question_answer

Give the positive and negative effects (any two) of the following principles of management:

(i) Equity

(ii) Stability of personnel

Answer:

Ans      (i) Equity Two positive effects of equity are given below: [a] It ensures loyalty among the workers. [b] It emerges cordial relation between workers and managers. Two negative effects of equity, if violated are given below: [a] Dissatisfaction among employees leading to greater employee turnover. [b] It emerges poor relations between workers and managers. (ii) Stability of Personnel Two positive effects of stability of personnel are stated below: [a] It encourages job security in the organisation. [b] It increases motivation among employees. Two negative effects of stability of personnel, if violated are stated below: [a] It leads to increase in labour absenteeism. [b] It Increases job insecurity thus, employees tend to leave jobs frequently leading to high turnover.