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OPTION 2: ELEMENTS OF BUSINESS PRINCIPLES

BUSINESS STUDIES:
NAME OF PROJECT:
NAME:
SCHOOL:
YEAR:
ROLL NO:

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Certificate of Authenticity
This is to certify that_________________________________________________
bearing Roll Number_______________________________ is a student of
Class XII of Sanskriti School.
She/he has successfully completed her/his project under my
guidance

and

supervision

towards

the

fulfillment

of

the

practical examination in Business Studies conducted by the

Central Board of Secondary Education for the academic year
2014-15.

Date of Submission: Friday, 12th of December, 2014

Name of Subject Teacher:
Teachers Signature:
School Stamp:

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PREFACE &
INDEX
:

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1. Name of Project:

________________________________-:

2. Problem Statement / Objective of Project:

The objective of the project is to __________________

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INDEX:

S.NO

PARTICULARS

1.

Acknowledgements

2.

Preface

3.

Introduction

4.

Planning And Activities Done During The Project(If Any)

5.

Observations And Findings

6.

Conclusions

7.

Learning From The Project

8.

Appendix

9.

Teachers Observations

PAGE NO

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Acknowledgements

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Acknowledge the following:

your school,
Your subject teacher,
Any person or institution that helped you,
Any places visited and the persons who have helped

Suggested Acknowledgement:
I , ______________________, do hereby declare that this project is my original work and I would
like to thank Ms _______________________, my Business Studies teacher, for her wholehearted
support and guidance for making it possible to complete this project on time. I would also like
to thank CBSE for giving us an opportunity to widen our knowledge base by introducing this
topic of study and my school for giving us this subject option.

I would also like to thank my friends and family members for their kind support and guidance
without which this project could not have been completed.

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Introduction

o Introduce the topic studied.

Give the theory of Project as given in the following page.
Give an introduction of Management Principles.
Give the and Fayol and Taylor
Give details about the organization you have studied.
After giving the above choose between the following and give
details about the topic you have chosen:

14 principles given by Fayol and its application OR

Principles and techniques given by Taylor and their

application in your organization

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PROJECT METHOD:
HISTORY AND ADVANTAGES OF USING THE PROJECT METHOD
According to traditional historiography, the project idea is a genuine product
of the American Progressive education movement. The idea was thought to
have originally been introduced in 1908 as a new method of teaching
agriculture, but educator William H. Kilpatrick elaborated the concept and
popularized it worldwide in his famous article, "The Project Method" (1918).
More recently, Michael Knoll has traced the project method to architectural
education in sixteenth-century Italy and to engineering education in
eighteenth-century France. This illustrates that the project of the architectlike
the experiment of the scientist, the sandbox exercise of the staff officer, and
the case study of the juristoriginated in the professionalization of an
occupation.

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The project method was first introduced into colleges and schools when
graduating students had to apply on their own the skills and knowledge they
had learned in the course of their studies to problems they had to solve as
practicians of their trade.
There are two basic approaches for implementing the project method.
According to the historically older approach, the students take two steps:
initially, they are taught in a systematic course of study certain skills and
facts, then they apply these skills and knowledge, creatively and self-directed
to suitable projects. According to the second approach, the instruction by the
teacher does not precede the project but is integrated in it. In other words the
students first choose the project, then they discuss what they need to know
for solving the problem and learn the required techniques and concepts.
Finally they execute the chosen project by themselves. In both approaches,
time for reflection should be provided during all phases of project learning,
giving students the opportunity to evaluate their progress. Many teachers
especially vocational and industrial arts educatorsuse a series of small-scale
projects to help students develop continuously increasing competence in
practical problem solving.
The development of the term "project," within its broader conceptual and
historical contexts, extends its customary interpretation. As a result,
traditional historiography should be modified in the following three respects:
1. The "project" is a concept dating from the 17th and 18th centuries,
belonging in the same category as the "experiment" of the natural
scientist, the "case study" of the jurist, and the "sand-table exercise" of
the staff officer. Like the experiment, the case study, and the sand-table
exercise, the project method has its origin in the professionalization of
an occupation. It was introduced in the curriculum so that students
could learn at school to work independently and combine theory with
practice. In contrast to experiment, case study, and sand-table
exercises, the project method is not a matter of empirical,
hermeneutical, or strategic studies, but of "construction" (i.e., designing
a house, building a playground, or producing a machine).
2. The two basic models of the project method still used today were
already developed in the 19th century. According to the older model
(e.g., Woodward), students first learn, in a course of instruction, the
skills and knowledge that they then apply independently and
creatively in the practical project. According to the more recent model
(e.g., Richards), the project is moved from the end of the unit to the
center of teaching, in accordance with the fundamental idea of the new
psychology that "natural wholes" must be the subject of learning if
valuable interests and insights are to be developed. Here, the course of
instruction does not precede the project, but is integrated into it.

