Management Principles of Henry Fayol (Case

Study: Domino’s Pizza)

Index
 Cover Page
 Certificate
 Acknowledgement
 Introduction

1. Division of Work


2. Authority and Responsibility



3. Discipline


4. Unity of Command


5. Unity of Direction


6. Subordination of Individual Interest to General Interest



7. Remuneration of Employees


8. Centralization and Decentralization



9. Scalar Chain (Chain of Command)



10. Order


11. Equity


12. Stability of Tenure of Personnel

 

13. Initiative


14. Esprit de Corps (Team Spirit)

 Conclusion
 Bibliography

Certificate
This is to certify that [Student Name], Roll No. XX, of [School Name], has successfully
completed the Project on “Management Principles of Henry Fayol (Applied to Domino’s)”
under the guidance of [Teacher Name]. This project is being submitted for the fulfillment of the
requirements of the CBSE Class 12 Business Studies course for the academic year 2024-25.
Date: _______ (Signature of Supervisor)
Signature of Principal: _______

Acknowledgement
I express my sincere gratitude to [Teacher Name] for their guidance and support throughout this
project. I also thank [Principal Name] and the staff of [School Name] for providing the
necessary resources. Finally, I am grateful to my parents and friends for their encouragement and
assistance in completing this project.

Introduction
Management is about planning, organizing, directing and controlling to achieve organizational
goals efficiently. Henri Fayol (1841–1925), a French mining engineer, is known as the “father
of modern management”business.com. He introduced 14 principles of management that guide
managers in running organizations effectively. These principles, such as Division of Work,
Authority, Discipline, etc., are core topics in business studies
curriculahscprojects.combusiness.com.

*Domino’s Pizza signage highlights the global brand context. Domino’s is a large American
pizza chain founded in 1960; it now operates in 82 countries and is ranked as the world’s second-
largest pizza franchiseslideshare.netbusiness.com. This project explores Fayol’s 14 principles
and how Domino’s applies each in practice. By examining a real company (Domino’s), we see
how theoretical principles work on the ground in a familiar business.

CBSE projects emphasize clear presentation and diagrams. The following sections explain each
of Fayol’s principles in simple terms and illustrate with Domino’s examples, using charts and
tables where helpful for clarity.
1. Division of Work
Principle: Specialization increases productivity. Fayol said that dividing work among people
and assigning them to tasks that match their skills makes each person more
efficientbusiness.com. For example, one person cooks while another delivers; this way, each
specializes.
Application (Domino’s): Domino’s divides staff roles clearly between in-store workers (making
pizzas, handling orders) and delivery drivers. One analysis noted: “there are really only two
divisions at Domino’s stores, In-store work and Driver work”scribd.com. Delivery riders focus
on delivering pizzas, while store staff prepare food and manage the counter. Some Domino’s
outlets even use job rotation, where employees learn multiple tasks. A survey reported that
“employees of Domino’s work for two or more jobs, i.e. job rotation,” providing incentive and
skill-buildingscribd.com. In practice, Domino’s uses specialization to improve efficiency,
matching tasks to people’s abilitiesbusiness.comscribd.com. This illustrates Fayol’s division-of-
work: workers are assigned specific roles (pizza-maker, delivery driver, etc.), which speeds up
service.

2. Authority and Responsibility

Principle: Managers must have the authority (power) to give orders and the responsibility to
ensure work is done. Fayol taught that with authority comes responsibilitybusiness.com. A
manager must be able to direct others, but also answer for the outcomes.
Application (Domino’s): At Domino’s, managers delegate authority to staff with corresponding
responsibility. Each employee has clear decision-making power for their task. For example, a
Domino’s chef has full authority to use ingredients and equipment, but must responsibly prepare
each order on timescribd.com. In front-line stores, a shift supervisor can make on-the-spot
decisions (like assigning someone to the oven), but they are accountable for the results. This
balance ensures orders get done correctly: employees perform well because they have enough
authority to act, yet must meet their responsibilitiesbusiness.comscribd.com.

