An Appraisal Of Henryfayol Principles Of Organisation Stability Of Tenure On Employee Performance

Project and Seminar Material for Human Resource Management (HRM)

An Appraisal Of Henryfayol Principles Of Organisation Stability Of Tenure On Employee Performance


Abstract


The research profer an appraisal of henry fayol principles of organization stability of tenure on employee performance. It profers a structural study on the nature of the principle of stability of tenure. Stability of tenure of personnel is a principle stating that in order for an organization to run smoothly, personnel (especially managerial personnel) must not frequently enter and exit the organization. Consequently, an organization must take steps to obtain as much stability in its management and workforce as possible. The research provides a case study of stability of tenure in the Nigerian brewery plc


Chapter One


Introduction

The principle of stability of tenure of personnel is one of Henri Fayol’s fourteen administrative principles. Stability of tenure of personnel is a principle stating that in order for an organization to run smoothly, personnel (especially managerial personnel) must not frequently enter and exit the organization. Consequently, an organization must take steps to obtain as much stability in its management and workforce as possible. Change and disruptions are often expensive in both time and resources. When a large percentage of your workforce or management team leaves frequently, new personnel must be hired as replacements. These replacements will have to be trained and educated about the organization and their role in it. They need to become accustomed to the policies, procedures and culture of the organization. Their initial productivity, effectiveness, and efficiency will probably be substantially less than the employees they replaced. This costs the organization time and money that is best expended elsewhere.

Constant turnover often has a significant impact on the organization’s sense of esprit de corps (group cohesion) and morale. Finally, there is a risk that some organizational memory will be lost, which is the knowledge and information stored only in the memories of employees rather than archived by the organization. Management must attempt to reduce employee attrition (or turnover). Careful selection of employees whose values and goals match the goals and values of the organization will help. Fair and competitive compensation packages will provide an incentive for employees to stay. Facilitating employee choice and initiative will help create job satisfaction. Finally, techniques can be utilized to build up the organization’s esprit de corps to instill a sense of loyalty among the members of the organization


1.1 Background Of The Study

‘STABILITY’ means no frequent change, termination and transfer etc. It means that, in an organisation whenever an employee is appointed for a job, he/she shouldn’t be removed from that position frequently. The management of the organisation should ensure that there must be stability in the job and frequent changes and shuffling of position should be avoided.When one feels secure at his job, he/she contributes maximum of his capability towards the organisational objectives.

Stability also helps the employee to know each and every aspect of the job with the passage of time which consequently helps in performing the job with greater efficiency and minimum wastage. It creates a sense of belonging-ness towards the job and the organisation.An organisation following the principle of stability achieves its objectives effectively and efficiently with the maximum contribution from their employees. The employees of such organisation always feel satisfied and thus are the productive factor for the organisation. But if this principle is violated i.e. if the employees are frequently transferred from one position to another or employee turnover, they will feel dissatisfied and will not perform with their full potential leading to non-achievement of the organisational objectives or under utilisation of resources as well as wastage.

Positive impacts of this principle:

Consist Of

  • Develops sense of belonging-ness towards the organisation.
  • Improves the efficiency level of employees.
  • Minimises the wastage of resources.
  • Employees satisfaction.;Better accountability.
  • Saves time.

Consequences of violation of this principle:

Consist Of

  • Non-achievement of the organisational objectives
  • Lack of employees participation.
  • Wastage of resources and time.
  • Dissatisfaction
  • Adds to cost.

The research therefore seek to profer an appraisal of henry fayol principles of organization stability of tenure on employee performance with a case study of Nigerian breweries plc.


1.2 Statement Of The Problem

Stability of tenure of personnel is a principle stating that in order for an organization to run smoothly, personnel (especially managerial personnel) must not frequently enter and exit the organization. Consequently, an organization must take steps to obtain as much stability in its management and workforce as possible. Change and disruptions are often expensive in both time and resources. When a large percentage of your workforce or management team leaves frequently, new personnel must be hired as replacements. These replacements will have to be trained and educated about the organization and their role in it. They need to become accustomed to the policies, procedures and culture of the organization. Their initial productivity, effectiveness, and efficiency will probably be substantially less than the employees they replaced. This costs the organization time and money that is best expended elsewhere.

