La Pino'z Pizza

Fayol’s Principles Of Management

Business Studies Project

Index
1. Objectives of study.
2. Method of study.
3. Introduction to principles of management.
4. About Henri Fayol.
5. Principles of management.
6. About the organization.
7. Application of principles of management.
8. Observation.
9. Conclusion.
10. Bibliography.
 Objectives Of Management

⮚ I chase to visit La Pino'z Pizza in Ahmadabad one, Vastrapur. It took me

4 hours to observe and analyse the application of Henri Fayol’s 14
principles of management. I also conducted a survey from employees of
La Pino'z Pizza. It gave me an idea how the organization works. I
maintained distance and wore a mask and other necessary precautions
were taken.

⮚ The purpose of this project is to see the principle of management

being implemented in real life by gathering information and
observation.

⮚ It will help us in knowing whether by following the principle of

management, the efficiency of the manager is actually enhanced or not.

⮚ Principles of management tells about the performance of the

company, specially in the project-La Pino'z Pizza.
 Method Of Study
There are two sources of data :

1. Primary Data
2. Secondary Data

⮚ Primary Data - This source of data implies collection of data from its
source of origin. It offers hand quantitative information relating to our
statistical study.

⮚ Secondary Source - This source of data cannot be traced back to the

level of individual cases statistical units. It is collected by someone else
for some other purpose and used by people like to fulfill our purpose.

The data collected from the internet , books , etc. are secondary data . In
this project I wrote and explained about Principles of Management , La
Pino'z Pizza from books and the internet in secondary sources.
 Principles of Management
Introduction
Principles of Management are broad and general guidelines for
decision making and behavior of managers.

The principles serve as general guidelines to the managers for

making decision taking actions and solving various problems
systematically they are not rulesbutonly a guide to actions.
Principles are applicable to different types of organization business ,
hospitals , clubs and educational institutions.

Significance

The principles of management derive their significance from their

unity. They provide useful insights managerial behavior and
influence managerial practices. Managers may apply these
principles to fulfill their task and responsibility. Principles guide
managers in taking and implementing decision decision of
La Pino'z Pizza .
 Principles of Management
Principles of Management given by Henri Fayol are as
follows :-

1. Division of work
2. Authority and responsibility 3. Discipline
4. Unity of command
5. Unity of direction
6. Remuneration of employees
7. Subordination of individual interest to general interest
8. Centralization and Decentralization 9. Scalar chain
10. Order
11. Equity
12. Stability of personal
13. Initiative
14. Esprit De Corps
1. Division of work : When employees are specialized, output can
increase because they become increasingly skilled and efficient.

2. Authority and Responsibility : Managers must have the authority to

give order, 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 shouldhaveonehead and

one boss.

5. Unity of Direction : Terms with the same objective should be working

under the direction of one head, oneplan. This will ensure that the
action is properly coordinated.

6. Remuneration of Employees : Employee satisfaction depends on fair

remuneration for everyone.
7. Subordination of Individual interest to theGeneral interest : The
interests of one employee should not be allowed to become more
important than those of the groups .

8. Centralization and Decentralization : 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, rather than
getting employees discriminated against (religion, caste, race, gender).

12. Stability of Personal : Managers should strive to

minimize employee turnover . Personal planning should be
a first 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 workers must work inharmony.

Introduction

The principles of management are defined as broad general guidelines

that serve as the basis of managerial decision making and actions .

The principles of management are related to the managerial aspect of

an organization and are fundamental to defining best practices within an
organization. Principles of management are often discussed using a
framework called POLE which stands for planning , organizing , leading ,
and controlling. Managers are required in all the activities of
organizations: budgeting , designing , selling , creating , financing ,
accounting and artistic presentation. The larger the organization is, the
more managers are needed. An organization is always driven by certain
principles which provides broad guidelines for determining its objectives
and also the ways of achieving them. The principle of management has
been propounded by various management experts over a period of time
andare in continuous process of evolution . A classic theory on principles
of management was written by Henri Fayol . It seeks to divide
management into 14 principles .

Henri Fayol
1. Lifetime : 1841 - 1925.
2. Profession : Mining Engineer and Managementtheorist (French
national).

