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Stability Of Tenure Of Personnel: Principle, Overview

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  • 0:01 Definition
  • 0:33 Rationale
  • 2:00 Example
  • 2:57 Lesson Summary
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Lesson Transcript
Instructor: Shawn Grimsley
The principle of stability of tenure of personnel is one of Henri Fayol's fourteen administrative principles. In this lesson, you will learn what it is and some of its important concepts.

Definition

French business executive Henri Fayol developed the principle of stability of tenure of personnel as part of his 14 administrative management 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.

Rationale

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.

Example

Let's say you are the HR manager for a medium-sized technology firm. Employee turnover has become an issue of late, which has had a negative impact on research and development as well as production. The CEO has directed you to come up with a plan to reverse the tide and improve the company's employee turnover rate. You develop a three-step plan.

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