Business Studies & Management Project On Principles of Management
Business Studies & Management Project On Principles of Management
………………………………………………………. ………………………………………………………………
CERTIFICATE
Biography of Fayol
Fayol was born in 1841 in a suburb of Istanbul, Ottoma n Empire. His father
(an engineer) was appointed superintendent of works to build the Galata
Bridge, which bridged the Golden Horn. The family returned to France in
1847, where Fayol graduated from the mining academy “École Nationale
Supérieure des Mines” in Saint-Étienne in 1860.
In 1860 at the age of nineteen Fayol started the mining company named
“Compagnie de Commentry – Fourchambault – Decazeville” in Commentry as
the mining engineer. In 1888 he became managing director, when the mine
company employed over 10,000 people, and he ld that position over 30 years
until 1918. By 1900 the company was one of the largest producers of iron and
steel in France and was regarded as a vital industry .
Division of Work
The specialization of the workforce according to the skills of a person,
creating specific personal and professional development within the labour
force and therefore increasing productivity; leads to specialization which
increases the efficiency of labour. By separating a small part of work, the
workers speed and accuracy in its performance increases. This principle is
applicable to both technical as well as managerial work . this can be made
useful in case of project works too. Planning is to decide wha t to do
before.
We know that TATA Group is an umbrella that covers various business
industries Considering this, it only makes sense to divide work by allocating
it to different employees, thereby enabling them to build up experience and
continuously increase and improve their skills. This leads to increased
productivity and ultimately higher profits.
Discipline
Discipline refers to obedience, proper conduct in relation to others,
respect of authority, etc. It is essential for the smooth functioning of all
organizations. This will also help shape the culture inside the
organization.
Unity of Direction
All those working in the same line of activity must understand and pursue
the same objectives. All related activities should be put under one group,
there should be one plan of action for them, and they should be under the
control of one manager. It seeks to ensure unity of action, focusing of
efforts and coordination of strength .
He/she should ensure that any business or personal associ ation which he/she
may have does not involve a conflict of interest with the operations of the
company and his / her role therein. The Code of Conduct cites 3 areas of
actual or potential conflict of interests. One of the highlights warns
employees that the interest of the company or group cannot be compromised.
Any personal interest that may potentially influence company interest should
be disclosed. Failure to do so can lead to suitable disciplinary action.
Remuneration of Employees
Workers must be paid sufficiently as this is a chief motivation of
employees and therefore greatly influences productivity. The quantum and
methods of remuneration payable should be fair, reasonable and
rewarding of effort. Remuneration is paid to worker as per their capaci ty
and productivity. The main objective of an organization is to maximize the
wealth and the net profit as well. For this purpose, the organization has
paid wages, salary, and benefit to their staff properly and scientifically so
that organizational efficiency can be ensured.
Scalar Chain
Scalar Chain refers to the chain of superiors ranging from top management
to the lowest rank. The principle suggests that there should be a clear
line of authority from top to bottom linking all managers at all levels. It
is considered a chain of command. It involves a concept called a “gang
plank” using which a subordinate may contact a superior or his superior in
case of an emergency , defying th e hierarchy of control. However the
immediate superiors must be infor0med about the matter.
Official Chain of Command that has to be strictly followed in an organization
According to the Tata Group’s Code of Conduct – “Every employee of a Tata
company shall promptly report to the management, and / or third -party
ethics helpline, when she/he becomes aware of any actual or possible
violation of the Code or an event of misconduct, act of misdemeanor or act
not in the company’s interest. ”
Order
According to the principle of order or order, the right person should be given
the right job. and the right object should be placed in the right place. For
example, Physical system for material resources and Social system for human
resources.
To organize material resour ces means that there should be a proper place for
everything and everything should be in its proper place.
Positive Effect
Stability of Personnel
According to this principle, “Stability should be created in the employees so that the
Initiative
Using the initiative of employees can add strength and new ideas to an organization.
Initiative on the part of employees is a source of strength for an organization because it
provides new and better ideas. Employees are likely to take greater interest in the
functioning of the organization.
Esprit de Corps
This refers to the need of managers to ensure and develop morale in the workplace;
individually and communally. Team spirit helps develop an atmosphere of mutual trust
and understanding.
A work culture which stimulates innovation, team work & freedom to exc e
2-WWW.GOOGLE.COM
3 - NCERT WEBSITE
4 - ODISHA STATE BUERUE BOOKS