BUSINESS STUDIES PROJECT ON PRINCIPLES OF MANAGEMENT

A PROJECT
REPORT ON
BUSINESS
STUDIES-XII ON
‘Principle of
Management’
Submitted to, Submitted by,

Acknowledgement
I would like to convey my heartiest thanks to
………………. (Name of the teacher), my
Business Studies teacher who always gave me
valuable suggestions and guidance during the
competition of this project. She/ He has been
a source of inspiration and helped me
understand and remember important details
of the project. My project has been a success
only because of her/his guidance.
(Name of the student)

Certificate
This is to certify that …………… (Name of the
student) of Class XII of
……………………….….(Name of the school) has
completed his/her project file under my
supervision. He/ She has taken proper care
and shown utmost sincerity in completion of
the project. I certify that this project is up to
my expectations and as per the guidelines
issued by CBSE.

Index
S.No. Content Page
No.
1. Introduction of Management
2. About Henri Fayol
3. Details of Nathu’s Sweet
4. Objectives of Study
5. Application of Fayol’s
Principle of Management in
Nathu’s Sweet
6. Analysis & Observations
(Questionnaires)
7. Conclusion

Introduction of
Management
Management is universally necessary in all organization. It is
the force that holds everything in nation. Management is
the mobilization of an organization’s resources to meet a
goal. Management is virtually applied to every type of
organization, whatever its size or purpose.
For Example: - An auto plants, a state governor, a cricket
team, a typing service, all requires management.
When a group of people work together to accomplish some
common goal, they can work efficiently only, when there is
mutual co-operation and co-ordinate between them.
Therefore, a Central directing and Controlling agency is
required for guiding and integrating the efforts of the
numbers of the group. This agency comprises the managers
and the activities of managers are collectively called
management. Anything minus management is nothing.

Henri Fayol
Born : 29 July 1841, Istanbul, Turkey
Died : 19 November 1925, Paris, France
Profession: Mining Engineer and Management the unit (French
National).
Education: Graduated from the mining academy "École Nationale
Supérieure des Mines" in Saint-Étienne in 1860.
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. By the time of his retirement after 30 years in 1918, the
company grew into a large coal steel company with strong
financial position and a long record of profit and dividends.
Writings: Administration industries at generate
Contributions: He classified all activities of an industrial
undertaking into technical, commercial, financial, security,
accounting and managerial.
He suggested that qualities of a manager must possess should be
physical, moral, education, experience etc.
He was the first to identify four function of management:
1.Planning
2.Organizing
3.Staffing
4.Directing
5.Controlling

Type : Sweet Shop
Industry : Retail
Founded : Since 1939
Head Quarter : Delhi, India
Key People : Navita & Anand Gupta
Website : www.nathusweets.com
Nathu’s Sweets have its place amongst famous
sweet shop one may come across in Delhi. It has 13
branches which offer varieties of sweets and other
preparations.
Nathu’s sweets are well known for sweets
maintaining quality which always being updated as per
consumers taste. It has employees who are with this

chain shop for years and pouring their skills in
improving quality.
We will carry forward the goodwill of NATHU’S
QUALITY & TASTE further following the footsteps of our
elders and constantly improving the service, quality and
taste of our products.
Treating every individual customer as a very special
and meeting their requirements to the best possible
situation is the motto of this generation.

Objectives
of Study
The main objectives behind the preparation of this
project was to collect knowledge of an organization.
As I choose to make the project on Nathu’s, I come to
know about many facts which were very useful to me.
The meaning of the principle of fayol’s were
theoretically clear out, preparation of such a wonderful
project helped me a lot to clear them by practically
experiencing their existence in Nathu’s Sweets.

Application of Fayol’s
Principle of Managemnt in
Nathu’s
Henri Fayol developed the following 14 principles of
general management which provide guidelines for
managerial decision making and action.
1.Division Of Work
2.Authority & Responsibilities
3.Discipline
4.Unity Of Command
5.Unity Of Direction
6.Subordination Of Individual Interests To The General
Interests
7.Remuneration of Employees
8.Centralization & Decentralization
9.Scalar Chain
10. Order
11. Equity
12. Stability Of Personnel
13. Initiative
14. Espirit De Corps

Division Of
Work
Meaning: According to this principle, as far as possible
the whole work should be investigated, should be
divided into small parts and each individual should be
assigned only one part of the work according to his
ability and tested repeatedly, so that the benefits of
specialization may be achieved. When employees are
specialized, output can be increased because they
become increasingly skilled and efficiency.
Observations: During the course of personal
observation regarding the Principle of Division of labour
whatever was observed in the company may be
described as follow:
• In front of the entry gate, the selling and billing
counter is located.
Applicability in NATHU’S

• The order is given to the salesman standing at the
counter and the bill is generated. The money is paid
by the customer.
• The order is then passed to the kitchen
department where prepares the food.
• The food then goes to the packaging department.
Here the food is packed and sent to the billing
counter again.
• The food is collected by the customer after that.
It shows that the work is divided into many parts and
the principle of division of work is being followed.