3. Discipline
Principle: Employees must follow rules and respect agreements. Fayol considered discipline
vital: managers set clear codes of conduct and enforce them to maintain orderbusiness.com.
Good discipline means obedience and respect for company norms.
Application (Domino’s): Domino’s enforces discipline through clear policies. The company has
well-defined rules for working hours, dress code, safety, and behavior. A student project reported
that Domino’s has “clear and fair agreements regarding working conditions and regulations …
with respect to working hours, timings, leave rules, code of conduct, etc.”scribd.com. These rules
are communicated to all staff. Discipline helps ensure tasks proceed smoothly – for instance,
drivers must wear uniforms and helmets, and pizza makers must follow food-safety steps. By
maintaining discipline (and reinforcing it through supervision), Domino’s keeps consistent
operations and teamworkbusiness.comscribd.com.
4. Unity of Command
Principle: Each employee should have only one direct boss to avoid conflicting orders.
According to Fayol, this prevents confusion – an employee answers to one supervisor
onlybusiness.com.
Application (Domino’s): In Domino’s stores, each worker reports to a single manager (often a
store manager or shift manager). A CBSE report notes that Domino’s “clearly exhibits unity of
command,” meaning every staff member has one immediate supervisorscribd.com. For example,
a pizza baker takes instructions from the outlet manager only, not from multiple sources. This
prevents mixed signals (e.g., two managers asking for different toppings). Note: in rare cases
with multiple managers on duty, confusion can occur. One analysis observed that “when multiple
managers are in the store at once, there is no unity”scribd.com. But generally, Domino’s
maintains clear reporting lines as Fayol advised. This unity helps the team work smoothly under
a single planbusiness.comscribd.com.

5. Unity of Direction
Principle: The whole organization (or each department) should work towards one common
objective under one plan. Fayol’s idea is “one head and one plan” for each major
goalbusiness.com.
Application (Domino’s): Domino’s centers all its efforts on the goal of quick, quality pizza
delivery. This unity is seen in coordinated marketing and operations. For instance, when
Domino’s India launched a nation-wide “30 minutes or free” promotion, everyone from the top
managers to the store crews worked together according to that planscribd.com. The company’s
vision (best pizza delivery company) is shared by all levels. Sales, kitchen, and delivery teams
follow the same objectives and schedules. Thus, Domino’s staff “believe in unity of strength” –
working collaboratively to meet the single objective (timely deliveries and happy
customers)scribd.combusiness.com.

6. Subordination of Individual Interest to General Interest

Principle: Employees’ personal goals must align with the company’s goals. In Fayol’s words,
the interests of one employee should not overshadow those of the organizationbusiness.com.
Everyone should focus on team and company success.
Application (Domino’s): Domino’s culture emphasizes team success over individual gain. Staff
are trained to put customer service and store objectives first. According to one study, this
principle is strongly followed: it states that subordination of personal interest is “followed well
at almost all franchises” of Domino’sscribd.com. In practical terms, this means workers are
rewarded for helping each other. For example, if one delivery driver is busy, another helps take
extra orders so that customers get food on time – even if it means extra work for the driver.
Employees know that working together improves everyone’s performance. In meetings or
planning, Domino’s staff regularly discuss store goals (like sales targets) rather than individual
preferences. By prioritizing the general interest, Domino’s keeps the organization focused and
reduces conflicts between personal motives and company needsscribd.combusiness.com.
7. Remuneration of Employees
Principle: Fayol said wages and incentives should be fair and match employee
effortbusiness.com. Good pay and rewards motivate workers and maintain loyalty.
Application (Domino’s): Domino’s strives to reward employees fairly. Pay scales and
incentives are set so that people at the same job level earn the same wage. One study reported
that “equal wages are provided to people working at the same levels” and that employees are
“satisfied with the compensation and incentive plan”scribd.com. For example, a cashier and a
pizza chef with similar experience make comparable base pay. Overtime and bonuses are also
handled equitably – workers “are paid wages at a higher rate” for extra hours, encouraging them
to work late when neededscribd.com. These policies ensure that hard work is rewarded in a
balanced way. Domino’s also runs incentive programs (like “Employee of the Month”) giving
recognition and sometimes financial bonuses. Fair remuneration at Domino’s supports staff
morale and aligns with Fayol’s principle of just paybusiness.comscribd.com.

