Question:

“Sanjana is running a restaurant in Kanpur. The employee turnover in her business is very high and she is always on a look out for new staff. She keeps on shifting the employees from one department to another.” Identify and explain the principle of management which is being violated in the above case.

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Stable workforce builds experience and commitment, enhancing long-term organizational success.
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Solution and Explanation

The principle of management being violated in this case is Stability of Personnel. This principle, introduced by Henri Fayol, emphasizes the importance of retaining competent employees over the long term.
  • High employee turnover disrupts organizational efficiency.
  • Constantly shifting employees from one department to another hampers specialization and reduces employee morale.
  • This instability leads to lower productivity and higher training costs.
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