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3. At the beginning of the 20th century, a movement arose among

American progressive educators (e.g., Kilpatrick) that attempted to
replace (a) the traditional narrow definition of the project with a new,
broad one, and (b) "constructive" activity with "purposeful" action as
the crucial feature of the project method. This new definition was
unable to gain ascendancy in the United States, but in other countries it
was accepted as an innovation and a truly democratic achievement,
with the paradoxical result that in Europe today the broad "American"
concept predominates, while in America the narrow "European"
approach plays the leading role.
The project method is generally considered a means by which students can (a)
develop independence and responsibility, and (b) practice social and
democratic modes of behavior. It is an educational enterprise in which
children solve a practical problem over a period of several days or weeks. It
may involve building a rocket, designing a playground, or publishing a class
newspaper. The projects may be suggested by the teacher, but they are
planned and executed as far as possible by the students themselves,
individually or in groups. Project work focuses on applying, not imparting,
specific knowledge or skills, and on improving student involvement and
motivation in order to foster independent thinking, self-confidence, and social
responsibility.

AN INTRODUCTION OF THE FIRM UNDER STUDY

Give details w.r.t

Product/service provided by the firm

Scale of operation
Number of employees and organization structure
Layout of factory/store
Any other details

MANAGEMENT PRINCIPLES

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Management in business and organizations is the function that coordinates the efforts of people to
accomplish goals and objectives using available resources efficiently and effectively. Management
comprises planning, organizing, staffing, leading or directing, and controlling an organization or
initiative to accomplish a goal. Resourcing encompasses the deployment and manipulation
of human resources, financial resources, technological resources, and natural resources.
Since organizations can be viewed as systems, management can also be defined as human action,
including design, to facilitate the production of useful outcomes from a system. This view opens the
opportunity to 'manage' oneself, a prerequisite to attempting to manage others.
Principle
A principle is a fundamental statement of truth that provides guidance to thought and action.
Principles of Management
Principles of management are broad and general guidelines for managerial decision making
and behavior (i.e. they guide the practice of management).
Fayol and Taylor
F. W.TAYLOR (1856-1915)
Fredrick Winslow Taylor (March 20, 1856 March 21, 1915) was an American
mechanical engineer, who sought to improve industrial efficiency, by reshaping the
factory system of production.
His career profile and his achievements:
Started his career as a apprentice mechanist at the factory level in 1874.
Rose to the position of chief engineer, at the Midwale steel company.
Joined Bethlehem Steel company to introduce piece rate system, to provide
incentives to work. The company achieved a three fold increase in
productivity by application of his scientific management principles.
Became president of the American society of mechanical engineers.
He was a professor at Tuck School of Business at Dartmouth College founded in
1900.
Major contributions of Taylor
Introduced scientific methods in management, as opposed to the rule of
thumb.
Emphasised on scientifically analysis of work and proposed to find, one best
way to do work, by conducting time, motion and method studies.
Sought to increase the efficiency of workers by eliminating wastage of all
types.
Emphasised on the need to have mental revolution a complete change in
the outlook for both workers and management.
Wrote a book on shop floor and an article, on principles of Scientific
Management, based on his findings and experiments.
Taylor coined the term Scientific Management.and gave a new thinking to
management. For his contributions ,he came to be known as The Father of
Scientific Management.

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Scientific management
According to Taylor, Scientific Management is knowing exactly what you
want your men to do and seeing that they do it in the best and the cheapest way.
It includes finding the most efficient methods of production, scientific
selection and training of workers, proper allotment of duties and work and achieving
cooperation between workers and management.

HENRY FAYOL(1841-1925)
In the development of the classical school of management thought, Fayols
administrative theory provides an important link.
His career profile and his achievements:
Started working as an engineer in coal mining company in France in 1860
Became the managing director of the company in 1888.
At that time the company was at the verge of insolvency. Fayol accepted the
challenge and succeeded in bringing back the company out of that crisis.
When Fayol retired after 30 years, that company was one of the leading coalsteel companies with a strong financial background.
Major contributions of Fayol
Fayol was the first one to identify four functions of management: Planning,
Organizing, Directing and Controlling. Although his version was a bit
different: Plan, Organise, Comand, Co-ordinate and Control.
He divided all the activities of an industrial undertaking into : Technical,
Commercial, Financial, Security, Accounting and Managerial and made a
clear distinction between technical and managerial skill.
He also suggested that the qualities that a manager must possess should bephysical, moral, education, knowledge and experience.
Based on his own experience, Fayol developed his concept of administration
and propounded 14 principles of management, which act as guidelines for
managers to perform managerial activities.
These he discussed in his book, General and Industrial management. It was
published in 1949 and is widely considered a foundational work in Classical
management theory. For his contributions in the field of management, he is known
as the Father of General Management.

