NAME: VINAYAK SADASHIV HANDE

CLASS: SY B.A.F
DIVISION: A
ROLL NO: 5461
SUBJECT: MANAGEMENT AND ORGANISATIONAL
BEHAVIOUR
TOPIC: “A STUDY ON APPLICABILITY OF PRINCIPLES OF
MANAGEMENT IN V-Mart Company
SUBMITTED TO: MRS. SUNITA SAINI
 INTRODUCTION

V-Mart Retail Ltd retails readymade garments accessories etc. and is engaged in the business
of 'Value Retailing' through the chain of stores situated at various cities in India. The
company operates its retail stores under the V-Mart brand. V-Mart is one of the pioneers in
setting up stores across various small Indian towns and cities including Sultanpur Ujjain
Motihari. The company primarily operates in Tier-II and Tier-III cities with a chain of 'value
retail' departmental stores offering apparels general merchandise and Kirana catering to the
entire family. The company has established stores in Metro Tier-I Tier-II and Tier-III cities
which are primarily located as standalone stores in high-street areas and shopping hubs of
such cities. The average size of the store is approximately 8000 Sq. Ft. It follows the concept
of value retailing' to target the strata of the population belonging to the expanding aspiring
classes and middle classes based on customer's socio-economic conditions purchasing power
demographic details and customer trends. V-Mart Retail Ltd was originally incorporated as
Varin Commercial Private Limited on 24th July 2002 in West Bengal. In October 2003 the
company opened its first store by the name of 'V-Mart' at Ahmedabad Gujarat and currently
own and operate 62 stores spread across 53 cities and 10 states and union territories with a
total area of 5.06 lac Sq. Ft. Its stores are located in New Delhi Gujarat Uttar Pradesh Bihar
Punjab Chandigarh Haryana Jammu and Kashmir Rajasthan and Madhya Pradesh. The name
of the company was subsequently changed to V-Mart Retail Private Limited on 11th July
2006. Its name was further changed to V-Mart Retail Limited upon conversion into a public
limited company on 11th July 2008.In February 2013; the company successfully concluded
the pubic issue of equity shares aggregating to Rs. 36435 million. The initial public offer of
the company was subscribed 1.19 times. While the qualified institutional buyers' portion in
the offer was subscribed 1.52 times the non-institutional investors and retail investors
segments were subscribed 1.39 and 0.79 times respectively. During the financial year ended
31 March 2014 the company opened 23 new stores under the brand V-Mart spread over an
area of 712256 sq. ft. During the year 3 stores were closed due to lower footfall poor sales
and non-profit making. During the year under review the company implemented a space
policy at the stores with an objective of allocating space to the line of biz which has the
higher propensity to generate better returns on the space allocated. The company continued to
strengthen its back-end and front-end processes during the year by taking various initiatives.
The three core focus areas for the company were supply chain management capability
building and investment in infrastructure. During the year the company took on lease
premises for a new warehouse. During the year under review the company organised various
events so as to be in constant touch with the customers and get a better understanding of their
needs. During the financial year ended 31 March 2015 the company opened 19 new stores
under the brand V-Mart spread over an area of 1.71 lacs sq. ft. During the year the company
also completed the transition to a new warehouse and corporate office keeping into account
the existing and future growth. During the financial year ended 31 March 2016 the company
opened 17 new stores under the brand V-Mart spread over an area of 1.48 lacs sq. ft. The
company closed two stores during the year. During the financial year ended 31 March 2017
the company continued with its existing approach to endeavour to establish its growth pattern
in the Retail Industry with a chain of stores under the 'V-Mart' brand in the north and eastern
part of India. During the year the company opened 20 new stores under the brand V-Mart
which were spread over an area of 1.80 lacs sq. ft. The company closed two stores during the
year. During the financial year ended 31 March 2018 the company opened 31 new stores
under the brand V-Mart which were spread over an area of 2.4 Lac sq. ft. The Company
closed 1 store during the year. During the year under review the company continued to focus
on enhancing the capability of the organisation. During the year the company ventured into
Tier-IV towns for the first time.During the year 2019 the Company 44 new stores and closed
one store. With this addition the cumulative count of the company's stores increased to 214
spread over an area of 18 Lakhs sq. ft. V-Mart added three new states i.e. Assam Meghalaya
and Himachal Pradesh to expand the footprint to 17 states.
 OBJECTIVES

