This is PowerPoint Presentation on 14 Principles of Management proposed by Henry Fayol in his book "General and Industrial Administration". Henry Fayol was a French mining engineer who turned to a leading Industrialist and a Successful Manager. He rose to the position of Chief Managing Director ​ In this book Henry Fayol has explained the 14 Principles of Management 14 Principles of Management are given below 1. Principle of Division of Work 2. Principle of Authority and Responsibility 3. Principle of Discipline 4. Principle of Unity of Command 5. Principle of Unity of Direction 6. Principle of Subordination of Individual Interest to Organizational Interest 7. Principle of Centralization 8. Principle of Remuneration 9. Principle of Scalar Chain 10. Principle of Order 11. Principle of Equity 12. Principle of Stability of Tenure 13. Principle of Initiative 14. Principle of Esprit de corpse (Team Work) I Hope that all of you have liked the PPT Like, Share and Comment

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Principles Of Management
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 The company gained international
recognition after purchasing several global
companies.
 It is one of the biggest and oldest industrial
groups in India.
 Each Tata company operates independently
under the guidance and supervision of its
own Board of Directors and Shareholders.
TataGroup
A Multinational Conglomerate.
Headquartered in Mumbai, Maharashtra.
Founded by Jamshedji Tata in 1868. 2

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HenryFayol
Henry Fayol(1841-1925) was a French mining
engineer who turned to a Leading
Industrialist and a Successful Manager.
• In the year 1916 Henry Fayol wrote a book entitled as
“Industrial and General Administration”.
• In this book he gave the “14 Principles of
Management”.
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Father of Modern
Management

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• For Example: Tata Motors recruits for the following
areas:-
1. Accountants
2. BPO/ Telecaller
3. Customer Service/ Tech Support
4. Engineers
5. Sales and Marketing Executive
6. IT – Mobile Developer
7. IT – Software Engineer
8. Management Trainee, ETC.
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• As we all know that Tata Group is a Huge Tree that
covers various business industries.
• It only makes sense to divide work by allocating it to
different employees thereby making them to build up
experience and continuously increase and improve
their Skills
• This leads to “Increased Productivity and Ultimately
Higher Profits”.

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• For Example: An employee of Tata Beverage Group is
given(entrusted) with confidential
information.
• Now, it is the employees duty that not to use or proliferate
information which is not available to any outsider. By
doing this, the company provides Authority to the
Employee for holding such confidential information.
• And at the same time, it’s the employees Responsibility
that this information will remain confidential throughout
the time period(term) given by the company.
• Such Confidential Information can include – Raising of
Finance, Financial information, ETC.
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• Authority is the Right to take decisions (Give Orders).
• Responsibility is to Properly follow the orders(decisions
made) with Exact Obedience.
• Tata Group realizes(knows or understands) that MNC’s
decision making and conflict resolution follow a straight line.
• It believes that if decisions are help up due to conflicting view
points, the issue is expected to speedily traverse up the line
for a resolution.
• Sometimes there is no empowerment.

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• Discipline is the most essential thing in the
organization. Discipline helps to achieve the goals in
the organization.
• Good discipline is the result of effective leadership.
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• As we all know that, “A Successful organization
requires the common effort of the workers even if
judicious use penalties are required, to extract this
effort”.
• “Tata group has drafted it’s own ‘Code Of Conduct’ to
guide the behavior of its employees.”
“Every Employee of a Tata
Company shall preserve the
human rights of every individual
and the community, and shall
strive to honor commitments”.

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 Highlights of the Code of Conduct of
Tata Group:-
1. “Every Employee of a Tata Company,
including full-time directors and chief-
executive, shall exhibit culturally
appropriate department in the countries
they operate in, and deal on behalf of
the company with professionalism,
honesty and integrity, while conforming
to high moral and ethical standards”.
2. “Every employee shall be responsible
for the implementation of and
compliance with the Code in his/her
environment. Failure to adhere to the
Code could attract severe
consequences, including ‘termination of
employment’ – [Penalty]”.
https://www.tata.com/content/dam/tata/pdf/Tata%20Code%20Of%20Conduct.pdf
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Various Managers of Different Departments are as
Follows:-
1. Sunil D’Souza– Managing Director
2. Krishnakumar Lakshmanan – Executive Director –
Finance
3. Sivakumar Sivasankaran – Vice President – ICD
Operations
4. Abhishek Sengupta – Vice President – Plantations
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• Each member of organization should receive orders
from only one superior. This principle helps in
managing conflicts and solving disputes among
people in organization.
• The Management Team for each department in Tata
Beverage Group has been clearly defined. Each
employee under his/her respective department
should receive orders from the manager of the
department.

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• Tata Power Company Ltd. Cooperates with other Tata
companies including applicable joint ventures, by sharing
knowledge and physical, human and management
resources, to achieve common goals and objectives.
• The entire Tata Group as a family, has a single direction.
Also, as mentioned in the Code of Conduct, ‘A Tata
Company shall recommend to its board of directors the
adoption of policies and guidelines periodically
formulated by Tata Sons.
• This provides an example of how a policy framework laid
down by the superior body guides and directs the
companies to a common objective
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• This principle states that ‘There should be One Head
and One Plan’ in every organization.
• The organization should be moving towards a
common objective in a common direction.