Authority &
Responsibilities
Meaning: According of this principle, authority and
responsibility should go hand in hand. Manager must
have the authorities to give order, but they must also
keep in mind that with authority comes responsibility.
Observations:
Q. Do you have all the authority connected with your
work?
Ans: Yes
Explanation: About the principle of management
‘Authority & Responsibility’, the shift manager was
asked to give her opinion to the question indicated
above. The shift manager replied in favor of the
principle as she had the authority to take decision. She
was responsible for the performance of the working.
Therefore a balance of authority and responsibility was
maintained. It can be said that this principle is
implemented in this company.

Discipline
Meaning: According to this principle, the organizational
rules of employment should be obeyed by both the
superiors and subordinates, which are necessary for the
successful working of the organization. Discipline must
be upheld in the organization.
Observation: During the course of personal observation
regarding the principle of discipline it was observed that
the employees usually got into personal conversation
the movement they found an opportunity of doing so.
They indulged in long conversation on the telephonic in
a joyfully mood. Sometimes, even the customers were
seen being ignored, it shows that the employees are not
honestly for it. Therefore, it can be said that this
principle of management is being violated in this
company.

Unity of Command
Meaning: According to this principle, there should be
one and only one boss for every individual employee.
Employees should have only one direct supervision.
Observation:
Q. Do you get an order from more than one boss?
Ans: Yes
Explanation: The shift manager of the industry was asked to
respond about the principle of unity of command. The
manager replied that dual subordinations existed. I.e. she
received order from more than one boss. It clearly states
that the principle of unity of command is not being
implemented in the organization.

Unity of Direction
Meaning: According to this principle, teams with the same
objective should be working under the direction of one
manager, using one plan. This will ensure that action is
properly co-ordinated.
Observation:
1)The store is divided into three sections of departments-
a)Operations b) Training c) Human Resource
Development(HRD)
2)All the three units were headed by three different
individuals.
3)Every head kept a watch on the activities of their own
unit.
This situation tells us that THE PRINCIPLE OF UNITY OF
DIRECTION is being implemented in the company.

Subordination Of
Individual Interest
To General Interest
Meaning: According to this principle, the interests of an
organization should take priority over the interest of any
one individual employee. The interest of an employee
should not be allowed to become more important than
interest of the organization.
Observation:
Q. Do you give top priority to the interest of the company?
Ans. Yes.
Explanation: With respect to this principle of management,
the shift manager i.e. at the time of training, they taught
the employees to keep the unit of the organization at the
top level on the basis of this organization at the top level on
the basis of this response, it can be arrested that the
individual employees of the company gave priority to
general interest of the organization on the individual
interest.

Remuneration of
Employee
Meaning: According to the principle the employee should
be paid fair remuneration which gives them atleast a
reasonable standard of living. Employees’ satisfaction
depends on fair remuneration for everyone.
Observation:
Q. Do you get reasonable remuneration?
Ans: Yes
Explanation: Regarding this principle of management, the
shift manager was asked to express her opinion. She was
satisfied with the remuneration which she was receiving.
We can conclude that the employees of the company are
happy about the remuneration policy of the company.
Therefore, it can be said that this principle of management
is implemented in the company.

Centralization &
Decentralization
Meaning: According to this principle, the superiors should
adopt effective centralization instead of complete
decentralization.
Observations:
Q. Are the daily decisions made by the person concerned?
Ans. Yes
Q. Are the major decision taken only by the higher
authorities?
Ans. Yes
Explanation: Regarding this principle, the shift manager was
asked two questions. First was about the routine decision
and other was regarding the major decision. 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. This
shows that the company does not adopt a complete
centralization on a complete decentralization. It can be said
that the company follows the principle in an efficient way.

Scalar Chain
Meaning: According to this principle, one organization
should have a chain of authority and communication that
runs from top to bottom. It should be followed by the
managers and the subordinates both. Employees should be
aware of where they stand in the organization’s hierarchy
on the chain of command.
Observations:
Q. Does the senior of your boss directly communicated with
you?
A. No
Explanation: A particular chain has t be followed in the
company as said by the shift manger.
The chain is as follows:
Owner – Marketing Manager – Area Couch – Restaurant
General Manager (RGM) – Assistant Restaurant
Manager(ARM) – Shift Manager – Internal Development
Programme (IDP) – sustain team member, house keeper. In
any case, the chain can’t be broken. It shows that the higher
officials of the company cannot be broken. There scalar
chain is implemented in the company.