3. Education : Graduated fromMining Academyat St. Etienne in 1880 .

4. Positions held : Founded the mining company Fourchambault

Decazeville' and became its managing director in 1888 and remained
till 1918.

5. Writing : Administration Industrielle et generale. It Was published in

English as general andIndustrial management in 1949 and is widely
considered foundational work in classical management theory.

6. Contributions : Mainly 14 management principles which are

referred to as administrative in nature inthatthey have a top down
approach concerning top management and other manager’s conduct .
⮚ Henri Fayol is also known as the ‘Father of General Management’ .

⮚ He was the first person to identify four functions of

management - planning , organizing , directing and controlling
.

⮚ He emphasized on specific activities that managers should carry out

namely Plan , Organize , Command , Coordinate And Control .

⮚ He suggested that all the activities of an industrial enterprise should

be possibly divided into various sections namely: Technical ,
Commercial , Financial Security , Accountingandmanagerial .

⮚ He emphasized that a manager should passes multifaceted

qualities like physical , moral , education , knowledge and
experience. As he felt it was important to understand what
accounts to a manager's work and what principles should be

followed in doing his work .

⮚ He believed that infinite number of management principles can be
formulated as to improve upon the operational efficiency of the
organization .

⮚ The principle suggested by him were evaluated on basis of his

personal experience .

La Pino'z Pizza
Business Studies

About La Pino'z Pizza

The story of India’s fastest growing pizza place started back in 2011 when Sanam
Kapoor opened his very first pizzeria in his hometown Chaandigarh. Inspired by his
own search for delicious pizza options, he started to wonder if there was a better
way of doing pizza - and business. The last thing the world needed was another
pizzeria, but maybe this one could be different and everyone could get exactly
what they wanted, made fresh on demand. It all started sounding pretty great,
and soon Sanam was opening the first La Pino’z in his hometown Chandigarh and
there was no looking back. As of today, La Pino’z has 500+ outlets across India with
the recent one opening in London.
 COVID’19 AND La Pino'z Pizza

West life Development , the company that owns and operates La

Pino'z Pizza restaurants in west and south India was opened during
the pandemic . The company has implemented a 42-pointer checklist
across its dine-in , delivery and takeout services , to ensure that the
employees and customers are safe every step of the way.

Speaking on the reopening of the restaurants SmitaJatia, director ,

west-life development limited said “We are Extremely cognizant of the
anxieties and concerns of our customers and employees though the
ongoing health crisis and their safety has been our top most priority . We
have closely watched the evolving situation and have constantly taken
closer to the cycle of recovery , to ensure we are able todeliveraresuring
and safe experience. It is created with almost care ensure that our
customers and employees remain safe at every step.``
 THE NEW NORMS

Additional safety processes have been added which included thermal screening for
all employees and customers along with ensuring social distancing every step of
the way. If one visits La Pino'z Pizza they will see various social distancing
Marketing’s in front of the self ordering KIOSKS, front counter and washrooms,
alongwith alternate table and chair sitting arrangement in the dining area. In
Addition to the above , customers and employees in the restaurant premises will
have access to hand sanitizers at all touch points and crew members will always be
seen wearing protective gear including masks and gloves. Moreover, all staff
members will mandatorily have the Aarogya Setu app on their phones. To ensure
the highest standards of food preparation and handling, the QSR giant is making
sure that the food is prepared freshly once the order is placed and is served in a
contactless manner without being touched with the bare hands.

In addition to this , the restaurant leadership team is undergoing all mandated

training on health and hygiene modules which is conducted by FSSAI while
each crew member is receiving specialized training on precautionary measures
against Covid’19. La Pino'z Pizza is also ensuring increased sanitation
checks at the suppliers and to ascertain food safety from farm to plate.
Thebrand already boosts 100% traceability of all ingredients used in their
food right to their source. All La Pino'z Pizza restaurants in west and south
India will be starting operation of takeout & delivery services inaphase
manner in compliance with the local government regulations.
Applications of Principles of Fayol in La Pino'z
Pizza.

