A

Project work on
BUSINESS STUDIES AND MANAGEMENT

Application of Principles of Management in

real life Business Problems:
A case study of Reliance Trends

Submitted by:-
DHRUB AGRAWAL
Roll no.: IC21-022
Reg No.:

Under the supervision of: -

Om Prakash Sarangi

SURAJMAL COLLEGE RAMPELLA

Sambalpur, Odisha
Academic Year: 2022 - 2023
 ACKNOWLEDGEMENT

I would like to express my gratitude to my teacher Mr Om Prakash Sarangi

who gave me the golden opportunity to do this wonderful project of business
studies of “PRINCIPLES OF MANAGEMENT”, who helped me in completing this
project. I came to know about so many new things. I am really thankful to
them.

DHRUB AGRAWAL

XII Commerce
 CERTIFICATION
This is to certify that Dhrub Agrawal of +2 second year commerce has
successfully completed the project on “PRINCIPLES OF MANAGEMENT” as per
the guideline of C.H.S.E Odisha. It is further certifying that this project is the
individual and bonafide work of the candidate.

Om Prakash Sarangi
SUPERVISOR
 CONTENTS
SL.NO Title of the Work Pages

1 About Henry Fayol

2 Henry Fayol’s 14 Principles of

management
3 About Reliance Trends

4 Principals of management followed in

Reliance Trends
5 Conclusion

6 References
 ABOUT HENRY FAY0L
Henry Fayol was born in France, 1841. He got degree in mining engineering in
1860 and started working as engineer in a coal mining company. In 1888, he
was promoted as the managing director of the company. At that Time
Company was in the situation of insolvency. He accepted the challenge and
applied his managerial techniques to bring out the company from the situation
and made it most successful company.

Fayol’s work was one of the first comprehensive statements of a general

theory of management. Fayol was a successful mining engineer and senior
executive prior to publishing his principle of administrative science. He was not
primarily a theorist, but rather a successful senior a successful senior manager
who sought to bring order to his personal experiences.

Fayol recognised that management is fundamentally a process involving

people. He saw that work could be managed more efficiently and smoothly by
supporting the workers doing the task. He proposed that if managers could in
still a sense of team spirit and encourage employees to contribute their own
ideas, the problems of high turnover and instability in the workforce might be
solved. At the time, working condition in much of the industrialized world
where terrible, and many of Fayol’s principles ran counter to conventional
ways of thinking about and treating workers. For instances, Fayol said that it’s
essential to pay wage for a fair day’s labour, and he claimed that productivity
would actually increases if managers treated worker fairly and kindly. These
were radical ideas at the time. Fayol argued that Discipline, while important to
organizational success, ought to come from effective leadership-not from
dictatorial or harsh management practices. Fayol recognized that a company’s
people, not its structure, determine success or failure.
 FAYOL ‘S PRINCIPLES OF MANAGEMENT
FAYOL SUGGESTED 14 PRINCIPLES OF MANAGEMANT FOR RUNNING THE
BUSSINESS EFFICIENTLY. THESE PRINCIPLES ARE GIVEN AS FOLLOWS:

