KALINGA COLLEGE OF COMMERCE,

BHUBANESWAR

SESSION:-2019-20
BUSINESS STUDIES & MANAGEMENT
A PROJECT REPORT ON
PRINCIPLES OF MANAGEMENT FOLLOWED BY
BHARATI AIRTEL
SUBMITTED BY :-
NAME:-NAAYAN CHAND SOREN
CLASS:-+22nd YEAR COMMERCE
COLLEGE ROLL NO.:-IC18-016
REDG. NO.:-

GUIDED BY:-
MISS SABANA NASREEN
(LECTURER OF COMMERCE)
NAME OF THE EXAMINATION:-+2 CHSE BOARD EXAMINATION 2020
SIGNATURE OF STUDENT WITH DATE:

SIGNATURE OF INTERNAL SIGNATURE OF EXTERNAL

 ABSTRACT
India , like many other country of the world , have adopted a gradual approach to
telecom sector reform through selective privatization and managed competition in different
segment of the telecom market . The Indian telecommunication industry is one of the fastest
growing in the world and India is projected to become the second largest telecom market
globally . Airtel in India is a part of Bharati Airtel and commenced operation in 1986 . In
one of the biggest brand transition exercises in recent times . This has had a considerable
impact on the users as well as the service providers like Vodafone , Idia , Jio , Bsnl . This
project work about on principles of management followed by Bharati Airtel . The data for
this project was collected from various website , books and journal .

This paper focuses on the 14 principles of Henry Fayol , one of the founding fathers of
management principles and education with a view towards determining the relevance of these
principles for the modern age . It finds that each of the principles still has some relevance but that
work would need to be undertaken to account for the existence of flat management structures and
decentralized companies. Here we discussed about Principles of Management followed by Bharati
Airtel .

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 ACKNOWLEDGEMENT

I would like to express my gratitude and appreciation to all those who gave me the
golden opportunity to complete the project. A special thanks to my teacher Miss Sabana
Nasreen whose help , stimulating suggestion and encouragement helped me to co-ordinate my
project especially in writing the project report.

I owe my deep gratitude to our project guider to my teacher , who took keen interest
in our project work and guided us all along till the completion of our project work.

I would like to acknowledge with much appreciation to crucial role of all staff member
who gave the permission to use all required accessories to complete my project work.

I will not forgot to remember friends and family members for their encouragement and
more over for their support and guidance till the completion of my project work.

Nayan chand soren

(Name Of The Student)

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 DECLARATION

I do hear by declare that all the information provided in the project are my own and the
project is a result of my hard work and dedication . This work has not been submitted
before and all the information provided in the project is true and best of my knowledge
and belief .

NAME :- Nayan chand soren

CLASS :- +22nd Year

ROLL NO.:- IC18-016

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 CERTIFICATE

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 CONTENT
S.L. NO. PARICULARS PAGE NO.
1. Introduction 07

2. About Henry Fayol 08

3. Objective of the study 09

4. Bharati Airtel 10

5. Bharti Airtel Company’s Vision Mission & Values11

6. Airtel and Fayol’s Principles 12-15

7. Methodology 16-18

8. Conclusion 19

9. Bibliography 20

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 INTRODUCTION
Management is essential to any organization that wishes to be efficient and achieve its
aims . Without someone in a position of authority there would be organizational anarchy with no
structure and very little , if any focus . It has been said that management has four basic functions
– planning , organizing , leading and controlling . Common sense dictates that without these principles
of management being in place an organization would have trouble achieving its aims , or even
coming up with aims in the first place ! A classic theory on the principles of management was
written by Henri Fayol . It seeks to divide management into 14 principles .