8. Centralization and Decentralization

Principle: Centralization refers to keeping decision-making authority at the top levels;
decentralization means distributing authority to lower levels. Fayol noted that organizations must
find the right balance – either style can be appropriate depending on the situationbusiness.com.
Application (Domino’s): Domino’s generally practices centralization. Key policies, menu
items, and major decisions (like pricing or promotions) come from the head office, and local
stores are expected to follow them. A report notes Domino’s “concentrates on a centralized
structure” to maintain uniform quality and brand image in every outletscribd.com. For example,
store managers cannot change pizza recipes on their own; all recipe changes are approved by
corporate HQ. This keeps the product consistent. On the other hand, franchisees and local
managers still make some on-the-ground decisions, so there is a bit of flexibility. Notably, some
franchise managers feel this centralization strongly: one store GM said she has “little say” in
what happens locallyscribd.com. In summary, Domino’s uses central control for big-picture
consistency while allowing local staff to manage routine operations (a moderated approach).
This matches Fayol’s idea that the right mix of central/decentral decisions should be applied as
neededbusiness.comscribd.com.

9. Scalar Chain (Chain of Command)

Principle: The scalar chain is the formal line of authority from top management to workers.
Everyone should know whom they report tobusiness.com. Fayol believed a clear hierarchy
avoids confusion.
Application (Domino’s): Domino’s has an established chain of command in each branch. At the
top of a store’s hierarchy is the General Manager or Franchise Owner, followed by assistant
managers, then team leaders, and finally staff members. One report outlines this structure:
“Within each branch of Domino's, there is a formal organization structure defining clear
relationships among superiors and subordinates. At the top is the Managing Director [of the
branch], wholly responsible for the branch… Then the structure is divided into kitchen and
customer services, each with their managers and assistants”scribd.com. In practice, when a
worker needs guidance, they follow this chain (e.g., a cashier goes to the shift manager, who
reports to the branch manager, and so on). Domino’s also links the chain of command to
communication: company announcements move down the same hierarchy, ensuring information
flows properly. By maintaining this scalar chain, Domino’s makes sure every employee knows
their leader and the reporting procedurebusiness.comscribd.com.

10. Order
Principle: There should be “a place for everything, and everything in its place.” Fayol meant
both material order (tools, equipment) and social order (people in right jobs)business.com.
Proper order increases efficiency.
Application (Domino’s): Domino’s implements strict order in its stores. Ingredients and
equipment are stored in fixed locations so staff never waste time searching. For example, each
pizza station has labeled bins for toppings, and every tool (pizza cutter, oven rack) is returned to
the same spot. A study of Domino’s noted: “There is strict obedience of the principle of order in
Domino's, as there is a predetermined fixed place for all materials, food items, equipment, etc. in
each outlet”scribd.com. This means that whether in a store in India or the USA, a cook will know
where to find tomatoes, cheese, and boxes. Social order is also maintained: employees are
assigned roles based on skills (aligning with division of work) so the right person handles each
task. This systematic arrangement minimizes delays and confusion, embodying Fayol’s principle
that organization leads to effectivenessbusiness.comscribd.com.

11. Equity
Principle: Managers should be fair and just with employees. Treating people with kindness and
justice, without favoritism, builds loyaltybusiness.com. All employees (regardless of rank)
deserve respect and fair treatment.
Application (Domino’s): Domino’s policies aim to practice equity by ensuring fair treatment.
For instance, the company’s wage structure (equal pay for equal roles) promotes
fairnessscribd.com. Training opportunities are also open to all staff: any employee can be trained
to advance to a cashier, driver, or manager, regardless of background. Furthermore, Domino’s
enforces non-discrimination, so workers are judged by performance, not by irrelevant factors.
While experiences may vary by store manager, the organizational rules require that no one is
favored. In customer service, drivers treat everyone the same. By maintaining equal wages (as
noted earlier) and applying rules uniformly, Domino’s follows Fayol’s equity
principlebusiness.comscribd.com.

12. Stability of Tenure of Personnel

Principle: Long-term employees are more productive, so managers should minimize turnover.
Fayol believed providing job security and career paths helps stabilitybusiness.com.
Application (Domino’s): In practice, Domino’s faces high turnover in store-level jobs (like part-
time cashiers or delivery riders). This is partly due to the nature of fast-food work being seen as
short-term. A report confirms: “Stability of tenure is not followed well. Employee turnover is
frequently happening” at Domino’s outletsscribd.com. To address this, Domino’s tries loyalty
programs and some training to encourage staff to stay. For example, store managers may offer
longer shifts or bonuses to reliable employees. However, compared to white-collar industries,
Domino’s entry-level restaurant jobs often have seasonal or temporary staff. Fayol’s principle
suggests trying to improve this by promoting internally (so employees see a future) and creating
a supportive work environment, which Domino’s is gradually implementing. In summary,
Domino’s recognizes turnover is an issue (as noted above) and is working to improve job
stability through incentivesbusiness.comscribd.com.

