Government Polytechnic ,Washim

MICRO PROJECT REPORT ON

" Report on study of management principlesapplied to a small scale

industry”
OF
Subject:Management[22509]

Submitted By

KUNAL THER (Enrollment No.2000310257)

Subject Teacher H.O.D.

Mrs.V.D.Kadhane Mr. U. A. Bagade

Lecturer in Info. Tech. Department Information Technology Department

Principal

Dr. B. G. Gawalwad

Government Polytechnic, Washim

i
 Government Polytechnic ,Washim

CERTIFICATE

KUNAL THER (Enrollment No.2000310257)

Student of Information Technology has submitted a MICRO PROJECT report on

" Report on study of management principlesapplied to a small scale

industry”

During the academic session 2022-2023 in a satisfactory manner in the partial fulfillmentfor the
requirement of Subject:Management[22509]

for the Diploma in “Information Technology ”

awarded by

Maharashtra State Board of Technical Education, Mumbai.

Subject Teacher H.O.D

Mrs.V.D.Kadhane Mr. U. A. Bagade

Lecturer in Info. Tech. Department Information Technology Department

Principal
Dr. B. G. Gawalwad

Government Polytechnic, Washim

DEPARTMENT OF INFORMATION TECHNOLOGY

2022-2023

ii
 INDEX

Sr. No Name of Chapter Page No

1 Introduction 1
2 Abstract 2
3 Small Scale Industries 3
4 Characteristics of Small Scale 5
Industries
5 Role of Small Scale Industries 6
in the Indian Economy
6 Type of Management in Small 7
Scale Buisnesss.
7 Principles of Management in 8
Small Scale Buisness
8 Conclusion 10
9 Reference 11

iii
3
 CHAPTER 1

Introduction

Essentially the small-scale industries are generally comprised of those

industries which manufacture, produce and render services with the help of
small machines and less manpower. These enterprises must fall under the
guidelines, set by the Government of India.

The small enterprise is a logical step forward in the development process

of businesses from the level of the enterprising artisan to that of a very large
enterprise. The small enterprises include the areas other than those of
manufacturing, such as agriculture, trade and service industries. Small enterprises
play a vital role in the Indian economy.

There is a rapid growth in the services sector of economy due to

development of small enterprises, particularly in the areas of trade, transport,
construction and other ancillary services. One of the main reasons for their
rapid growth is that, they have been left entirely to the private entrepreneurs,
which are comparativelyfree from the government interference.

Since about one-third of the gross manufacturing output is from the small
industry sector, it is necessary to extend due attention for this sector while
formulating growth promotion strategies. Such strategies may improve global
competitiveness.

One of the most important reasons for the success of small enterprises is the interest
motivation of the entrepreneurs, whereas large industries do not provide enough room for
experimentation and innovation by the creative peoplebecause of large hierarchical
organization structure
1
 CHAPTER 2

Abstract
Essentially small scale industries comprise of small enterprises who
manufacture goods or services with the help of relatively smaller machines
and afew workers and employees.

Basically, the enterprise must fall under the guidelines set by the
Government of India. At the time being such limits are as follows,

• For Manufacturing Units for Goods: Investment in plant and machinery

must be between 25 lakhs and five crores.

• For Service Providers: Investment in machinery must be between

10lakhs and two crores.

In developing countries like India, these small scale industries are the
lifeline of the economy. These are generally labor -intensive industries, so
they create much employment. They also help with per capita income and
resource utilization in the economy. They are a very important sector of the
economy froma financial and social point of view.

2
 CHAPTER 3

SMALL SCALE INDUSTRIES

➢ Definition of small scale industries

Small scale industry” is an industry, investment of which does not
exceed Rs. 300 lakhs (Rs. 300 lakhs in case of ancillary industrial units
also) in plants and machinery, irrespective of the number of persons
employed. Generally, these industries employ 10 to 50 persons

➢ Examples and Ideas of Small Scale Industries

• Bakeries:-

• Candles:-

3
• School stationeries:-

• Water bottles:-

• Photography :-

4
 CHAPTER 4

Characteristics of Small Scale Industries

• Ownership: Such units are generally under single ownership. So it

is a sole proprietorship or sometimes a partnership.

• Management: Both the management and the control generally is

with the owner/owners. So the owner is actively involved with the
daily running of the business.

• Limited Reach: Small scale industries have a restricted area of

operations. So they meet local and regional demand.

