus is on the organizational objectives and not on those of the individual the applies to all
levels of the entire organization, including the managers.
Application In KFC

Selfishness, laziness, carelessness was always the main issue in KFC. KFC has given a lot of benefits to
their employees like 10% off on their meal, Free drinks, paid leaves etc so that they can feel more
associated with the organization. But employees should also have some faith in their organizational

Observations:

QUESTION: Do you give top priority to the interest of the company?

ANS. Yes.

Explanation: With respect to this principle of management, the shift manager was asked to respond.
She responded in a positive manner i.e. at the time of training, they taught the employees to keep
the unit of the organisation at the top level benefits.

Conclusion: On the basis of the response which we had received, it can be asserted that the
individual employees of the company gave priority to generalinterest of the organisation over the
individual interest

Remuneration:

Motivation and productivity are close to one another as far as the smooth running of an organization
is concerned. This management principle argues that the remuneration should be sufficient to keep
employees motivated and productive there are two types of remuneration namely non-monetary
and monetary ultimately, it is about rewarding the efforts that have been made.

Application In KFC:

KFC provides equal pay rates to their employees which is standard pay rates according to IRD and
KFc also gives annual leaves to their employees, According to other medical benefits as well. Fair
remuneration creates a fair environment in the organisation among staff.

Observations:

QUESTION: Do you get reasonable remuneration?

ANS: No

Explanation: Regarding this principle of management, the shift manager was asked to express her
opinion. She was not satisfied with the remuneration she was receiving.

Conclusion: On the basis of our analysis, the employees of the company are not happy about the
remuneration policy of the company. Therefore, it can undoubtedly be said that the company lacks
behind in observing this principle of management.

Centralization & Decentralization:

Management and authority for decision-making process must be properly balanced in an

organization.This depends on the volume and size of an organization including its hierarchy.
Centralized implies the concentration of decision making authority at the top management
(executive board). Sharing of authorities for the decision-making process with lower levels (middle
and lower management), is referred to as decentralisation by Henri Fayol. Indicated that an
organization should strive for a good balance in this.

Application In KFC:

Centralisation, as well as an accurate amount of decentralisation, is followed in KFC.

Observation:

QUESTION 1: Are the daily decisions made by the person concerned?

ANS: Yes

QUESTION 2: Are the major decisions taken only by the higher authorities?

ANS: Yes

Explanation: Regarding this principle, the shift manager was asked two questions. First was about
the routine decisions and other was regarding the major decisions. The shift manager said that the
routine decisions were taken by her and the concerned employees. On the other hand, the major
decisions were taken by higher authorities

Conclusion: Our analysis clearly shows that the company does not adopt a complete centralisation or
a complete decentralisation. Instead it can be said that the company follows the principle of
centralisation in an effective way.

Scalar Chain:

Hierarchy presents itself in any given organization. This varies from senior management (executive
board) to the lowest levels the organization. Henri Fayol's "Hierarchy" management principle states
that there should be a clear line in the area of authority (from top to bottom and all managers at all
levels). This can be seen as a type of management structure. Each employee can contact a manager
or a superior in an emergency without challenging the hierarchy.

Application In KFC:

Information in KFC also follows the scalar chain. The employees can't directly talk to the head office
first they have to communicate with the assistant restaurant manager and then the manager,
restaurant manager like this the scalar chain goes on.

Observations:

QUESTION: Does the boss of your boss directly communicate with you?

ANS: No.

Explanations: A particular chain has to be followed in the company as said by the shift manager. The
chain is as follows: Owner- Marketing Manager-Area Coach- Restaurant General Manager (RGM)-
Assistant Restaurant Manager(ARM)- Shift Manager- Internal Development Programme(IDP)- 3 star,
team member, house keeper.In any case, the chain cannot be broken.

Conclusion: Our analysis shows that the chain made by the higher officials of the company cannot be
broken. Therefore, scalar chain is implemented in the company.

Order:
According to this principle of the management, employees in an organization must have the right
resources at their disposal so that they can function properly in an organization. In addition to social
order (responsibility of the managers), the work environment must be safe, clean and tidy.

Application In KFC:

The principle is mostly used at KFC. Before doing all the preparation of we need to put everything
sorted at its place to avoid confusion at the end moment. Every day the workplace gets cleaned and
workers change the pans for all the ingredients used.

Observations:

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

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

Conclusion: The above description makes it clear that all 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.

Equity:

The management principle of equity often occurs in the core values of an organization. According to
Henry Fayol employees must be treated kindly and equally. Employees must be in the right place in
the organization to do things right. Managers should supervise & monitor this process and they
should treat employees fairly and impartially.

Application In KFC:

KFC treat their employees equally. No discrimination or racism is followed at the restaurant. Each
employee has given the same respect and honours the grievances and problems are dealt very nicely
and effectively by the manager.

observations:

QUESTION: Does your company give equal remuneration to all the employees doing a similar job?

