Question

Which principle of General Management says that employee turnover should be minimized to maintain organizational efficiency?

• A. Equity
• B. Scalar chain
• C. Stability of Personnel
• D. Authority and Responsibility

Hint:

According to Henri Fayol, long-term employment increases efficiency, loyalty, and skill development, which is why Stability of Personnel is essential for organizational success.

Answer 1

The Correct Option is C

Step 1: Understand the context of the question.
The question is based on the principles of General Management given by Henri Fayol.
These principles are meant to improve organizational efficiency and effectiveness.
One of the key concerns of management is maintaining a stable and efficient workforce.
Step 2: Understand the meaning of Stability of Personnel.
The principle of Stability of Personnel emphasizes that employees should not be frequently transferred or replaced.
High employee turnover leads to loss of experience, training cost, and reduced efficiency.
Therefore, management should ensure job security and stability for employees.
Step 3: Analyse option (A) Equity.
Equity refers to fairness, kindness, and justice in treatment of employees.
Although important, it does not directly focus on reducing employee turnover.
Hence, option (A) is not the correct answer.
Step 4: Analyse option (B) Scalar Chain.
Scalar Chain refers to the formal line of authority from top management to lower levels.
It deals with communication and hierarchy, not employee retention.
Hence, option (B) is incorrect.
Step 5: Analyse option (C) Stability of Personnel.
This principle clearly states that employee turnover should be minimized.
It highlights that stability improves organizational efficiency and productivity.
Employees perform better when they feel secure in their jobs.
Hence, option (C) is the correct answer.
Step 6: Analyse option (D) Authority and Responsibility.
Authority and Responsibility deal with power and accountability of managers.
This principle does not address employee turnover directly.
Hence, option (D) is incorrect.
Step 7: Final conclusion.
The principle that emphasizes minimizing employee turnover to maintain organizational efficiency is Stability of Personnel.
Therefore, the correct answer is option (C).