Promotion, Transfer and Demotion

INTERNAL MOBILITY

• Movement of employees from one level to

another and from one job to another within

the company

• Types

• Promotion• Transfer• Demotion

PROMOTION

• Advancement of an employee to a better job – in terms of greater responsibility, more prestige,

greater skills and increased rate of pay and salary”

Paul Pigors and Charles Myers

Main conditions of promotion are– Reassignment of a higher level job to an

employee than what he is presently performing

– Delegation of greater responsibility and authority

– Higher pay

PROMOTION• Purpose

– Utilise employees skill, knowledge resulting in organisational effectiveness and employee satisfaction

– Develop competitive spirit and inculcate the zeal in the employees to acquire the KSA

– Develop competent source of employees for higher level jobs

– Promote employees self development

– Reduce labour turnover

PROMOTION

• Purpose

– Promote a sense of contentment with the existing conditions and a sense of belongingness

– Promote interest in training and development programs

– Build loyalty and boost morale

– Reward committed and loyal employees

TYPES OF PROMOTION• Vertical Promotion – employee moves to the next

higher level in the organisational hierarchy with greater responsibility, authority, pay and status

• Upgradation – job is upgraded in the organisational hierarchy leading to greater responsibility, authority and pay

• Dry Promotion – employee is moved to the next higher level in organisational hierarchy with greater responsibility, authority and status but no increase in salary

BASES OF PROMOTION

Merit Seniority Merit cum Seniority

Denotes an employees skill, knowledge, ability, efficiency and aptitude measures from educational, training and employment record

Assumes a positive co-relation between the length of service in the same job and the amount of knowledge, skills acquired by an employee

Combination of both for satisfying the management and employees and trade unions

BASES OF PROMOTION

Merit

Advantages Disadvantages

• Maximum utilisation of human resource

• Motivation to competent employees

• Reduces employee turnover

• Encouragement to acquire new skills and knowledge

• Measurement of merit difficult

• Trade unions distrust management’s integrity in judging merit

• Subjective techniques used

• Based on past achievement, may not guarantee future success

BASES OF PROMOTION

Seniority

Advantages Disadvantages

• Easy to measure

• Full support from trade unions

• Minimises scope for favoritism and discrimination

• Certainty of promotion to every employee

• Respect to senior employees • Minimises scope for grievances and conflicts regarding promotion

• Assumption that employees learn more with the length of service not valid

• Demotivates young and more competent

• Kills zeal and interest to develop as all are promoted

• Organisational effectiveness is decreased

• Increase in employee turnover

BASES OF PROMOTION

Only merit considered for promotion

From most able, promote the senior

Minimum length of service required before one can be considered for

promotion on merit

After excluding the truly incompetent, promote the senior

Only seniority is considered for promotionIn

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Merit cum Seniority

PROMOTION POLICY

• Sound Promotion Policy– Uniform– Consistent – applied uniformly to all employees– Fair and impartial– Systematic line of promotion channel– Equal opportunities– Clear-cut norms for judging the merit etc– Appropriate authority should make the final decision– Favoritism should be avoided– Must contain promotional counseling,

encouragement, guidance and follow-up– Definite basis for promotion

PROMOTION

• Glass ceiling-It is an invisible barrier to promotion, based on sex or race

ASSIGNMENT

• What is promotion? What are its purposes? Compare merit as a basis of promotion with that of seniority?

• What is promotion policy? What are its contents?

TRANSFER• Lateral movement of an employee in the hierarchy of

position with the same pay and status

• Moving of an employee from one job to another. It may involve promotion, demotion or no change in the job status

• “A lateral shift causing movement of individuals from one position to another usually without involving any marked change in duties, responsibilities , skills needed or compensation” - Yoder and associates

• May be company or individual initiated

REASONS OF TRANSFER• Meet orgnisational requirement• Satisfy employee needs• Increase employee productivity• Make employees more versatile• Adjust the workforce from one plant to another, lay offs and

retrenchments• Give relief to employees who are over burdened, engaged in

complicated or risky work• Correct inter-personal conflicts• Adjust employees timings and workplace• Penalising employees• Minimise corruption and frauds due to permanent stay and

contacts with customers, dealers and suppliers• Maintenance of tenure system

PRINCIPLES OF TRANSFER

• Should be in writing and known to all employees• Should clearly state types and circumstances of transfer • Should mention basis or grounds of transfer• Should indicate authority responsible for initiating and

implementing transfer• Should specify units or areas over which transfer would

take place• Should specify rate of pay to be given to transferee• Transfers should not be made too frequently• Should state whether training or retraining is required on

the new job

TYPES OF TRANSFER• On The Basis Of Purpose

– Production transfer - • Transfers caused due to changes in production• Transfer from one department to another due to

decrease/increase in labour requirements to prevent lay – offs.