1. PRINCIPLE OF DIVISION OF WORK (SPECIALISATION) - Division of work

implies division of the total task in order to lighten the total Burden and
Promote Specialisation in such a way the one person does only one thing
rather than doing everything himself. Fayol has opined that this principle
of Division of work.
2. PRINCIPLE OF PARITY BETWEEN AUTHORITY AND RESPONSIBILITY -
This principle states that Authority and Responsibility should go side by
side. A person can be Accountable for certain activities only if he has
been given Authority for getting good work done. Responsibility and
Authority should be Commensurate with each other. Authority without
Responsibility leads to Irresponsible behaviour while Responsibility
without Authority makes a person ineffective.
3. PRINCIPLE OF DISCIPLINE – Discipline means Obedience, respect of
Authority and Observance of established rules. Discipline is essential for
smooth running of Business and without it no business can prosper.
4. PRINCIPLE OF UNITY OF COMMAND – This Principle states that one
person should receive orders from only one Superior, in other words,
one person should be Accountable to only one Boss. If one person is
under more than one Boss then there can be Contradictory orders and
the Subordinate fails to understand whose orders to be followed.
5. PRINCIPLE OF UNITY OF DIRECTION – The principle of unity of direction
means that there should be one head and one plan for a Group of
Activities having the same Objectives. Each group of Activities with the
same Objectives must have one plan to active and must be under control
of one Superior
6. PRINCPLES OF SUBORDINATION OF INDIVIDUAL INTEREST TO GENERAL
INTEREST – It is an essential function of management to make people
realise the Objectives of the group and direct their efforts towards the
Achievement of these Objectives. The interest of the group must be
Prevail over Individual interest. This principle implies Harmony of
Personal interest and common interest. Fayol was of opinion that the
 interest of one Employee or a group of Employees should not prevail
over the interest of the Enterprise as a whole.
7. PRINCIPLE OF FAIR REMUNERATION TO WORKERS – Fayol was of the
view that the Remuneration paid to the workers should always be just
and fair and should afford maximum Satisfaction to both Employees and
the Employees. The management must ensure fair reward for the work
and decide the most Equitable method of calculating wages.
8. PRINCIPLES OF EFFECTIVE CENTRALISATION AND DECENTRALISATION -
Centralisation means Concentration of Authority in the hands of few,
i.e., top Management. Everything which goes to increase the Importance
of Subordinate ‘s role is Decentralisation and Everything which goes to
reduce it is Centralisation. A balance must be maintained between
Centralisation and Decentralisation of Authority to attain the best
possible result. So, Fayol advised not to complete centralisation nor
complete Decentration but a combination of both.
9. PRINCIPLE OF SCALAR CHAIN - Scalar chain refers to the chain of
superior ranging from the Ultimate Authority to the lowest ranks. Fayol
felt a Hierarchic channel called the Scalar chain in Necessary to ensure
unity of command and Effective Communication. Communication should
follow through he established chain of command. However, a ‘Gang
Plank’ may be created by passing the established line of Authority to
Facilitate quick Communication.
10.PRINCIPLE OF ORDER - Principle of order does not mean command but it
refers to orderly Arrangement of men and material, there is a fixed place
for everything and everyone in the Organisation.
11.PRINCIPLE OF EQUITY - Equity means Justice and Kindliness. Fayol was
of the Opinion that to Encourage workers to fulfil their duties with
Devotion and Loyalty, Management should deal with Employees with
equity-based on the Kindness and Justice.
12.PRINCIPLE OF STABILITY IN THE TENURE OF PERSONNEL - Stability in the
Tenure of Personnel very essential because it take time to get used to a
job. Fayol was the view that instability of Tenure of Personnel is both the
cause and effect of bad Management. A very high rate of labour
turnover or change of Personnel increase cost of selection and Training
and creates a bad name for the organisation. It also causes Instability
 and Insecurity in the mind of workers. To secure loyalty of workers, it is
very essential to provide security of service to the workmen.
13.PRINCIPLE OF INITIATIVE - Initiative implies the power of thinking out of
plan and ensure successful Implementation. The Manager should
encourage or inspire the Confidence of his Subordinates so that they
show Initiative. For this, Fayol suggests that the manager should sacrifice
his own vanity. Initiative is a powerful motivator of human Behaviour
and a source strength for the Organisation.
14.PRINCIPLES OF ESPRIT DE CORPS - The principle implies that there
should be co-operation and team-work among the member of an
organisation. literally speaking, esprit de corps means the spirit of loyalty
and devotion to the group to which one belongs. the manager must
always make a constant effort to ensure harmony, cohesiveness and
spirit de corps among his subordinates to ensure unity and high morale
which is very essential for the success of an enterprise
 RELIANCE TRENDS
Reliance Trends is a leading lifestyle retail chain with over 509 retail stores
across India. Reliance Trends offers stylish, high – quality product across
Womenswear, Lingerie, Menswear, Kids wear and fashion accessories through
a diversified portfolio of own brands, national and international brands.

The uniqueness of the store is the core, which delivers “Fashion at Great
Value”. Spread over 8,000 – 24,000 square feet of shopping area, each
Reliance Trends store is designed to offer a unique shopping experience for the
entire family through wide aisles, coordinated displays and high trained
fashion professionals offering best in class customers assistance.

Reliance Trends customer through www.reliancetrends.com can access a large

collection of fashionable, high-quality products at great value delivered at the
door steps.

THE OWN BRAND PORTFOLIO INCLUDES:

• Rio
• Fig
• Avaasa
• Fusion
• Hushh
• Frendz
• Network
• Netplay
 PRINCIPLE OF MANAGEMENT FOLLOWED IN RELIANCE TRENDS
1. DIVISION OF WORK: According to this principle, the whole work must be
divided into small task and instead of assigning the whole work to one
person. One task or job should be assigned to one person according to
the Capability, Qualification and Experience of the person.

