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
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.
REFERENCES
Derek S Pugh and David J Hickson Aldershot:
Dartmouth, 1993 Financial Times handbook of management,
Henri Fayol(1984) General and
Industrial Management (revised by Irwin Gray)London:
Pitman, Lee D;Parker and Philip A Ritson,(2005)
British Journal of Management, Sep vol 16 no 3 ,pp175-194
Lyon Grant and Green, 1967 The principles and
practice of management, Edward Brech, 3rd ed
London: Longman, Great writers on organizations:
the omnibus edition