Acknowledgement
I would like to express my gratitude to my guide and teacher R.C.
Lokhande who provided me the amazing opportunity to do this
wonderful Micro-Project of the Course title ‘Management’ (Course
code: 22509) on the topic ‘Study of management principles applied to
large scale industries’.
Secondly, I want to extend my sincere thanks to our Principal well as
the Head of the Department of civil department who have been an
invisible spirit and inspiration to me throughout the process.
Also, I would like to thank every one of my group members who
helped me lot to conclude this micro-project within the limited time
frame.
PART A
Plan
Title of the Micro-project: Study of management principles applied to large scale
industries.
1.0 Brief description: Management is essential to any organization that wishes to
be efficient and achieve its aims. Without someone in a position of authority
there would be organizational anarchy with no structure and very little, if any
focus. In this project, management principles applied in large scale industries is
discussed.
2.0 Aim of the Micro-project:
3.0 Reference:
1) Management- Tech knowledge publications
2) Henri Fayol 14 Principles of Management: Meaning, Definition (byjus.com)
DAY TO DAY WORK OF MICRO PROJECT
Class-CE6I Subject-MAN (22509)
No of days Activity performed Date Remark
1 Various topics of micro project were 12-4-21
discussed
2 Group formation- group was formed by 15-4-21
the project guide/subject teacher and
the topic was selected
3 Particular topic was given to each student 19-4-21
in the group
4 Detailed list prepared for the project 22-4-21
topics
5 Collected data of topics from various shops 26-4-21
6 Collected data is cross checked by the 29-4-21
project guide
7 Collected data of topics from various shops 3-5-21
8 8-5-21
9 Data is collected from internet of different 10-5-21
materials
10 Roughly noted in a book all the necessary 15-5-21
details and notes are prepared
11 Collection of various data from assigned to 17-5-21
each student
12 Typing and data sequence formed and set 21-5-21
as per project
13 Typing and data sequence formed and set 24-5-21
as per project
14 Rough copy is prepared and if any 27-5-21
corrections are needed to the
related project
15 Finalized the report and gave for printing 29-5-21
16 Hard copy is prepared and attached to the 31-5-21
file
PART B
(Outcomes after Execution)
Format for Micro Project Report
Title of the Micro-project: Study of management principles applied to large scale
industries.
1.0 Brief description: Management is essential to any organization that wishes to
be efficient and achieve its aims. Without someone in a position of authority
there would be organizational anarchy with no structure and very little, if any
focus. In this project, management principles applied in large scale industries is
discussed.
3.0 Course Outcomes integrated:
Use basic management principles to execute daily activities.
4.0 Actual procedure followed:
After forming the groups the students in the group started to work on the
MicroProject as guided by Mr. R.C.Lokhande. He advised us to collect the
materials as soon as possible to sort. Every team member helped in completing
the project as quick as possible.
Firstly the data was collected through various sources such as books, reference
books available in library, internet etc. The collected content was analyzed and
edited with the help and guidance of the teacher. It was formulated again and
again to give the final touch. When it got completed, it was presented before the
teacher for proof reading and finalization. The teacher finalized it and advised us
to compile the report in proper format along with presentation.
5.0 Actual resources used:
Sr.n Name of resource Specification Qty Remark
o s
1 Management Tech 1
knowledge
publications
2 Henri Fayol 14 Principles of Management: Meaning, website - 6.0 Outputs
Definition (byjus.com) of the
3 Images Source - - - Micro-
Internet project-
There are different forms of business organizations ranging from a sole
proprietorship to large scale businesses that employ over a thousand employees.
Based on the scale of the business, various classifications can be done, such as
small scale industries, large scale industries, public enterprises and multinational
corporations.
Large scale industries are referred to as those industries that are having huge
infrastructure, raw material, high manpower requirements and large capital
requirements. Those organizations having a fixed asset of more than 10 crore
rupees are considered to be large scale industries.
The growth of the economy is very much dependent on these industries. Such
industries work towards bringing in foreign reserves, generating employment
opportunities and paving the way for economic growth
The fourteen principles of management created by Henri Fayol are explained
6.2 Principles of Management – The Importance of the Principles
Having a clear management structure in place is vital for any successful
organization. Efficient and well intentioned management sets the tone for the
rest of the staff. It is common for the attitude approach of managers to filter
through the entire organization, so having managers working in an exemplary way
is an excellent example for employees to follow.
