Business studies project

Acknowledgement
I would like to express my special
thanks of gratitude to my teacher
“(TEACHER’S NAME)” who gave me the
opportunity to do this wonderful
project of BUSINESS STUDIES on
“APPLICATION OF PRINCIPLES OF
MANAGEMENT IN DISHU GROUP OF
COMPANIES”, who also helped me to
complete my project. I came to know
about so many new things I am really
thankful to them. Secondly, I would
also like to thank my parents and
friends who helped me a lot in
finalizing this project within the
limited time frame.
(NAME OF THE STUDENT)
XII (COMMERCE)

Certificate
This is to certify that this project has
been made by (NAME OF THE
STUDENT) of class XII COMMERCE of
BUSINESS STUDIES on
“APPLICATION OF PRINCIPLES OF
MANAGEMENT IN DISHU GROUP OF
COMPANIES” under my guidance and
has completed successfully.
____________________
(TEACHER’S NAME)

Index
S.no Particulars Pg.no. Remarks
1. Introduction 1
2. Henri Fayol 2-3
3. Principles of
Management
4-32
4. About the
organization
33-34
5. Questionnaire 35
6. Appendix 36
7. Observation 37

Introduction
Management is essential to any organization
that wishes to be efficient and achieve its aims.
Without someone in a position of authority
there would be organizational anarchy with no
structure and very little, if any focus. It has
been said that management has five basic
functions – planning, organizing, staffing,
directing and controlling. Common sense
dictates that without these principles of
management being in place an organization
would have trouble achieving its aims, or even
coming up with aims in the first place. A
classic theory on the principles of
management was written by Henri Fayol. It
seeks to divide management into 14 principles
about which we are going to discuss in this
project. We are basically going to check the
applicability of these 14 principles in the
organisation I’ve chosen which is “DISHU
GROUP OF COMPANIES”. It was basically a
textile company which has expanded itself to
some new areas.

Henri Fayol
Henri Fayol (29 July 1841 – 19 November
1925) was a French mining engineer, mining
executive, author and director of mines who
developed general theory of business
administration that is often
called Fayolism. He and his colleagues
developed this theory independently of
scientific management but roughly
contemporaneously. Like his contemporary,
he is widely acknowledged as a founder of
modern managementmethod. Henri Fayol was
born in a suburb of Istanbul, Turkey in 1841,
He studied mining engineering at the ‘École
Nationale Superieure des Mines’ academy in
Saint-Étienne. Henri Fayol started his career
as an engineer at the mining company
Compagnie de Commentry Fourchambeau
Decazeville in Commentry at the age of 19. In
1888, He became the Managing Director of this
mining company that employed over 1,000
people. He was very successful in this position
for over 30 years.

1.Division of Work
The principle of ‘Division of Work’ means
to divide a given activity or work into small
parts so that each part is handled with
great ease and efficiency. Instead of
assigning the whole work to an individual,
it’s better to assign one task to one person.
If the same task is performed by a person
again and again he gains specialization in
that task and can perform with greater
ease and minimizes wastage of resources
and time. Fayol has emphasized on this
issue because specialization and

minimization of wastage is a key to
success.
Positive impacts:
 Specialization
 Minimization of wastage
 Improved efficiency
Consequences of violation:
 Overburden on a single employee
 Conflicting situations
 Wastage of time and resources
 Chaos and confusion
Result:
Question
(asked from the
director)
Answer
Do you divide the
work before assigning
different tasks to your
employees or you give
the complete work to a
single employee?
Yes, for a particular
event we divide the
activities required
to make the event
successful and
make some
particular people
in-charge for the
required activities.
We try to make our
employees more

skilled by assigning
them duties and
the work is done in
quicker and faster
way.
Explanation:
I asked the director about how they assign
work and he answered that they divide and
assign work.
Conclusion:
DISHU GROUP OF COMPANIES follows the
principle of division of work.

