Target Exam

CUET

Subject

Business Studies

Chapter

Principles of Management

Question:

Read the following case study and answer the question.

Param and Rajat run a burger store in Gangtop. While visiting their store Swati observed the following points.

The worker did not need to move much while serving a customer as the trays were placed on his right hand upper shelf. Tissues were on right side of lower shelf and spoons on left side upper shelf. The straws and cups were placed in a rack next to the vending machine. The burgers were just behind him. During her 3 days stay she visited the store daily and saw the staff doing different jobs. A worker who was handling the cash was cleaning the floor on the next day and was cleaning the tables on the third day. Everyone was dressed up in similar uniform, black shoes, cap, socks, black trousers, orange T-shirts etc. They carried their name badge also. She also overheard the staff discussing about the new worker, who was not upto the mark and how they supported him by explaining the way thing had to done so that his performance could improve.

While looking around the store she saw a soft board on which a person's picture was put up as 'employee of the month'. She began to smile as the name on the soft board was similar to hers.

Which principle of Management is neglected when the worker was working at three different places on all three days?

Options:

Equity

Order

Scalar Chain

Stability of Personnel

Correct Answer:

Stability of Personnel

Explanation:

The correct answer is option (4)- Stability of Personnel.

This principle of Stability of Personnel emphasizes the importance of retaining employees and providing them with sufficient time to learn their job and become proficient. Frequent changes in job roles, as seen in the case where the worker handled cash one day, cleaned the floor the next, and cleaned tables on the third day, lead to inefficiency, increased training costs, and potential dissatisfaction among employees. This suggests a lack of defined roles and responsibilities, which can lead to decreased employee satisfaction and potentially higher turnover.

"Stability of Personnel: “Employee turnover should be minimised to maintain organisational efficiency”, According to Fayol. Personnel should be selected and appointed after due and rigorous procedure. But once selected they should be kept at their post/position for a minimum fixed tenure. They should have stability of tenure. They should be given reasonable time to show results. Any adhocism in this regard will create instability/insecurity among employees. They would tend to leave the organisation. Recruitment, selection and training cost will be high. So stability in tenure of personnel is good for the business."

 OTHER OPTIONS

  • Equity. Good sense and experience are needed to ensure fairness to all employees, who should be treated as fairly as possible,” according to Fayol. This principle emphasises kindliness and justice in the behaviour of managers towards workers. This will ensure loyalty and devotion. Fayol does not rule out use of force sometimes. Rather he says that lazy personnel should be dealt with sternly to send the message that everyone is equal in the eyes of the management. There should be no discrimination against anyone on account of sex, religion, language, caste, belief or nationality etc.
  • Scalar chain. According to Fayol, “Organisations should have a chain of authority and communication that runs from top to bottom and should be followed by managers and the subordinates.” According to Fayol, this chain should not be violated in the normal course of formal communication. However, if there is an emergency then direct contact through ‘Gang Plank’. This is a shorter route and has been provided so that communication is not delayed.
  • Order: According to Fayol, “People and materials must be in suitable places at appropriate time for maximum efficiency.” The principle of order states that ‘A place for everything (everyone) and everything (everyone) in its (her/his) place’. Essentially it means orderliness. If there is a fixed place for everything and it is present there, then there will be no hindrance in the activities of business/ factory. This will lead to increased productivity and efficiency.