Slide 1

PRINCIPLE OF MANAGEMENT:

ASSIGNMENT 3

CASE STUDY ON RELIANCE FRESH

Submitted By : SHIKHAR MALIK(13BCE0494) SRIHARSH DEBATA(13BCE0405)ARSHAN HASAN(13BEE0163)

INDEXSir Henri FayolReliance Fresh

Sir Henri FayolHenri Fayol( 29 July 1841 19 November 1925) was aFrenchmining engineer& director of mines who developed a generaltheory ofbusiness administration. statementsof a general theory of management.

Fayol was a successful mining engineer and senior executiveprior to publishing his principle of administrative science. Hewas not primarily a theorist , but rather a successful senior asuccessful senior manager who sought to bring order to hispersonal experiences.

Fayols five principle roles of management are still actively practised today he has found Plan , Organise, command, co-ordinate and control written on more than one managers whiteboard during his career. Fayol ideas had a major effect on how mgt functions in most established organisation .In many ways, they are the bible of mgt and the source of idea is even today is certainly used by all managers

Reliance fresh is the convenience store format which forms part of the retail business of Reliance Industries of India which is headed by Mukesh Ambani. The company already has in excess of 1000 reliance fresh outlets across the country. These stores sell fresh fruits and vegetables, staples, groceries, fresh juice, bars and dairy products.

Reliance Fresh stores are already selling over 1000 tonnes of fresh products and 250 categories. Reliance fresh is aggressively working on introducing a pan-India network of retail stores with world class environment, state of technology and seamless supply chain.

SLOGAN:Growth Through Value Creation

Principles Of Management Division of work Authority and Responsibility Discipline Unity of Command Unity of Direction Remuneration of employees Centralisation and Decentralisation Order Equity Espirit de Corps

Division of workAccording to this principle, the whole work must be divided into small task or units 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 in that job and efficiency will improve . This principle is very useful for any oganization be it private or public. It enhances overall performance of an organisation because specialists perform consistently .For example an organization having different departments.

Authority $ ResponsibilityAuthority 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 negative results and Excess of responsibility will not allow the worker 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.

DisciplineDiscipline 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 necessary for functioning of an organisation. It includes Good supervision at all levelClear and fair agreementApplication of penalties judiciouslyEmployees must honour the commitment made by them and management must meet its promises. On one hand it enforces orderliness and motivates on other side.

Unity of CommandThere should be one & only one boss for every individual employees working in an organisation. If employees get order from 2 superiors at same time then they will get confused and not able to understand that whose orders must be executed .Thus unity of command avoids confusion and conflicts. It also helps in harmonious relations and fixation of responsibility. If this principle is violated then there will be ego clashes as employees should receive order from one boss only. this principle helps to create peace in same level and to subordinate.

Unity of DirectionEfforts of all the members and employees of an organisation must be directs towards one direction that is achievement of common goal. This helps in bringing unity of action and coordination in an organisation. Each department and groups having common objective must have one head and one plan only.All the units of an organisation should be moving towards the same objectives through coordinated and focused efforts. Positive effects are Achievement of organisation goal Efforts of all the employees get unified towards one direction only.

Remuneration of employeesThe overall pay and compensation should be fair to employees and workers to give them at least a reasonable standard of living. Remuneration paid to employees must be fair because if employees are unpaid they will not be satisfied and an unsatisfied person can never contribute his maximum. Dissatisfaction will lead to increase in employees turnover . This ensures congenial atmosphere b/w the management and workers. In healthy atmosphere , workers put there best efforts to contribute maximum. it ensures smooth functioning and motivates them.

Centralisation & DecentralisationCentralisation refers to concentration of authority in few hands at the top level.Decentralisation means evenly distribution of power at every level of management. According to fayol, a company must not be completely centralised or completely decentralised but there must be both depending upon the nature and size of the organisation. A company must be properly balanced i.e.; it should not be completely centralised or decentralised. This principle leads to positive effect that are Fast decision at operational level and strict control by top levelBenefits of centralisation as well as decentralisation.

OrderPeople and material must be in suitable place at appropriate time for maximum efficiency. In other words, there must be orderliness in the organisationMaterial order arrangement of things is called material order. It ensures proper & fixed place for various materials , tools , and equipments.Social order arrangement of people is referred to as social order. It ensures proper & fixed place for each employee in an organisation.It results in increase in productivity and efficiency and smoothly functions without hindrance.

Equity Good sense and experience 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 .

Espirit De CorpsManagement should promote a team spirit of unity and harmony among employees. In order to achieve organisational goal, mgt should promote team work and coordination. Espirit De Corps means union is strength. Fayol suggested that every employee in the organisation must consider him as a part of a team and try to achieve team goal because team contribution is always better than individual.The feeling of I should be replaced with WE. It helps to develop a feeling of mutual trust and understanding and achieve goal with efficiency and effectiveness.

GROWTH OF RELIANCE FRESH:Value retailing usually, big format stores offering discounts to customers is at the heart of both operations. Reliance retailderived 56% of its revenues fromvalue retailingin 2012-13, via its 700-odd Reliance Fresh stores. Another 290 of its stores are underspecialityformats like fashion, lifestyle and jewellery. Future doesn't give up a similar break-up of revenues, but it has 204 stores under its value formats,Big Bazarand Future Bazaar, accounting for 55% of its stores and space. Hence, Reliance Fresh is conquering more customers and it has marked a great success rate in the market by obeying and following proper managerial tactics that we have discussed above.

Thank you