2.Authority & Responsibility
Authority is the power to give orders and get it
obeyed.
Responsibility means state of being
accountable or answerable for any obligation,
trust, debt or something. It is obligation to get
the job completed which is assigned.
Authority and responsibility are closely related
and this principle states that these two must
go hand in hand. It means that proper
authority should be delegated to meet the
responsibilities.

Positive impacts:
 No misuse of authority
 Helps to complete job effectively and
efficiently
 Individuals can be held accountable
 Systematized and effective achievement of
organizational objectives
 Misuse of authority
 Responsibility can’t be discharged
effectively
 No one can be held accountable
 Conflicts between management and
employees
Result:
QUESTION YES NO NO
RESPONSE
NO. OF
RESPONDENTS
DO YOU
HAVE ALL
THE
AUTHORITY
CONNECTED
WITH THE
WORK?
27 8 5 40
Explanation:
According to the survey which I took of total
40 employees of the firm, 27 employees were
in agreeing with the question I asked and 8

were disagreeing with it. 5 employees did not
respond.
Conclusion:
DISHU GROUP OF COMPANIES follows this
principle partially. All of the employees do not
agree that they get authority when they are
assigned responsible for a particular work.

3.Discipline
Discipline means obedience, respect for
authority, and observance of established
rules. Fayol has emphasized that a sense
of discipline should be present in all
employees at all level so that
organizational goals are achieved. It is
needed for the smooth functioning of the
organization. Top level managers and
officers are greatly responsible for
maintaining discipline.
Positive impacts:

 Helpful in achieving organizational
objectives
 Improved efficiency
 Cordial relation between management
and employees
 Better working environment in the
organization
 Minimization of wastage
 Height of disorders
 Confusion and chaos
 Wastage of time and resources
 Conflicting situations
RESULT:
QUESTION YES NO NO
RESPONSE
NO. OF
RESPONDENTS
Has the
firm
created
some rules
to
maintain
discipline?
40 0 0 40
Are all the
rules
followed
that are
created?
15 22 3 40
Explanation:

According to the survey which I took of
total 40 employees, all of the 40 employees
agree that firm has created rules to
maintain discipline. 15 employees thinks
that the rules are followed and 22
employees are against it and they think
that the rules are broken. 3 did not
respond.
Conclusion:
DISHU GROUP OF COMPANIES tries to
follow the principle of discipline but
employees try to break the rules and this
principle is violated.

4.Unity of Direction
This principle states ‘One Head One Plan’. It
means that all the employees having same
objective must be directed towards the
achievement of the common goal. This
principle makes it necessary that there should
be unity of action. This principle is often
confused with the principle of ‘Unity of
Command’ as both sound the same. But the
differencebetween them is quite clear as ‘Unity
of command’ is concerned with taking
command from one boss whereas the principle

of ‘Unity of Direction’ is concerned with the
direction of the efforts of the employees of one
division towards the achievement of the
objectives of that division.
Positive impacts of this principle:
 Better coordination among the employees
 Efforts of employees are directed in a better
way
 Systematic working environment
Consequences of violation of this principle:
 Decrease in organizational efficiency
 Wastage of resources
 Duplication of activities
RESULT:
Question
(asked from the
director)
Answer
Does your firm try to
direct the objectives of
the employees to a
particular direction?
Yes, we try that all
the employees of our
firm work for a
common objective
which would help in
the growth of the
firm. We keep on
organising

workshops for the
same.
Explanation:
I asked the director about do they
motivate their employees and try that all
employees work for a common objective
and he answered it to be as Yes, they try
and they keep organizing workshops for
the same.
Conclusion:
DISHU GROUP OF COMPANIES
follows this principle and they believe
that with the help of this principle
they are able to achieve their goals
effectively and efficiently.

