Ajeenkya D Y Patil School of Engineering (Charholi)

Via Lohegaon, Pune-412 105

Department of Computer Engineering

2023-24

[6thSem]

Micro-project Report of

Management

on
Study Of Management Principles Applied To Medium
Scale Industry

Submitted by:

Roll Number Name of Student Enrollment Number

08 Pranita Pawar 2216490085

Under the Guidance of

Ms. Rohini Hulsure

Ajeenkya D Y Patil School of Engineering (Charholi)
Department of Computer Engineering
SEMESTER-6th 2023-24

CERTIFICATE
This is to certify that Project report entitled " study of management principles
applied to medium scale industry " is submitted in the partial fulfilment of requirement
for the award of the Diploma in Computer Engineering by Maharashtra State Board of
Technical Education as record of students' own work carried out by them under the guidance
and supervision at D Y Patil School of Engineering (Charholi), during the academic year
2023-24.

Roll Number Name of Student Enrollment Number

08 Pranita Pawar 2216490085

Place: Charholi (Bk)

Date: / /2024

((Ms. Rohini Hulsure ) (Mr. Sandeep Pandey)

Project Guide Head of Computer Department
ACKNOWLEDGEMEMT

It is with profoundly sense of gratitude that we acknowledge from

our guide Ms. Rohini Hulsure. She has been guided in the true sense of
word, a guide who satisfaction from our word & progress.

We are highly obliged to Mr. Sandeep Pandey Head of Computer

Department for aberrance & good co-operation given to us for bringing
this project to almost standard.
We are grateful to our principal Dr. Shelke Sir for proceeding
acknowledgement to us in the connection of this project concluding. We
appreciate the assistance of all staff that helps us in for their sincere &
obliging help to make our project successfully.
Micro Project Proposal Part A

Study Of Management Principles Applied To Medium Scale Industry

1. Brief Introduction:

Considering the name – Micro, Small and medium enterprises- it is notdifficult to get
disillusioned
about the importance of MSMEs when it comes tothe growth and development of the
country.
They have been long over looked even when this sector actually employs 69 million people
in India which is 40%of the total workforce, through 44 million enterprises. Not only are
they a source of basic livelihood but have improved the standard of living of many
familiesover the years. MSMEs contribute approximately 8%to India’s GDP,
areresponsible for a stunning 45% of its total industrial
output and 40% of its total exports.
The manufacturing sector among MSMEs, which is a little larger thanthe services sector,
constitutes 90% of the total industrial units that spread all overIndia.
Only 55% of the total MSMEs units are located in urban areas rest 45% ofthe units are
located in rural areas of states like Uttar Pradesh, Maharashtra, Tamil Nadu, West Bengal,
Andhra Pradesh, Karnataka etc.
This leads to an equitable distribution of national income, poverty alleviation and inclusive
Economic growth. World over, small and medium enterprises are considered to be the
engine of growth that tap into the latent entrepreneurial talent in the nation and provide an
opportunity to the weakest sections of the society to employ themselves as well as others
and in the process help the ones, they are providing services to.
According to a report by Harvard Kennedy School, in the prosperous countries Small and
Medium Enterprises (SMEs) constitute the largest part of industries followed by large
enterprises and Micro enterprises whereas they constitute the lowest share of industries in
the low-income countries where the share of micro enterprises is largest followed by large
enterprises and lastly by SMEs. This absence of SMEs in the low-income countries is
known as ‘The Missing Middle’. This acts as a proof of their significance of their role in
development of the country.

2. Aim of the micro project:

The Medium Scale Industries have a big role in meeting the sales and production
requirements of small-scale as well as large-scale industries. Employment: Medium-scale
enterprises are labour intensive and thus create more employment per unit of capital
employed.
3. Action Plan:

Sr.no Details of activity Planned start Planned end Name of responsible

date date group members

1. Searching for the

topic

2. Confirmed the
topic we searched
for the micro
project
3. Collecting
information

4. Making proposal
Pranita Pawar

5. Testing and analysis

of test result

6. Preparation of
final project report

7. Final submission of
the project
4. Resources Required:

Sr. No. Specification

Name of
resources/Material

1. Computer system Intel i512th gen processor

2. RAM 4GB

3. Hard disk 1TB

4. Operating system Windows 11

5. Name Of Team Members:

Name Roll No.

Pranita Pawar 08
Ms. Rohini Hulsure
(Micro-project Guide)
Part B

Study Of Management Principles Applied To Medium Scale Industry

Sr. Topics
no

1. What is management

2. Nature of Principles of Management

3. Management Functions

4. Management principles applied for medium scale

industry

5. Actual Resources Used (mention the actual

resources used.)

