PRINCIPLE OF MANAGEMENT

NAME: VIVEK.S ROLL NO: 2127262

SUBMISSION DATE: .08.2021

INDEX

S.NO TITLE PAGE NO

1 Principle Of Management 2

2 Introduction 4

3 History Of the Organization 5

4 Organization Structure 6

5 Levels Of Management 7

6 Applications Of Management Followed 8

7 Management Approaches in Organization 9

8 Violation of Management theory 10

9 Conclusion 11

10 Reference 11

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Principle of management:

Management in an organization is essential as it helps in effectively achieve the aim

of the organization. As this there are some principles of management planning, organizing,
leading and controlling and without these principles of management the organization will
have a great trouble in achieving their aim. Thus, following these principles an organization
or a company is able to achieve their goals effectively

Henri Fayol is known as the “Father of Modern management theory” has divided the
management into 14 Principles such as:

1. Division of Work:
In this he says that a specialization task must be given to individual worker as he gets
practiced with that and become skilled in the area rather giving him broader of tasks.
Therefore, the workers will work efficient.

2. Authority:
This tells about the managers where the managers should have the authority to carry
out the tasks from the works and to solve the problems face during the tasks.

3. Discipline:
For the organisation to complete the responsibilities efficiently, discipline is required.
The organization's laws, philosophies, and structures must all be followed to the letter.
To establish discipline, managers must foster a culture of mutual respect and provide
encouragement to their employees.

4. Unity of command:
The employees must know from where instructions should be followed so a clear
chain of command should be followed.

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5. Unity of direction:
The works must be organized in a way that the employees must have a goal or
objective so it is good to follow shared method or procedure.

6. Subordination individual interests to the collective interests:

The organization's overall objectives should take precedence over the interests of any
single employee or group of employees. This fosters a sense of belonging and a
communal mentality of one for all and one for all.

7. Remuneration:
In way to have an innovative and fair worker the organization should pay them a
reasonable salary for the works they carry out. The organization that under pays will
lead to unskilled workers and unmotivated workers which disturbs the growth of the
organization.

8. Centralization:

These principle concerns whether choices should be made centrally (from the top
down) or democratically (from the bottom up). For different types of decisions,
different decision-making techniques are acceptable.

9. Scalar chain:
This states of the communication chain between the superiors and the managers. The
chain must be given respect to achieve the effectiveness

10. Order:
This has to do with the efficient utilisation of resources and the systematic
deployment of those resources.

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11. Equity:

This says that the managers should behave ethically towards the people they manage.
The organisations will have some procedures and policies. This will specify what is
expected of employees at all levels.

12. Stability of tenure of personality:

To have a low staff turnover by the company. They should be keen that having
experienced workers than new ones as to reduce expenses and time. The organization
should have a proper idea on filling the vacancy.

13. Initiative:

Employees who have a say in how their jobs are done are more likely to feel
motivated and valued. Many firms place a high priority on listening to employees'
problems.

14. Morale:
As to have a high productive rate in the organization keeping high level morale and
team sprit must be followed. Happy and motivated employee will give high
productivity and the absent are reduced from them.

NESTLE
INTRODUCTION:

NESTLEI is a food-based firm that produces a variety of items all around the world.
NESTLE India produces products of truly international quality under internationally
recognised brand names such as NESCAFE, MAGGI, MILKYBAR, KIT KAT, BAR-ONE,
MILKMAID, and NESTEA, as well as products for daily consumption and use such as
NESTLE Milk, NESTLE SLIM Milk, NESTLE Dahi, and NESTLE Jeera Raita.

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HISTORY OF THE ORGANIZATION:

Nestle, headquartered in Vevey, Switzerland, is a Swiss multinational nutrition and

health-related goods corporation. It is the most important corporation in the planet. Baby
food, coffee, confectionary, drinking water, breakfast cereals, farm products, ice cream, pet
foods, and snacks are among Nestle's products. Nescafe, Kit Kat, Nespresso, Smarties,
Nesquik, Stouffer's, Vittel, and Maggi are among Nestle's twenty-nine brands with annual
sales of over one billion CHF (about US$ one.1 billion). Nestle employs around 328,000
people worldwide and operates 450 plants in 86 countries. it's one amongst the most
stockholders of L’Oréal, the world’s largest cosmetics company It is a major shareholder in
L'Oréal, the world's largest cosmetics company. Nestle was formed in 1905 when the Anglo
Swiss Milk Company, founded in 1866 by brothers George and Charles Page, merged with
Nestle. During World War I and again after World War II, the company expanded its
offerings beyond its early milk and infant formula products. racquet & Blackwell in 1950,
Findus in 1963, Libby's in 1971, Rowntree Mackintosh in 1988, and Gerber in 2007 are only
a few of the company's corporate acquisitions. Nestle was named the world's most profitable
firm by Fortune International 500 in 2011. Nestle ranked thirteenth in the linear unit
international 2011 with a market capitalization of $ 200 billion.

