COMMERCE

PROJECT
PRINCIPLES OF
MANAGEMENT
By: Devansh Goel
INDEX

01. Introduction
02. Principles
03. Case study
04. Analysis
05. Conclusion
06. Suggestions
07. Bibliography
 INTRODUCTION OF
MANAGEMENT
Management is universally necessary in all organization.
It is the force that holds everything in nation.
Management ist he 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 cricketteam, 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 isrequired for guiding and integrating the efforts
of thenumbers of the group. This agency comprises the
managersand the activities of managers are collectively
called management.
Anything minus management is nothing.
 Fayol ‘s principles of management
1. Division of work: Division of work means division of the total task
into compact jobs and allocating these compact jobs to different person
so that an employee can concentrate on only one type of work. It helps
to improve efficiency by avoiding wastage of time and effort caused by
change from one type of work to another.

2. Authority and responsibility: Authority is the right to get work done

from others and responsibility is the obligation to perform the assigned
task. Anyone who exercise authority must accept responsibility for his
work. Similarly, one who is held responsible should be given the
necessary authority. Authority and responsibility are coexistent and
they must go hand in hand.

3. Discipline: Discipline implies obedience, respect of authority and

observance of the established rules and regulation. Discipline is
essential for the smooth running of every organization. According to
fayol, good supervision at all levels, clear and fair rules and built in
system of penalties will help to maintain discipline.

4. Unity of command: According to this principle an employee should

receive orders from one superior only and be accountable to him. No
person can serve several masters at the same time. If a subordinate has
more than one boss, dual command will undermine authority, weaken
discipline, divide loyalty and create confusion, delays, etc. principle of
unity of command is very relevant in large and modern organization as
it helps in smooth working of people

5. Unity of direction: There should be on head and one plan for a group
of activities having the same objective. In other words, each group of
activities with the same objective must have one plan of action and
must be under the control of one superior. Without unity of direction
unity of action and coordination of efforts are not possible.
6. Subordination of individual interest to general interest:
An organization is bigger than an individual. Therefore, the interests
or goals of the organization must prevail upon the personal interests
of individuals. In order to achieve supremacy of group or common
interests, managers must set a good example and they must be firm
but reasonable in dealing with subordinates. Constant supervision is
necessary to prevent promotion of personal interests at the cost of the
organization.

7. Remuneration: The remuneration payable to workers must be fair,

reasonable and satisfactory both to the employees and the employer.
It must reward effort so as to motivate higher productivity. The
amount of remuneration and the method of wage payment should
both be fair and rewarding.

8. Centralization: According to fayol, everything that increases the

importance of subordinates’ role is decentralization and everything
that reduces it is centralization. Centralization and decentralization is
matter of proportion and the right proportion between them should
be decided keeping in view the circumstances of the particular case.
There should be a proper balance between centralization and
decentralization.
9. Scalar chain: It refers to the chain of superiors ranging from the
ultimate authority (top) to the lowest rank (bottom). Normally, the
prescribed chain of command should be followed and
communications should flow through the established chain of
command however, to facilitate quick communication between two
links in the chain, a gang plank (direct contact) may be created.
10. Order: There must be material and social order in an enterprise.
Material order implies “a proper place for everything and
everything in its right place. Similarly, social order means “a place
for everyone and everyone in his appointed place”. The right man in
the right job is very important for the successful functioning of an
organization.
11. Equity: Management should treat the employees with justice and
kindness. There should be equity of treatment in dealing with
subordinates and no discrimination should be made between them.
Nepotism and favoritism should not exist as these are injurious to the
motivation and morale of employees.
12. Stability of tenure: It takes time to learn and get used to a job.
Therefore, a reasonable security of service should be provided to all
employees.
Stability of tenure helps to develop loyalty and attachment on the
part of employees. Unnecessary labour turnover of change of
personnel increases cost of selection and training and spoils the
image of the firm.

13. Initiative: Employees at all levels should be encouraged to think

out and execute the assigned tasks in a better way. Initiative is a
source of strength for an organization. Therefore, subordinates
should be inspired to suggest improvements in the formulation and
implementation of plans.