Taylor Vs. Fayol

Points of

Taylor

Fayol

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distinction
1.Concern

Task, workers and supervisors.

Concerned more with efficiency

administration or managers.

2.Level/
perspective

Shop floor level of a factory . Started from

the lowest level in the organization and
then
he
moved
upwards,
while
formulating
principles
of
scientific
management.

Started his studies and approach from the

top level and then proceeded downward
with emphasis on unity of command, unity
of direction and co-ordination.

3.Emphasis

On standardization of work and tools. His He laid emphasis on principles of general

principles were more applicable at the management and functions of managers.
shop level.

4.Focus

Improve productivity of workers and Develop principles

eliminate all kinds of wastes.
management overall.

5.Major
contribution

Development of scientific techniques and Development of 14 principles. They can be

principles to enhance production at the applied in all functional areas like purchase,
shop(factory ) level.
personnel, marketing. Etc.

Points
distinction

of

6.Personality,
Basis
formation
Expression

That of a scientist because his results are

of based on scientific observation and
and measurement. He was called Father of
Scientific Management.

7. Applicability

8.Unity
command

Taylor

Applicable to specialized situations.

of Functional foremanship, which contradicts
Unity of command.

to

ensure

of

better

Fayol
That
of a researcher and practitioner
because his results are based on his personal
experiences. He was called The Father of
General Management.

Universally applicable

Strong supporter of Unity of command.

9.Stress
on Taylor focused more on increasing Fayol showed more regard for human
human element
productivity rather than human resources. element by advocating principles such as
stability of tenure, initiative etc.
Expression

General Theory of Administration

Scientific Management

Fayol was a French industrialist who rose from the position of an engineer to that of
a Managing Director. He developed The General Theory of management. Taylor,
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was an American machinist who rose to the position of chief Engineer. He developed
Scientific Management.
If we compare their works and personality, we see that both:
Were practicing executives in the Industry.
Realized that problem of personnel and its management is the key to
industrial progress.
Sought to develop rational and systematic basis of management.
Developed their ideas through practical experience and experiments and
expressed them through their books.
Emphasized on training and development of personnel in management
principles and techniques.
Conclusion
Thus we see that Taylor and Fayol belonged to different schools of thought, but
their approaches are mutually complementary. That Taylor worked primarily at the
operative level, from bottom of Industrial hierarchy upwards, while Fayol
concentrated on managing and worked downwards, was merely a reflection of their
different careers.
Thus works of Taylor and Fayol are important and complement each other since
no organization can function effectively without mutual help and co-operation of
managers and employees.

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Planning and
Activities Done
During the
Project

o You need to give details here about what were the activities that you
undertook to do your project. Such as

How you decided on the firm

Did you take interviews etc

How the analysis was done.

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o Give them in a sequence.

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Observations &
Findings

o If you have selected Fayols principles then for every principle

given by Fayol give :

The definition

Advantages of following the principle

Disadvantage of not following the principle

Examples of its implementation

Then state whether the given principle was being

followed in the organization that you studied or not.

You also need to give the basis of your conclusion i.e. did
you reach the conclusion on the basis of your

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observation, customer feedback, employee interview,
documents of the firm etc.

OR
o If you have selected Taylors Principles and Techniques, then
for every principle an technique given by Taylor, give :

The definition

Diagram, if any

Examples of its implementation

Then state whether the given principle or technique was

being followed in the organization that you studied or
not.

You also need to give the basis of your conclusion i.e. did
you reach the conclusion on the basis of your
observation, customer feedback, employee interview,
documents of the firm etc.

If you have taken interviews or administered questionnaires, attach a copy of

the interview and questionnaires.

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Learning from
the Project

Can be given as:

How you have been able to relate the theory in your syllabus to its
practical application.

Anything else that you feel you have learnt about the real functioning
of an organisation.

Any other skills developed such as such as skills of team work,

problem solving, time management, information collection,
processing, analyzing and synthesizing relevant information to derive
meaningful conclusions etc
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Also, answer the following:

o How did you initially decide on the firm
o Did you take advice from anyone or refer to any publication?
Why?
o Did you feel you needed to rework your strategies?
o If you were to do this activity again, what would you do
differently?

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Appendix

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1. Persons/Firms Consulted
2. Books Referred To, Including your Text Book
3. Websites Referred to

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Teachers
Observation

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Financial Markets Project Evaluation Performa

Students Name

: _________________________________________________

Roll No:

: _________________________________________________

Class and section

: XII Section ____________________

Teachers Assessment:
Marks Obtained

Maximum Marks

: 10 Marks

Overall Remarks:

..

.
Internal Teachers
Signature

External Teachers
Signature

....
Date

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