 To know the strategy adopted by V-MART in the current retail marketing

environment.
 To have a proper understanding and analysis of V-MART
 To know the marketing strategies that V-MART adopted to make a good relationship
with its customers.
 To know the people perceptions towards V-MART.
 To evaluate the recent trends of Indian retail industry in order to come out with
prospects for India's one of leading retail chains V-MART.

Mission statement of V-MART

 Care for customer aspirations
 Discover and nurture talent
 Sustain ethical growth
 Harness vendor relationships
 We shall deliver. Everything, everywhere, every time for

every Consumer in the most profitable manner.

Vision statement of V-MART

"Create value and make our ecosystem proud"
To uphold and contribute to the realization of a sustainable society by balancing our
business activities with nature using the resources we have in making a real and
sustainable difference. We share the vision and belief that our customers and stakeholders
shall be served only by creating and executing future scenarios in the consumption space
leading to economic development.
 Principles of Management

1. Authority + Responsibility:
Meaning: According to this principle, "Authority and responsibility go hand in hand."
About the principle of management - "Authority + Responsibility." So the employees of the
company were asked to give a reply to the question. A total number of 80 respondents in
favour while 10 respond with a negative reply. However, 10 people did not express any
opinion.
Conclusion: A clear indication of the fact that the employees have got the authority to
discharge their responsibility regarding the work entrusted to them. It can therefore be said
that this principle of management is being implemented in this company.

2. Unity Of command:
Meaning: "There should be one and only one boss for every individual employee"-according
to this principle. 80 employees of the company were asked to respond about the principle of
management - unity of command, to the question given in the table. Only a total of 10
employees responded with yes' while 66 responded negatively. The remaining 04 employees
did not give any reply.
Conclusion: The figures given in the table tells us that out of 80 employees, 66 employees
said that they received orders from a single officer at a time It can, therefore be said that the
company has really understood the importance of this principle of management.

3. Subordination of Individual Interest to General Interest:

Meaning: According to this principle "the interest of an organisation should take priority over
the interest of anyone individual employee."
Explanation: For the principle of management, 'subordination of individual interest to the
general interest." 80 employees of the company were asked to respond. Out of 80 employees,
67 responded in favour while the other 08 respondents replied in the negative. The remaining
05 employees did not give a response.
Conclusion: Based on the figures available in the table, it can be asserted that the employees
of the company gave priority to general Interest over the individual interest.
4. Remuneration of employees:

Meaning: According to this principle, “the employees should be paid fair remuneration,
which should give them at least a reasonable standard of living.”
Explanation: Regarding the principle of management. 'Remuneration to the employees 80
respondents were asked to express their opinion 40 employees said that they were not getting
reasonable remuneration. On the other hand, 35 employees are expressing a positive opinion
about it the employees who remained numb on this issue, numbered only 05.
Conclusion: Based on the above analysis nearly 50% of the employees of the company are
not happy about the remuneration policy of the company. Therefore, it can undoubtedly be
said that the company lags in observing this principle of management.

5. Centralisation + Decentralisation:

Conclusion: The above analysis clearly shows that the company does not adopt a complete
centralisation. Neither does it do so in the case of decentralisation. Instead, it can be said that
the company follows the principle of centralisation in an effective way.
6. Scalar chain:

Meaning: According to this principle, the Organisation should have a chain of authority and
communication that runs from top to bottom and should be followed by managers and
subordinates
Explanation: All the employees were asked the question given in the table regarding the
principle of 'scalar chain'. A total of 61 employees answer was in the negative. The number of
employees who did not express any opinion was only 07.
Conclusion: The above analysis shows that the majority of the employees vouch for the fact
that they have direct communication with the boss of their boss. Obviously, it is an indication
of the fact that while communication between the two person takes place in this manner a
step being overlooked. It should be our inevitable conclusion that the principle of scalar chain
is being violated this situation is certainly not in favour of the company.