14. Esprit de corps: There must be team spirit and cooperation among
the members of an organization. ‘Unity of strength’ and the strength
of an enterprise lies in the cooperation and harmony in individual
efforts. Group efforts are more than the aggregate of individual
contributions on account of esprit de corps.
Principles of Scientific Management by Taylor:

F.W. Taylor or Fredrick Winslow Taylor, also known as the ‘Father

of scientific management’ proved with his practical theories that a
scientific method can be implemented to management. Taylor gave
much concentration on the supervisory level of management and
performance of managers and workers at an operational level. Let’s
discuss in detail the five principles of management by F.W Taylor.

1. Science, not the Rule of Thumb-

This rule focuses on increasing the efficiency of an organisation
through scientific analysis of work and not with the ‘Rule of Thumb’
method. Taylor believed that even a small activity like loading paper
sheets into boxcars can be planned scientifically. This will save time
and also human energy. This decision should be based on scientific
analysis and cause and effect relationships rather than ‘Rule of
Thumb’ where the decision is taken according to the manager’s
personal judgement.

2. Harmony, Not Discord-

Taylor indicated and believed that the relationship between the
workers and management should be cordial and completely
harmonious. Difference between the two will never be beneficial to
either side. Management and workers should acknowledge and
understand each other’s importance. Taylor also suggested the
mental revolution for both management and workers to achieve
total harmony.

3. Mental Revolution-
This technique involves a shift of attitude of management and
workers towards each other. Both should understand the value of
each other and work with full participation and cooperation. The
aim of both should be to improve and boost the profits of the
organisation. Mental Revolution demands a complete change in the
outlook of both the workers and management; both should have a
sense of togetherness.
4. Cooperation, not Individualism-
It is similar to ‘Harmony, not discord’ and believes in mutual
collaboration between workers and the management. Managers
and workers should have mutual cooperation and confidence and a
sense of goodwill. The main purpose is to substitute internal
competition with cooperation.

5. Development of Every Person to his Greatest Efficiency-

The effectiveness of a company also relies on the abilities and skills
of its employees. Thus, implementing training, learning best
practices and technology, is the scientific approach to brush up the
employee skill. To assure that the training is given to the right
employee, the right steps should be taken at the time of selection
and recruiting candidates based on a scientific selection.
 Jindal Steel and Power (JSP) is one of India’s leading business houses, with a
significant presence in steel, mining, power and infrastructure. With business
operations spanning across India, Africa, and Australia, JSP has firmly
established itself as a global player in its chosen industries.

Under the visionary leadership of Mr Naveen Jindal, JSP has achieved

remarkable growth. Currently, the company offers a product portfolio that
caters to markets across the entire steel value chain and contributes to realising
the vision of Make in India. The organisation’s focus on innovation, enhancing
capabilities and enriching lives continue to propel its growth and commitment
towards building a self-reliant nation
 OBJECTIVES OF STUDY
This research is aimed at looking into application of
classical management principles to contemporary
organizations. Areas of focus in the study include:

Relevance: determining whether Henri Fayol’s and

Frederick Winslow Taylor’s principles are still
pertinent in today’s business world.

Adaptability: assessing the need for modification and

greater adaptability of these guidelines for
addressing contemporary issues.

Consequences of Violation: examining implications

which come as a result of breaking

Management effectiveness, Employee well-being, and

Overall organizational performance.

Efficiency and Modern Principles: Besides Fayol and

Taylor, giving three examples of essential
management principles that a CEO should consider
first in order to make his/her organization more
efficient in today’s business environment.
 APPLICATION OF FAYOL'S
PRINCIPLES OF MANAGEMENT AT
JSPL
Henri Fayol formulated 14 fundamental principles of general management to offer guidance for
managerial decision-making and actions:

Division Of Work
Authority & Responsibilities
Discipline
Unity Of Command
Unity Of Direction
Subordination Of Individual Interests To The General Interests
Remuneration of Employees
Centralization & Decentralization
Scalar Chain
Order
Equity
Stability Of Personnel
Initiative
Esprit De Corps
 DIVISION OF WORK
Applicability in JSPL:
Observations:
Interviewing MR. Anand Goel , Chief Advisor to Chairman and Former Jt.
MD, JSPL

Question .Do you think at Jindal the work is divided into small parts and each individual is
assigned only one part of the work according to his ability?