Order
Meaning: According to this principle, a right person should
be placed at the right job, right place, and time according to
their skill. The work places facilities must be clean, tidy and
safe for employees. Everything should have in its place.
Observations:
1.It was observed all the units had arranged their goods in
a proper and orderly maintain.
2.Whenever the material/goods got scattered because of
the rush of the customers, it was immediately reserved
in a proper place.
3.All the employees were observed to be working in their
divided place of work.
Explanation: Therefore, it can be concluded that the
principle of order is being observed in the company.

EQUITY
Meaning: According to this principle, the managers should
treat their subordination as family, as possible so that they
develop a feeling of dedication for their work.
Both maintaining discipline and acting with kindness.
Observations:
Q. Does your company give equal remuneration to all the
employees doing a similar job?
Ans. Yes.
Explanation: Regarding this principle, the question gives
above was put to the shift manager. She responded
positively i.e. equal wages were given to people doing
similar job. But appraisal was given to the person whose
performance was the best during the month. It can be said
that the company is conscious about observing this principle
of management.

Stability Of
Personnel
Meaning: According to this principle, there should be a
stability of tenure of the employees, so that work continues
efficiently. Managers should strive to minimize employees’
transfers and frequent terminations.
Observations:
Q. Have you served this company for more than one year?
Ans. YES
Explanation: The shift manger was asked the above
question regarding this principle and she responded
positively. The employees of the company continue to be in
the service of the company for a long period. This situation
reflects good management in the company. Therefore, the
company has to take care of the stability of the personnel in
its own interest.

Initiative
Meaning: According to this principle, employees in the
organization must be given an opportunity in making and
exciting plans.
Observations:
Q. Does your boss give importance to your suggestion?
Ans. YES
Explanation: Regarding this principle, many employees
were asked the above question. Most of them were in favor
of the question while some were not. This shows that
employee’s opinion mattered in the company. This helps in
encouraging initiative and developing confidence among
the employees.

Espirit De Corps
Meaning: According to this principle, organizations should
strive to promote unity and controversy make efforts to
develop to team spirit among the subordinates.
Observations:
• The mangers were seen using the word “We” instead of
“I”.
• It was also observed that the manger shows interest for
their subordinates.
Explanation :
The above observation shows that the principle of ESPIRIT
DE CORPS is being followed in the company.

SAMPLE
QUESTIONNAIRE
Name : …………. Age : ………………..
Gender: ………….. Designation: ………………
S. No. Questions Yes No
1
2
3
4
5
6
7
8
9
10
Are you satisfied with your salary?
Do you report you superiors about your workings on
daily basis?
Are you satisfied with your working environment?
Is job rotation applicable in your job?
Have you ever received any complaints from your
customers regarding the services providing?
Do you get any bonus on occasions?
Does the organization give importance to the
suggestion given by the workers?
Is there any system of penalization in your
organization?
What is your working ours?
a) Less than 7 hours
b) 7 hours
c) More than 7 hours
How many leaves you are allowed to take in a
month?
a) Less than 4 days
b) 4 days
c) More than 4 days

QUESTIONNAIRE
Name: Kapil Age:27
Gender: Male Designation: Store Manager
1
2
3
4
5
6
7
8
9
10
daily basis?
organization?
b) 7 hours
month?
a) Less than 4 days
b) 4 days
c) More than 4 days
√
√
√
√
√
√
√
√
√
√

QUESTIONNAIRE
Name: Shantanu Age:35
Gender: Male Designation: Sales Manager
1
2
3
4
5
6
7
8
9
10
daily basis?
organization?
b) 7 hours
month?
a) Less than 4 days
b) 4 days
c) More than 4 days
√
√
√
√
√
√
√
√
√
√

QUESTIONNAIRE
Name: Vandana Age: 26
Gender: Female Designation: Shift Manager
1
2
3
4
5
6
7
8
9
10
daily basis?
organization?
b) 7 hours
month?
a) Less than 4 days
b) 4 days
c) More than 4 days
√
√
√
√
√
√
√
√
√
√

QUESTIONNAIRE
Name: Sameer Age: 35
Gender: Male Designation: Store Manager
1
2
3
4
5
6
7
8
9
10
daily basis?
organization?
b) 7 hours
month?
a) Less than 4 days
b) 4 days
c) More than 4 days
√
√
√
√
√
√
√
√
√
√

QUESTIONNAIRE
Name: Ashok Kumar Trivedi Age: 45
Gender: Male Designation: CSA
1
2
3
4
5
6
7
8
9
10
daily basis?
organization?
b) 7 hours
month?
a) Less than 4 days
b) 4 days
c) More than 4 days
√
√
√
√
√
√
√
√
√
√