ORGANIZATION STRUCTURE:

The organisational chart of a company often depicts the relationships between employees.
Managers to subordinates, directors to managing directors, chief military officers to various
departments, and so on are examples of such relationships. When an organization chart grows
overlarge it is often split into smaller charts for separate departments within the organization.

The different sorts of organization charts include:

 Hierarchical
 Matrix
 Flat

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The Nestle Company could be a matrix-structured decentralised organisation. Nestle's
decentralised structure allows subordinate branches to have a relatively high level of
autonomy. Although important strategy choices are still made at the headquarter level, daily
operations are delegated to subordinate units. Local units are in charge of making operational
choices.

LEVELS OF MANAGEMENT

1. Top level of Management:

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It contains of board of directors, chief executive or director. the highest management is that
the final source of authority and it manages aims and policies for an initiative. It dedicates
longer on planning and coordinating functions.

The role of Top level management is summarized as follows:

 Top management establishes the company's overarching policies and goals.

 It gives directions on how to prepare subdivision procedures, timetables, and budgets,
among other things.
 It develops the initiative's strategic policies and plans.
 It appoints the middle-level chief as a model departmental manager.
 It oversees and coordinates the work of all departments.
 It's also in charge of keeping in touch with the outside world.
 It provides guidance and direction.
 The top management is also accountable to the stockholders for the success of the
effort.

2. Middle Level of Management:

The intermediate level is made up of branch managers and departmental managers. They're in
charge of their department's operations and report to the top management. They dedicate
more time to directing and organising activities. Their responsibilities are frequently
highlighted as follows:

 They carry out the organization's plans in accordance with the policies and
instructions of the senior management
 They plan for the organization's sub-units.
 They assist in the training and hiring of lower-level management.
 They are able to interpret and explain policies from top management to lower levels.
 They're also in charge of motivating lower-level managers to improve their
performance.

3. Lower Level of Management:

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The operative/supervisory level of management is often referred to as the lower level.
Supervisors, superintendents, officers, and other personnel are included. Among their
endeavours are:

 Assigning different staff to different roles and tasks.

 They provide day-to-day guidance and instruction to employees.
 They are responsible for both the quality and quantity of production.
 They are also in charge of fostering positive relationships inside the organisation.
 They help to resolve worker complaints by communicating concerns,
recommendations, and recommendatory appeals to the upper level as well as higher-
level aims and objectives to the workers.

APPLICATION OF MANAGEMENT FOLLOWED:

Fayol's 14 principal applied in nestle,

 First task division of labour consistent with their skills and specialized for his or her
work they will increase their output
 Authority managers must give the authority to offer orders and confine mind that
authority can give responsibility
 Discipline must be held in organization to figure. And unity is that the basic key of
coordination
 Only one supervisor to getting a command and teams under the control of him/ he this
may make sure that action is proper way and good coordination to the team members
 Individual interested not allowed to the team this includes managers to satisfaction for
workers fair remuneration for everybody. This includes financial or non-financial
compensation
 It is appropriate where employee substitute organization and order the work place are
going to be clean and safe. Everything should wear its place
 Manager and staff fair both maintaining and discipline also maintaining and kindness
 Tenure of private should strive in minimize and freedom of priority are their
organization prompt team.

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MANAGEMENT APPROACHES IN ORGANIZATION:

Motivation is the main force that initiates, directs, and makes people continue to accomplish a
goal. We should know that Motivation is essential for not only a team but also a corporation.
Within the company leader's eyes, Nestle, empowering and inspiring staff members to try to
do the most straightforward job they're capable of helps create job satisfaction, lowering
turnover in an industry that features a reputation for energizing its employees. Moreover, a
happy, stable workforce delivers better customer service and is simpler at constructing sales
and attracting repeat customers.

Motivation is the only culture that emphasizes employee wellness and helps staffers minimize
stress and reap benefits. This might be harder during times of economic duress when layoffs
are a fact of life, and lots of employees could also be working harder and sometimes for
lower tips and fewer benefits- but all the more reason to know the importance of staff
recognition.