Ans: Yes

Explanation:
About the principle of management “division of work Mr Goel was asked to
give his opinion to the question indicated above. He replied in favor of the
principle:
He said “ at Jindal the work is divided into numerous departments like
Manufacturing and Production
Research and Development (R&D)
Human Resources and Training
Sales and Marketing
Administration and Support Services
Finance Department
And within the department each employee is allocated a different , compact
job so that the employee can focus on only one type of work. He added ‘this
helps improve thier effeciency by avoiding wastage of time and effort
caused by change from one type of work to another.

It is evident from the above statement that division of work is still prevalent
at Jindal and plays an import role in its success journey by improving
efficiency, speed and accuracy of employees .
 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? and do you offer the
same to your employees

Ans: Yes
Explanation:

About the principle of management

‘Authority & Responsibility’ Mr goel was asked to give his opinion to the question
indicated above. He replied in favor of the principle as he
had the authority to take decision and was
responsible for the performance of the working
.Therefore a balance of authority and responsibility was maintained. According to him
authority and responsibility are coeexistant and they must go hand in hand. the
company believes authority without responsibity leads to irresponsible behaviour while
responsibility without authority will make a person ineffective. to implement coexistence
the comapny defines a Clear Hierarchical Structure, Establish performance metrics to
hold managers accountable for their decisions, Conduct regular performance reviews
and audits to ensure that managers are meeting their responsibilities, Empowering
managers and employees to make decisions within their areas of responsibility and
Provide training programs focused on developing leadership skills.

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 at JSPL, Gurgaon regarding the
principle of discipline it was observed that the employees were obedient,
respectful towards their seniors and observant of the rules and regulations. The
employees were in a formal dress code and were doing the assigned work
diligently. we asked Mr. Goel, how discipline is implemented in a large and
complex organization like Jindal Steel and Power Limited (JSPL),, he said
“applying the principle of discipline is essential for ensuring smooth operations
and maintaining high standards of performance. This principle is effectively
applied within the company by setting clear Operational Guidelines: The
comapny has clear operational guidelines that all employees must follow. These
include safety protocols, quality control measures, and standard operating
procedures.
Code of Conduct: A comprehensive code of conduct is in place, outlining
acceptable behavior, ethical standards, and the consequences of violations.
A zero-tolerance policy for breaches of critical rules, such as safety regulations
and ethical standards.
regular audits and inspections to ensure compliance with established
procedures.

Benefits of Discipline at JSPL

Increased Efficiency: Adherence to established procedures helps in cutting
down on errors and smoothening the workflow leading to better productivity.

Enhanced Safety: A disciplined attitude towards safety measures cuts down

accidents at the workplace leading to an environment where workers are safe
and secure.

Improved Quality: Steady compliance with quality standards ensures that

products meet consumer demands and regulatory thresholds.

Positive Work Environment: A disciplined atmosphere at the workplace

creates trust, collaboration, satisfaction among employees.
 UNITY OF COMMAND
Unity of Command
Meaning:
According to this principle, there should beone 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:
Mr Ritesh Sharma, Finance head at Jspl Angul factory was asked to respond about
the principle of unity of command. He replied that dual subordinations existed. I.e.
He received order from more than one boss. He was functionally under corporate
finance department but administratively under the Plant head. So, he received
orders both from the Finance Director at the Corporate Headqurters as well as the
plant head. This crated lot of instances ofr confusion and conflict for him. Thus,
creating lot of pressure on him and thus affecting his efficiency and performnace. It
also led to insubordination on his part . It was not possible for him to be loyal to both
his bosses and thus led to disobedience at times. It clearly states that the principle of
unity of command is not being implemented in the organisation at the plant facility.
 UNITY OF DIRECTION
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 office is divided into six sections of departments
Manufacturing and Production
Research and Development (R&D)
Human Resources and Training
Sales and Marketing
Administration and Support Services
Finance Department

2)All the six units were headed by six different individuals.

3)Every head kept a watch on the activities of their own unit.
4) Each department had a set objective and a single plan to achieve it
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, Mr. Goel answered
that all the employees were trained and motivated to keep the interest of the
organization above their own interests. The following steps are followed to
ensure adherence to this principle.