7.Equity:
Meaning: According to this principle, "The managers should treat their subordinates as fairly
as possible so that they develop a feeling of dedication for their work.
Explanation: Regarding the principle of 'Equity, the question given in the table was to pull all
the employees. A total of 45 employees responded positively while a total of 31 employees
responded negatively. Those who did not give any response was significant low i.e. yeast 04
persons.
Conclusion: principles of equity elicited a mixed response from the employees. It can,
therefore, be said that the company is not conscious about observing this principle of
management. Principle of management gives a rude shock to the efficient and hard-working
employees and they start losing their confidence in the company.

8. Stability of Personnel:
Meaning: According to this principle there should be a stability of tenure of the employees so
that the work continues efficiently."
Explanation:
All the 80 Employees of the company were asked the question given in the table regarding
the principle stability of personnel. More than half the number of employees responded
negatively, where 28 Employees confirmed the fact that they have served the company for
more than one year. Only one person did not express any opinion.
Conclusion: The above analysis indicates that labour turnover rates in the company are on the
higher side. In other words, the employees do not continue to be in the service of the
company for a longer period. This situation reflects mismanagement in the company.
Therefore, the company has to take care of the stability of the personnel in its own interests.

9.Initiative:
Meaning: According to this principle, "employees in the organisation must be given an
opportunity in making and executing a plan."
Explanation:
To check the implementation of this principle of initiative' in the company, all the employees
were asked the question given in the table. A total number of 57 employees were in favour of
the question, while 18 employees gave negative answers. The other people remained numb
on this question.
Conclusion: The above experiment shows that more than 50% of employees felt that their
opinion was given importance. This is a comfortable situation. This is encouraging initiative
and confidence of the employees.

10.Division of Work:
Meaning: According to these principles, "as far as possible the whole work should be divided
into small parts and each individual should be assigned only one part of the work according
to his ability and tact reportedly do that the benefits of specialization may be achieved."
Result of empirical investigation:
During the course of the personal observation regarding the principle of division of labour
whatever was observed in the company may be described as follows:
• Close to the entrance gate the company has located a reception counter. All the customers
were being received here. They were being told where they could obtain the items they
wanted to purchase and which section they should visit.
• When the customer reaches the section concerned the salesman helps him choosing the
items of his need here the sale is finalised the salesman hand over a token to the customer and
directs him to the payment counter.
• In the meantime, the goods sold are carried to the bill counter. From the bill counter, the
goods are sent to the packing counter.
• From the packaging counter, the packed material and the bill is sent to the payment counter.
The customer is already at the counter along with the token. Here the customer hands over
the token make the payment and take delivery of the goods purchased.
Conclusion: The above-stated facts indicate that the company has divided the total work into
many parts. All the people perform particular Job repeatedly therefore it can be said that the
principle of work i.e., divisions of work is actually being observed meticulously.

11. Discipline:
Meaning: According to this principle, "the organisational rule and employment agreement
should be obeyed by both the superiors and subordinates which are necessary for the
successful working of the organisation."
Result of empirical investigation:
During the course of personnel observation regarding the principle of Discipline the
following facts came to light:
It was observed that the employee usually got into personal conservation the moment they
found any opportunity of doing so they indulged in long conversations over the telephone in a
joyful mood. Sometimes the customers were seen being ignored.
Conclusion: The above facts highlighting the important aspect of their conducted. It shows
that the employees are not fulfilling their commitment with the company to work honestly for
it. Therefore, it can be said that these principles of management are being violated in the
company.

