1.

0 Rationale :-
Small scale industries are a crucial component of any economy, often managed and owned by
entrepreneurs with limited resources who face numerous challenges in running their businesses.
By studying management principles that apply to small scale industries, entrepreneurs can gain
the necessary tools and knowledge to manage their businesses efficiently and effectively.
Implementing these principles can enable small businesses to overcome challenges and operate
more efficiently, leading to improved overall performance.

2.0 Aim/Benefits of the Micro-Project :-

• To provide small business owners with effective tools and knowledge to manage their
businesses more efficiently.
• To increase the efficiency, productivity, profitability, and competitiveness of small-scale
industries.
• To improve decision-making processes and create a positive work environment for
employees.
• To contribute to the growth and development of the overall economy by enhancing the
performance of small-scale industries.

3.0 Course Outcomes Achieved :-

• Use principles of planning and organizing for accomplishment of tasks.
• Use principles of directing and controlling for implementing the plans.
• Apply principles of safety management in all activities.
• Understand various provisions of industrial acts.

4.0 Literature Review :-

Small scale industries (SSIs) have been recognized as vital contributors to the economic growth
and development of many countries. However, SSIs are often faced with management challenges
such as resource allocation, organization, and financial management, which can negatively impact
their performance and competitiveness. Researchers have studied the application of management
principles to SSIs to address these challenges. Several studies have highlighted the benefits of
adopting management principles, including improved decision-making, higher efficiency,
increased profitability, and better employee morale and retention. However, the implementation
of these principles is influenced by several factors, including the level of education and training
of the owner and employees, the availability of financial resources, and the support of government
policies and programs.

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5.0 Actual Procedure Followed :-
To conduct our study on the application of management principles to small scale industries, we
began by identifying relevant industries to include in our project. Our process involved identifying
a research problem related to the management of small businesses and conducting a thorough
literature review to gather information on existing theories and best practices. We then developed
research questions based on our findings, collected and analyzed data using appropriate methods,
and drew conclusions based on our analysis. Finally, we prepared a report detailing our research
findings, including recommendations for improving management practices in small scale
industries.

6.0 Actual Resources Used :-

Sr. Name of Resources Specifications Qty Remarks
No. Required

1. Computer System 8 GB Ram and i5 processor 1

2. MS Word Latest 1

3. Browser Chrome 1

4. Operating System Windows 11 1

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7.0 Output of the Micro-Project :-

Study Of Management Principles Applied to Small Scale

Industries

 INTRODUCTION TO SMALL SCALE INDUSTRIES

Small scale industries (SSI) are businesses that operate on a smaller scale and
typically have limited resources compared to larger organizations. These businesses
are often run by individuals, families, or small groups and may have less than 50
employees.

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.

Small scale industries are important for the economic growth of a country as they
create employment opportunities, generate income, and contribute to the

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 development of the local economy. They also have the potential to provide goods
and services that are not available from larger businesses, which can be especially
important in rural areas.

 CHARACTERISTICS OF SMALL SCALE INDUSTRIES

1. Limited capital investment: Small scale industries typically have limited capital
investment and may not have access to large amounts of funding. They may rely
on personal savings or loans from family and friends to start and grow their
businesses.

2. Local focus: Small scale industries often have a local or regional focus and may
serve a specific community or market. They may produce goods and services that
are tailored to the needs of the local community, such as handicrafts, traditional
food products, or specialty services.

3. Labour-intensive: Small scale industries often rely on manual labour and may
not have access to advanced technology or automation. They may require
significant amounts of manual labour to produce goods and services, which can
make them more labour-intensive than larger businesses.

4. Flexibility: Small scale industries are often more flexible than larger businesses,
which allows them to respond quickly to changes in the market or customer
demand. They may be able to adjust their production processes or product
offerings more quickly than larger businesses, which can be an advantage in a
dynamic market.

5. Personal ownership: Small scale industries are often owned and operated by
individuals or families, which can give them a sense of personal ownership and
pride in their work. This can also make them more accountable to their customers
and community, as they are directly responsible for the success of their business.

6. Traditional techniques: Small scale industries may use traditional techniques

and methods of production that have been passed down through generations.
These techniques may be unique to a particular community or culture, and can
help to preserve local traditions and cultural heritage.