Lead by Example: Leaders and managers at JSPL exemplify the principle by

prioritizing the company’s interests in their decisions and actions.
Performance-Based Rewards: Jspl Implements reward systems that recognise
and incentivise contributions to organisational goals rather than just individual
achievements.
Inclusive Decision-Making: Jspl Involves employees in the decision-making
processes to ensure that their insights contribute to achieving common goals,
fostering a sense of ownership and commitment.
Organisational Culture Training: Provide training that emphasises the
importance of organisational culture, shared goals, and collective success.

It can be observed that the individual employees of the company give priority to
general interest of the organization on top of their the individual interests.
 REMUNERATION OF EMPLOYEES
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 according to their abilities and
performance.

Observation:
Q. Do you feel that your employees are given a fair remuneration?

Ans: Yes

Explanation: Regarding this principle of management, Mr. Goel was asked to

express his opinion. He was satisfied with the remuneration being given to
employees according to their capabilities and qualifications. He feels that a fair
remuneration and timely increments are essential to ensure the motivation of the
employees and to retain the best talent. We can conclude that the employees of the
company are happy about the remuneration policy of the company as the attrition
rate is very low and the company is highly efficient and profitable. 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. No, they have to seek approval and consent for their superiors

Q. Are the major decision taken only by the higher authorities?

Ans. Yes

Explanation: Regarding this principle, Mr. Goel was asked two questions . First was
about the routine decision and other was regarding the major decision. Mr. Goel
said that even in everyday decisions the employees were supposed to seek approval
and consent from their superiors. On the other hand, the major decisions were taken
by higher authorities only and there was no consultation with the junior employees.
This shows that the company does not adopt a complete decentralization policy.
 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 organisation have a clear chain of command at all

levels and is it adhered in both reality and spirit ?
A. Yes
Explanation: A particular chain has to be followed in the company as said by
the Mr. Goel. The chain is as follows: Owner – Directors – Departmental heads
– General Managers – Managers – Assistants . Under Normal circumstances
this chain of command can never and is never broken. However under
emrgencies, a gang plank may be created to facilitate quick communication
between two links in the chain where direct contact may be created between
two employees even if they are not in the direct chain of command. Therefore,
it can be concluded that a 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 that all materials and tools were stored in designated
places. Using labels to make it easy to locate and return materials .

2. 5S technique: To preserve cleanliness and order, all workplaces

implemented the 5S technique (Sort, Set in order, Shine, Standardize,
Sustain).

3. Roles were assigned to employees based on their qualifications. This was

achieved by conducting in-depth job studies to identify the competences,
abilities, and qualifications needed for each role.

4. Every employee was seen to be working in their designated areas.

Justification: Based on this, it may be said that the organization upholds the
orderly concept.
Meaning:
EQUITY
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:
Mr Goel said, At JSPL, we believe in the principle of equity and fairness, especially
regarding remuneration to the employees. several key practices are practiced for
successful implementation of the principle :
1. Uniform Pay Scales:
We conduct regular job assessments to ensure that roles with similar responsibilities,
qualifications, and requirements are placed on the same pay scale.
2. Equal Opportunity Employment:
Non-Discriminatory Practices: We are committed to non-discriminatory practices
and ensure that all employees, regardless of gender, race, or other personal
characteristics, receive equal pay for equal work.
Diversity and Inclusion: Our diversity and inclusion programs strengthen our
commitment to equal treatment and compensation.
3. we treat all employees with justice and kindness. And treat them as a part of our
family.
nepotism and favouritism are strictly agains company policy
 STABILITY OF TENURE
Meaning:
According to this principle, there should be a stability of tenure of
the employees, so that work continues efficiently. Managers should
strive to minimise employee transfers and frequent terminations.

Q. Do you provide a reasonable security of service to your

employees?

Ans. Yes, in most cases stability of tenure is there te employees are

promoted time to time which helps the management save cost of
training and improvising employee morale and confidence, but
since it is result oriented and dynamic organisation therefore,
underperformance, delinquency in work and unprofessional
attitude etc are not tolerated and employees displaying such
behaviour are asked to leave. we try to minimise unnecessary
lobour turnover but at times it becomes important, paying wages
without work is not our policy.

Justification: Based on this, it may be said that the organisation

follows the principle of stability of tenure in general.
 INITIATIVE
Meaning:
According to this principle, employees in the organization must be
given an opportunity in making and executing the plans.