Constant turnover often has a significant impact on the organization’s sense of esprit de corps (group cohesion) and morale. Finally, there is a risk that some organizational memory will be lost, which is the knowledge and information stored only in the memories of employees rather than archived by the organization. Management must attempt to reduce employee attrition (or turnover Therefore the problem confronting this research is to profer an evaluation of henry fayol principles of organization stability of tenure on employee performance. With a case study of Nigerian Breweries PLC.


1.3 Research Question

  1. What is the nature of stability of tenure principle of management
  2. What is the significance
  3. What is the nature and significance of stability of tenure in Nigerian Breweries Plc.

1.4 Objective Of The Study

  1. To determine the nature and significance of the principle of stability of tenure
  2. To determine the nature and significance of the stability of tenure in Nigerian brewery plc.

1.5 Significance Of The Study

The study shall determine the applicability and significance of stability of tenure in the management of the organization It shall also provide useful information to managerial personnel


1.6 Statement Of The Hypothesis

  1. Ho Staff performance in NB PLC is low
    Hi Staff performance in NB PLC is high
  2. Ho Stability of tenure in NB PLC is low
    Hi Stability of tenure in NB PLC is high
  3. Ho Impact of stability of tenure on staff performance in NB PLC is low
    Hi Impact of stability of tenure on Staff performance in NB PLC is high

1.7 Scope Of The Study

The study focuses on the evaluation of henry fayol principle of stability of tenure on employee performance. With a case study of Nigerian brewery plc


1.8 Definition Of Term

Subordination of Individual Interest to Mutual Interest The management must put aside personal considerations and put company objectives firstly. Therefore the interests of goals of the organization must prevail over the personal interests of individuals.

Remuneration:

Workers must be paid sufficiently as this is a chief motivation of employees and therefore greatly influences productivity. The quantum and methods of remuneration payable should be fair, reasonable and rewarding of effort. Remuneration is paid to worker as per their capacity and productivity. The main objective of an organization is to maximize the wealth and the net profit as well. For this purpose, the organization has paid wages, salary, and benefit to their staff properly and scientifically so that organizational efficiency can be ensured.

The Degree of Centralization:

The amount of power wielded with the central management depends on company size. Centralization implies the concentration of decision making authority at the top management. Sharing of authority with lower levels is called decentralization. The organization should strive to achieve a proper balance.

Line of Authority/Scalar Chain:

Scalar Chain refers to the chain of superiors ranging from top management to the lowest rank. The principle suggests that there should be a clear line of authority from top to bottom linking all managers at all levels. It is considered a chain of command. It involves a concept called a “gang plank” using which a subordinate may contact a superior or his superior in case of an emergency, defying the hierarchy of control. However the immediate superiors must be informed about the matter.

Order:

Social order ensures the fluid operation of a company through authoritative procedure. Material order ensures safety and efficiency in the workplace. Order should be acceptable and under the rules of the company.

Equity:

Employees must be treated kindly, and justice must be enacted to ensure a just workplace. Managers should be fair and impartial when dealing with employees, giving equal attention towards all employees.

Stability of Tenure of Personnel:

Stability of tenure of personnel is a principle stating that in order for an organization to run smoothly, personnel (especially managerial personnel) must not frequently enter and exit the organization. Consequently, an organization must take steps to obtain as much stability in its management and workforce as possible.

Initiative:

Using the initiative of employees can add strength and new ideas to an organization. Initiative on the part of employees is a source of strength for organization because it provides new and better ideas. Employees are likely to take greater interest in the functioning of the organization.

Esprit de Corps:

This refers to the need of managers to ensure and develop morale in the workplace; individually and communally. Team spirit helps develop an atmosphere of mutual trust and understanding. Team spirit helps to finish the task on time.


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