Fayol’s elements of managements are recognized as the main

objectives of modern managers. Fayol believed management
theories could be developed , then taught and suggested that it
is important to have unity of command : a concept that
suggests there should be only one supervisor for each person in
an organization. Fayol suggested that management is a
universal human activity that applies well to the family as it
does to the corporation.
1. Division Of Work …

The intent of division of work is to produce more and better work for the
same effort . “Specialization is the most efficient way to use human
effort.”

The first thing one would notice in a La Pino'z Pizza kitchen is the tools,
the work process and the actual food . Each food item has its own
machine . The area is laid out for maximum efficiency and minimum
movement of worker . In this way job becomes very well defined each
employee knows what he has to do.

( Application )

Work should be divided among individuals and groups to ensure that

effort and attention are focused on special elements of the tasks .

POSITIVE EFFECT

- Leads to specialization.
- Increases the work efficiency & effectiveness.
- Ensures optimum utilization of resources
- Reduces the need of supervision.

NEGATIVE EFFECT

- Specialization can’t be implemented.

- The work efficiency & effectiveness reduced.
- The resources may be Underutilized.
- Workload on sup will increase.

2. Authority …

“ Authority is the right to give orders and obtain obedience, and

responsibility is the corollary of authority. The two types of authority are
official authority which is the authority command and personal
authority which is the authority of individual Manager.”

The branch manager has full authority to give orders to the employees
the training squad members. Dining area Hostlers , party entertainers ,
Administrative assistants , Security coordinates , Maintenance staff ,
slight closures , Floor managers and shift running floor managers , all
report to the branch managers and it is the branch managers. Job to
ensure that the work is done . At the restaurant the hierarchy is :-

- General manager
-Restaurant manager
-1st assistance manager
-2nd assistance manager
-Shift running manager
-Floor manager-Staff taking crew
-Crew members

Authority & responsibility :

(Application)

‘ Authority means right to give orders and obtain obedience.’

‘Responsibility means obligation of a subordinate to properly
perform the assigned duty.’
Managers require authority commensurate with their
Responsibility.

Positive Effect

- Minimize misuse of authority.

- Ensures efficient & effective realization of goals.
- It is easy to improve accountability ensure smooth working.

Negative Effect
- The desired goals may not be achieved.
- Difficult to create accountability excess of authority may be misused.
- Insufficient authority may lead to disruption of Work.

3. Discipline …

A sense of discipline is needed in all employees at all levels in the

organization for the smooth functioning of the organization as well as
the achievement of the organizational objectives. Some employees
internally possess this quality. Still some employees need to be induced
with a sense of discipline and the manager must give proper attention to
this type of individual to maintain discipline.

Discipline requires good supervisors at all levels dear and fair

arrangement and Judicious application of penalties. All the employees of
La Pino'z Pizza have a clear understanding of their job. The jobs are well
defined and they also have clear understanding of the company’s
vision-mission statement which is to provide “quickest and friendliest
service.”
Employees are allowed a five minute break every two hours and have a
half hour break every four , they respect such rule that govern the
organization.

( Application )
Discipline is the obedience to the organizational rules and
employment agreement which are necessary for the working ofthe
organization

Positive Effect

- Leads to systematic workings

- Ensures efficient & effective realization of goals.
- Promotes well defined flow of communication through scalar chain.
- Develops the sense of commitment both among workers &
management.

Negative Effect

- May lead to chaos & confusion.

- Goal may not be achieved properly on time.
- It will lead to difficulty in healthy work environment.
-Way lead to wastage of resources.

4. Unity Of Command …
The principle of unity of command is applied throughout the
world today in the organization ranging from the military
government bureaucrats and companies from small business up
to multinational corporations.
An individual employee should receive orders from one and
only superior at a time to that employee should be answerable
only to that superior.
All the jobs in La Pino’z Pizza are well defined and streamlined
such that each employee reports to a particular managerwhereas all of
them report to that restaurant branch manager.

( Application )

The principle of unity of command states that each participant

in formal organization should receive orders from and be
responsible to only one superior.

Positive Effect

- Leads to systematic working.

- Increases efficiency and effectiveness of superior & subordinates.
- Faculties coordination & communication.
- Easy to fix responsibility.

Negative Effect

- May confuse the subordinates.

- May lead to ego and clashes among superior.
- It may be difficult to create a healthy work environment.
- May lead to wastage of resources.