Question: Does the organisation encourage employee suggestions

and initiative ?

Answer: Mr. Goel replied, “Yes we do encourage the employees to

take initiative in suggesting alternate and more efficient ways of
doing a task and also seek their suggestions for improving
efficiency and performance of the firm. The employees are also
inspired to suggest improvements in the formulation and
implementation of plans as initiative is a source of strength for an
organisation.
 ESPRIT DE CORPS
Meaning:
According to this principle, organizations should strive to promote
unity and coordination and make efforts to develop team spirit
among the employees.

Observation: Though their appeared to be unity and cooperation

among the employees at a general and broader level still there were
some instances where individual achievement rather then group
performance was the motive of the employees. In such instances
employees kept their plans secret from their subordinates , didnot
give them complete information and were unwilling to give credit to
their team for the achievements.

Conclusion: Strong motivation, recognition of contributions made by

employees, mutual cooperation , constructive approach by
managers and effective coordination help to acheive espirit de corps
in an organisation.
 SCIENCE NOT RULE OF THUMB
Meaning: Each and every job and the method of doing it should be
based on scientific study rather than on trial and error.The task to
be performed should be scientifically planned. The materials,
equipment and working condition should be standardised.

Question: Sir, does your organisation follow a scientific approach in

deciding how a particular task is to be done. In other wards, are
their adequate systems and processes in place to ensure seamless
execution of work by employees without wastage of time and
resources?

Answers: Yes, we have a set of laid down rules, procedures and

protocols for each and every job in the organisation. There are set
SOP’s in place for each job and task.
Employees are supposed to follow these steps and are subject to
both random and periodic audits by audit department to ensure
adherence and compliance to rules.
 HARMONY NOT DISCORD
Meaning: Taylor indicated and believed that the relationship between the
workers and management should be cordial and completely harmonious.
Difference between the two will never be beneficial to either side.
Management and workers should acknowledge and understand each other’s
importance. Taylor also suggested the mental resolution for both
management and workers to achieve total harmony.

Question: Mr. Goel, is there harmony among the workers and the
management in your organisation . And, if yes, what steps does the
organisation take to ensure that such harmony is maintained in the
organisation.

Answer: Mr. Goel replied, “Yes, there are very cordial relations between the
management and the workers. We have zero loss of productivity due to
labour unrest or strikes etc.

We encourage worker participation in important decisions of the

organisation.We also take steps to provide the best working and living
conditions for all our employees. We provide adequate compensation,
insurance, medical care, training, education etc to employees to keep them
alligned to organisational goals and avoid any conflicts and mistrust.
MAXIMUM NOT RESTRICTED OUTPUT
Meaning: Maximum output means increased profits and reduced
costs. Scientific management involves continuous increase in
production and productivity instead of restricted production
either by management or by workers. Taylor hated inefficiency
and deliberate curtailment of production.

At Jindal workers are encouraged to produce more and more,

they are not restricted from increasing output to a healthy level
and the size of surplus is increased, we link production with
incentives, the more good quality goods they produce the more
the incentive is, this way we make the increase in productivity a
common interest of both the management and the workers’’ he
said
 DIVISION OF WORK AND
RESPONIBILITY
Meaning: Taylor suggested separation of planning from operational work.
Management should concentrate on planning the job of workers and
workers should concentrate on performance of work.

At Jindal steel and power ltd. the division of work and responsibility is
followed by defining:
1. Clear Roles:
Management: management should focus onstrategic planning,
process optimisation, and workflow design.
Workers: whereas employees should Concentrate on executing tasks
as per the instructions and processes laid down by management.
2. Standard operating protocols and Procedures:
detailed work instructions and standard operating procedures
(SOPs) for various tasks are formulated by the management to be
followed by the employees
3. Specialised Departments:
Establishment of separate departments for planning and operations,
ensuring that each group can focus on its core responsibilities.
SCIENTIFIC SELECTION, TRAINING
AND DEVELOPMENT OF WORKERS
Meaning: Workers should be selected and trained keeping in view the job requirements.
Each and every worker should concentrate on planning the job of workers and workers
should concentrate on performance of work.