6. Outputs of the Micro Projects

7. Skill Developed/ Learning out of this Micro

8. References

9. Conclusion
What Is Management

There is no universally accepted definition for management. The definitions run the gamut
from very simple to very complex. For our purposes, we define management as “the
application of planning, organizing, staffing, directing, and controlling functions in the most
efficient manner possible to accomplish meaningful organizational objectives. management
is all about achieving organizational objectives through people and other resources.
Management principles apply to all organizations large or small, for-profit or not-for-profit.
Even one-person small businesses need to be concerned about management principles
because without a fundamental understanding of how businesses are managed, there can be
no realistic expectation of success. Remember that the most common reason attributed to
small business failure is failure on the part of management

1. Nature of Principles of Management

1. Universal relevance:
Principles of management are expected to employ to all types of establishments, the industry as well
as non-industry, small as well large, private sector as well as the public sector, production as well as
the services divisions. However, the scope of their applicability would diversify with the nature of the
industry, business activity, scale of operations etc.,

Example:
The whole work of an organisation is divided into smaller tasks and such tasks are assigned to different
departments, groups and individuals. Such a system of division of work is applicable in all types of
organisations.

2. General rules:
The laws are the regulations to work but do not give readymade, simple clarifications to all
administrative issues. This is so because real-time business conditions are difficult and
powerful and are a consequence of many factors.

Example:
During the period of recession, the general manager may allow marketing departments to
give a heavy discount to the customers without giving due attention to financial losses being
raised by the financing department because the primacy of overall goals of the organisation
is important.
3. Formed by practice and trial and error method:
The principles of management are determined by wisdom and accumulated knowledge of
managers as well as experimentation. For instance, it is a subject of current knowledge that
the system is necessary for achieving any goal. This principal gain name in the management
system.

Example:
Through collective practice, we can see that Fayol’s Principle-Discipline helps in increasing
productivity. Taylor’s Principle-Science, Not Rule of Thumb, brings out uniformity and
standardization in the manufacturing process of a company. (we can give the same example
which we have given in the case study because at this stage Fayol’s principle and Taylor
principle are not yet discussed).

4. Contingent:
As the application of principles of management depends upon prevailing situations and needs,
so their results may not be uniform as expected.

Example:
Remuneration of employees should be just and equitable yet it may vary from person to
person depending upon various situations. Remuneration can be dependent on:
• Industrial standard.
• Employer’s paying capacity.
• Contribution of employee etc.,

5. Flexible:
The principles of management are general prescriptions not rigid. The manager scan make
certain changes as per the convenience and requirement of a situation.

Example:
Application of the principle of centralisation or decentralisation i.e. concentration or dispersal
of authority to be delegated to employees depends up on the need, ability and competency of
the employees. It also depends upon the nature of the organisation.
2. Management Functions
On any given day, small business owners and managers will engage in a mix of many different
kinds of activities — for example, deal with crises as they arise, read, think, write, talk to
people, arrange for things to be done, have meetings, send e-mails, conduct performance
evaluations, and plan. Although the amount of time that is spent on each activity will vary, all
the activities can be assigned to one or more of the five management functions:
1. Planning
2. Organizing
3. Staffing
4. Directing
5. Controlling

1) Planning
It is the process of anticipating future events and conditions and determining courses of action
for achieving organizational objectives. Planning helps a business realize its vision, get things
done, show when things cannot get done and why they may not have been done right, avoid
costly mistakes.

2) Organizing

It consists of grouping people and assigning activities so that job tasks and the mission can
be properly carried out. Contrary to what some people may believe, the principle of
organizing is not dead. Rather, it is clearly important “to both the organization and its workers
because both the effectiveness of organizations and worker satisfaction require that there be
clear and decisive direction from leadership; clarity of responsibilities, authorities, and
accountabilities; authority that is commensurate with responsibility and accountability;
unified command (each employee has one boss); a clear approval process; and, rules
governing acceptable employee behaviour.

3) Staffing

The staffing function involves selecting, placing, compensating, developing, and evaluating
( performance appraisal) employees. Small businesses need to be staffed with competent
people who can do the work that is necessary to make the business a success. It would also
extremely helpful if these people could be retained.
4) Directing

Directing is the managerial function that initiates action: issuing directives, assignments,
and instructions; building an effective group of subordinates who are motivated to do what
must be done; explaining procedures; issuing orders; and making sure that mistakes are
corrected. Directing is part of the job for every small business owner or manager. Leading
and motivating work together in the directing function. Leading “is the process of
influencing people to work toward a common goal and motivating is the process of
providing reasons for people to work in the best interests of an organization.

5) Controlling

Controllingis about keeping an eye on things. It is “the process of evaluating and regulating
ongoing activities to ensure that goals are achieved.” Controlling provides feedback for
future planning activities and aims to modify behaviour and performance when deviations
from plans are discovered.