5. Remuneration Of Employees …
Every individual joins the organization to earn carrying his bread and
butter ; Fayol is of the aim that each employee must get fair
remuneration so that employees as well as owner , gets that same
amount of satisfaction.The overall pay and compensation should be fair
to both employees and the organization. This will ensure congenial
atmosphere and good relations between workers and management .
Consequently , the working of the company would be smooth.
Employees of La Pino'z Pizza are paid on a hourly basis . Which is why
the attraction rate is very high . La Pino'z Pizza also follows the pay and
reward policy wherein the better an employee performs the more salary
he receives .

( Application )

Workers must be paid with a fair wage for the service.

Positive effect

- Help to create a healthy work environment .

- It ensures smooth running.
- Facilitate achievement of desired goal.
- Reduce labour turnover and promote stability.

Negative Effect

- May lead to dissatisfaction among employees.

- The labour turnover may be high.
- The work performance may reduce.
- The relationship between worker & management not be congenial.
6. Centralization & Decentralization …

Centralization refers to concentration of authority or power in

few areas at the top level. Decentralization means every distribution of
power as every level of management.

According to Fayol a company must not be completely

centralized or completely decentralized but there must be
combination of both depending upon the nature and size of
Organization.

La Pino'z Pizza has a mechanistic organizational structure

authority is highly centralized and the tasks and rules are clearly
specified yet every employee listens, communicates freely and
honestly and acts in the interest of all the employees.

( Application )

It is the opposite action, where the authority and responsibility

are tightly held by upper levels of the organization and are not
delegated.

Positive Effect

- Ensures quick decision making.

- Leads to efficient & effective realization of goals.
- Helps to reduce burden on managers .- Ensure smooth working of the
organization.

Negative Effect
- The organizational goals may not be accomplished properly.
- An organization may not function smoothly.
- Insufficient authority may lead to disruption.
- Decision making may be delayed.

7. Order …

People and materials must be in suitable places at

appropriate time for maximum efficiency. Each food item
has its own machine. There is one toaster-grill for each kind
of burger . As mentioned earlier the materials are the right
place at the right
time for example the buns, toaster grill and trays are all one
top of the other. Moreover in order to ensure that the right
person is hired for the right job La Pino'z Pizza ensures
inducts all new employees into the business through a
welcome meeting , which they attend , the welcome
meeting gives an overview of the company, including : Job
role, food , hygiene, and safety training policies and
procedures administration benefits , new employees also
meet their trainer, and tour the restaurant. The company
operates a 3 week probationary period , after which
employees are rated on their performance and either
retainedof hence their employment terminated .
( Application )

This principle is concerned with systematic arrangement of

men , machine , material , etc . There should be specific place
for every employee in an organization.

Positive Effect

- Leads to smooth & systematic working.

- Increase work efficiency and effectiveness.
- Facilitates coordination.
- Leads to optimum utilization of resources.

Negative Effect

- May have an adverse effect on work efficiency & effectiveness.

- May not lead to achievement of desired goals.
- It may lead to wastage of on energy in locating resources.

8. Equity …

The principle of equity often occurs in the care values of an

organization. According to Henri Fayol , employees must be
treated kindly and equally. Employees must be in the right
place in the organization to do things right. All the
employees of La Pino'z Pizza are treated in the same
manner. They are not discriminated.
Positive Effect

- Ensures loyalty devotion.

- Leads to efficient & effectiveness realization.
- Enhances the job satisfaction.

Negative Effect

- The organizational goals may not be accomplished properly.

- Realizations may became better.
- May lead to high labour turnover.

9. Unity Of Direction …

Management principle based on the concept that all team member

involved in the same activities must share the same objective. Team
members all work towards common goal using the same plan to reach
the stored objectives. In La Pino'z Pizza the structure consists of different
kinds of employees from different background with different style.
Employees unifies all their efforts to lead towards the common
direction.

Positive Effect

- Leads to systematic working of an organization.

- Increases work efficiency & effectiveness .
- Facilitates coordination & communication.
- Easy to fix responsibility for makers.
Negative Effect

- May have an adverse effect on work efficiency and effectiveness.

- May not lead to achievement of goals.
- It may be difficult to create communication.
- May lead to wastage of resources due to lack of unity of
Action.