Q. Does Jindal train its employees?

‘’ YES Jindal Steel & Power (JSP) holds a strong belief that its people are the lifeblood of
the organisation. The company acknowledges that the success and growth of the
company are intrinsically tied to the well-being, empowerment, and growth of its
employees.
JSP has implemented a range of initiatives aimed at empowering its people, equipping
them with the skills and knowledge they need to excel, and providing a supportive
environment where their unique talents can flourish.
Intensive training is provided at our at our raigarh plant(OPJCC), Punjipatra, there is a
traning centre located inside the plant, where the workers are given a proper 6 month-
12 months training based on the job requirements, the white collared employees are
sent to all plants of jindal across the nation to make them get an idea of operations at
ground level, we hold orientation programs where senior management is present and a
question and answer session is also there where the senior most management answers
all queries, all workers are also trained on safety protocols at plants, and are informed
about the environmental protocols, growth shops are there at each plant level. Each
employee is encouraged to develop his full potential’’. Mr Goel answered.
 STANDARDISATION
Meaning: Standardization refers to the process of setting standards for
every business activity. It can be standardization of process, raw material,
time, product, machinery, methods or working conditions.

At Jindal we ensure that all procedures are standardised

1. Development of Standard Operating Procedures (SOPs):

comprehensive SOPs for all critical processes in steel manufacturing
and power generation, ensuring they cover each step in detail.
Uniform Processes: Ensure that SOPs are uniformly applied across all
facilities and departments to maintain consistency.
2. Training Programs:
Regular Training Sessions: we Conduct regular training sessions for
employees to ensure they are well-versed in the standardized
procedures.

there are set protocols for hiring employyes, the HR( human relations)
department is instructed of the same and must abide by them
 CONCLUSION
Are these principles still relevant?

Yes these principles are still applicable in the modern world, but not
entirely, the modern business has changed therefore firms have integrated
the old principles with modern day principles, Integration with modern
technologies and agile methodologies, has helped organisations remain
efficient, adaptable, and innovative in today's dynamic business
environment.
According to the survey I conducted from the interview with the
Management of Jindal steel and power Ltd. The 14 principles by the Henri
Fayol regarding management, are mostly applicable but with some
adaptations according to the modern workplace.
Jindal, follows the principle of management:- Division of work, Authority &
Responsibilities, Unity Of Direction, ,Remuneration of Employees,
Centralisation & Decentralisation, Scalar Chain, Order, Equity, Espirit De
Corps. It partially follows the principle of stability Of Tenure and principle
of Subordination Of Individual Interests To The General Interests.
According to me,
JSPL should become more
stringent towards application of these principles in its general
administration and integrate more of modern day principles with these
principles to achieve higher efficiency . This project work has been helpful
in studying the meaning, techniques and functions of principles of
management given by Henri Fayol and Frederick Taylor in a better manner.
 ANALYSIS
Is there a need to modify The primitive principles and make them more
adaptable? If yes, give suggestions as to how?

Yes, for sure there is a need to modify the primitive principles Given by
Fayol and Taylor and make them more adaptable as the current business
environment is way more different than it was a 100 years back.
meaningful modifications are necessary .
If i were to modify some of them i would incorporate the following
modifactions:
Modification of Taylor's Principles:
1. Science, not rule of thumb :
Modern Adaptation: Incorporating AI and data analytics to
continuously optimise workplaces. Firms should use real-time data to
make dynamic adjustments rather than relying solely on static time-
and-motion studies.
2. Standardisation:
Modern Adaptation: flexible standardization Should be implemented
. core standards should be developed but customisation based on
local conditions, customer needs, or specific project requirements
should be allowed.
3. Modifying Fayol's Principles
Division of Work:
Modern Adaptation: Promote cross-training and job rotation.
Encourage employees to develop a range of skills to increase
flexibility and adaptability.
4.Discipline:
Modern Adaptation: Fostering a culture of self-discipline. Encourage
intrinsic motivation and personal accountability rather than relying
solely on hierarchical discipline.
5. Scalar Chain:
Modern Adaptation: Encourage open communication. While
maintaining a clear hierarchy, promote open communication
channels across all levels of the organization.
6. Order:
Modern Adaptation: Right man at the right job is indeed important but
ross-training and job rotation should be promoted to Encourage employees
to develop a range of skills to increase flexibility and adaptability.
 CONSEQUENCES OF VOILATION
Violation of the principle of order causes the following adverse effects:
a) Confusion and chaos in the organization.
b) Wastage of resources.
c) Increase in cost of operations.

