A Project Report On

“Study on Management Principles Applied

to a Large Scale Industries”

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 INDEX

Sr. Contents Page No.

No.

1. Abstract 01

2. Introduction 02

3. Principles of 05
Management

4. Importance of 09
Management

5. Results 10

6. Benefits of Project 11
Course Outcome
Address

7. Conclusion 12

8. References 12
ABSTRACT

"Study of Management Principles Applied to A Large Scale

Industries"

In this project report the information is collected about

Management Principles Applied to a Large Scale Industries.
Management is the coordination and administration of tasks to achieve a
goal. Such administration activities include setting the organization's
strategy and coordinating the efforts of staff to accomplish these
objectives through the application of available resources. Management
can also refer to the seniority structure of staff members within an
organization. Henri Fayol was one of the first people who highlighted the
difference between technical and managerial skills. He stressed the idea
that "manager" is a profession in and of itself − one that needs to be
researched, taught, and developed. Imagine a team where everyone has
the best technical skills in the world, but no clear management practices.
Surely, skills without direction won't produce any efficient results. Good
technical skills don't necessarily make you a good manager. You would
also need a number of non−technical skills for planning, forecasting,
decision−making, process management, organization management,
coordination, and control. All these skills are taught in the 14 principles of
management to help managers understand how to effectively run an
organization.

Management principles apply to organizations−large or small, for−profit

or not−for−profit. Even one−person small businesses need to be concerned
about management principles because without a fundamental
understanding of how businesses are managed, there can be no realistic
expectation of success. The 14 principles of management can be used to
manage organizations and are useful tools for forecasting, planning,
process management, organization management, multiple Project
Management Methodologies, decision-making, coordination and
control.
INTRODUCTION

A business can range from a single proprietor enterprise to a

large corporation that employs thousands of workers across multiple
countries. Based on the scale of business, organizations are classified as
microenterprises, small−scale enterprises, large−scale industries, public
enterprises, and multinational corporations. Industries that require huge
infrastructure and manpower with an influx of capital assets are Large
Scale Industries. In India, large−scale industries are the ones with a fixed
asset of more than one hundred million rupees or Rs. 10 crores. The
Indian economy relies heavily on such industries for economic growth, the
generation of foreign currency, and the creation of job opportunities for
millions of Indians. LARGE- SCALE INDUSTRY, 1850-1950 the term "large−
scale industry" refers to factories that combine at least three
characteristics: use of machinery, employment of wage labor, and the
application of regulatory measures such as the Factory Act or Disputes Act.
These features were of recent origin in nineteenth−century India and, to a
large extent, products of British colonial rule. In employment statistics,
the units registered as "factories" under the Factory Act can be considered
a large−scale industry. In reality, the registered factories included a fair
number of units that did not employ machinery. but with few exceptions,
registered factories did possess the other two features.
What are Large Scale Industries?

 Industries which requires huge infrastructure and manpower with

an influx of capital assets are Large Scale Industries. In India, large−
scale industries are the ones with a fixed asset of more than one
hundred million rupees or Rs. 10 crores.

 The Indian economy relies heavily on such industries for economic

growth generation of foreign currency, and the creation of job
opportunities for millions of Indians.

Here are some advantages of large scale industries:

 They provide an impetus to the industrialization of the country.

 Large scale industries, usually, produce capital and basic goods
(instruments, machines, chemicals, etc.)
 They are capable of generating funds for the research and
development of new technologies.
 Due to the large scale of operations, they have the potential to
lower the cost of goods.
 Further, they create opportunities for small−scale and cottage
industries to evolve and flourish.
 Also, the employment opportunities created by large scale
industries are huge.

