Class 12th Business Studies project report on fayol's principles of management on KFC .
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3. HISTORY – HENRI FAYOL
Henri Fayol was born in Istanbul in
1841. When he was 19, he began
working as an engineer at a large
mining company in France. He
eventually became the director, at
a time when the mining company
employed more than 1,000 people.
Fayol began to develop what he considered to be
the 14 most important principles of management.
Essentially, these explained how managers should
organize and interact with staff.
In 1916, two years before he stepped down as
director, he published his "14 Principles of
Management" in the book "Administration
Industrielle et Generale" .
Fayol also created a list of the six primary
functions of management, which go hand in
hand with the Principles.
Fayol's "14 Principles" was one of the
earliest theories of management to be
created, and remains one of the most
comprehensive.
4. COURSE OBJECTIVES
Introduction
Division of work
Authority
Discipline
Unity of Command
Unity of Direction
Subordination of individual interest to
general interest
Remuneration
Centralization
Scalar Chain
Order
Equity
Stability of Tenure Personnel
Initiative
Espirit De’ Corps
5. PRINCIPLES OF MANAGEMENT
Management principles are a set of
fundamental truths based on logic which
provides guidelines for managerial decision
making and other actions. These principles
are derived:
• On the basis of observation and analysis
i.e. practical experience of managers.
• By conducting experimental studies
6. 1. DIVISION OF WORK
Specialization allows the individual to build up experience,
and to continuously improve his skills. Thereby he can be
more productive.
7. 2. AUTHORITY
The right to issue commands, along with which must go
the balanced responsibility for its function.
8. 3. DISCIPLINE
Employees must obey, but this is two-sided: employees will
only obey orders if management play their part by
providing good leadership.
9. 4. UNITY OF COMMAND
Each worker should have only one boss with no other
conflicting lines of command.
10. 5. UNITY OF DIRECTION
People engaged in the same kind of activities must have the same objectives
in a single plan. This is essential to ensure unity and coordination in the
enterprise. Unity of command does not exist without unity of direction but
does not necessarily flows from it.
12. 7. REMUNERATION
Payment is an important motivator although by analyzing a
number of possibilities, Fayol points out that there is no such
thing as a perfect system
14. 9. SCALAR CHAIN (LINE OF
AUTHORITY)
A hierarchy is necessary for unity of direction. But lateral communication is
also fundamental, as long as superiors know that such communication is
taking place. Scalar chain refers to the number of levels in the hierarchy
from the ultimate authority to the lowest level in the organization. It should
not be over-stretched and consist of too-many levels
15. 10. ORDER
Both material order and social order are necessary. The
former minimizes lost time and useless handling of materials.
The latter is achieved through organization and selection.
16. 11. EQUITY
In running a business a ‘combination of kindliness and justice’
is needed. Treating employees well is important to achieve
equity.
17. 12. STABILITY OF TENURE
OF PERSONNEL
Employees work better if job security and career progress are
assured to them. An insecure tenure and a high rate of
employee turnover will affect the organization adversely.
18. 13. INITIATIVE
Allowing all personnel to show their initiative in some way
is a source of strength for the organization. Even though it
may well involve a sacrifice of ‘personal vanity’ on the part
of many managers.
19. 14. ESPRIT DE CORPS
Management must foster the morale of its employees. He further
suggests that: “real talent is needed to coordinate effort,
encourage keenness, use each person’s abilities, and reward each
one’s merit without arousing possible jealousies and disturbing
harmonious relations.”
20. WHAT IS MANAGEMENT?
(ACCORDING TO FAYOL)
Fayol's definition of management roles and actions
distinguishes between Five Elements:
• Prevoyance. (Forecast & Plan). Examining the future and drawing
up a plan of action. The elements of strategy.
• To organize. Build up the structure, both material and human, of the
undertaking.
• To command. Maintain the activity among the personnel.
• To coordinate. Binding together, unifying and harmonizing all
activity and effort.
• To control. Seeing that everything occurs in conformity with
established rule and expressed command.
21. APPLICATION OF FAYOL’S
PRINCIPLES
• Change and Organization.
• Decision-making.
• Skills. Can be used to improve the basic effectiveness of a
manager.
• Understand that management can be seen as a variety of
activities, which can be listed and grouped.
22. VARIOUS TYPES OF INPUTS AND
OUTCOMES
Efforts Pay
Time Promotion
Education Recognition
Experience Security
Training
Personal
development
Ideas Benefits
Ability
Friendship
opportunity
25. ABOUT KFC
Kentucky Fried Chicken, more commonly
known by its initials KFC, is an American fast
food restaurant chain that specializes in fried
chicken. Headquartered in Louisville Kentucky
, it is the world's second-largest restaurant
chain (as measured by sales) after McDonald’s,
with almost 20,000 locations globally in 123
countries and territories as of December 2015.
The chain is a subsidiary of Yum! Brands, a
restaurant company that also owns the Pizza
Hut and Taco Bell chains.
27. • Division of work - The company has divided the total work
into many parts. All the employees performed a particular job
repeatedly. Therefore, it can be said that the principle of
division of work is actually being followed meticulously.
• Authority & Responsibility – The employees have got the
authority as well as the responsibility regarding the work
entrusted upon them. It can be said that the principle is
implemented in this company.
• Discipline – The employees are not fulfilling their
commitment with the company to work honestly for it.
Therefore, it can be said that this principle of management is
being violated in the company.
28. • Unity of command – The unity of command was not being
implemented in the organization because the company has
more than one boss.
• Unity of direction – The company has mainly 3 units.
Therefore, it is clear that each is headed by a different
individual and he is planning & regarding regulating the
activities of his own way. The situation tell us that the
principle of unity of direction is being implemented in the
company.
• Subordination of Individual Interest to General Interest – The
individual employee of the company gave priority to general
interest of the organization over the individual interest.
29. • Remuneration of persons – The employees of the company are
not happy about the remuneration policy of the company .
Therefore, it can undoubtedly be said that the company lacks
behind in observing this principle of management.
• Centralization and Decentralization – The company does not
adapt a complete centralization or a complete decentralization
instead it can be said that the company follows the principle
in an effective way.
• Principle of scalar chain – The chain made by the higher
officials of the company can not be broken. Therefore, scalar
chain is implemented in the company.
30. • Principe of Order – All the employees work only on the pre-
determined place of duty. Therefore, it can be said that
decided work & then doing it is best & according to the
principle of order it is observed.
• Principle Of Equity – It can be said that the company is
conscious about observing the principle of management.
• Stability and tenure of personnel – Labour turnover in the
company is on higher side. In other words, the employees do
not continue to be in the service of the company for a long
period. This situation reflects poor management in the
company. Therefore, the company has to take care of the
stability of the personnel in its own interest.
31. • Initiative – The employees felt that their opinion were given
importance. This is a comfortable situation. This helps in
encouraging initiative & confidence among employees.
• Esprit De Corps – The managers in the company are the
victim of some sort of superiority complex. That is the reason
as to why they give importance to the word ‘I’ instead of the
word ‘WE’ . In the presence of such situation the question of
co-operation on the parts of the employees is simply out of
question. Thus, the principle of management is violated in the
company. So this is not a good situation.