10. Unity Of Direction …

( Application )

Each group of activities having the same objectives must have

‘ One Head and One Plan’.

11. Subordination Of Individual Interest to General Interest …

The interest of any one employee or a group of employees should not

take precedence over the interest of the interest of the organization as a
whole .

Positive Effect

- Helps to curb undesirable behaviour of employees.

- Ensures efficient & effectiveness realization of goals.
- Promote unity of action.
Negative Effect

- The desired goal may not be achieved properly & in time.

- It will be more difficult to create a healthy work environment.
- May lead to wastage of resources.

12. Scalar Chain …

The line of authority from top management to the lower ranks

represents the scalar chain communications should follow the
Chain.

Positive Effect

- Ensure smooth & systematic flow of communication .

- Leads to systematic working. effectiveness.
- Increases work efficiency & effectiveness .
- Facilitates control & communication.

Negative Effect

- May have adverse effect on work efficiency & effectiveness.

- May not lead to achieved in desired goals.
- Difficult to coordinate.

13. Stability Of Personal …

Fayol suggested that employee turnover should be minimized to

maintain operational efficiency in the organization. Since the cost of
recruitment and selection is high persons should be selected and
appointed after due and rigorous procedure. In La Pino'z Pizza , the
employees does not back their staff by providing the feeling of job
security .

Positive Effect

- In stills a feeling of job security.

- Leads tot efficiency & effectiveness of goals .
- Leads to optimum utilization of resources .

Negative Effect

- The organizational goals may not be accomplished properly .

- Frequent shifting may lead to dissatisfaction .
- May lead to high labour turnover .

14. Espirit De Corps …

The La Pino'z Pizza chain show espirit de corps principle of

management Fayol through their coordination while processing
the order . From the time the order is placed the co-workers
work get on their feet to complete the order within stipulated
time . This is very well indicated when the orders processingtime
is within there historical targets . They strive to process each
order within the least possible time . And it is through the
coordination among employees that La Pino'z Pizza has become
such a mammoth organization .
 Fayol’s elements of managements are recognized as the main
objectives of modern managers. Fayol believed management
theories could be developed , then taught and suggested
that it is important to have unity of command : a concept
that suggests there should be only one supervisor for each
person in an organization. Fayol suggested that management
is a universal human activity that applies well to the family as
it does to the corporation.

Observation

⮚ According to the survey, I conducted for the employees of La Pino'z

Pizza , I came to know about various aspects from employees point of
view.

⮚ Foremost, the level of satisfaction is ranging from satisfied to highly

satisfied I.e. They are provided with a suitable environment for work
which enhances their productivity and efficiency .

⮚ Secondly I enquired about the hours for which the employees are
completed to work , it varied because most of them were part times.
⮚ Thirdly, I asked them about the member of shifts they work for so
as to know the division of work and administration efficiency .

● Levels of satisfaction No. of employees

satisfied

Highly satisfied 6

Satisfied 4

Dis-satisfied 0

● Hours of work No. of employees satisfied

8 hours 3

More than 8 hours 3

Less than 8 hours 4

● Number of shifts No. of employees

satisfied
 1 shift 4

2 shifts 6

Conclusion

● In India , La Pino'z Pizza has more than 5000 outlets across various
cities and serves more than 7 lakh people. The company focuses on
customer satisfaction as La Pino'z Pizza has various items to attract
specially Indian customers.

● La Pino'z Pizza is a giant thing in today’s times when it comes to fast

food restaurant chains. No other hand is a close second. The
company has loyal customers all over the world and intends to keep
growing.

● According to the survey I conducted for the employees and

customers of La Pino'z Pizza, the 14 principles producedbyHenryFayol
regarding management are mostly applicable. La Pino'z Pizza follows
the Division of work ; Authority Responsibility , Discipline , unity of
command , unity of direction , subordination of individual interest to
general interest , scalar chain , order , equity and esprit de corps . So
according to the La Pino'z Pizza should become more stronger
 towards the application of these principle because it has been rightly
said - “ Authority Minus Management is Nothing.”

Bibliography

https://lapinozpizza.in/
https://en.m.w.k.ped.n.org .
https://www.mindtools.com

NCERT class 12 BST part-1 .