Project report On

STUDY OF MANAGEMENT PRINCIPLES APPLIED TO

MEDIUM SCALE INDUSTRY
Submitted by
Roll No Name Class
31 Ritesh Rajesh Kanade Tyco
32 Harshada Adesh Tulase Tyco

33 Madhuri Rambhau Umale Tyco

34 Mayur Prakash Kamble Tyco

35 Swapnali Dhula Shembade Tyco

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 INDEX

SR. CONTENT PAGE

NO NO
1 CERTIFICATE 3
2 ACKNOWLEGEMENT 4

3 EVALUATION SHEET 5
4 ABSTRACT 6
5 INTRODUCTION 7
6 CONTENT 8
7 CONCLUSION 16
8 REFERENCE 17

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 MAHARASHTRA STATE BOARD OF TECHNICAL EDUCATION

CERTIFICATE

This is to certify that Mr/Ms ----------------------------------------------- Of SIXTH

Semester of Diploma in Computer ENGINEERING of Institute Jspm’s
Polytechnic, has completed the Project satisfactorily in the Subject
MANAGEMENT For the Academic Year 2024-25 as prescribed in the
curriculum.

Place: Enrollment No:

Date: Exam Seat No:

Subject Teacher Head of the Department Principal

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4
 EVALUATION SHEET FOR MICRO PROJECT
Academic Year: 2024 - 2025

Name of the Student:

Course: Co6(I) Subject Code: 22509

Title of the Project: STUDY OF MANAGEMENT PRINCIPLES APPLIED

TO MEDIUM SCALE INDUSTRY

Cos addressed by Micro Project:

Major learning outcomes achieved by students by doing the project:

a) Practical outcome:
1) We study Principles of management.
2) Management principles applied to medium scale industry.

b) Unit outcomes in Cognitive Domain:

1) We study about different process in management.
2) We study about management.

c) Out comes in affective domain:

1) Function as team member

Comments/suggestions about teamwork/leadership/interpersonal communications (if any):

Roll Student Name Marks out of 06 Marks out of 04 Total out
No for for performance Of 10
performance in in oral or
group activity presentation (D5
(D5 Column 08) Column 09)
31 Ritesh Rajesh
Kanade
32
Harshada Adesh
Tulase
33 Madhuri Rambhau
Umale
34 Mayur Prakash Kamble

35 Swapnali Dhula
Shembade

Name & Signature of Faculty:

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 ABSTRACT
All small businesses need to be concerned about management principles.
Management decisions will impact the success of a business, the health of its work
environment, its growth if growth is an objective, and customer value and
satisfaction. Seat-of-the-pants management may work temporarily, but its folly
will inevitably take a toll on a business. This section discusses management
principles, levels, and skills—all areas that small business owners should
understand so that they can make informed and effective choices for their
businesses.
From a distance the micro, small and Medium enterprises (MSMEs) seem
to be a small and insignificant part of the economy but on zooming in just a little
bit, we realize that the MSMEs employ 40% of the total population of India i.e.,
69 million people which accounts for the second largest workforce after
agricultural sector. They constitute of 90% of the total industrial units and are
responsible for 45% of industrial output and 40% of the total exports. Their
labour-intensive nature and even geographical distribution results in employment
opportunities for both self-employed and job seeking people promoting equity
and inclusive growth. This paper aims to present the significance of this sector
and recognise the regulatory and operational problems faced by these enterprises.
It will also touch upon the present government policies and provide policy
recommendations.

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 INTRODUCTION
Considering the name – Micro, Small and medium enterprises- it is not
difficult to get disillusioned about the importance of MSMEs when it comes to
the growth and development of the country. They have been long overlooked even
when this sector actually employs 69 million people in India which is 40% of the
total workforce, through 44 million enterprises. Not only are they a sourceof basic
livelihood but have improved the standard of living of many families over the
years. MSMEs contribute approximately 8% to India’s GDP, are responsible for
a stunning 45% of its total industrial output and 40% of its total exports. The
manufacturing sector among MSMEs, which is a little larger than the services
sector, constitutes 90% of the total industrial units that spread all overIndia. Only
55% of the total MSMEs units are located in urban areas rest 45% ofthe units are
located in rural areas of states like Uttar Pradesh, Maharashtra, TamilNadu, West
Bengal, Andhra Pradesh, Karnataka etc. This leads to an equitable distribution of
national income, poverty alleviation and inclusive economicgrowth. World over,
small and medium enterprises are considered to be the engine of growth that tap
into the latent entrepreneurial talent in the nation and provide an opportunity to
the weakest sections of the society to employ themselves as well as others and in
the process help the ones, they are providing services to.
According to a report by Harvard Kennedy School, in the prosperous
countries Small and Medium Enterprises (SMEs) constitute the largest part of
industries followed by large enterprises and Micro enterprises whereas they
constitute the lowest share of industries in the low-income countries where the
share of micro enterprises is largest followed by large enterprises and lastly by
SMEs. This absence of SMEs in the low-income countries is known as ‘The
Missing Middle’. This acts as a proof of their significance of their role in
development of the country.

