Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Principles of Management

Question:

What is the potential consequence of instability in employee tenure?

Options:

Increased employee satisfaction

Reduced recruitment and training costs

High turnover and recruitment expenses

Enhanced organizational flexibility

Correct Answer:

High turnover and recruitment expenses

Explanation:

Instability in employee tenure can lead to employees leaving the organization. The consequence of this high turnover is increased recruitment expenses and costs associated with training new personnel. When there is a lack of stability in employee tenure, it often results in a continuous cycle of hiring and training, which can be both time-consuming and costly for the organization.