6.3 14 Principles of management by Henry Fayol:
Henry Fayol, also known as the ‘father of modern management theory’ gave a
new perception of the concept of management. He introduced a general theory
that can be applied to all levels of management and every department. The Fayol
theory is practised by the managers to organize and regulate the internal
activities of an organization. He concentrated on accomplishing managerial
efficiency.
below.
1. Division of Work-
Henri believed that segregating work in the workforce amongst the worker will
enhance the quality of the product. Similarly, he also concluded that the division
of work improves the productivity, efficiency, accuracy and speed of the workers.
This principle is appropriate for both the managerial as well as a technical work
level.
2. Authority and Responsibility-
These are the two key aspects of management. Authority facilitates the
management to work efficiently, and responsibility makes them responsible
for the work done under their guidance or leadership.
3. Discipline-
Without discipline, nothing can be accomplished. It is the core value for any
project or any management. Good performance and sensible interrelation make
the management job easy and comprehensive. Employees good behaviour also
helps them smoothly build and progress in their professional careers.
4. Unity of Command-
This means an employee should have only one boss and follow his command. If
an employee has to follow more than one boss, there begins a conflict of interest
and can create confusion.
5. Unity of Direction-
Whoever is engaged in the same activity should have a unified goal. This means all
the person working in a company should have one goal and motive which will
make the work easier and achieve the set goal easily.
6. Subordination of Individual Interest-
This indicates a company should work unitedly towards the interest of a company
rather than personal interest. Be subordinate to the purposes of an organization.
This refers to the whole chain of command in a company.
7. Remuneration-
This plays an important role in motivating the workers of a company.
Remuneration can be monetary or non-monetary. However, it should be
according to an individual’s efforts they have made.
8. Centralization-
In any company, the management or any authority responsible for the
decisionmaking process should be neutral. However, this depends on the size of
an organization. Henri Fayol stressed on the point that there should be a balance
between the hierarchy and division of power.
9. Scalar Chain-
Fayol on this principle highlights that the hierarchy steps should be from the top
to the lowest. This is necessary so that every employee knows their immediate
senior also they should be able to contact any, if needed.
10. Order-
A company should maintain a well-defined work order to have a favourable work
culture. The positive atmosphere in the workplace will boost more positive
productivity. 11. Equity-
All employees should be treated equally and respectfully. It’s the responsibility of
a manager that no employees face discrimination.
12. Stability-
An employee delivers the best if they feel secure in their job. It is the duty of the
management to offer job security to their employees.
13. Initiative-
The management should support and encourage the employees to take initiatives
in an organization. It will help them to increase their interest and make then
worth.
14. Esprit de Corps-
It is the responsibility of the management to motivate their employees and be
supportive of each other regularly. Developing trust and mutual understanding
will lead to a positive outcome and work environment.
This 14 principles of management are used to manage an organization and are
beneficial for prediction, planning, decision-making, organization and process
management, control and coordination
6.4 Primary Principles of Production Management In large Scale industries:
• Shorter set-up times.
By their nature, all set-up processes result in waste; they tie up labour and
equipment without adding value. Training, improved efficiency, and giving
workers accountability for their own set-ups allows to slash the set-up times.
• Empowering employees.
Dividing a workforce into small teams and giving them accountability for
housekeeping and various other tasks has been shown to improve efficiency.
Teams are assigned leaders, and the workers within those teams are trained on
maintenance issues – allowing them to deal with delays in the production process
immediately.
• Equipment Maintenance.
Workers on the line are best placed to deal with mechanical breakdowns and
subsequent repairs. They can react to issues quickly and often without
supervision, which allows the production process to restart far more quickly after
a shutdown.
• Management skill
Possessing management skill is generally considered a requirement for
success. An effective manager is the manager who is able to master four
basic types of skills: technical, conceptual, interpersonal, and decision
making.
• Technical skills
These skills are mostly related to working with processes or physical objects.
Engineering, accounting, and computer programming are examples of technical
skills. Technical skills are particularly important for first-line managers and are
much less important at the top management level.
• Decision making
The ability to identify a problem or an opportunity, creatively develop alternative
solutions, select an alternative, delegate authority to implement a solution, and
evaluate the solution.
