MAHARASHTRA STATE BOARD OF TECHNICAL EDUCATION,

MUMBAI

PROJECT REPORT

ON

“Study of Management Principles Applied to a Small-Scale Industry.”

Submitted By
Mr. Shirtode Prathamesh Lahu [Enrollment No. 2210710222]

Under the Guidance Of

Prof. Utpat.N.R

Shri Pandurang Pratishthan Pandharpur's

KARMAYOGI INSTITUTE OF TECHNOLOGY (POLYTECHNIC),

SHELVE-PANDHARPUR

DEPARTMENT OF ELECTRONICS AND

TELECOMMUNICATION ENGINEERING

ACADEMIC YEAR 2024-25

 Shri Pandurang Pratishthan Pandharpur's

KARMAYOGI INSTITUTE OF TECHNOLOGY (POLYTECHNIC),

SHELVE-PANDHARPUR

DEPARTMENT OF ELECTRONICS & TELE-COMMUNICATION

ENGINEERING

CERTIFICATE

This is to certify that,

Mr. Shirtode Prathamesh Lahu [Enrollment No. 2210710222]

of TY (Electronics & Telecommunication Engineering) have satisfactorily and successfully

completed their Project Report entitled " Study of Management Principles Applied to a Small-
Scale Industry " and have submitted this project report in partial fulfillment of the award of
"Diploma in Electronics & Telecommunication Engineering" as per the curriculum laid down by
M.S.B.T.E. Mumbai, during the academic year 2024-25.

Date: /04/2025

Prof. Utpat.N.R Prof. Khiste R. R. Dr. A.B.Kanase

Project Guide H.O.D. Principle

 MICRO PROJECT PRAPOSAL

Aim :-
Study of Management Principles Applied to a Small-Scale Industry

Proposed Methodology :-
The study aims to analyze how core management principles
are implemented within a small-scale industry (SSI), focusing on their practical application,
effectiveness, and areas for improvement. The methodology is designed to ensure a
comprehensive and structured approach.
1. Acknowledgement

I would like to express my sincere gratitude to all those who supported and guided me
throughout the completion of this project titled “Study of Management Principles Applied to
a Small-Scale Industry.”

First and foremost, I would like to thank [Your Subject Teacher's Name], my project guide,
for their continuous support, valuable suggestions, and encouragement at every stage of this
project. Their expertise and guidance have played a crucial role in shaping this work.

I am also thankful to the management and staff of [Name of the Small-Scale Industry] for
giving me the opportunity to conduct this study and for sharing important insights into their
business operations and management practices. Their cooperation and openness made this
project both informative and practical.

I would also like to extend my appreciation to the Head of the Department and all my faculty
members for providing a learning environment that inspired me to explore this topic.

A special thanks to my family and friends for their constant motivation, moral support, and
understanding throughout the project duration.

Finally, I am grateful to all those who helped me, directly or indirectly, in completing this project
successfully.

2. Abstract
This project focuses on the application of fundamental management principles in a small-scale
industry. The study analyzes how classical and modern management concepts such as planning,
organizing, staffing, directing, and controlling are implemented in day-to-day operations.
Through this analysis, the effectiveness and adaptability of these principles in small business
settings are examined. The study also highlights the challenges faced and offers suggestions for
improved performance and productivity.

3. Introduction
Management is the backbone of any organization, whether large or small. It involves planning,
organizing, staffing, directing, and controlling all resources to achieve desired goals. While
large companies often have complex structures and formal systems in place, small-scale
industries operate with limited resources and smaller teams. However, the principles of
management are still very important and useful in small businesses. This project aims to study
how these
principles are applied in a small-scale industry and how they help the business function
effectively.

Small-scale industries (SSIs) play a vital role in the economy, especially in developing countries
like India. They provide employment to a large number of people, promote local
entrepreneurship, and support economic development at the grassroots level. These businesses
usually include manufacturing, processing, or service-oriented industries with a small
investment and workforce.

Even though small businesses are often run in a more informal manner, they still require proper
planning and decision-making to survive and grow in a competitive market. The owner or
manager must take care of all aspects of the business—production, finance, marketing, staffing,
customer service, and more. This is where management principles come into play. By applying
proven principles, a small business can improve its operations, reduce waste, use resources more
efficiently, and increase customer satisfaction.

This project focuses on studying a selected small-scale industry and observing how the main
functions of management are carried out. These include:

 Planning – setting goals and deciding how to achieve them.

 Organizing – arranging resources and tasks.
 Staffing – hiring and managing employees.
 Directing – leading and motivating staff.
 Controlling – checking results and making improvements.

In most small-scale industries, the owner is directly involved in daily operations and decision-
making. There may not be separate departments for HR, marketing, or finance like in big
companies. But still, the same basic management ideas are followed—sometimes knowingly,
sometimes unknowingly.

Through this study, we will understand how these principles are implemented in real-life
situations within a small industry. We will also explore the challenges faced by small
businesses, such as lack of funds, limited manpower, market competition, and difficulty in
accessing modern technology.

The project will help us see the practical side of management and how even small businesses can
benefit from using simple and effective management techniques. We will also suggest some
improvements or changes that could make the business more efficient and help it grow.

In conclusion, this project is not just about theory but about understanding how the principles of
management work in the real world. It gives us a chance to connect classroom knowledge with
real business situations. Small-scale industries are often overlooked when it comes to
management studies, but they are just as important as large corporations. This study will show
that good management is important at every level and in every type of organization.
4. Literature Survey
Previous studies on SSIs have shown that management practices play a critical role in enhancing
productivity and ensuring long-term viability. Henri Fayol’s principles of management, such as
division of work, authority, discipline, unity of command, and esprit de corps, are still widely
applicable.