5.Unity of command
This principle of “unity of command”
states that an individual should get orders
from a single superior so that he does not
get confused and can discharge his duties
effectively. If more than one boss will
instruct an individual, he will certainly get
confused about his responsibility and will
not be able to perform even a single
activity because he faces the dilemma of
“whom should he follow?”.
Positive impacts:
Prevents dual subordination
Easy to fix responsibility to an individual
Harmonious and cordial relation among
the management and the employees
Performance of the employees will
increase
Reduces efficiency of subordinates;
Creates confusion
Subordinates can easily escape from
their duties
 Ego clash between managers;

Overlapping of orders and Hard to
maintain discipline
RESULT:
QUESTION YES NO NO
RESPONSE
NO. OF
RESPONDENTS
Do you get
orders
from one
boss?
6 23 11 40
Explanation:
total 40 employees of the firm, 23
employees thinks that they do not get
orders from one boss and different people
gives them different orders which
confuses them. 6 employees are in the
favour that they get orders from one boss
and 11 did not respond to the question.
Conclusion:
DISHU GROUP OF COMPANIES doesn’t
follow this principle as it is a family
business and there are many bosses.
Also there are bosses under the bosses
which give orders to different employees
and thus, this principle is not applied in
the firm.

6.SubordinationofIndividualIntereststotheGeneralInterest
This principle states that general interest is
superior to the individual interest and the
manager must try to integrate the individual
goal with the organizational goal in such a
manner so that both the objectives are
accomplished with efficiency and
effectiveness. The manager directs the
employees in such a manner that they work for
their objective and ultimately the
organizational objective is achieved.
Positive impacts:
 Achievement of organizational objective
 Coordination between individual and
organizational goal
 Harmony in the organization;
 Increases employee’s respect for the
organization
 Difficulty in achievement of organizational
goal
 Conflicting situations in the organization;
 Wastage of efforts, time and resources
 Delay in work

RESULT:
QUESTION YES NO NO
RESPONSE
NO. OF
RESPONDENTS
Do you give
the top
priority to
the interests
of the
company?
35 2 3 40
Explanation:
employees are saying that they keep the
interests of company as their top priority
as they understand that the more
efficiently they will work the more benefits
they will get. 2 employees are saying that
they keep their personal interests over the
interests of the organisation and 3 did not
respond.
Conclusion:
DISHU GROUP OF COMPANIES follows
this principle as the employees are
educated and they know that indirectly by
doing benefit of the firm they are
benefitting themselves, Thus, this
principle is applied in this firm.

7.Remuneration
Every individual joins the organization with
the main aim of earning his bread and
butter. Fayol is of the view that each employee
must get fair remuneration so that the
employee as well as the owner gets the same
amount of satisfaction. The remuneration
system must be such which provides for the
adequate remuneration to the employees,
motivates the employee to perform better, and
may ensure safety & security, raise standard
of living of the employees.
Positive impacts:
 It creates good relation between workers
and management
 Employees get motivated
 It declines the labour turnover rate
 It raises the standard of living of the
employees
 It develops the society indirectly
 Employee’s efficiency decreases
 Conflict between management and
employees
 Labour turnover rate will be more
 The immediate result is incomplete
work

RESULT:
QUESTION YE
S
N
O
NO
RESPONS
E
NO. OF
RESPONDEN
TS
Do you get
reasonable
remuneratio
n?
11 28 1 40
Explanation:
According to the survey which I took
of total 40 employees of the firm, Only
11 employees are satisfied with their
remuneration and 29 employees are
not satisfied. 1 employee did not
respond.
Conclusion:
doesn’t follow this principle and more
than half of the employees are not
satisfied with their remuneration. The
firm should use this principle and
provide good remuneration and this
will increase the performance of
employees and they will stay with the
company for a longer period of time.