12.Unity of Direction:

Meaning: According to this principle, "there should be one head and one plan for a group of
activities having the same objectives."
Result of empirical investigation:
During the course of the personal investigation the following facts came to our notice
regarding the
principle of 'Unity of Direction:
1. The business of the company was divided into three main units-Ladies wear, Gents wear,
and Kids wear.
2. All three units were headed by three different individuals.
3. Every head kept a watch over the activities of his own unit. e.g. sales, purchase, the
attitude or behaviour of the subordinates towards the customers, customers 'satisfaction etc
Conclusion: The above facts make it clear that the company has mainly three units. Every
unit has to deal with different kinds of customers with their efforts in different ways.
Therefore, it is clear that each is headed by a different individual and he is planning and
regulating the activities of his unit in his own way. The situation tells us that the principle of
unity of direction is being implemented in the company.

13.Order:

Meaning: According to this principle, "a right person should be placed at the right job and the
right thing should be placed at the right place."
Result of empirical investigation:
During the course of our investigation regarding the principle of 'order' the following facts
were observed:
• It was found that all the units had arranged their goods in a proper and orderly manner
• Whenever the material/goods got scattered because of the rush of the customers, It was
immediately restored in its proper place.
• All the employees were observed to be working in their decided place of work
Conclusion: The above description makes it clear that all the goods are placed in their
decided place. Similarly, all the employees work only on the pre-determined place of duty.
Therefore, it can be said that the principle of order is being observed in the company.
14.Esprit De corps:

Meaning:
According to this principle, "a manager should continuously make efforts to develop a team
spirit among the subordinated."
Result of empirical investigation:
During the course of personal investigation, the following facts concerning the principle of
Esprit De corps came to light.

 Usually, the managers were seen using the word T' instead of the word
WE
• It was also observed that the managers did not show any interest in their subordinate.
Conclusion:
The above facts make it clear that the managers in the company are the victims of the reason
as to why they give importance to the word Tin stead of the word WE. In the presence of
such a situation, the question of the feeling of cooperation on the part of employees is simply
out of question. The principle of management is surely being violated in the company. This is
not a good situation.
 Findings

New Delhi: Value fashion and lifestyle products retailer V-Mart Retail Ltd has reported
narrowing of its net loss to Rs 28.71 crore for the first quarter ended in June 2021. The
company had posted a net loss of Rs 33.63 crore in the April-June quarter last fiscal, V-Mart
said in a regulatory filing.

Its revenue from operations was up over two-folds to Rs 177.41 crore during the period under
review as against Rs 78.06 crore in the corresponding period of the previous fiscal.

Read more at:

https://economictimes.indiatimes.com/markets/stocks/earnings/v-mart-retail-q1-results-net-
loss-at-rs-29crore/articleshow/85220978.cms?
utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
“V-Mart was recognised by Bloomberg as the “World’s best performing department store
chain this year” in April 2018.” “V-Mart was recognised by progressive Grocer as the “Value
retailer of choice” in 2018”
“Chairman & Managing director of the Company, Mr. Laiit Agarwal, conferred as the ‘Retail
Leader of the Year 2018’ by Franchise India”
 CONCLUSION/ BIBLIOGRAPHY
According to Professor W. H. Kilpatrick, "A project is a wholehearted
purposely act proceeding in a social environment."
A project from the point of view of students can be purposeful learning
activities including practical problems, planned and carried out in a real-
life manner to achieve specific goals. In other words, project work refers to
the successful completion of a study.
This project work has helped study the meaning, techniques and functions
of principle of management given by Henry Fayol in a better manner.
Principles of Management are general and broad guidelines for decision
making and behaviour of managers.
Thus, this project work was of immense benefit for me.

BIBLIOGRAPHY:
Books:
• NCERT-Textbox in Business Studies for Class XII
• Business studies by R. K. Singla for class XII

Newspaper:
Hindustan Times, The Times of India, Dainik Jagran
Magazines:
• Business and Economy • Business Today
Internet:
www.meritnation.com www.topperbarining.com www.mycbseguide.com