13. Initiative
Principle: Employees should be encouraged to take initiative – to propose ideas and improve
work. According to Fayol, giving subordinates the freedom to do things creatively boosts
enthusiasm and innovationbusiness.com.
Application (Domino’s): Domino’s operations are highly standardized (recipes, processes), so
there is limited room for individual initiative on the job floor. A survey of Domino’s stores found
that lower-level employees “are given no freedom to deviate from the set requirements,” so this
principle is weakly followedscribd.com. For example, a delivery driver follows a strict GPS
route and cannot choose an alternate path. A pizza maker must follow the exact ingredient list.
However, Domino’s does encourage initiative in some areas: employees can suggest ideas in
team meetings or franchisee councils. If an employee invents a new pizza topping or a faster
prep method, Domino’s has channels (suggestion boxes, manager reviews) to consider it. The
company’s past success with menu innovations (like stuffed crust pizza) shows some initiative is
rewarded. But at the store level, the emphasis is on consistency, so Fayol’s initiative principle is
only partially embracedbusiness.comscribd.com.

14. Esprit de Corps (Team Spirit)

Principle: Managers should foster a feeling of unity and harmony in the team. “Teamwork”
ensures problems are solved collaboratively. Fayol stressed that encouraging morale and
togetherness is keybusiness.com.
Application (Domino’s): Domino’s aims to build team spirit. Many outlets run team-building
activities (like pizza-making competitions or community events) to unite staff. One CBSE study
claimed “Esprit de Corps is undoubtedly followed in Domino’s, as the staff in each outlet works
with unity and harmony... like a family”scribd.com. For example, a group of Domino’s
employees might volunteer together for charity pizza nights. That same study says the
company’s success comes from “enthusiastic participation of each member like a
family”scribd.com. However, another source noted that some employees still feel isolated on
shift, suggesting this is an area for improvementscribd.com. In general, Domino’s central
leadership frequently emphasizes culture (through slogans like “Our people are the difference”).
Regular meetings and recognition events aim to reinforce esprit de corps. In modern terms,
Domino’s conducts employee engagement surveys and rewards teamwork. Thus, while
experiences vary, the company officially works to build team spirit in line with Fayol’s
principlebusiness.comscribd.com.

Conclusion
Henry Fayol’s 14 management principles provide a timeless framework for effective
organizations. This study showed that Domino’s Pizza applies many of Fayol’s ideas: it
specializes tasks (Division of Work), gives managers authority with responsibility, enforces
discipline, maintains clear chains of command and unified goals, and treats employees fairly. For
instance, Domino’s trains staff in specialized roles and communicates one clear plan (unity of
direction)business.comscribd.com. The company’s emphasis on equal pay and store procedures
reflects Discipline and Equity principlesscribd.comscribd.com. Where Domino’s struggles (like
high turnover affecting Stability of Tenure and limited bottom-up Initiative) we identified areas
for improvementscribd.combusiness.com.

Domino’s product and brand loyalty: a Domino’s pizza box and the happy customer remind us
that effective management (planning, teamwork, etc.) delivers results. By following Fayol’s
principles (improved productivity, unified goals, fair treatment, etc.), Domino’s is able to
produce great pizzas and grow globally. Businesses can learn from Domino’s example of
applying Fayol’s guidelines to achieve both efficiency and employee satisfaction.

In summary, a manager at Domino’s can explicitly use Fayol’s principles to improve operations:
e.g., further empowering staff (initiative), improving employee retention (stability), and
continuing to build strong team spirit (esprit de corps). By combining theory with practical
adjustments, Domino’s continues to align its business strategy with time-tested management
principles, achieving consistent growth and customer satisfaction.

Bibliography
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theory and Fayol’s principles)business.combusiness.com.
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presence)slideshare.net.
 Scribd. Rajoriya, Deepak. “Management Assignment (14 Principles) – Domino’s Pizza.”
(Analysis of Fayol’s principles at Domino’s India)scribd.comscribd.com.
 Scribd. “Project – Principles of Management (Domino’s).” (CBSE project
report)scribd.comscribd.com.
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notes)hscprojects.com.
 Business.com. “Henri Fayol’s management theory – Business Guide.” (Authoritative
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