8. Centralization
When the power to take decision rests with the
top management it is called as
‘Centralisation’.
When the power to take decision is given to the
person performing the job it is called as
‘Decentralisation’.
Fayol is of the opinion that there should be a
proper balance between centralisation and
decentralisation. An organization must not be
completely centralized or decentralized, there
should be a match between the two depending
upon the size, nature and location.
Positive impacts:
 Facilitates proper functioning of the
organization
 Timely completion of work
 No extra burden on the top management
 Decisions will be taken at the level of
action
 Over burden on the top management
 Delay in action
 Ego clashes b/w lower level and top
level management

RESULT:
QUESTION YES NO NO
RESPONSE
NO. OF
RESPONDENTS
Are the
major
decisions
taken only
by the
higher
authorities?
35 0 5 40
Explanation:
employees thinks that all the major
decisions are taken by higher authorities
and 5 employees did not respond. No
single employee thinks that the power is
divided and some major decisions are
taken with the concern of everyone.
Conclusion:
follow this principle as the major
decisions are taken only by higher
authorities and the employees who are
the most effected by the decisions
sometimes are not concerned. The
company should try to follow this
decision and decentralize some power.

9. Scalar chain
Scalar chain is the formal line of authority
which moves from highest to lowest rank in a
straight line. This chain specifies the route
through which the information is to be
communicated to the desired location/person.
Fayol emphasized that every information in
the organization must flow according to this
chain to facilitate clear communication of
orders of the superiors and feelings of the
subordinates. There should be no overlapping
of steps during the communication process.
Positive impacts:
 Clear communication of information
 Better relation among employees
 Systematic communication in the
organization
 Faster solution to organizational
problems
 Bitterness in the relation of employees
because of ignoring the close
supervisors
 Improper communication of
information
 Difficulty in finding the responsible
person

RESULT:
QUESTION YE
S
N
O
NO
RESPONS
E
NO. OF
RESPONDENT
S
Does the
boss of your
boss directly
communicat
e with you?
3 34 3 40
Explanation:
of total 40 employees of the firm, Only
3 employees are saying that their boss
directly communicates with them, 34
are against of it and 3 did not
respond.
Conclusion:
follows this principle as 33 of the
employees are denying that boss of
their boss doesn’t communicate with
them directly. Scalar chain isn’t
broken and a particular formal line is
maintained. Thus, this principle is
applied in the firm.

10.Order
“Order” means right arrangement of
things and activities. This principle
states that there should be a proper
order for everything. Fayol is of the
view that in every organization there
should be a fixed place for everything
to facilitate smooth working and avoid
wastage of resources. According to
Fayol in every organization two
different orders are necessary.
1.Social order
2.Material Order
Positive impacts:
 Better handling of resources
 Smooth and systematic working
 Increased productivity
 Proper use of financial resources
 Delayed operations
 Wastage of time, energy and
resources
 No proper accountability

 Reduction in efficiency of
controlling process
RESULT:
Question
(asked from the director)
Answer
Do you follow particular
order for the things
which is happening on
the daily basis?
Yes, for the things and
activities taking place
daily we have a
particular procedure.
Same procedure is
followed regularly and
the activities go
smoothly.
Explanation:
I asked the director about do they follow
same procedures to do the activities
which happens on daily basis and he
answered it to be Yes. He thinks that
following same procedure for activities
happening regularly makes it easy.
Conclusion:
this principle and they are working
smoothly in their regular lives by using
this principle. This principle is very
beneficial for their firm.

