PROJECT PRESENTATION

TO MAKE A COMPARATIVE STUDY OF THE PRINCIPLES OF MANAGEMENT BY FAYOL AND PRINCIPLES OF SCIENTIFIC

MANAGEMENT BY TAYLOR AND ITS APPLICATION IN MAXIM TUBES CO.PVT.LTD

Submitted byRISHABH M SHAH (17) Submitted to

Dr Vimal kumar sharma

TAPOVAN INTERNATIONAL SCHOOL,MAHESANA

Firstly, I would like to express my innermost thankfulness to all those who indebted and helped me to accomplish my project work successfully and I trust they will forgive me for my inability to enlist them.

This project basically deals with the analysis of scientific management principles by F.W. Taylor and administrative principles by Henry Fayol and their implementation in real life in the Maxim Tubes Pvt.Ltd.

So let me clear the fundamental question what is management? Management is the dynamic process that makes the business run successfully in the changing business environment.

Then the next obvious question emerges are there any standard and fundamental guidelines for this process? Let me answer it in next slide.

management principlesThe answer to that question is yes, there are many standard fundamental guidelines that helps managers to take appropriate decisions and correct actions and this are called “ MANAGEMENT PRINCIPLES”

So particularly in this project I will be dealing with management principles propounded by two great managers thinkers – Henry fayol and F.W. Taylor and the further description is given below-

ADMINISTARTIVE PRINCIPLES BY HENRY FAYOL The fourteen administrative principles which I would be studying in this project are – Division of work Authority and Responsibility Discipline Unity of command Unity of direction Subordination of individual interest over general interest Remuneration of personnel Centralization and Decentralization

Order Principle of scalar chain Principle of equity Stability of personnel Initiative Espirt de corps

SCIENTIFIC PRINCIPLES AND TECHNIQUES BY F.W. TAYLOR In this project work I have analyzed four scientific principles and four techniques which are given below – Science not rule of thumb Harmony not discord Cooperation not individualism Development of each and every person to his or her greatest efficiency and prosperity THE TECHNIQUES ARE- Functional Foremanship Standardization Simplification Differential piece wage system

RESEARCH METHODOLOGYIn order to carry out the project successfuolly two methods of research has been used –Interview – It is a conversation between two perosons intiated by interviewr to get specific information.Observation – Watching other person’s moments without controlling it and off late interpreting it.

ORGANIZATIONAL BACKGROUNDMAXIM TUBES COMPANY PVT.LTD. Is a company located in chhatral,gujarat and was incorporated in 2006. Its main products are seamless and welded pipes,tubes and U-shaped in austenitic , ferritic , and duplex stainless steel pipes. Within a short span of 8 years , it has been able to transform itself from a regional steel pipes and tubes manufacturing company into a booming global business with a solid reputation as well as a foothold in international markets and its turnover has increased 50 folds since its formation.

Analysis of application of Taylor’s principles in MAXIM TUBES PVT.LTD.

Science not rule of thumb – As per the information granted by the manager , it is clear that this principles is applied in the organisation but although in the sense of ambiguity. It means it is not being precisely followed in the organization. It is like all the work are being done in a scientific manner but this scientific techniques are adopted instead of developing there on as suggested by Taylor.

Harmony not discord – As per the information received , it is clear this principle is being adopted in the organization. There is harmonious relation between the managers and the workers. It is clear as there are no labour unions and till date no strikes have been done by workers and while management also give their full backup in any terms to the workers.

Cooperation not individualism – This principle is also being applied as the management has been successful in maintaining a cordial relation between the both rival groups. All the decisions are being taken in mutual confidence and even workers do not make any unreasonable demand and furthermore there is free flow of communication and paternalistic style of management.

Development of each and every person to his or her greatest efficiency and prosperity - This principle is also being followed as the workers are being selected through channels in just and fair manner and thereafter imparted requisite training to suit the job requirement.

TECHNIQUES

Functional foremanship – As per my observation this technique is being precisely followed as the factory is being divided into two department and each department has its own functional experts to supervise and guide the workers.

Standardization of work – This technique is also being applied as every step in the organization has some standard benchmarks to be adhered while carrying out the process. But although timely changes are being made in those standards to adapt to the dynamic environment.

Simplification – This technique is also being adhered as although the company is in manufacturing of pipes which has wide range of verities but company specifically meet requirement of certain sector and therein produces only certain types and sizes of pipes.

Differential piece wage system – The application of this principle is being violated as it is nearly impossible to compute the productivity of each worker in their industry line. But although to encourage the workers a common production target is being set for all which if achieved will result into benefits for all the persons associated with the organization.

ANALYSIS OF PRINCIPLES BY HENRY FAYOL

Division of work – This principle is also being applied as the company follows the policy of ‘” one person one task”. To exemplify it – in quality department one of the task is to check the quality of pipes and it is being done by the workers only specialized for that.

Authority and Responsibility - The explanation of the application of this principle is open to many interpretation as for the workers there is no balance between authority and responsibility but as we move to higher level the balance shows a stable scale.

Discipline – This principle is being thoroughly followed as the company has taken certain steps to ensure discipline in the organization and has being successful. To exemplify it – like there is rule that no one can enter factory without helmet and it is being followed by everyone and never being violated.

Unity of command – This principle is being adhered as each employee is being placed under one department and there is departmental head who gives order and the workers reports to him and him only.

Unity of direction – This principle is also being adhered as the company follows “ one head one plan” policy wherein all the activities which have same objectives are directed by one manager and uses only one plan and all thy employees within work in the same direction.

Subordination of individual interest over general interest – This principle is also being followed as the give facts suggest –-Company turnover has increased fifty fold in within a decade- There is no labour union in the company There is complete harmony between the organizational and personal interest and employees have developed a positive attitude towards the organization and can sacrifice their personal goals at the time of crisis

Remuneration of personnel – This principle is also being followed as all the employees are being fairly paid to keep them satisfied and even there is regular increment and further more they are given additional monetary benefits like “ 0% interest loan”

Centralization and decentralization – This principle is being violated as there no balance between centralization and decentralization and despite of being large organization this is more of centralized and hence suffers certain drawbacks.

Principle of order – This principle is also being followed as there is proper arrangement of man and material in the organization. The organization follows two different order i.e. material and social order to ensure everything carries' on smoothly,

Scalar chain – There is not complete violation nor complete adherence of this principle. It is like the lower hierarchy follows the chain but its stability is disturbed as we move higher up the hierarchy.

Equity – This principle is also being followed as everyone is treated equally without any discrimination based on any parameters. All the supervisors of law are unbiased and all the disciplinary rules are applied equally.

Stability of tenure of personnel – The company is strong believer of this principle as company selects personnel after a due procedure but one selected and placed they give them reasonable time to show results. It is more clear as since 2007 no permanent worker as either left or is being fired.

Initiate – This principle is also being strongly hold good by the company as superior gives due importance to employee’s suggestion and opinions and workers are being taken into confidence and to ensure that there is even a suggestion box but once the decision is taken it has to be followed unquestioningly.

Espirit de corps – This principle is also being adhered as the management has being successful in developing the sense of belonging and team spirit in the employees and hence the workers think themselves as the member of the organization and contributes maximum.

CONCLUSION On the basis of the study conducted and results analyzed it is clear that organization follows majority of principles and techniques and is also being conferred to all the benefits but even there are certain principles which are being manipulated/violated and organization pays for it.

But my hypothesis is that company would prosper more by applying those rest of the principles thoroughly as well.

Indeed it was a very pleasant experience to carryout this project work!!!