The 14 principles are :-

●Division of Work

●Authority

●Discipline

●Unity of command

●Unity of direction

●Subordination individual interests to the collective interests

●Remuneration

●Centralization

●Scalar chain

●Order

●Equity

●Stability of tenure of personnel

●Initiative

●Team Spirit

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 ABOUT HENRI FAYOL
Henri Fayol :-
Born : July 29 , 1841 , İstanbul , Turkey

Died : November 19 , 1925 , Paris , France

Full name : Jules Henri Fayol

Education : Mining Engineering

( Mining Academy – of saint – Etienne , 1860 )

Books : General and Industrial Management

Identity : Father of General Management

Known for : Fayolism

Founder : Functional Management

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 OBJECTIVE OF THE STUDY
The Purpose of this project is to see the principles of management being
implemented in real life . With its help we shall get the information whether the principles
management which we came across in books are actually true ? And whether by following
the principles of management the efficiency of management is actually enhanced . Here we
focus on Bharati Airtel Company , How it uses principles of management in his company .

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 BHARATI AIRTEL
Bharti Airtel Limited is a leading global telecommunications company with
operations in 18 countries across Asia and Africa . Headquartered in New Delhi , India , the
company ranks amongst the top 3 mobile service providers globally in terms of subscribers
. In India , the company's product offerings include 2G , 3G and 4G wireless services , mobile
commerce , fixed line services , high speed home broadband , DTH, enterprise services
including national & international long distance services to carriers . In the rest of the
geographies , it offers 2G , 3G , 4G wireless services and mobile commerce. Bharti Airtel
had over 403 million customers across its operations at the end of March 2019

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HISTORY OF BHARATI AIRTEL:

 Bharati Airtel Ltd was incorporated in 1995 .

 It is wholly owned subsidiary of Bharati Airtel Telecom Ltd .
 In 1991 , the company had a 63.4% equity interest in SC Cellular Holdings , effectively
securing a 32.3% equity interest in Bharati Mobile .
 It operates in 19 countries across South Asia and Africa , and also in the Channel
Island
 It Provides GSM , 3G , 4G LTE , 4G Volte Mobile Services .

OPERATIONS:

 Wireless Services:-2G , 3G , Rural Market

 Telemedia Services:- Fixed Line , Broadband , Iptv
 Enterprise Services:- Carriers , Corporate
 Passive Infrastructure Services:- Infratel , Indus
 DTH:- Pay per view/HD , Interactive Services Including Gaming

BHARATI AIRTEL LTD’S

VISION , MISSION AND VALUES
 Company’s Vision:-
To enrich the lives of our customers
To Win customers for life through an exceptional experience .

 Company’s Mission:-
Hunger to win Customers for life .

 Company’s Values:-
To work towards it’s vision , driven by it’s values of AIR – Alive , Inclusive &
Respectful .
 Alive:- To the needs of it’s customers . It act with person , energy and a can-
do attitude to help it’s customers realize their dreams . Innovation and an
entrepreneurial spirit drive it - if it can’t be done, it will find a way .
 Inclusive:- Airtel is for everyone - it champion diversity , recognising the
breadth and depth did of the communities we serve. We work with
them, anticipating, adapting and delivering solutions that enrich their lives.
We do this by having an open mind and embracing change.
 Respectful :-

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 We live the same lives as our customers, sharing the same joys and the
same pains. We never forget that they are why we exist. We act with due
humility, always open and honest, to achieve mutual respect.

AIRTEL AND FAYOL’S PRINCIPLES

(1) Division of work
A complicated work is divided into many small jobs and each small job is allocated to
individuals. When they individual does the job again and again he becomes export in it and
this leads to specialization.
Application Airtel Company :-

 When we use airtel , the first thing we notice that different job are performed by
different employees .

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  The Network provider , sim provider , Helpline staff , each employees is specialized
in his/her work which increases efficiency of the employees .
(2) Authority and
responsibility
a) Authority means the power to give orders and to ask for obedience.
b) Responsibility means the sense of dutifulness which is correlated with authority.
c) There must be parity between these two.

Application in Airtel Company :-

 Authority:- We can see that Authority is following from top to bottom . In the
given image , it is shown that Authority is following from Chairman to JMD or
MD.
 Responsibility:-Responsibility goes from bottom to top . In this given image
market operation and customer experience director has to report to consumer and
B2B director , similarly Consumer and B2B director has to report to his immediate
superior .
(3) Discipline
a) Behaving in a right and
desired manner.
b) Obeying the rules and
regulations framed by the
organization.
c) It is essential at all levels
of management.
d) The discipline can be
maintained by-
• Good supervisors,
• Clear and fair
agreements and
• Proper application of sanctions or penalties.