• Labor Intensive: These small scale industries tend to use labor and
manpower for their production activities. So their dependence on
technology is pretty limited.

• Flexibility: These units are more adaptable to their changing

business environment. So in case of sudden changes or unexpected
developments, they are flexible enough to adapt and keep carrying
on.Large industries do not have this advantage.

Resources: They use local and readily available resources. This also
helps the economy with better utilization of natural resources and less
wastage

5
 CHAPTER 5
Role of Small Scale Industries in the Indian Economy

Total Production
These enterprises account for almost 40% of the total goods and services
produced in the Indian economy. They are one of the main reasons for the
growth and strengthening of the economy.

Employment
These small scale industries are a major source of employment in the
country. The whole labor force cannot find work in the formal sector of the
economy. So these labor-intensive industries provide a livelihood to a large
portion of the workforce.

Contribution to Export
Nearly half of the goods (45-55%) of the goods that are exported from
India are produced by these small enterprises. About 35% of direct exports and
15% of the indirect exports are from the small scale industries. So India’s
export industry majorly relies on these small industries for their growth and
development.

Welfare of the Public

Other than economic reasons, these industries are also important for the social
growth and development of our country. These industries are usually startedby the lower or
middle-class public. They have an opportunity to earn wealth andemployee other people. It
helps with income distribution and contributes to socialprogress

6
 CHAPTER 6

Management in Small-Scale Buisness

• Human resource management

• Operations management or production management

• Strategic management

• Marketing management

• Financial management

• Risk management

7
 CHAPTER 7

Principles of Management in Small Scale Industries

The 14 Management Principles from Henri Fayol (1841-

1925)are:

1. Division of Work: Specialization allows the individual to build up

experience, and to continuously improve his skills. Thereby he can be
more productive. 40

2. Authority: The right to issue commands, along with which must go

the balanced responsibility for its function.

3. DisciplineEmployees must obey, but this is two-sided: employees

will only obey orders if management play their part by providing good
leadership.

4. Unity of Command: Each worker should have only one boss with
no otherconflicting lines of command.

5. Unity of Direction: People engaged in the same kind of activities

must have the same objectives in a single plan. This is essential to ensure
unity and coordination in the enterprise. Unity of command does not exist
without unityof direction but does not necessarily flows from it.

6. Subordination of individual interest (to the general interest).

Managementmust see that the goals of the firms are always paramount.

7. Remuneration: Payment is an important motivator although by

analyzing a number of possibilities, Fayol points out that there is no such
thing as a perfectsystem.

8
8. Centralization (or Decentralization): This is a matter of degree
depending on the condition of the business and the quality of its
personnel.

9. Scalar chain (Line of Authority): A hierarchy is necessary for

unity of direction. But lateral communication is also fundamental, as long
as superiors know that such communication is taking place. Scalar chain
refers to the number of levels in the hierarchy from the ultimate authority
to the lowest level in the organization. It should not be over-stretched and
consist of too- many levels. 41

10. Order:Both material order and social order are necessary. The
former minimizes lost time and useless handling of materials. The latter
is achieved through organization and selection.

11. Equity: In running a business a ‗combination of kindliness and

justice is needed. Treating employees well is important to achieve equity.

12. Stability of Tenure of Personnel: Employees work better if job

security and career progress are assured to them. An insecure tenure and a
high rate ofemployee turnover will affect the organization adversely.

13. Initiative: Allowing all personnel to show their initiative in some

way is a source of strength for the organization. Even though it may well
involve a sacrifice of personal vanity on the part of many managers.

14. Esprit de Corps: Management must foster the morale of its

employees. He further suggests that:-real talent is needed to coordinate
effort, encourage keenness, use each person’s abilities, and reward each
one‘s merit without arousing possible jealousies and disturbing
harmonious relation.

9
 CHAPTER 8

Conclusion:

The Small-Scale Industries has acquired an important place in

the socio-economic development of the country. ... After the policy
of liberalization and establishment of the WTO several challenges
and new opportunities have grown for the Small-Scale Industries.

10
 CHAPTER 9

References:

1. https://www.businessmanagementideas.com/project-
report/small-scale-industries-project-report/project-report-
on-small-scale-industries-ssi/5955
2. https://www.toppr.com/guides/business-environment/scales-
of-business/small-scale-industries/
3. https://www.versesolutions.com/

11