When a person is performing a part of job again and again, he will

become perfect and specialised line that job and efficiency will improve.
This principle is very useful for any organisation be it private or public. It
enhances overall performance of an organisation because specialists
perform consistently. For example, an organisation having different
departments

In Reliance Trends the employees are divided into different sections

which create Specialisation and lighten the total burden.

2. AUTHORITY AND RESPONSIBILITY: Authority means power take

decision. Responsibility means obligation to complete the job on time.
So according to principle there should balance and parity b/w authority
and responsibility. Excess of authority may bring in result of negative
results and Excess of responsibility will not allow the workers to
complete the work on time. Balance b/w both of them will result in no
misuse of authority and it also helps-in meeting responsibility on tie
without any delay.

In Reliance Trends the authority flows from the store manager to

supervisor to section in charges, the store manager has the authority to
take decision for better management of his store. Each section in charge
is responsible for the performance of the section.

3. DISCIPLINE: Discipline refers to general rules, regulation for systematic

working of an organisation. It doesn’t mean only rules and regulation
but it also means developing commitment in the employees towards
organisation. It also means obedience to organisational rules that are
functioning of an organisation. It includes –
• Goods supervision at all level
 • Clear and fair agreement
• Application of penalties judiciously

Employees must honour the commitment made by them and

management must meet its promises. On one hand it enforces
orderliness and motivates on other side.

In Reliance Trends punctuality and disciple are given due importance.

The employees have to behave in proper manner and maintain the
decorum in the store. They have to be courteous and helpful to the
customers. Employees have to honour the commitment made by them.

4. ORDER: People and materials must be in suitable place at appropriate

time for maximum efficiency. In other words, there must be orderliness
in the organisation.
• Material Order – Arrangements of things is called material order. It
ensures proper and fixed place for various for various materials, tools,
equipment’s
• Social Order – Arrangements of people is referred to a social order. It
ensures proper and fixed place for each employee in a organisation

It results in increase in productivity and efficiency and smoothly

functions without hindrance.

In Reliance Trends all the material is arranged in proper order and in a

neat and clean way. All the items are kept in designated place
earmarked for them and price tag of each item is properly displayed

5. EQUITY: Good sense and experiences are needed to ensure fairness to

all employees, who should be treated as fairly as possible. Equity means
to be kind, fair and just treatment to employees. Employees will put
their maximum efforts when they are treated with kindness and justice.
This will ensure loyalty and devotion. There should be no discrimination
against anyone on a/c of sex, religion, language, caste, belief or
nationality. If a manager is biased in dealing with employees, then they
will get dissatisfaction and will not contribute to their maximum
capacity. Employees seek to become loyal and devoted if equally treated
Male and female employees give equal importance in Reliance Trends.
 There is no any discrimination any one on a/c of sex, religion, language,
caste, belief or nationality. This is the reason why all employees work
with dedication and commitment and there is equal opportunity for
promotion of all employees
6. UNITY OF COMMAND: The principle states that every subordinate
should receive orders and be accountable to one and only one superior.
If an employee receives orders from more than one superior, it is likely o
create confusion and conflict. Unity of command also makes it easier to
fix responsibilities for mistakes and the authority should be
commensurate with responsibility.
The management team of each department within reliance rends has
been clearly defined. Each employee under his/her respective
departments are receiving orders from only one manager of that
department. As reliance trends follow the principle it is a successful
business.
7. UNITY IN DIRECTION: All those working is the same line of activity must
understand and pursue the same objective. All related activities should
be put under one group, there should be one plan of action for them,
and they should be under the control of one manager.
Reliance trends cooperates with other companies including joint
venture, by sharing knowledge and physical, human and management
resources, to achieve a common goal. As reliance trends follow the
principle it is a successful business.
 CONCLUSION
Henry Fayol’s all fourteen principles are important to control an organisation.
They help to improve manage organisation with control, status, positive
results. The principle helps in increasing efficiency of a concern it also
promotes specialisation and helps in making the workers discipline and follow
rules and regulation properly, their efficiency improves. The principles helps in
meeting the target in time and also the employees are treated similarly, this
makes the workers happy and satisfied and the principle helps in increasing the
team spirit application of Fayol’s principle makes an organisation successful as
Reliance trends follows the principle of management as a result of which it is
one of the most famous and most leading business.
 REFERENCE

I. Business Studies And management by R.K. Sharma, Shashi k. Gupta and

Rahul Sharma
II. Business Studies And management, Odisha text book , bureau,
Bhubaneswar