• Transfer is carried out at the same occupational level i.e. for similar type of work

– Replacement transfer - • Due to initiation or replacement of a long standing

employee in the same job• Also to prevent lay – offs

TYPES OF TRANSFER• On The Basis Of Purpose

– Shift transfer - • Transfer from one shift to another on the same type of work• To balance the requirements of certain employees i.e. women

or specific reasons due to personal reasons – Remedial transfer -

• To correct the wrong placements• Due to inter-personal conflicts

– Versatility transfer - • To increase the versatility of an employee • To provide broader and wide perspective of the job• Help the employee in job enrichment and job enlargement • To help employee prepare for future promotions

TYPES OF TRANSFER• On The Basis Of Unit

– Sectional transfer - • Within the department from one section to another• To train and prepare workers to handle operations of

different sections in department

– Departmental transfer - • Transfer from one department to another • Nature of work is same in both departments- routine jobs

– Inter Plant transfer - Transfer from one plant to another

SEPARATION• Cessation of service agreement

• Types of separations

– Lay-offs

– Resignation

– Dismissal or discharge

– Retirement

– Retrenchment

– Turnover

– Voluntary Retirement Scheme

LAY-OFFS

• Temporary separation of employee from employer at the instance of later without any prejudice to former

• According to Section 2 of Industrial Dispute Act, 1947, ‘Lay-off is the failure, refusal or inability of an employer to give employment to a worker whose name is present on the rolls but who has not been retrenchment’

• Lay – off may be for a definite period on the expiry of which employee will be recalled by the employer for duty

LAY-OFFS

• Reasons

– Decline in sales

– Shortage of raw material

– Displacement caused by technology

– Delay in production

– Accumulation of goods in godown in large quantity

– Breakdown of machine

LAY-OFFS

• Factors Determining Lay-offs

– Must be made clear at the time of appointment and that all

efforts will be made to recall the employee back

– In case of long term lay-off or lay-off for an indefinite term,

sufficient notice to be served to the employee

– Efforts must be made to get the laid-off employee appointed

in other enterprises

– Reasons must be made clear to the employee being laid-off

LAY-OFFS

• Laws Relating to lay-offs - Provisions of the Act do not apply to establishments

– In which less than 50 workmen on the average per working

day have been employed in the preceding one month

– Which is of seasonal character or in which work is performed

intermittently

LAY-OFFS• Right of Workmen Laid-off for Compensation

– On completion of one year of service, a workmen if laid off, is entitled to

compensation equal to 50% of basic wages and DA payable to him had

he not been laid –off

– If during any period of 12 months a worker is laid-off for more than 45

days, no compensation is to be paid in respect of any period of lay-off

after the expiry of first 45 days

– It is lawful for the employer to retrench the worker any time after the

expiry of 45 days

– If a worker is retrenched, then compensation paid to him for lay – off in

the preceding 12 months may be set off against the compensation

payable for retrenchment

LAY-OFFS• Cases In Which Workmen Are Not Entitled For Lay-

Off Compensation

– If he refuses to accept any alternative employment in the same

establishment from which he has been laid-off or in any other

establishment belonging to same employer situated in the same

town, village or within a radius of five miles from his workplace

– If he does not present himself for work at the establishment at

the appointed time during normal working hours at least once a

day

– If such lay-off is due to a strike or slowing down of production

on the part of workmen in another part of the establishment

JOB CHARACTERISTIC MODEL

• Given by J. Richard Hackman & Greg Oldham

• Five core dimensions required for JCM – Skill Variety– Task identity – Task significance– Autonomy – Feedback

• Skill Variety - Degree to which job requires a variety of different activities.

e.g. An operator in a garage does electric rebuilds engines, does body work and also interact with customers.

• Task Identity - Degree of which a job requires completion of a whole and identifiable peace of work.

e.g. A cabinet maker designs a piece of furniture, selects wood, builds object and finish it to perfection.


• Task Significance Degree to which job has a substantial impact on the lives or work of other people.

e.g. A nurse handling diverse needs of patients in a hospital intensive care unit.

• Autonomy Degree to which a job provides substantial freedom and discretion to individual in scheduling the work and in determining the procedure to be used in carrying it out.

e.g.: A sales person who schedules his work according to his time and decide different sales approach with different customer without supervision.


• Feedback Degree to which work activities required by a job results in the individual obtaining direct and clear information about the effectiveness of his/her performance.

e.g.: A factory worker who assembles iPod and test them to see if they operate properly.


Core Job Critical Psychological Personal & Dimension States Work Outcomes

Skill variety Experience Task identity meaningfulnessTask significance of work

Autonomy Experience responsibility for outcome of the work

Feedback Knowledge of the

actual results of

work activities,

Employee growth

need strength

High internal work motivation, High Quality performance, High Satisfaction with the work , Low absenteeism and turnover

JOB ROTATION

• Periodic shifting of an employee from one task to another

• When activity is no longer challenging worker is rotated to another job

• Carried out usually at the same level and have similar skill requirement.

JOB ENLARGEMENT

• Increasing the number and variety of task that an individual performs.

• Difference between job rotation and job enlargement is enlarging the scope of the job .

• e.g housingkeeping job in small hotel not only includes cleaning of the bathrooms, making beds and vacuuming but also replacing bulbs, services and restocking bars.

JOB ENRICHMENT

• The vertical expansion of jobs which increases the degree to which the worker controls the planning, execution, and evaluation of the work.