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 EXAMPLES OF SMALL-SCALE INDUSTRIES

1) School Stationary

School stationery small scale industries play a crucial role in the education sector
by providing students with necessary stationery items and supporting the local
economy.

2) Bakeries

Bakery small scale industries play a crucial role in the food industry by producing
high-quality baked goods that are enjoyed by individuals and businesses alike.
They are an important part of the local economy and culture, providing
employment opportunities and promoting the use of fresh, locally-sourced
ingredients.

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3) Photography

Photography small scale industries produce a wide range of photographic

products, including digital images, prints, albums, canvases, and other types of
photographic products. These products can be customized with various sizes,
styles, and finishes based on the client's preferences.

4) Xerox and Printing

A Xerox and printing small scale industry is a business that specializes in

providing printing and photocopying services to individuals and businesses.
These businesses can range from small shops that offer basic photocopying and

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 printing services to larger commercial printing companies that offer a wide range
of printing services. It is important for youngsters to older people.

5) Handicraft

Handicraft businesses typically produce handmade items such as pottery,

textiles, jewelry, or woodwork. These businesses often have a local or regional
focus and may rely on traditional techniques and materials.

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 TYPES OF MANAGEMENT APPLIED TO SMALL SCALE INDUSTRIES

1. Entrepreneurial Management: Entrepreneurial management is characterized

by an emphasis on innovation, risk-taking, and opportunity-seeking. This type of
management is often used in small scale industries where the owner-manager
plays a dominant role in decision-making and is heavily involved in the day-
today operations of the business.

2. Human Resource Management: Human resource management is focused on

managing the people in the organization, including recruitment, selection,
training, and development of employees. This type of management is particularly
important in small scale industries where a small number of employees are
responsible for a wide range of tasks.

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 3. Financial Management: Financial management is concerned with managing the
financial resources of the organization, including budgeting, forecasting, and
financial reporting. This type of management is critical for small scale industries,
which often have limited financial resources and need to manage them carefully.

4. Marketing Management: Marketing management is focused on identifying and

satisfying customer needs and wants through effective marketing strategies. This
type of management is particularly important for small scale industries, which
often rely on effective marketing to compete with larger companies.

5. Operations Management: Operations management is concerned with managing

the production and delivery of goods and services to customers. This type of
management is critical for small scale industries, which often have limited
resources and need to operate efficiently to remain competitive.

6. Strategic Management: Strategic management involves the process of

formulating and implementing strategies to achieve the organization's goals and
objectives. This type of management is particularly important for small scale
industries, which often face intense competition and need to have a clear strategic
direction to succeed.

 PRINCIPLES OF MANAGEMENT IN SMALL-SCALE BUSINESS

The 14 Management Principles from Henri Fayol (1841-1925) that we can follow
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.

2. Authority: The right to issue commands, along with which must go the balanced
responsibility for its function.

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3. Discipline: Employees 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 other
conflicting 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 unity of direction but
does not necessarily flows from it.

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

must 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 perfect
system.

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.

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 of
employee turnover will affect the organization adversely.

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 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

 CONCLUSION:

In conclusion, the study of management principles applied to small scale industries

is crucial for the success of these businesses. Small scale industries face unique
challenges such as limited resources, competition from larger companies, and the
need to adapt quickly to changing market conditions. Effective management
practices can help small scale industries overcome these challenges and achieve their
goals.

 REFERENCES:

1.https://www.businessmanagementideas.com/projectreport/small-scale-
industriesproject-report/project-report-onsmall-scale-industries-ssi/5955

2.https://www.toppr.com/guides/business-environment/scales-
ofbusiness/smallscale-industries/

3. https://www.versesolutions.com/

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8.0 Skills Developed/Learning Outcomes of the Micro-Project :-

 Improved knowledge of management principles and practices in small scale industries 

Developed skills in formulating research questions and designing a research project.
 Increased understanding of the challenges and opportunities faced by small scale
industries.

9.0 Applications of this Micro-Project :-

 Management is necessary for a business firm, government enterprises, education

and health services, military organizations, trade associations and so on. The
origin of management can be traced back to the days when man started living in
groups.

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