There are some of the approaches that are followed by the organization to motivate:

1. Say thank you with meaningful gifts.

  This point is that giving consider respect for employees. Saying thank you with
meaningful gifts provides the employees thankful assistance for the works and the tasks done.
This approach motivates the employee as a boosting method to maintain the consistency of
work for the future.
2. Put it in writing.

The writing means that the employees will be satisfied with the psychological demand
because people always desire to get rewarded from higher managers after completing their
tasks. Thus, the rewards can also make the employees more relaxed and energetic in the

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workplace. For Nestle, there are different ways to reward the employees for the job well
done. They are allowed to wear street or casual dresses instead of uniforms on certain days,
and they provided them with employee’s rewards like incentives, gift cards, and free travel
opportunities.

3. Give them carrier-development opportunities.

This method gives them career development opportunities. A theory says that if a
person improves their customer service skills, they will receive positive feedback or a
financial reward, influencing their future behaviour.

4. Endorse a healthy Lifestyle.

This method approach is endorsing a healthy lifestyle. It is an essential physical

demand for every employee. A good and healthy lifestyle must be satisfied first because it
is to ensure their survival and well-being.

5. Use your foodservice incentive as a reward.

The final way to motivate is to use Foodservice rewards as an incentive. The

foodservice rewards mean you can redeem the points from Nestle Professional products
for a wide variety of products, from watches and electronics to apparel and office gear
and foodservice equipment. The organization gave rewards ranging from digital cameras
to sporting equipment to MP3 players to employees as a bonus incentive for a job well
done. Many organizations use this product to motivate and reward their valued employees
as to complete their tasks well.

VIOLATION OF MANAGEMENT THEORY:

1. Aging workforce and retirements

As the Organization fills most of the upper-level positions with senior personnel, and
some retire each year, nestle has to go through the continuous recruitment process every year
to fill those positions when succession is not possible, and finding the right person is also a
challenge.

Solution for the problem is that recruiting a half experienced and giving them a proper
training with the experienced one where they are also able to learn the organization.

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 2. Less experienced workers and freshers

The organization is filled with new graduates and less experienced workers as they
have a lack in maintaining the standards in the work place.

Solution for this also is giving a proper training to the new employees.

3. Child labour

There were many children labour in the area which faces poverty and lack of schools.

Solution is that giving a proper education and recruit them for the company which
increases the literature level and reduces poverty through opportunity.

CONCLUSION:

Nestle is an organic model of

organizational design. It is
flexible and highly adaptive to
the competitive external
environment and also
decentralized decision
authority.
Although Nestle Company has
achieved their mission and
objectives
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Nestle is an organic model of
organizational design. It is
flexible and highly adaptive to
the competitive external
environment and also
decentralized decision
authority.
Although Nestle Company has
achieved their mission and
objectives
Nestle is an organic model of
organizational design. It is
flexible and highly adaptive to
the competitive external
environment and also

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decentralized decision
authority.
Although Nestle Company has
achieved their mission and
objectives
Nestle is an organic model of
organizational design. It is
flexible and highly adaptive to
the competitive external
environment and also
decentralized decision
authority.
Although Nestle Company has
achieved their mission and
objectives

13
Nestle is an organic model of
organizational design. It is
flexible and highly adaptive to
the competitive external
environment and also
decentralized decision
authority.
Although Nestle Company has
achieved their mission and
objectives
Nestle is an example of an organic organisational design. It is adaptable to the competitive
external environment and has a decentralised decision-making process. Despite the fact that
the Nestle Company has accomplished their mission and objectives. Every business will have
flaws and problems in their management, but these should be overcome within a reasonable
time frame in order to promote the firm's growth. Nestle, too, had its flaws, but it overcame
them to become a top-tier corporation in the food product industry, producing a wide range of
food goods.

References:

1. https://www.bartleby.com/essay/Nestle-Problems-and-Challenges-
FKE72KS8J3DQ
2. https://ivypanda.com/essays/nestle-management-analysis/

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3. https://managementtheoriesnestle.wordpress.com/
4. https://www.ukessays.com/essays/management/nestle-system-and-organization-
structure.php
5. https://www.slideshare.net/ShabikSha/organizational-structures-of-nestle/6
6. https://easyreport.in/showthread.php?tid=66032
7. https://www.nestle.in/aboutus/allaboutnestl%C3%A9

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