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Medium scale industry:

Studying management principles applied to medium-scale industries involves

understanding concepts like strategic planning, organizational structure, human
resource management, operations management, and financial management tailored
to the specific needs and constraints of medium-sized enterprises. This includes
optimizing resource allocation, fostering innovation, managing growth, and
ensuring sustainability within the unique context of medium-scale operations.
Employment: Typically employing more people than small-scale industries but
fewer than large-scale industries, usually ranging from dozens to hundreds of
employees.Revenue: Generating moderate levels of revenue, often falling between
the low turnover of small-scale industries and the high turnover of large-scale
industries.Capital investment: Medium-scale industries usually require a moderate
amount of capital investment for their operations and expansion.Market reach: They
may have a regional, national, or occasionally international market presence, but
their market share is not as extensive as that of large-scale industries.Production
capacity: Medium-scale industries have a moderate production capacity, allowing
them to meet the demands of a broader customer base without the massive scale of
large industries.

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Nature of Principles Of Medium Scale Industry:

Flexibility: Management principles need to be adaptable to the

dynamic nature of medium-scale industries, allowing for agile
decision-making and responsiveness to changing market conditions.
• Resource Optimization: Efficient resource allocation is crucial
in medium-scale industries, balancing the limited resources
available with the need for growth and profitability.
• Hands-on Leadership: Management in medium-scale industries
often involves hands-on leadership, with managers actively
involved in day-to-day operations and close interaction with
employees.
• Strategic Planning: Medium-scale industries benefit from
strategic planning that considers their growth trajectory,
market positioning, and competitive landscape, enabling them
to capitalize on opportunities and mitigate risks.
• Lean Operations: Implementing lean principles helps medium-
scale industries streamline processes, reduce waste, and
improve productivity without the overheads associated with
large-scale operations.
• Employee Engagement: Effective management in medium-scale
industries involves fostering a culture of employee engagement,
recognizing the importance of every individual's contribution to
the organization's success.
• Customer Focus: Management principles emphasize
understanding and meeting the needs of customers, even as the
business scales, ensuring that medium-scale industries maintain
strong customer relationships and satisfaction levels.
• Financial Management: Medium-scale industries require sound
financial management practices to maintain stability, manage
cash flow, and support growth initiatives without overextending
resources.
• Risk Management: Identifying and mitigating risks is essential
for medium-scale industries to navigate challenges and seize
opportunities while safeguarding the business's continuity and
sustainability.
• Technology Adoption: Embracing technology enables medium-
scale industries to enhance efficiency.
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1. Contingent:
As the application of principles of management depends upon prevailing
situations and needs, so their results may not be uniform as expected.
Example: Remuneration of employees should be just and equitable yet it may
vary from person to person depending upon various situations.
Remuneration can be dependent on:

• Industrial standard.
• Employer’s paying capacity.
• Contribution of employee etc.,

2. Flexible:
The principles of management are general prescriptions not rigid. The managers
can make certain changes as per the convenience and requirement of a situation.
Example: Application of the principle of centralisation or decentralisation i.e.
concentration or dispersal of authority to be delegated to employees depends upon
the need, ability and competency of the employees. It also depends upon the
nature of the organisation.

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Medium Scale Management Functions

On any given day, small business owners and managers will engage in a mix of
many different kinds of activities—for example, deal with crises as they arise,
read, think, write, talk to people, arrange for things to be done, have meetings,
send e-mails, conduct performance evaluations, and plan. Although the amount
of time that is spent on each activity will vary, all the activities can be assigned
to one or more of the five management functions:
1. Planning
2. Organizing
3. Staffing
4. Directing
5. Controlling

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1. Planning - It is the process of anticipating future events and conditions and
determining courses of action for achieving organizational objectives. Planning
helps a business realize its vision, get things done, show when things cannot get
done and why they may not have been done right, avoid costly mistakes.
2. Organizing - It consists of grouping people and assigning activities so that
job tasks and the mission can be properly carried out. Contrary to what some
people may believe, the principle of organizing is not dead. Rather, it is clearly
important “to both the organization and its workers because both the effectiveness
of organizations and worker satisfaction require that there be clear and decisive
direction from leadership; clarity of responsibilities, authorities, and
accountabilities; authority that is commensurate with responsibility and
accountability; unified command (each employee has one boss); a clear approval
process; and, rules governing acceptable employee behaviour.

3. Staffing - The staffing function involves selecting, placing, compensating,

developing, and evaluating (the performance appraisal) employees. Small
businesses need to be staffed with competent people who can do the work that is
necessary to make the business a success. It would also be extremely helpful if
these people could be retained.

4. Directing - Directing is the managerial function that initiates action: issuing

directives, assignments, and instructions; building an effective group of
subordinates who are motivated to do what must be done; explaining procedures;
issuing orders; and making sure that mistakes are corrected. Directing is part of
the job for every small business owner or manager. Leading and motivating work
together in the directing function. Leading “is the process of influencing people
to work toward a common goal and motivating is the process of providing reasons
for people to work in the best interests of an organization.