Application in the Airtel Company :-

 All the Employees are required to follow the rules and regulation of the
organization.
 Employees have clear understanding of the do’s and dont’s of the organization.
 Rules and regulations are clearly mentioned on the website as well as are
given to the employees .
 Disciplinary action is taken against the employees who do not follow the
instructions
(4) Unity Of Command:-
a) One individual employee must receive orders from one individual superior only.
b) Employees should be answerable to only one superior.
Application In Airtel Company:-

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  All the jobs in Company are well-defined and streamlined such that each
employee reports to his respective head/superior.
 Like, director has full command on his juniors and answerable to the CEO
for their performance.

(5) Unity Of Direction:-

a) An objective should be same for the whole unit of organization and
b) There should be one leadership and one plan.
Application in Airtel Company:-
 Direction flows from the top management and each and every employee
follows the direction set from the top.
 Each employee follows the vision enshrined by the founder, Sunil Bharati
Mital of the organization .

(6) Subordination of Individual Interest to General Interest:-

a) Organizational interest should be given more importance than personal interest.
b) Personal interest should be kept aside.
Application in Airtel Company :-
 Employees of Airtel Company always come for extra work whenever needed
in the interest of the organization.
 They put their hard efforts all the time but if some team members are absent
the other Employees take responsibility and put their individual interest behind
the organizational interest.

(7) Remuneration:-
a) Remuneration should be fair and satisfactory to both the employees and the
employer.
b) The method of justice must be equitable for all employees.
c) Sufficient salary should be given for the satisfaction of basic needs of the
employees to stop them for getting shifted to other organizations for better
remuneration.

Application in Airtel Company:-

 Employees of Airtel Company are paid on Weekly/Monthly/half-yearly basis.
 Airtel Company also follows the pay and reward policy where in the better an
employee performs the more salary he/she receives.
(8) Centralization And Decentralization:-
a) Centralization means where all the key decision taken by the top level
management.
b) Decentralization means where all the key decision taken by lower level
management. In other words “distribution of authority by superiors to the
subordinates”
Application in Airtel Company:-
 At Airtel Company there is centralized organizational structure.

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  Authority is highly centralized and all the tasks and rules are clearly specified.
 Still ideas are welcomed from the team members and there is no red-tapism.

(9) Scalar Chain:-

a) It is the chain where the flow of authority and communication from top level to
lower level management in the form of hierarchy.
b) In the hierarchy, orders and instructions flow downwards.
c) It is said to be scalar when subordinates report to their immediate superior.

(10) Order:-
a) It is a systematic arrangement that there should be a place for everything and
everything in its place.
b) It does not mean giving commands.
c) Order contains two categories social order and material order.
Social order means there should be a specific place for work during the
working hours.
Material order means there should be a specific.
Place for material and tools, etc.
Application in Airtel Company:-
 At Airtel Company, High level of order is maintained.
 Airtel Company has many recharge pack, according to our order it benefits
us.

(11) Equity:-
a) It refers to combination of fairness, kindness and justice.
b) Workers increment and promotion should be evaluated on the basis of their
performance.
c) Everyone is equal in the eyes of management.
ApplIcation in Airtel Company:-
 Directors at Airtel Company treat their subordinates and crew members
equally.
 No discrimination is made on the basis of any manner, be it sex, education,
caste, religion, position in the organization etc.
 Equal level of training, opportunity and promotion is given as per their
performance.
 Equal level of pay is given for equal level of work .

(12) Stability of tenure of Personnel:-

a) An employee should be given sufficient time to adjust to the job designated to
him.
b) He should not be transferred frequently from his work.
Application in Airtel Company:-
 Airtel Compan pays a lot of attention to recruiting the right employees for its
Mini Stores.

