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Principle of Managment CBSE Class 12th

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Page 1: Principle of Managment CBSE Class 12th

ALL INDIA SENIOR SECONDARY CERTIFICATE EXAMINATION – 2014-15

Project Of Business Studies

PRINCIPLES OF MANAGEMENT

SUBMITTED TO: AMIT RAJPUT

(P.A Commerce)DPS

Moradabad

SUBMITTED BY:YASH AGARWAL

XII-Commerce

D.P.S. MBD.

Page 2: Principle of Managment CBSE Class 12th

CERTIFICATEThis is to certify that Yash Agarwal of Class XII Commerce ofDelhi Public School, Moradabad, has completed his projectfile under my supervision. He has taken proper care andshown utmost sincerity in the completion of this project. Icertify that this project is upto my expectation and as per theguidelines issued by C.B.S.E.

Mr. Amit Rajput

(Dept. of Commerce)

DPS Moradabad

Signature:_________

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ACKNOWLEDGEMENT

I am very thankful to my Business Studies Teacher, Mr. Amit Rajput, who helped me in analyzing the application of Principles of Management. It made my concepts more clear, enhanced my knowledge and help me realize the importance of Principle of Management.I am also thankful to the C.B.S.E. for giving me such an amazing opportunity of making this project, and giving a suitable instruction and guidelines for the project.

Yash AgarwalXII Commerce

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Page 5: Principle of Managment CBSE Class 12th

Henri Fayol (Istanbul, 29 July 1841 –

Paris, 19 November 1925) was

a French mining engineer and director

of mines who developed a general

theory of business administration that

is often called Fayolism. He and his

colleagues developed this theory

independently of scientific management

but roughly contemporaneously. Like his

contemporary, Frederick Winslow

Taylor, he is widely acknowledged as a

founder of modern management

methods.

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• Fayol was born in 1841 in a suburb of Istanbul, Ottoman 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 held 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.

• Based largely on his own management experience, he developed his concept of administration. In 1916 he published these experience in the book "Administration Industrielle et Générale", at about the same time as Frederick Winslow Taylor published his Principles of Scientific Management

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• Division of Work - Fayol presented work specialization as the best way to use the human resources of the organization.

• Authority - Managers must be able to give orders. Authority gives them this right. Note that responsibility arises wherever authority is exercised.

• Discipline - Employees must obey and respect the rules that govern the organization. Good discipline is the result of effective leadership.

• Unity of command - Every employee should receive orders from only one superior.• Unity of direction - Each group of organizational activities that have the same objective

should be directed by one manager using one plan for achievement of one common goal.• Subordination - The interests of any one employee or group of employees should not

take precedence over the interests of the organization as a whole.• Remuneration - Workers must be paid a fair wage for their services.• Centralization - Centralization refers to the degree to which subordinates are involved

in decision making.• Scalar chain - The line of authority from top management to the lowest ranks represents

the scalar chain. Communications should follow this chain.• Order - this principle is concerned with systematic arrangement of men, machine,

material etc. there should be a specific place for every employee in an organization• Equity - Managers should be kind and fair to their subordinates.• Stability of tenure of personnel - High employee turnover is inefficient. Management

should provide orderly personnel planning and ensure that replacements are available to fill vacancies.

• Initiative - Employees who are allowed to originate and carry out plans will exert high levels of effort.

• Esprit de corps - Promoting team spirit will build harmony and unity within the organization.

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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

what to do before .

Division of Work

Page 9: Principle of Managment CBSE Class 12th

The issue of commands followed by responsibility for their consequences.

Authority means the right of a superior to give enhance order to his

subordinates; responsibility means obligation for performance.

This principle suggests that there must be parity between authority and

responsibility.

They are co-existent and go together, and are two sides of the same coin.

and the authority must be commensurate with responsibility.

Authority and Responsibility

Page 10: Principle of Managment CBSE Class 12th

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.

Discipline

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This principle states that every subordinate should receive

orders and be accountable to one and only one superior. If an

employee receives orders from more than one superior, it is

likely to create confusion and conflict . Unity of Command

also makes it easier to fix responsibility for mistakes and the

authority should be commensurate with responsibility

Unity of Command

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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.

Unity of Direction

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The management must put aside personal

considerations and put company objectives first.

Therefore the interests of goals of the organization

must prevail over the personal interests of

individuals.

Subordination of

Individual Interest

Page 14: Principle of Managment CBSE Class 12th

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 capacity 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.

Remuneration

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The amount of power wielded with the central management

depends on company size. Centralization implies the

concentration of decision making authority at the top

management. Sharing of authority with lower levels is called

decentralization. The organization should strive to achieve a

proper balance.

Degree of Centralization

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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 the hierarchy of control .

However the immediate superiors must be informed about the matter.

Scalar Chain

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Social order ensures the fluid operation of a

company through authoritative procedure. Material

order ensures safety and efficiency in the

workplace. Order should be acceptable and under

the rules of the company.

Order

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Employees must be treated kindly, and justice must

be enacted to ensure a just workplace. Managers

should be fair and impartial when dealing with

employees, giving equal attention towards all

employees.

Equity

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The period of service should not be too short and

employees should not be moved from positions

frequently. An employee cannot render useful service

if he is removed before he becomes accustomed to

the work assigned to him.

Stability of Personnel

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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

organization because it provides new and better

ideas. Employees are likely to take greater interest

in the functioning of the organization.

Initiative

Page 21: Principle of Managment CBSE Class 12th

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.

Esprit de Corps

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Photo Gallery

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