QUESTIONNAIRE
Name: Anmol Age: 28
Gender: Male Designation: Cashier
1
2
3
4
5
6
7
8
9
10
daily basis?
organization?
b) 7 hours
month?
a) Less than 4 days
b) 4 days
c) More than 4 days
√
√
√
√
√
√
√
√
√
√

QUESTIONNAIRE
Name: Babita Age: 35
Gender: Female Designation: Chef
1
2
3
4
5
6
7
8
9
10
daily basis?
organization?
b) 7 hours
month?
a) Less than 4 days
b) 4 days
c) More than 4 days
√
√
√
√
√
√
√
√
√
√

QUESTIONNAIRE
Name: Gagan Age: 28
Gender: Male Designation: Chef
1
2
3
4
5
6
7
8
9
10
daily basis?
organization?
b) 7 hours
month?
a) Less than 4 days
b) 4 days
c) More than 4 days
√
√
√
√
√
√
√
√
√
√

QUESTIONNAIRE
Name: Manav Age: 30
1
2
3
4
5
6
7
8
9
10
daily basis?
organization?
b) 7 hours
month?
a) Less than 4 days
b) 4 days
c) More than 4 days
√
√
√
√
√
√
√
√
√
√

QUESTIONNAIRE
Name: Hiten Age: 40
1
2
3
4
5
6
7
8
9
10
daily basis?
organization?
b) 7 hours
month?
a) Less than 4 days
b) 4 days
c) More than 4 days
√
√
√
√
√
√
√
√
√
√

OBSERVATION
As per the survey, I conducted for the employee of
NATHU’S I came to know about various aspects from an
employee’s point of view….
• Foremostly, the level of satisfaction in respect of
salary provided is very important to study the
applicability of principle of Remuneration and in same
way equity.
OPTIONS NO. OF EMPLOYEES
YES (SATISFIED)
NO (DISSATISFIED)
09
01

• My next question for them was that whether they
have reporting relationship between employees
manager on daily basis.
YES
NO
7
3

• It is very important for any firm to maintain a good
standard and working environment for the employees
working there so, thirdly I asked them that they are
satisfied with working environment or not?
YES
NO
10
---

• Applicability of Job rotation.
YES
NO
5
5

• It is assumed to be good for any organizations if its
customers are satisfied with the products and services
provided to them. That’s why I asked; whether they
have received any complaints from customers or not?
YES
NO
2
8

• Afterwards, I asked them whether they receive any
bonus on special occasions or not.
YES
NO
-
10

• It is very important for any organization to have a
suggestion box or importance must be given to the
suggestions given by workers. So, I further enquired
that whether it is there or not.
YES
NO
8
2

• Further, I enquired that whether there is system of
penalization or not? Also, I come to know that the
organization does not follow any specific system of
penalization . But in case if there is loss to
organization due to the carelessness of any employee
then, his/her salary is deducted to cover the loss or
he/she is fixed from the job.
YES
NO
6
4
* Six employees chose for yes because they are
working as customer sales associate that have to
handle the work of cashier. So, if there is any mistake
in the amount/revenue generated from sales, than the
difference is deducted from their respective salaries.

• It is very important to know that how much time on
employee is deducting in the organization or what are
their working hours?
HOURS OF WORK NO. OF EMPLOYEES
Less than 7 hours
7 hours
More than 7 hours
3
5
2
There is variations in the working hour of the
employees because some of them are part timers
who work for less than 7 hours others are permanent
and work for at least 7 hours the remaining include
store manager and shift manager of Nathu’s who look
for more than 7 hours i.e. from 11am to 8 pm.

• Moreover, my last question was that how many
leaves they are allowed to take in a month?
Leaves Allowed NO. OF EMPLOYEES
Less than 4 days
4 days
More than 4 days
3
5
2

Conclusion
According to the survey I conducted from the employees
and the interview with the shift manager of Nathu’s
Sweets, Sunder Nagar, the 14 principles by the Henri
Fayol regarding management, are mostly applicable.
Nathu’s Sweets, follows the principle of general
management:- Division of work, Authority &
Responsibilities, Unity Of Direction, Subordination Of
Individual Interests To The General Interests,
Remuneration of Employees, Centralization &
Decentralization, Scalar Chain, Order, Equity, Stability Of
Personnel, Espirit De Corps. It partially follows the
principle of Discipline and principle of Initiative & does
not follow the principle of unity of command.
According to me, Nathu’s Sweets should become more
stringent towards application of these principles in its
general administration.
This project work has been helpful in studying the
meaning, techniques and functions of principles of
management given by Henri Fayol in a better manner.

BUSINESS STUDIES PROJECT ON PRINCIPLES OF MANAGEMENT

BUSINESS STUDIES PROJECT ON PRINCIPLES OF MANAGEMENT

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