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  Management spends a lot of time and efforts in training the new recruits and
is hired after “on-the-job experience”training sessions.
 Proper time is given to employees to assimilate in the culture of organization.
(13) Initiative:-
a) Taking the first step in something or Eagerness to do something.
b) Employees or workers should be given the opportunity to take initiative to
become different from others.

(14) Esprit de Corps:-

a) All the employees of the organization are put together as a team.
b) Managers enhance the team spirit in the organization by giving credit to the
workers for their performance .
Application in Airtel Company:-
 Aitel Company inculcates team spirit amongst the employees of a store by
providing performance on the basis of their performance.
 This promotes a feeling of harmony and unity amongst the employees .

PMC @ AIRTEL

PLANNING

REWARDING MONITOR

RATING DEVELOPING

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 METHODOLOGY
It is the systematic, theoretical analysis of the methods applied to a field of study.
It comprises the theoretical analysis of the body of methods and principles associated with
a branch of knowledge .
Data Collection:-
It is the process of gathering and measuring information on variables of interest, in an
established systematic fashion that enables one to answer stated research questions, test
hypotheses, and evaluate outcomes. Data Collections are of two types , i.e, Primary data
and Secondary data. Here we analysis the secondary data i.e, SWOT analysis .

SWOT ANALYSIS
Bharti Airtel is the world’s third largest mobile service provider by subscribers after China
Mobile and Vodafone with over 270 million global customers. It is also India’s biggest
wireless telecom operator both by subscribers and revenue. Those numbers came in at
193.5 million and Rs. 113 billion ($1.8 billion) respectively after the end of latest quarter.
Again, these figures are just for Airtel’s mobile services in India. The telco also provides
mobile telephony services in 20 other Asian and African countries. Given the challenging
(but improving) telecom sector sentiment in India, it is worthwhile to discuss a Strengths,
Weaknesses, Opportunities, and Threats (SWOT) analysis for the company.
Strengths –
 Biggest mobile service provider in world’s second largest telecom market – Mobile
phone subscriptions now follow the normal population trends around the world.
With about 870 million wireless subscriptions, India ranks second after China in
the wireless market. Airtel has a 22.2% share of that market.

 Well-established nationwide infrastructure – Airtel has been in the market for 18+
years and thus has towers and backhaul all over the country. This is a major
advantage. Deployment of new technologies or increasing capacity at times requires
software and minimal hardware upgrade. Having infrastructure already on the ground
makes that process much faster and smoother. Secondly, it is easier to capture new
customers if a telco already has a network in place.

 High brand equity – Airtel is among India’s most visible brands omnipresent in
most parts of the nation through television, print and various other forms of
advertising. Celebrity endorsements and innovative advertising that understand the
pulse of market are some of the assets of the Airtel brand.
 Superior overall network quality and reliability – Bharti Airtel (along with
Vodafone) runs one of the better mobile networks’ in India. They have
nationwide penetration and although there is no dearth of consumer complaints
regarding dropped calls and slow data against Airtel, it still offers a higher
quality telecom service experience as compared to most other telcos.

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Weaknesses –

 High competition in the telecom market – Airtel, like all other service providers in
India, has been adversely affected by the extreme price competition. Although the
average voice call rates have gone up recently, they were as low as Rs. 0.6/min.
(1 cent/min.) a few years ago. The story is similar with data and 3G tariffs. As a
result, the company has been reporting declining profits for many years. ARPU
had been decreasing too although it is showing signs of bottoming out now.
 Debt and finances – According to their latest quarterly report, Airtel is burdened
by $9.7 billion in net debt, which is a lot of money when converted to rupees.
How can Airtel repay this debt is the question? Possibilities include stake and
equity sale or spike in revenue. Depreciating rupee is also an issue since it
results in foreign exchange losses and increases the financing cost.
 Africa acquisitions and operations – Airtel acquired Zain’s Africa business for $9
billion in 2010. Since then, it has struggled to turn around those operations
reporting repeated losses from the continent. While the Africa operation has
widened the companies’ geography, it continues to be a drag on its balance sheet.
 Late adoption of 3G and advanced wireless technologies – Due to various
regulatory uncertainties and delayed spectrum auctions, India and Airtel were late
to the 3G party. 3G services were launched by Airtel only in early 2011. The
data tariffs were high, speeds were unsatisfactory and customer acceptance of 3G
was slow. The company lacks nationwide 3G license with spectrum in 13 out of
22 telecom service areas. Airtel’s LTE network for mobile broadband is still
confined to only 4 cities in India.

