Question:
‘Agri Solutions’, a fast-growing agri-tech company, was facing a problem of employees leaving the organisation frequently. As a result, work suffered and time and money were spent repeatedly on recruitment and training. On investigation, it was found that the problem was due to employees not getting sufficient time to settle into their new roles. So the company decided to keep their employees at the same position for a minimum tenure and give them sufficient time to show results. This led to a significant reduction in employee turnover and improvement in organisational efficiency.
The principle of management highlighted in the above case is :
‘Agri Solutions’, a fast-growing agri-tech company, was facing a problem of employees leaving the organisation frequently. As a result, work suffered and time and money were spent repeatedly on recruitment and training. On investigation, it was found that the problem was due to employees not getting sufficient time to settle into their new roles. So the company decided to keep their employees at the same position for a minimum tenure and give them sufficient time to show results. This led to a significant reduction in employee turnover and improvement in organisational efficiency.
The principle of management highlighted in the above case is :
Show Hint
Employees were given a minimum tenure and time to settle and show results. This is the principle of Stability of Personnel.
Updated On: Oct 26, 2026
- Order
- Stability of Personnel
- Division of Work
- Authority and Responsibility
Show Solution
Verified By Collegedunia
The Correct Option is B
Solution and Explanation
Step 1: Understand the concept:
Fayol gave 14 principles of general management. This question asks which one fits the case of Agri Solutions.
We must look for the problem in the case and the remedy that the company applied.
Step 2: Read the clues:
Problem: employees left the organisation frequently, so time and money were spent again and again on recruitment and training.
Cause: employees did not get enough time to settle into their new roles.
Remedy: the company kept employees at the same position for a minimum tenure and gave them time to show results. Turnover fell.
Step 3: Link to the principle:
Keeping staff in the same position for a fair period, and avoiding their frequent removal, is the principle of Stability of Personnel.
It lowers the cost of hiring and training and gives employees a sense of security.
Step 4: Check option (1): Order:
Order means the right person at the right place and a place for everything. The case does not talk about arranging people or things. So option (1) is wrong.
Step 5: Check option (2): Stability of Personnel:
The case is about a minimum tenure and time to settle and show results. This is exactly stability of personnel. So option (2) is correct.
Step 6: Check option (3): Division of Work:
Division of work is about breaking work into parts for specialisation. No such step appears in the case. So option (3) is wrong.
Step 7: Check option (4): Authority and Responsibility:
This principle says that authority should match responsibility. The case does not speak about power or duty. So option (4) is wrong.
Final Answer:
The principle shown in the case is Stability of Personnel. This is option (2).
Fayol gave 14 principles of general management. This question asks which one fits the case of Agri Solutions.
We must look for the problem in the case and the remedy that the company applied.
Step 2: Read the clues:
Problem: employees left the organisation frequently, so time and money were spent again and again on recruitment and training.
Cause: employees did not get enough time to settle into their new roles.
Remedy: the company kept employees at the same position for a minimum tenure and gave them time to show results. Turnover fell.
Step 3: Link to the principle:
Keeping staff in the same position for a fair period, and avoiding their frequent removal, is the principle of Stability of Personnel.
It lowers the cost of hiring and training and gives employees a sense of security.
Step 4: Check option (1): Order:
Order means the right person at the right place and a place for everything. The case does not talk about arranging people or things. So option (1) is wrong.
Step 5: Check option (2): Stability of Personnel:
The case is about a minimum tenure and time to settle and show results. This is exactly stability of personnel. So option (2) is correct.
Step 6: Check option (3): Division of Work:
Division of work is about breaking work into parts for specialisation. No such step appears in the case. So option (3) is wrong.
Step 7: Check option (4): Authority and Responsibility:
This principle says that authority should match responsibility. The case does not speak about power or duty. So option (4) is wrong.
Final Answer:
The principle shown in the case is Stability of Personnel. This is option (2).
Was this answer helpful?
0
0
Top CBSE CLASS XII Business Studies Questions
What is the Planning Process?
- ................ is one of the most important attitudes of an entrepreneur, which is defined as the ability to continue to do something, even when it is difficult.
(A) Decisiveness
(B) Interpersonal skills
(C) Perseverance
(D) Taking initiative - Mention any four most common environmental barriers which an entrepreneur may face while running his/her venture.
- ____is the process of searching for prospective employees and stimulating them to apply for jobs in the organization.
‘Vishesh Constructions’, a construction company, decided to strictly implement ‘No Helmet, No Entry’ and put the following sign at their construction sites :
Identify the type of plan indicated by the above sign :
View More Questions
Top CBSE CLASS XII Principles of Management Questions
- Explain the following techniques of Scientific Management : (i) Fatigue study (ii) Differential piece wage system (iii) Standardisation and simplification of work
- Explain the following features of principles of management:
(i) Universal Applicability
(ii) Formed by Practice and Experimentation
(iii) Flexible - A multinational sweets and snacks company had been into catering business for the last many years. To add to its prospects and to grow in the long run, it wants to increase its sales volume, the number of products, and capital investment. The organisational objective of management it seeks to achieve is:
- With respect to levels of management, choose the incorrect statement from the following:
- Explain the following types of plans:
(b) Strategy
(ii) Method
(iii) Budget
View More Questions
Top CBSE CLASS XII Questions
- 2, b, c are in A.P. and the range of determinant $\begin{vmatrix}1&1&1\\ 2&b&c\\ 4&b^{2}&c^{2}\end{vmatrix}$ is [2, 16]. Then find range of c is
- A boy of mass 50 kg is standing at one end of a, boat of length 9 m and mass 400 kg. He runs to the other, end. The distance through which the centre of mass of the boat boy system moves is
- A capillary tube of radius r is dipped inside a large vessel of water. The mass of water raised above water level is M. If the radius of capillary is doubled, the mass of water inside capillary will be
- A circular disc is rotating about its own axis. An external opposing torque 0.02 Nm is applied on the disc by which it comes rest in 5 seconds. The initial angular momentum of disc is
- A circular disc is rotating about its own axis at uniform angular velocity \(\omega.\) The disc is subjected to uniform angular retardation by which its angular velocity is decreased to \(\frac {\omega}{2}\) during 120 rotations. The number of rotations further made by it before coming to rest is
View More Questions