In a firm, many newly trained employees leave within a few months. As a result, the firm’s recruitment, selection and training costs stay high. According to Fayol, which of the following leads to this result?
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Adhocism in the tenure of personnel
Option (1) Concentration of decision-making authority in a few hands — Incorrect. Keeping decision-making authority with a few people is centralisation. Fayol asks for a balance between centralisation and decentralisation. He does not link it with employees leaving.
Option (2) Dual subordination of employees — Incorrect. Dual subordination means an employee gets orders from two superiors. It breaks unity of command and causes confusion about the tasks to be done.
Option (3) Overlapping of the activities of two divisions — Incorrect. Overlap is what unity of direction prevents, by giving each division its own head and plan. It is not the reason trained people leave.
Option (4) Adhocism in the tenure of personnel — Correct. Adhocism means filling and changing posts as things come up, with no fixed tenure. Under stability of personnel, Fayol says such adhocism creates instability and insecurity among employees. So they tend to leave, and the firm’s recruitment, selection and training cost will be high.
NCERT (2026-27 Edition): “(xii) 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.” |