Violation of Stability of tenure principle causes the following adverse

efforts:
a) A feeling of insecurity of employees.
b) Reduction in the efficiency of employees.
c) Disturbance in work routine.

Violation of Unity of command principle causes the following adverse

efforts:
a) Overlapping of orders and instructions and duplication of work.
b) Weaken discipline

Violation of subordination of individual interest to general interest

principle causes the following adverse efforts:
a) Employees will laying more emphases to their personal interest.
b) it will lead to clash of interests and mutual indifferences

Violation of scalar chain principle causes the following adverse efforts:

a) distorted channel will lead to delays
b) a subordinate will not be clear to whome to report
If you were appointed as the CEO of the organisation, highlight three principles you will
adopt to achieve efficiency
As the CEO of a company that is striving to be efficient, I would espouse the following three
principles, drawn from contemporary management practices and research beyond Fayol
and Taylor:
1. Agile Management

Principle: Agile form of management lays emphasis on flexibility, collaboration and quick
response to changes. It involves iterative work cycles, continuous feedback, and cross-
functional teams.

Implementation:

Iterative Work Cycles: Implement short, iterative cycles (sprints) for project management to
allow for regular assessment and adjustment.

Cross-Functional Teams: Form teams with diverse skill sets to foster collaboration and
innovation.

Continuous Feedback: Establish regular feedback loops between team members and
stakeholders to quickly identify and resolve issues.

Flexibility: Encourage adaptive planning and flexible responses to changing market

demands and internal challenges.

Benefits:

Increases responsiveness to market changes.

Enhances collaboration and innovation.

Reduces time to market for new products and services.

2. Lean Management

Principle: Lean emphasizes efficiency by minimizing wastage while optimizing processes. It

considers continuous improvement in addition to respect for people as main things.

Implementation:
Value Stream Mapping: Uncover and eradicate non-value adding activities by determining
and mapping each step in the value chain.

Kaizen (Continuous Improvement): Create a culture that encourages continuous

improvement within the organization by suggesting ideas for changes at all levels of
employees.

Just-In-Time (JIT): Optimize inventory management to reduce excess stock and minimize
waste.

Employee Empowerment: They allow employees to take ownership of processes and

improvements, ensuring their involvement in decision-making.

Benefits:

Reduces operational costs and waste.

Enhances process efficiency and product quality.

Engages and empowers employees, leading to higher job satisfaction and retention.
3. Data-Driven Decision Making

Principle: To ensure that decisions are based on data analytics, companies should use
metrics to provide guidance both for strategic as well as operational decision making. The
accuracy of this approach is increased with real-time data which enhances its efficiencies
and effectiveness

Implementation:

Advanced Analytics: Implement data analytics tools to

Implementation:

Advanced Analytics: Use predictive analytics tools such as those that collect, analyze,
interpret data across different parts of the organization. These may be used for informing
strategic decisions or forecasting trends.

Key Performance Indicators (KPIs): Have KPIs aligned with the organizational goals so that
they can track them down.
The use of the at-a-glance dashboard, an analytical scorecard, a visualized visualization,
and a balanced scorecard are all metrics used to evaluate progress and find where to
improve.
To observe and respond quickly to real-time operating challenges by use of real-time data
monitoring systems that will ensure decisions are made based on most current information
available.

Data Literacy: Organize training programs for employees which will help to improve their
ability to understand and use data in their various roles effectively.

Benefits:

Increases accuracy in decision-making while reducing risks associated with it.

Provides insight into inefficiencies and areas where improvements can be made using data
analysis.

Increases agility by facilitating rapid responses to emerging trends or issues.

Synopsis

Adopting Agile Management, Lean Management, and Data-Driven Decision Making can
result in substantial efficiency gains for an organization. Agile Management ensures
flexibility and rapid adaptation to changes; Lean Management eliminates wastage as well
as streamlining processes; while Data-Driven Decision Making promotes accuracy and
effectiveness in both strategy formulation and tactical choices. These modern management
approaches offer a holistic framework for driving efficiency as well as cultivating
continuous improvement habits within the organization.
BIBLIOGRAPHY

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