6.5 How principles are applied in the large scale industry:
1) Providing managers with useful insights into reality:
The principles of management provide the managers with useful insights into real
world situations. Adherence to these principles will add to their knowledge,
ability and understanding of managerial situations and circumstances. It will also
enable managers to learn from past mistakes and conserve time by solving
recurring problems quickly. As managerial discretion is bounded by the principle
of contribution to organizational objectives.
2) Scientific decisions:
Decisions must be based on facts, thoughtful and justifiable in terms of the
intended purposes. They must be timely, realistic and subject to measurement
and evaluation. Management principles Help in thoughtful decision-making. They
emphasize logic rather than blind faith. Management decisions taken on the basis
of principles are free from bias and prejudice. They are based on the objective
assessment of the situation.
3) Meeting changing environment requirements:
Although the principles are in the nature of general guidelines but they are
modified and as such help managers to meet changing requirements af the
environment. You have already studied that management principles are flexible
to adapt to dynamic business environment. For example, Management principles
emphasize division of work and specialization. In modern times this principle has
been extended to the entire business whereby companies are specialising in their
core competency and divesting non-core businesses. In this context, one may cite
the decision of Hindustan Lever Limited in divesting non-core businesses of
chemicals and seeds. Some companies are outsourcing their non-core activities
like share-transfer management and advertising to outside agencies. So much so,
that even core processes such as R&D, manufacturing and marketing are being
outsourced today.
4) Fulfilling social responsibility:
The increased awareness of the public, forces businesses especially limited
companies to fulfil their social responsibilities. Management theory and
management principles have also evolved in response to these demands.
Moreover, the interpretation of the principles also assumes newer and
contemporary meanings with the change in time. So, if any were to talk of ‘equity’
today, it does not apply to wages alone. Value to the customer, care for the
environment, dealings with business associates would all come under the purview
of this principle. As an application of this principle, we find that Public Sector
Undertakings have developed entire townships as, for example, BHEL has
developed Ranipur in Hardwar (Uttaranchal). One may also cite the story of Shri
Mahila Grina Udyog Lijjat Papad as can be seen in the accompanying box.
5) Management training, education and research:
Principles of management are at the core of management theory. As such these
are used as a basis for management training, education and research. You must
be aware that entrance to management institutes is preceded by management
aptitude tests. Do you think that these tests could have been developed without
an understanding of management principles and how they may be applied in
different situations? These principles provide basic groundwork for the
development of management as a discipline. Professional courses such as MBA
(Master of Business Administration), BBA (Bachelor of Business Administration)
also teach these principles as part of their curriculum at the beginner's level.
These principles enable refinement of management practices as weil by
facilitating the development of new management techniques. Thus, we see that
techniques like Operations Research (OR), cost accounting, ‘Just in Time’,
‘Kanban’ and ‘Kaizen’ have developed due to further research on these principles.
In conclusion it can be said that understanding the meaning, nature and
significance of principles of management will help us to appreciate their
applicability in real life situations. As stated at the beginning of the chapter,
management principles have undergone a long history of evolution. And, they
continue to evolve. What follows is a description of the management principles
pertaining to the classical school; more precisely, those propounded by F.W.
Taylor and Henri Fayol.
6.6 Example:
These are:
1. Honor the language and spirit of law of every nation and undertake open
and fair corporate activities to be a good corporate citizen around the world.
2. Respect the culture and customs of every nation and contribute to
economic and social development through corporate activities in local
communities.
3. To provide clean and safe products and to enhance the quality of life
everywhere.
4. Create and develop advanced technologies and provide outstanding
products and services that fulfil the needs of customers worldwide.
5. Faster a corporate culture that enhances individual creativity and
teamwork value, while honoring mutual trust and respect between management
and labor.
6. Pursue growth and harmony with global community through innovative
management.
7. Work with business partners in research and creativity to achieve stable,
longterm growth and mutual benefits and be open to new partnerships.
These principles, will guide the company in its global vision. This global vision
envisages continuous innovations in future, use of environment friendly
technologies, respecting and working with different sections of society and
establishing an interactive relationship with society.
7.0 Skill Developed/Conclusion:
1) It has been said that management has four basic functions – planning,
organizing, leading and controlling.
2) Common sense dictates that without these principles of management being
in place an organization would have trouble achieving its aims, or even coming up
with aims in the first place.