5. Controlling - Controlling is about keeping an eye on things. It is “the

process of evaluating and regulating ongoing activities to ensure that goals are
achieved.” Controlling provides feedback for future planning activities and aims
to modify behaviour and performance when deviations from plans are discovered.

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Management principles applied for medium scale industry
• Division of Work – This principle of management is based on the theory that
if workers are given a specialized task to do, they will become skilful and more
efficient in it than if they had a broader range of tasks. Therefore, a process
where everyone has a specialized role will be an efficient one.
• Authority – This principle looks at the concept of managerial authority. It
looks at how authority is necessary in order to ensure that managerial
commands are carried out. If managers did not have authority, then they would
lack the ability to get work carried out. Managers should use their authority
responsibly and ethically.
• Discipline – This principle relates to the fact that discipline is needed within
an organization for it to run effectively. Organizational rules, philosophies,
and structures need to be met. In order to have disciplined workers, managers
must build a culture of mutual respect and motivation.
• Unity of command – There should be a clear chain of command in place
within an organization. An employee should know exactly whose instructions
to follow.
• Unity of direction – Work should be organized in a way that means
employees are working in harmony toward a shared objective or goal using a
shared method or procedure.
• Subordination individual interests to the collective interests – The interests
of the organization as a whole should take precedence over the interests of any
individual employee or group of employees. This encourages a team spirit and
collective mentality of all for one and one for all.
• Remuneration – In order to motivate and be fair to employees, they should
be paid a reasonable rate for the work they carry out. An organization that
underpays will struggle to attract quality workers who are motivated.
• Centralization – This principle relates to whether decisions should be made
centrally, as in from the top down, or in a more democratic way, from the
bottom up. Different decision-making processes are appropriate for different
types of decisions.
• Scalar chain – This relates to the principle of a clear chain of communication
existing between employees and superiors. The chain should be respected,
unless speedy communication is vital, in which case the chain may be
bypassed if all parties consent.

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• Order – This relates to the proper use of resources and their effective
deployment in a structured fashion.
• Equity – Managers should behave ethically towards those they manage.
Almost every organization in the modern world will have a written set of
policies and procedures which will outline exactly what is expected from staff
at all levels.
• Stability of tenure of personnel – It is seen as desirable within an
organization to have a low staff turnover rate. This is due to the benefits that
come with having experienced staff and the time and expense needed to train
new ones. There should be a clear and efficient method of filling any staff
vacancies that arise.
• Initiative – Employees that have an input as to how to best do their job are
likely to feel more motivated and respected. Many organizations place a great
deal of emphasis on listening to the concerns of staff.
• Morale – Keeping a high level of morale and team spirit is an essential part
of having the most productive organization possible. Happy and motivated
employees are far more likely to be productive and less absent.
• Customer Focus - Organisations depend on their customers and therefore
should understand current and future customer needs, should meet customer
requirements and strive to exceed customer expectations.
• Leadership - Leaders (top management) establish unity of purpose and
direction of the organisation. They should create and maintain the internal
environment in which people can become fully involved in achieving the
organisation’s objectives.
• Engagement of People - People at all levels are the essence of an organisation
and their full involvement enables their abilities to be used for the
organisation’s benefit and allow the organisation to achieve common goals
including quality objectives.
• Process approach - A desired result is achieved more efficiently when
activities and related resources are managed as a process. The process
approach incorporates the Plan-Do-Check-Act (PDCA) cycle and risk-based
thinking.
• Improvement - Continual improvement of the organisation’s overall
performance should be a permanent objective of the organisation. Undertaking
internal audits at regular intervals can assist with identifying opportunities for
improvement.

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• Evidence-based Decision Making - Effective decisions are based on the
analysis of data and information. It is important to make decisions based on
the facts, plan changes and verify the effectiveness of change.

• Relationship Management - An organisation and its interested parties

(including suppliers) are interdependent and a mutually beneficial relationship
enhances the ability of both to create value. Communication is key to
maintaining and improving the quality management system (QMS).

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 CONCLUSION
The application of principles of management helps the managers to take right decisions at the right time.
These principles of management help managers to tackle the diverse problems in a dynamic business
environment.
In conclusion, applying management principles to medium-scale industries requires a nuanced
approach that balances adaptability, efficiency, and strategic focus. Medium-scale enterprises
must tailor fundamental management concepts to suit their unique characteristics, such as
limited resources, agile decision-making needs, and hands-on leadership requirements. By
optimizing resource allocation, fostering employee engagement, embracing technology, and
maintaining a customer-centric approach, medium-scale industries can achieve sustainable
growth, competitive advantage, and long-term success in their respective markets. Effective
management in medium-scale industries hinges on the ability to navigate challenges, seize
opportunities, and maintain a strategic vision that aligns with the organization's growth
positioning.

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REFERENCE
1. Management Textbook by, Vijay Navale
2. WWW.WIKIPEDIA.COM

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