Large Scale Industries In India:

The term 'large−scale' is generic in nature and includes different types of

industries. In India, the following heavy industries fall under the purview
of large scale industries:

 Iron and Steel Industry

 Textile Industry
 Automobile Manufacturing Industry
 Over the last two decades, Information and Technology (IT)
industry has evolved and has contributed huge revenues while
creating thousands of jobs for Indians. Hence, many economists
include it in the large−scale industry sector.
 Telecom Industry.
It is important to note that these industries are either
manufacturing units or those which use both indigenous and
imported technologies. Here are some more examples: Fertilizer,
Cement, Natural gas, Coal, Metal extraction, Metal processing.
Petroleum. Mining, Electrical. Petrochemical, Food processing units,
Tourism, Banking, Sugar, Construction, Automobile,
Communication equipment, Cement, Chemicals, Earthmovers,
Consumer durables (like television, refrigerators, etc.). Engineering
products, Vehicle assembly, Beverages, Agricultural processing,
Insurance, and Finance.

In recent years, as the markets opened up due to globalization,

there has been a mixed effect on large−scale industries. Some have
managed to attract international customers, foreign trade and
technology, tie−ups. However, others were unable to cope with the
competitiveness ushered in by the open market. Production
management involves the planning, organization, direction, and
execution of production activities. The ultimate goal of any
production management solution is to convert a collection of raw
materials into a finished product. Some people refer to production
management as the bringing together of the 6 'Ms.':

 Men
 Money
 Machines
 Materials
 Methods
 Markets

These constituents come together to provide consumers and

businesses with products that they need or want. The production
management principles are often referred to as operation
management principles, and they are designed to facilitate the
production of goods that are of the required quality and quantity.
An efficient production management solution will also deliver
products at the time they are required by the market at the lowest
achievable cost. Any successful production management solution
requires the optimum utilization of production capacity to reduce
costs to a minimum.
The 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.

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 practiced
by the managers to organize and regulate the internal activities of
an organization. He concentrated on accomplishing managerial
efficiency.

Fayol’s 14 Principles Of Management :

The fourteen principles of management created by Henri Fayol
are explained below.

1. Division of work:
 According to this principle, work should be divided
among workers according to their personal aptitude and
skills.
 Division of work leads to specialization which is
necessary for efficient utilization of labour. This will
result in increased efficiency and productivity.

2. Authority and Responsibility:

 Managers need to have the authority (and with it responsibility) to command

their teams. When managers have teams reporting to them they are usually
responsible for the team's performance.
 Authority and Responsibility should go hand in hand and must be related to
one another. An executive can do justice to his responsibility only when he has
authority.
 Responsibility without Authority or vice versa is meaningless.

3. Discipline:

 Discipline is absolutely necessary for efficient functioning of all sections of an

organization.
 Discipline is described as "respect for agreements that are directed at
achieving obedience, application, and the outward marks of respect".
 Fayol declares that discipline requires good superiors at all levels, clear and
fair agreement and judicious application of penalties.

4. Unity of command:

 This principle relates to the functioning of personnel. According to this

principle. an employee should receive orders and instructions from one
superior only.
 This principle is useful to avoid confusions, mistakes and delays in work.
5. Unity of direction:

 This is a broader concept than unity of command. It deals with the functioning
of the body corporate. According to this principle, each group of activities
having the same objective must have one head and one plan.

6. Subordination of individual interest to general interest:

 In any organization, the interest of the organization should be above that of

the individual. This is necessary to maintain unity and avoid traction among
employees.

7. Remuneration of personnel:

 Remuneration is the price paid by the organization to its employees for the
services rendered by them.
 The remuneration and methods of payment should be fair and provide
maximum satisfaction to employee and employer.

8. Centralization:

 Centralization means the concentration of authority with top management. In

a centralized organization, power is held by head office or a small number of
managers, whereas decentralized organizations allow departments and
individuals to make decisions.
 According to Fayol, it is important to have a balance between centralization
and decentralization for proper working. The appropriate level of
centralization will depend on the organizational structure and objectives.

9. Scalar chain:

 The unbroken line of authority from the highest level to the lowest level is
called scalar chain.
 Managers are regarded as 'Chain of Superiors" from the highest to the lowest
ranks and the unbroken line of command and authority should be maintained.
 However the chain may be short−circuited when scrupulous following of it
would be detrimental for the organization.
10. Order:

 According this principle, everything(material)and everyone (human being),

has a specific place in the organization. They should be arranged such that
right material/right person should be located at the right place for effective
functioning.