In recent years, modern management concepts like Total Quality Management (TQM), Lean
Practices, and Agile Management have found relevance in small enterprises seeking efficiency
and competitiveness.

5. Scope of the Project

5.1) Project Overview:
This project aims to analyze how core management principles are implemented in a selected
small-scale industry. The study will evaluate the effectiveness of planning, organizing,
staffing, directing, and controlling functions in the day-to-day operations of the business. It
will also assess how these principles contribute to the firm's growth, efficiency, and decision-
making process.

5.2) Objectives:

 To understand the organizational structure and management style of the selected small-
scale industry.
 To evaluate the application of classical and modern management principles in real-
world scenarios.
 To identify challenges faced in implementing these principles and suggest
possible improvements.
 To highlight the role of effective management in achieving business sustainability
and competitiveness.

5.3) In Scope:

 Detailed study of management functions within the chosen small-scale industry.

 Interviews and interactions with owners/managers/employees for qualitative insights.
 Analysis of internal processes like production, marketing, finance, and human
resource management.
 Comparison with standard management practices and literature.

5.4) Out of Scope:

 Study of large-scale or multinational companies.

 Financial audit or technical process analysis not related to management.
 In-depth market or competitor analysis beyond internal management review.

5.5) Timeline:
The project will be conducted over a period of [Insert Duration, e.g., 4 -6 weeks], starting
from [Insert Start Date] and concluding by [Insert End Date].

5.6) Stakeholders:

 Project Guide/Faculty Advisor: [Insert Name]

 Industry Contact/Business Owner: [Insert Name if applicable]
 Student Researcher(s): [Your Name and Team Members, if any]

5.7) Assumptions and Constraints:

 Access to relevant company data and staff will be provided by the selected small-
scale industry.
 The findings will be based on available data and observations during the study period.
 The study will remain academic and non-intrusive to business operations.

6. Methodology
The methodology of this project is based on both primary and secondary data collection methods to
study how management principles are applied in a small-scale industry. The approach was designed
to be practical, analytical, and focused on real-world observations.

6.1) Selection of Industry

A small-scale industry was selected based on accessibility and relevance to the project topic. The chosen
business was [Insert name and type of industry, e.g., a local food processing unit or textile
workshop], which has been operating successfully at a small scale for several years. It provided a
suitable environment to observe management practices directly.

6.2) Data Collection

 Primary Data:
 Conducted interviews with the business owner and key staff members.
 Observed day-to-day operations including production, staffing, decision-making, and customer
handling.
 Used informal discussions to understand the challenges and strategies used by the management.

 Secondary Data:

 Referred to textbooks, online journals, MSME reports, and articles on management practices in
small businesses.
 Studied company documents like sales records, employee records, and organizational charts (if
available).

6.3) Observation Focus

The study focused on how the core management functions—planning, organizing, staffing, directing,
and controlling—are carried out in the selected business. Special attention was given to the role of
the owner/manager, communication practices, and resource management.

6.4) Analysis Method

Information gathered was compared with standard management theories, particularly Henri Fayol’s
principles. A SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) was also
conducted to assess the overall management effectiveness.

7. Results, Advantages & Application

7.1) Results:
 Management functions like planning and organizing are done informally but effectively.
 Decision-making is centralized, usually with the owner.
 Limited formal HR or financial systems are in place.

7.2) Advantages:
 Flexibility in decision-making.
 Strong personal relationships and commitment among workers.
 Low overhead costs.
7.3) Application:
 The study shows that even informal application of management principles can lead to
success in SSIs.
 Recommendations for partial systemization of processes without losing flexibility.

8. Conclusion & Future Scope

8.1) Conclusion
The study of management principles in a small-scale industry has shown that even with limited
resources and informal structures, effective management is key to the successful operation of a
business. The selected industry demonstrated how basic functions like planning, organizing,
staffing, directing, and controlling are applied practically, often in a simplified and flexible
manner.

While the business may not follow formal management systems like large corporations, it still reflects the
core ideas of classical and modern management. The owner or manager usually takes on multiple
roles and relies heavily on experience, personal judgment, and adaptability to make decisions. The
close- knit nature of the team, quick communication, and personalized customer service were
identified as major strengths.

However, the study also highlighted some challenges such as lack of structured documentation, limited
use of technology, and difficulties in scaling operations. These areas present opportunities for
improvement through the adoption of simple management tools and techniques.

8.2) Future Scope

There is significant potential for further research and development in this area. Some possible future
directions include:

 Studying multiple small-scale industries across different sectors to compare management practices
and identify industry-specific strategies.
 Developing a basic management toolkit tailored for small businesses, including templates for
planning, record-keeping, and employee management.
 Exploring the use of digital tools and low-cost automation to improve productivity and tracking.
 Conducting workshops or training programs for small business owners to enhance their
management skills.

In conclusion, the project emphasizes that good management is not limited to large companies. Small-
scale industries can also thrive by applying simple yet effective management principles. With the
right
support and awareness, these businesses can grow, compete, and contribute even more to the economy.

9. References
 Henri Fayol, General and Industrial Management, 1916.
 Koontz & O’Donnell, Principles of Management.
 MSME Ministry Reports, Government of India.
 "Management Practices in Small-Scale Industries" – Journal of Small Business Management.
 [Any articles, interviews, or reports specific to the industry you studied]