3. Management principles applied for medium scale industry:

• Division of Work : This principle of management is based on the theory that

if workers are given a specialized task to do, they will become skilful and more efficient in it
than if they had a broader range of tasks. Therefore, a process where everyone has a specialized
role will be an efficient one.

• Authority: This principle looks at the concept of managerial authority. It looks at how
authority is necessary in order to ensure that managerial commands are carried out. If
managers did not have authority, then they would lack the ability to get work carried out.
Managers should use their authority responsibly and ethically.
• Discipline: This principle relates to the fact that discipline is needed within an
organization for it to run effectively. Organizational rules, philosophies, and structures
need to be met. In order to have disciplined workers, managers must build a culture of
mutual respect and motivation.

• Unity of command: There should be a clear chain of command in place within an

organization. An employee should know exactly whose instructions to follow.

• Unity of direction: Work should be organized in a way that means employees are
working in harmony toward a shared objective or goal using a shared method or
procedure.

• Subordination individual interests to the collective interests: The interests of the

organization as a whole should take precedence over the interests of any individual
employee or group of employees. This encourages a team spirit and collective mentality
of all for one and one for all.

• Remuneration: In order to motivate and be fair to employees, they should be paid a

reasonable rate for the work they carry out. An organization that underpays will struggle
to attract quality workers who are motivated.

• Centralization: This principle relates to whether decisions should be made centrally, as

in from the top down, or in a more democratic way, from the bottom up. Different
decision-making processes are appropriate for different types of decisions.

• Scalar chain: This relates to the principle of a clear chain of communication existing
between employees and superiors. The chain should be respected, unless speedy
communication is vital, in which case the chain may be bypassed if all parties consent.
• Order: This relates to the proper use of resources and their effective deployment in a
structured fashion.
• Equity: Managers should behave ethically towards those they manage. Almost every
organization in the modern world will have a written set of policies and procedures which
will outline exactly what is expected from staff at all levels.

• Stability of tenure of personnel: It is seen as desirable within an organization to have a

low staff turnover rate. This is due to the benefits that come with having experienced staff
and the time and expense needed to train new ones. There should be a clear and efficient
method of filling any staff vacancies that arise.

• Initiative: Employees that have an input as to how to best do their job are likely to feel
more motivated and respected. Many organizations place a great deal of emphasis on
listening to the concerns of staff.

• Morale: Keeping a high level of morale and team spirit is an essential part of having the
most productive organization possible. Happy and motivated employees are far more
likely to be productive and less absent.

• Customer Focus: Organisations depend on their customers and therefore should

understand current and future customer needs, should meet customer requirements and
strive to exceed customer expectations.
• Leadership: Leaders (top management) establish unity of purpose and direction of the
organisation. They should create and maintain the internal environment in which people
can become fully involved in achieving the organisation’s objectives.

• Engagement of People: People at all levels are the essence of an organisation and their
full involvement enables their abilities to be used for the organisation’s benefit and allow
the organisation to achieve common goals including quality objectives.

• Process approach: A desired result is achieved more efficiently when activities and
related resources are managed as a process. The process approach incorporates the Plan-
Do-Check-Act (PDCA) cycle and risk-based thinking.
• Improvement: Continual improvement of the organisation’s overall performance should
be a permanent objective of the organisation. Under taking internal audits at regular
intervals can assist with identifying opportunities for improvement.

• Evidence-based Decision Making: Effective decisions are based on the analysis of data
and information. It is important to make decisions based on the facts, plan changes and
verify the effectiveness of change.

• Relationship Management: An organisation and its interested parties (including

suppliers) are interdependent and a mutually beneficial relationship enhances the ability
of both to create value. Communication is key to maintaining and improving the quality
management system (QMS).

5. Actual Resources Used (mention the actual resources used.)

Sr. No. Name of Specification

resources/Material

1. Computer system Intel i512th gen processor

2. RAM 4GB

3. Hard disk 1TB

4. Operating system Windows 11

6. Outputs of the Micro Projects:

Thus we studied in detail about Study Of Management Principles Applied To Medium Scale
Industry in detail

7. Skill Developed/ Learning out of this Micro:

Throughout this project we learned about Study Of Management Principles Applied To Medium
Scale Industry. We also learn management in detail.

8. References:
1. Management Textbook by, Vijay Navale
2. WWW.WIKIPEDIA.COM
3. Management Textbook techknowledge publication

9. Conclusion:-
The application of principles of management helps the managers to take right decisions at the right time.
These principles of management help managers to tackle the diverse problems in a dynamic business
environment.

Ms. Rohini Hulsure

(Micro-project Guide)