Opportunities –

 Untapped voice market – Despite many believing that the voice market in India is
close to saturation, hundreds of millions remain without a phone. Recently, VLR
(Visitor Location Register) numbers released by the regulator TRAI, showed that
around 730 million out of the total 870 million are active connections. Given
many people in India use multiple SIMs, it is safe to say that mobile phone
penetration in the country is less than 50%. The opportunity for Airtel is huge,
especially in the rural segment.
 3G and data revenue – Airtel’s 3G subscribers constitute less than 5% of its total
subscriber base. Apart from getting new 3G customers to join Airtel, there is
immense room for growth within its existing customers. The operator should be
more aggressive in marketing the benefits of high speed data access on phone.
Simultaneously, it must ensure faster and consistent data speeds on its network.
 LTE – The whole wireless world is moving towards LTE. LTE for mobile
broadband can be a good solution for India where fixed broadband penetration is
otherwise low. Airtel has taken the lead with this version of LTE in 4 cities, but
deployment needs to catch up pace. Despite a weak LTE ecosystem in India,
Airtel should portray itself as the embracer of that technology. It must pursue the

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 device manufacturers to produce LTE capable phones for India and then take the
lead in the deployment of LTE for cellular networks too.
 Mergers and Acquisitions – Unfortunately, the M&A rules in India are yet to
formally declared although recent media reports have suggested that companies
may be allowed to merge as long as their market share in every circle is less
than 50%. Airtel with a market share of 22.2% should be good to acquire smaller
telcos to reduce competition and add subscribers and spectrum. Such acquisitions
will incur huge spectrum costs, but it could be well worth it in the long term.

Threats –

 Unfriendly regulatory environment – The telecom industry in India has been

plagued by a hostile and unstable regulatory scenario. This has adversely affected
the industry sentiment and the wireless service providers. While some clarity has
begun to emerge, many guidelines are far from certain. Airtel has not remained
untouched from this chaos. And this threat would continue to linger for the next
few years.
 Spectrum Auctions and Refarming – Government of India and TRAI kept a high
reserve price for 3G, BWA and the recent 1800 MHz auction. Airtel had spent
Rs. 123 billion ($2.7 billion per rupee to dollar conversion back then) for 3G
airwaves. Since the returns are slow due to low tariffs, buying the spectrum at
high price is detrimental for the telcos. Refarming 900 MHz is another terrible
idea which would negatively impact Airtel’s finances, given that it will have to
repurchase those airwaves to continue 2G operations.
 Mobile Number Portability – MNP gives the customer independence to change the
service provider while retaining the number. With similar tariffs across various
telcos and satisfaction with the current service provider being low, consumers are
willing to jump ship. The larger incumbent operators are losing millions of
customers to the newer players who attract these customers with their freebies and
innovative offers.

Some of the points mentioned above also apply to big incumbent telcos in India like
Vodafone and Idea. But let us not forget that Airtel has been a torchbearer of the
Indian wireless industry. If it intends to remain in that position, a SWOT analysis like
this one will help. Overall, I am bullish on the company’s future and believe that
despite the current difficulties, Bharti Airtel will continue to be a major player in India’s
telecommunication sector.

CONCLUSION
It is the evident from the analysis of the project ; Bharati Airtel .Ltd applies
almost all general principles as developed by Henry Fayol . It pays high attention to its
valued customers by providing high quality services at affordable price . Employees are

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respected , valued , recognized and professionally groomed by rewarding various incentives
in different ways . Airtel has spread across the world in almost all the cities of the globe
around 19 counries .

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BIBLIOGRAPHY
 https://www.airtel.co.in

 https://www.BharatiAirtelBusinessStartegy.com

 https://www.wikipidea.com

 https://www.slideshare.com

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 THANK YOU

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