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• According to this principle the interest of an individual
must be given less importance the interest of the
organization.
• The Code of Conduct of Tata Beverage Group clearly
states that an employee or director of the company
shall always act in the interest of the company.
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• He/she should ensure that any business or personal
association 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.

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• According to Henry Fayol, extreme Centralisation or
Decentralisation of authority should be avoided and a proper
balance between Centralisation and Decentralisation should
be maintained.
• Tata Group is a Decentralised Family of companies grouped
into seven sectors.
 Tata Beverage Group:-
1. Human resources and communications, information
technology, finance, production, procurement and research
are handled at a global level.
2. A global executive office is situated in London, comprising of
Chief Executive and Deputy Chief Executive who oversee
global operations, including factories and production, tea
and coffee buying, and procurement.
3. Sales and Marketing operations have been decentralized.
These Operations have become the responsibility of 6
specific regions.
4. The 6 key regions handling Sales and Marketing are – U.K.
Africa, US, South Asia, Canada and South America. Each
region is led by a President.
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• Appropriate remuneration to staff or employees is
the principle to keep them satisfied financially as well
as retain the for long span of time within the
organisation.
• Worker’s rate of pay is depended on several variables
such as cost of living, general business conditions etc.
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• For Example :- Since the Economic Value Added(EVA)
targets for the third quarter of FY(Financial Year)
2007-2008 were not met, TCS(Tata Consultancy
Services) announced its plan to slash 1.5% of the
variable component of employee salaries.
{The Variable part of the salary was arrived after
considering business unit EVA, corporate Eva, and also
individual performance EVA.}

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• 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
he/she 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.”
• The Specified Managerial Chain of Command is as
follows:-
1. Managing Director : Sunil D’Souza
2. Executive Director – Finance : Krishnakumar
Lakshmanan, Etc.
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• Scalar chain means the hierarchy of authority from the
top level to the lower level for the purpose of
communication. This helps to ensure the orderly flow of
information and communication. Traditionally,
organizations used to frame large scalar chain which is
time is consuming.
• In Short, It is the Official Chain of Command that has to
be strictly followed in an organization.

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• According to the Code of Conduct, “A Tata Company
shall maintain its Financial reports in an orderly
manner. Internal accounting and audit procedures
shall reflect, fairly and accurately, all of the company’s
business transactions and disposition of assets. All
required information shall be accessible to company
auditors and other authorized parties and government
agencies. No employee shall make, authorize, abet or
collude in an improper payment, unlawful commission
or bribing.”
• This principle is based on ‘A place for everything and
everything in its place’. Human resources and materials
should be in the right place and at the right time for
maximum efficiency.
• The Principle focuses on the proper utilization of
physical and human resources.

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• Tata Group promises to provide equal opportunities
to all its employees.
• According to the Code of Conduct, “Human resource
policies shall promote diversity and equality in the
workplace, as well as compliance with local labour
laws, while encouraging the adoption of
international best practices. Everyone has the right
to be heard and equal opportunity is provided to
those eligible and decisions are based on merit”.
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• Management should be fair as well as friendly to the
subordinates. While dividing the work, delegating the
authorities, deciding the monetary terms etc.. There
should not be any discrimination between the
employees.
• It is suggested that the remuneration should not
depend on the department but at the level on which
subordinates are working.

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• At the time of recruitment, the management should
assure them about stability of tenure or job security.
• Insecurity in job always affect the efficiency of
employees adversely whereas job security minimizes
employee turnover ratio.
• Tata Group believes in “Concurrent Employment”.
• Accordingly, the company bars its employees to
accept any other form of employment or a position of
responsibility, paid or unpaid, unless and official
permission has been furnished by the company itself.
This keeps the Employees associated with the
company on a long term basis and helps the company
extract long term service. This saves the company the
cost of recruiting and training fresh employees.
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• Initiative refers to volunteering to do the work in an innovative
way. The freedom to think and work hard on new ideas
encourages to take initiative while working on given task.
 To instill and encourage initiative in employees, Tata Group has
come up with ‘Tata Innovation Day’, also known as ‘Tata
Innovista’ in 2010. on this day,
Following awards are given to innovation teams that come up
with the best innovations:-
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1. Promising Innovations – Given to the most successfully
implemented innovation during the year.
2. Dare to Try – Award is given to that team which made a
valiant attempt for a major innovation, but failed. The
award felicitates their spirit and encourage future
initiative
3. The Leading Edge – Award given for most innovative
Business Idea.
Sub Categories:-
1. Innovative Idea for One’s own Company
2. Innovative Idea for a different Tata Company
3. Innovative idea that is new to the Group

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• Tata Sponge Iron Ltd. Offers its employees the
following to encourage team spirit.
1. A work culture which stimulates innovation, team
work and freedom to excel.
2. Reward and Growth that is performance – driven.
3. Most contemporary perks and other amenities.
4. Continuous training and development opportunities
at all levels
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• Esprit de corpse means union is strength.
• Running any organization is a group activity. Human
resource are valuable asset of the organization.
• If all employees are working as a union and with
mutual trust, the difficulties can be solved quickly.
• Therefore, as a leader, manager should create a spirit
of team work and understanding among employees
to achieve organizational goals easily.

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ThankYou
Aadish Bhansari
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http://aadishbhansari.wordpress.com/