ANS: Yes

Explanation: Regarding this principle, the question given above was put to the shift manager. She
responded positively i.e. equal wages were given to people doing similar jobs. But appraisal was
given to the person whose performance was the best.

Conclusion: It can be said that the company is conscious about observing this principle of
management.

Stability of Personnel:

This management principle of the 14 principles of the management represents deployment and
managing of personnel and this should be in balance with the service that is provided from the
organization. Management strives to minimize employee turnover and to have the right staff in the
right place. Focus areas such as frequent change of position and sufficient development must be
managed well.

Application In KFC

KFC makes sure that the availability of the person whom the organisation is hiring is long. Otherwise,
it will be a loss for the organisation to again organise the process of interview and training.

Observations:

QUESTION: Have you served this company for more than one year?

ANS: No.

Explanation: The shift manager was asked the question given above regarding this principle and she
responded negatively.

Conclusions: The above analysis indicates that labour turnover in the company is on the higher side.
In other words, the employees do not continue to be in the service of the company for a long period.
This situation reflects poor management in the company. Therefore, the company has to take care of
the stability of the personnel in its own interest

Espirit De Corps:

The management principle 'esprit de corps' of the 14 principles of management stands for striving
for the involvement and unity of the employee's managers are responsible for the development of
moral in the area of communication. Esprit de corps contributes to the development of the culture
and creates an atmosphere of mutual trust and understanding.

Application In KFC:

Coordination of kitchen staff, fire station staff and production staff helps front staff to feed the
customers well. Without the good and sound coordination, the best service cannot be given, hence
orders get delayed dissatisfaction of customers and bad image of the organisation.

Observations:

During the course of personal investigation, the following facts with regard to the principle of Espirit
De Corps came to right:

1. Usually the managers were seen using the word I instead of the word WE.

2. It was also observed that the managers did not show any interest for his subordinates

Conclusion: The above facts make it clear that the managers in the company are the victims of some
sort of superiority complex. That is 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 cooperation on the part of the
employees is simply out of question .Thus, this principle of management is violated in the company.
This is not a good situation.

Initiative

The Henri Fayol agreed that with this management principle employees should be allowed to
express new ideas. This encourages interest and involvement & creates added value for the
company. Employee initiatives are a source of strength for the organization according to Henri Fayol.
This encourages the employees to be involved and interested.
Application In KFC:

KFC understands the importance of the employee's hence the employees are equally given a chance
to feet free to give any advice any suggestion or change they something about the strategy.

Observations:

QUESTION: Does your boss give importance to your suggestion?

ANS: Yes

Explanations: In order to check the implementation of the principle in the company, all the 80
employees were asked to express their opinions to the question given above. A total number of 57
employees were in favour of the question, while the remaining 18 employees gave negative
answers. The other 5 remained numb on the question.

Conclusion: Our analysis shows that the employees felt that their opinions were given importance.
This is a comfortable situation. This helps in encouraging initiative and confidence among
employees.

CHECKLIST

1. Division of labour
2. Authority & Responsibility
3. Discipline
4. Unity of command
5. Unity of Direction
6. Subordination
7. Remuneration
8. Centralization & Decentralization
9. Scalar chain
10. Order
11. Equity
12. Stability of personnel
13. Esprit de corps
14. Initiative

QUESTIONNAIRE

Q1. Do you give top priority to the interest of the company

?Ans. Yes

Q2. Do you get reasonable remuneration?

Ans. No.

Q3. Do you have all the authority connected with your work?

Ans. Yes.
Q4. Does the boss of your boss directly communicate with you?

Ans. No.

Q5. : Are the daily decisions made by the person concerned?

Ans. Yes

Q6. Are the major decisions taken only by the higher authorities?

Ans. Yes

Q7. Does your company give equal remuneration to all the employees doing asimilar job?

Ans. Yes

Q8. Have you served this company for more than one year?

Ans. No.

Q9. Does your boss give importance to your suggestion?

Ans. Yes

Q10. Do you get orders from more than one boss?

Ans. Yes

CONCLUSION:

The 14 principles of management can be used to manage organizations and are useful tools for
forecasting planning process management, organization and control. Although they are obvious,
many of these matters are still used based on common sense in current management practices in
the organization. It remains a practical list with focus areas that are based on Henri Fayol's research
which still applies today due to several logical principles after studying all the principles of Henri
Fayol and it is clear that my organisation because it ensures the smooth running of an organization.

ACKNOWLEDGEMENT:

I would like to express my special thanks of -principle—who gave me the golden opportunity to do
this wonderful project on the topic Principles of Management which also helped me in doing a lot of
research and I came to know about so many new things I am really thankful for then secondly I
would also like to thank my parents and friends who helped me a lot in finalizing this project within
the limited time frame.

BIBLORAPHY:
 https://cupdf.com
 https://hscprojects.com/principles-of-management-and-its-application-in-kfc/