14 principle of Henry Fayol

2. Submitted to: Mrs. Yavnika
Submitted by: Chandan
Class : XII Commerce

3. 1
2
3
title
Main Elements
• Introduction
• Conclusion
• Analysis section

4. Introduction
About the topicHenry fayol
Selection of
organization
Objective
1 2
3 4

5. Henry Fayol
Henry fayol, a famous industrialist of France,
has describes fourteen principles of
management in his book General and
Industrial Management. Those fourteen
principles of management are referred to as
administrative in nature and have top-down
approach.

6. About the topic
The title of study is – “A detailed study of the principles of
management with special reference to Parle pvt. ltd., Neemrana.”
According to Knootz and O’Donnell, “Management principles are
fundamental truth of general validity which have value in predicting
the results of management action.
These days business has assumed wider dimensions as a result
of which numerous problems arises in day-to-day activities and the
manager has to solve these problems. A manger needs guidelines to
grapple with problems and run the organization efficiently. The
principles of management guide the manager. That’s why, Principles
of Management are important.

7. Objectives
The chief purpose of this project is to see the
principles of management being implemented in
real life. With its help we shall get information
whether the principles of management which
come across in the books are actually true? And
whether by following principles of management
the efficiency of the managers and workers is
actually enhanced. The objective is not to get
good marks but to see that the principles are
actually implemented.

8. Selection of Organization
In order to achieve the objectives of this project we
needed an organization where business is carried on
a large scale and various activities are performed. On
the advice on the project guide Parle Biscuits pvt. ltd.,
Neemrana was selected. The following were the chief
reasons for selecting this company:
i. It is capable of fulfilling the purpose of the
project.
ii. It is situated nearby and vising is would be easy.

9. • Founder : Chauhan Family
• Founded : 1929
• Head office : Vile Parle (East), Mumbai
•The most well known biscuit company of India.
• Company Type : Private Limited
• Industry type : Food
• Annual Turnover : 2000 crores and above
About Parle
Website : www.parleproducts.com

10. Analysis Section

11. Division of Work
According to this principle, “as far as possible the
whole work should be divided into small parts and
each individual should be assigned only one part
of work according to his ability and taste
repeatedly so that the benefits of specialization
may be achieved.”
Principle Yes No
No
Response
No. of
Person
Responded
Division of
Work
12 07 06 25

12. Authority & Responsibility
According to this principle, “authority and
responsibility should go hand in hand. It means
that a person is given a particular work and he is
made responsible for the results, this can be
possible only when he is given sufficient authority
to discharge his responsibility.”
Principle Yes No
No
Response
No. of
Person
Responded
Authority &
Responsibility
10 08 07 25

13. Discipline
According to this principle, “the organizational
rules and employment agreement should be
obeyed by both the superiors and subordinates
which are necessary for the successful working of
the organization.”
Principle Yes No
No
Response
No. of
Person
Responded
Discipline 19 02 04 25

14. Unity of Command
According to this principle, “an individual employee
should receive orders from only one superior at a
time and that employee should be answerable only
to the superior. There should be one and only one
boss for every individual employee.”
Principle Yes No
No
Response
No. of
Person
Responded
Unity of
Command
08 12 05 25

15. Unity of Direction
Unity of Direction means that there should be one
head for one plan for a group of activities having
the same objectives. Activities having similar
objectives should be completed under the
supervision of one person and with one action
plan.
Principle Yes No
No
Response
No. of
Person
Responded
Unity of
Direction
10 07 08 25

16. Subordination of Individual
interest to General interest
According to this principle, “the interest of an
organization should take priority over the interests
of any one individual employee.” If it is not done
than this will profit manager personally, but the
company will incur heavy loss. That situation
would be undesirable.
Principle Yes No
No
Response
No. of
Person
Responded
Subordination of
Individual interest to
General interest
14 06 05 25

17. Remuneration to Employees
According to this principle, “employees in the
organization must be paid fairly or adequately to
give them maximum satisfaction. The
remuneration must be just and fair because if
employees are underpaid they will not be satisfied
and an unsatisfied person can never contribute his
maximum.”
Principle Yes No
No
Response
No. of
Person
Responded
Remuneration
to Employees
07 09 09 25

18. Centralisation &
Decentralisation
Centralisation refers to concentration of authority
or power in few hands at top level.
Decentralisation means evenly distribution of
power at every level. According to Fayol, “there
should be proper combination of Centralisation
and Decentralisation at different levels.
Principle Yes No
No
Response
No. of
Person
Responded
Centralisation &
Decentralisation
08 11 06 25

19. Scalar Chain
Scalar Chain means line of authority or chain of
superiors from highest to lowest rank. Fayol insists
that this chain must be followed strictly in the
organization. Every information must pass through
every key of this chain, no skipping of any one key
should be allowed.
Principle Yes No
No
Response
No. of
Person
Responded
Scalar Chain 13 05 07 25

20. Principle of Order
According to this principle, “a proper and orderly
arrangement of men and material should be there,
that is a fixed place for everything and everyone in
the organization.” Fayol insists that there must be
a fixed place to keep every material used.
Principle Yes No
No
Response
No. of
Person
Responded
Principle of
Order
10 11 04 25

21. Principle of Equity
Equity refers to kind, fair and just treatment to
employees. Employees will put their maximum
efforts only when they are treated with kindness
and justice. The manager should take care of the
satisfaction of his employees.
Principle Yes No
No
Response
No. of
Person
Responded
Principle of
Equity
09 12 04 25

22. Stability of Personnel
According to this principle, “the management must
provide the feeling of job security among the
employees because with the feeling of insecurity
for the job, the employees cannot contribute their
maximum. Frequent turnover of employees is bad
for organization.
Principle Yes No
No
Response
No. of
Person
Responded
Stability of
Personnel
15 06 04 25

23. Initiative
Initiative refers to chalking out the plan and then
implementing the same. Fayol suggested that
employees in the organization must be given an
opportunity to take some initiative in making and
executing a plan. It gives immense satisfaction to
employees.
Principle Yes No
No
Response
No. of
Person
Responded
Initiative 12 05 08 25

24. Esprit de Corps
Esprit de Crops means union in strength. Fayol
emphasized on the team work. He suggested that
every employee in the organization must consider
him as a part of a team and try to achieve the team
goal because team contribution is always better.
Principle Yes No
No
Response
No. of
Person
Responded
Esprit de
Corps
16 07 02 25

25. Observation Table
Principle Yes No No
Response
No. of Person
Responded
Division of Work 12 07 06 25
Authority & Responsibility 10 08 07 25
Discipline 19 02 04 25
Unity of Command 08 12 05 25
Unity of Direction 10 07 08 25
Subordination of Interest 14 06 05 25
Remuneration of Employees 07 09 09 25
Centralisation &
Decentralisation
08 11 06 25
Scalar Chain 13 05 07 25
Order 10 11 04 25
Equity 09 12 04 25
Stability of Personnel 15 06 04 25
Initiative 12 05 08 25
Esprit De Corps 16 07 02 25

26. Conclusion
The 14 principles advocated by Henry Fayol were
subjected to observation and on the basis of which we
can include that only 09 principles are being observed in
this company and only 05 principles are being ignored or
violated. In case the managers want to ensure success
of the company they shall implement the other principles
of management which they have been ignored. It
was, indeed, a pleasant experience to find the principles
of management being implemented.
Therefore, we cannot say that these principles are simply
theoretical or meant only for being incorporated in the
books and have no relevance in the field of practically.

27. Thank You