11. Equity:

 According to this principle, managers should treat all employees/subordinates

with fairness, kindness and justice.

 This will make the employees to be more loyal and devoted towards the
organization.

12. Stability of tenure of personnel:

 Stable and secure work force is an asset to an enterprise. Stability of tenure

means ensuring that employees do not leave the company.
 Instability is a result of bad management and increases the costs of
unnecessary labour turnover.

13. Initiative:

 Initiative is conceived as thinking and execution of a plan. It is one of the

keenest satisfactions for an intelligent employee.
 Managers should encourage and motivate the employees to take initiative
which will help the organization to improve.
 Employer initiative can include employee suggestions, new ideas, solutions to
a problem and dealing with situations without being asked to do so.

14. Esprit de corps:

 This principle of management emphasizes the need for team work, i.e.
harmony and understanding among the employees and shows the importance
of communication in obtaining such team work.

 "Union is strength" is the essence of this principle.

Following are the main importance of the Principles of Management.

 Improves Understanding.

 Direction for Training of Managers.

 Role of Management.

 Guide to Research in Management.

Improves Understanding :- From the knowledge of principles managers get indication

on how to manage an organization. The principles enable managers to decide what
should be done to accomplish given tasks and to handle situations which may arise in
management. These principles make managers more efficient.

Direction for Training of Managers :- Principles of management provide

understanding of management process what managers would do to accomplish what.
Thus, these are helpful in identifying the areas of management in which existing &
future managers should be trained.

Role of Management :- Management principles makes the role of managers concrete.

Therefore these principles act as ready reference to the managers to check whether
their decisions are appropriate. Besides these principles define managerial activities
in practical terms. They tell what a manager is expected to do in specific situation.

Guide to Research in Management :- The body of management principles indicate

lines along which research should be undertaken to make management practical and
more effective. The principles guide managers in decision making and action. The
researchers can examine whether the guidelines are useful or not. Anything which
makes management research more exact & pointed will help improve management
practice.
RESULTS

Toyota follows certain well-defined business principles guiding its functioning.

These are:

 Honour 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.

 Respect the culture and customs of every nation and contribute to economic
and social development through corporate activities in local communities.

 To provide clean and safe products and to enhance the quality of life
everywhere.

 Create and develop advanced technologies and provide outstanding products

and services that fulfil the needs of customers worldwide.

 Foster a corporate culture that enhances individual creativity and teamwork

value, while honouring mutual trust and respect between management and
labour.

 Pursue growth and harmony with global community through innovative

management.

 Work with business partners in research and creativity to achieve stable, long−
term growth and mutual benefits and be open to new partnerships.

These principles, will guide the company in its global vision 2010. 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.
“Study of Management Principles Applied to A Large Scale Industries"

Aims and Benefits of the Micro-Project:

 Aim: The Aim of this project “Study of Management Principles Applied to a

Large Scale Industries” is to get the knowledge and understand the various
types of principles applied to a large scale industries.

 Benefits:

c. More Production

2. Internal Economies

3. External Economies

4. Cheap and Easy Loans

Course Outcomes Addressed:

a. Use basic management principles to execute daily activities.

b. Use principles of planning and organizing for accomplishment of tasks.

c. Use principles of directing and controlling for implementing the plans.

 Conclusions

We learned that Management principles apply to all organizations−large

or small, for−profit or not−for−profit. Even one−person small businesses
need to be concerned about management principles because without a
fundamental understanding of how businesses are managed, there can
be no realistic expectation of success. And The 14 principles of
management can be used to manage organizations and are useful tools
for forecasting, planning, process management, organization
management, multiple Project Management Methodologies, decision−
making. coordination and control. We have learned various types of
principles. This principles are very important because The principles of
management allows managers to understand how to run an organization.
It also helps them to accomplish tasks and manage situations as and when
they arise in the organization.

REFERENCES

1. https://byjus.com/commerce/henri−fayol−14−principles−of−management/

2. https://tejasnikumbh.com/management−principle−to−large−scale−industry/

3. www.campusify.co.in