11.Equity
Equity means the applicability of same rules
and regulations for all employees in the
organization irrespective of their religion, sex,
caste, colour, creed, language, nationality,
grade, position etc. This principle is based on
the basic thought that “all employees of the
organization are equal”. Every employee in the
organization should be treated with equality
and in fair manner without any
discrimination. It does not mean that all
employees should be treated and paid equally,
it only means equal rules and regulations for
every employee.
Positive impacts:
 Employees feel satisfied
 Ensures fair treatment to all
 Motivate employees
 Ensures loyalty of employees
 Dissatisfaction among employees
 Delay in the achievement of organizational
objective
 Lack of respect towards superiors and work
 Lack of team spirit
 Hinders employee-management relationship

RESULT:
QUESTION YES NO NO
RESPONSE
NO. OF
RESPONDENTS
Does your
company
treat every
employee
equally and
respect
everyone?
17 14 9 40
Explanation:
employees are in favour that they are
treated equally and with respect, 14 of
them denies this fact and 9 did not
respond.
Conclusion:
this principle partially. All employees are
not satisfied and the firm needs to more
conscious about this principle as this will
lead to the feeling of sense of
belongingness in the hearts of employees.

12.Stability of personnel
Stability means no frequent change,
termination and transfer etc. It means that, in
an organisation whenever an employee is
appointed for a job, he/she shouldn't be
removed from that position frequently and
ensure that there must be stability in the job.
When one feels secure at his job, he/she
contributes maximum of his capability
towards the organisational objectives.
Positive impacts:
 Develops sense of belonging-ness
towards the organisation
 Improves the efficiency level of
employees
 Minimises the wastage of resources
 Employees satisfaction
 Better accountability
 Saves time
 Lack of employee’s participation
 Wastage of resources and time
 Dissatisfaction
 Adds to cost

RESULT:
QUESTION YES NO NO
RESPONSE
NO. OF
RESPONDENTS
Is the
environment
of the
company
suitable for
working?
24 6 10 40
Have you
served for
more than 2
years in the
company?
15 25 0 40
Explanation:
According to the survey which I took of total
40 employees of the firm, 24 employees thinks
that working environment of the company is
good and 6 of them doesn’t think the same. 10
did not respond to that. 15 employees have
worked for more than 1 year and 25 have
joined the company within the tenure of 2
years.
Conclusion:
DISHU GROUP OF COMPANIES doesn’t follow
this principle. Labour turnover ratio of the
company is high which is not good for the
company. Working environment is good but
still the labour turnover ratio is high so we
need to find out the problem and sort it out as
soon as possible.

13.Initiative
Initiative means to start. In this principle Fayol
suggested that each employee should be given
an opportunity to take some initiative in
framing the functional plan as well as in
determining the steps to be taken at each level
for proper execution of the plan.
Management must welcome the employees for
taking initiatives in forwarding valuable
suggestions before the plans are set up for
them. This principle helps the management to
know more ways of executing the
predetermined plan as the employees give
various suggestions.
Positive impacts:
 Timely achievement of objectives
 Develops sense of belongingness in
employees
 Ensure maximum participation of
employees
 Employees will feel that the plans and
goals are not for their benefit and thus will
not work with full potential
 Lacks maximum participation from
employees

RESULT:
QUESTION YE
S
N
O
NO
RESPONS
E
NO. OF
RESPONDENT
S
Does your
boss give
importance
to your
suggestions
?
36 2 2 40
Explanation:
of total 40 employees of the firm, 36
employees thinks that their opinions
are given importance, 2 of them
doesn’t and 2 did not respond.
Conclusion:
follows this principle and almost all
the employees are satisfied that their
opinions are valued, this helps to
increase their confidence and
enhance their skills.

14.Esprit de corps
'Esprit de corps' here means team spirit and
team work. This principle emphasizes on team
work. 'Unity is strength' is the essence of this
principle. Fayol suggested that there should be
a team spirit in the organisation and all the
employees must consider themselves as
member of the organisation. This principle is
based on two theories- Unity is
strength and Unity of staff is the foundation of
success in any organisation. This principle is
very helpful in the organisation as well as in
our daily life
Positive impacts of this principle:
 Achievement of group goals.
 Development of team spirit.
 High morale of employees.
 Cooperation and coordination in the
organisation.
 Non-achievement of the organisational
objectives.
 Conflicting environment in the
organisation.
 Lacks maximum participation from employees

RESULT:
Question
(asked from the director)
Answer
Do you try to lead the
company with the feeling
team spirit inculcated in
your employees?
Yes, we try to lead our
employees as a team
but the managers have
the superiority
complexity in them
which violates the
feeling of team spirit
and they do not treat
employees as a member
of the team instead
they make them feel
inferior. We are working
on that and organising
different motivational
speeches about the
importance of team
work for all our
employees.
Conclusion:
follow this principle but they are making
efforts to apply this principle in their firm
as it will give them better results.

About the Organisation
Dishu Group conglomerate is a Haryana
based corporate group which deals in
different domains of customer services.
Its headquarters are in Ambala City.
The primary business being textile
trading, the other services by the group
are in Fashion, Food and Beverages and
Real Estate and Hospitality. Dishu
Group conglomerate is a family owned
business.
MISSION
As the primary business of the Dishu
Group is textile trading, it aims is to
organise the supply chain processes,
distribution channels, wholesale
marketing methods in the E-Commerce
retail sector. It is working towards
modernizing the age-old methods in
wholesale distribution in the women
ethnic wear industry
Website: www.dishugroup.com
Headquarters: Ambala City, Haryana
Type: Partnership
Founded: 1990

Questionnaire
S.NO QUESTION YES NO NO RESPONSE
1. Do you have all the
authority connected
with the work?
27 8 5
2. Has the firm created
some rules to maintain
discipline?
40 0 0
3. Are all the rules
followed that are
created?
15 22 3
4. Do you get orders from
one boss?
6 23 11
5. Do you give the top
priority to the interests
of the company?
35 2 3
6. Do you get reasonable
remuneration?
11 28 1
7. Are the major decisions
taken only by the
higher authorities?
35 0 5
8. Does the boss of your
boss directly
communicate with
you?
3 34 3
9. Does your company
treat every employee
equally and respect
everyone?
17 14 9
10. Is the environment of
the company suitable
for working?
24 6 10
11. Have you served for
more than 2 years in
the company?
15 25 0
12. Does your boss give
importance to your
suggestions?
36 2 2

Appendix
S.no Name of the
principle
Applicable Not
Applicable
1 Division of
work

2 Authority &
Responsibility
PARTIALLY
3 Discipline 
4 Unity of
Direction

5 Unity of
Command

6 Subordination
of Ind.
Interests

7 Remuneration 
8 Centralization 
9 Scalar Chain 
10 Order 
11 Equity PARTIALLY
12 Stability of
Personnel

13 Initiative 
14 Esprit De
Corps


Observation
Of the student during the project
According to my survey and my
personal experience during the survey
and conversations with the director
and the employees, the company has a
well-educated staff and they try to
follow all the principles for success of
the company. Some little faults and
mistakes leads their company down.
They follow 8 principles out of 14 and
they should work on it and try to follow
all the principles, this would bring a
huge change in their profits from now
to then. It is a growing and self-
established company and I hope in
future by their experience and the urge
to learn new things it would expand
more and become a larger company. I
had a really good experience doing this
project and I learnt a lot of new things
which would help me a lot in my
future.

(survey for employees)
1. Do you have all the authority
connected with the work?
Yes
No
2. Has the firm created some rules to
maintain discipline?
Yes
No
3. Are all the rules followed that are
created?
Yes
No
4. Do you get orders from one boss?
Yes
No
5. Do you give the top priority to the
interests of the company?
Yes
No
6. Do you get reasonable
remuneration?
Yes
No

7. Are the major decisions taken only
by the higher authorities?
Yes
No
8. Does the boss of your boss directly
communicate with you?
Yes
No
9. Does your company treat every
employee equally and respect
everyone?
Yes
No
10. Is the environment of the company
is suitable for working?
Yes
No
11. Have you served for more than 2
years in the company?
Yes
No
12. Does your boss give importance to
your suggestions?
Yes
No

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