Promotion,transfers and separation

Purnima Raina TikooAsst. ProfCMD Modinagar

PROMOTION Promotion is upward movement of employees Promotion means an improvement in pay, prestige,

position and responsibilities of an employee within an organization.

A mere shifting of an employee to a different job which has been working hours, better location and more pleasing working conditions does not amount to promotions

NEED FOR PROMOTIONNEED FOR PROMOTION• To recognize an employee’s performance and

commitment/loyalty and motivate him towards better performance

• To boost the morale and sense of belonging of employees.

• To retain skilled and talented employees.• To develop a competent internal source of employees

for higher level jobs• To utilize more effectively the knowledge and skills of

the employees• To attract suitable and competent workers for the

organization.

ORGANIZATIONAL NEEDS: Retain Human talents over a long period of time Organizational culture and values: It is true that certain jobs

are similar in most of the organizations but the most jobs require some sort of specialization which is organization specific.

INDIVIDUAL NEEDS: Promotions are highly desirable to individual both for their

intrinsic benefits as well as their symbolic connotations of success values

Promotions used as a reward for better work performance Enhances morale of the employees, productivity and loyalty to

the organization Provides avenues for continuous learning and development. To develop a competent internal source of employees for higher

level jobs To utilize more effectively the knowledge and skills of the

employees

BASES OF PROMOTION

Seniority means length of recognized service in an organization

Seniority means the calculation of time from when an employee has joined the company and served for how many years in the company.

The senior most person in the lower grade shall be promoted as and when there is an opening in the higher position

Seniority is suggested as the criteria for promotion on the plea that there is a positive correlation between length of the service and talent

Merit means ability to work .

It denotes an individual employee’s skill, knowledge, ability, efficiency and aptitude as measured from educational, training and past record

If the merit is adopted as basis of promotion then the person in the lower grade ,no matter his junior most in the company, shall be promoted.

It encourage all employee to improve their efficiency

Seniority Merit

ADVANTAGES

Easy to measure the length of service 

Trade union generally emphasis on seniority.

Security and certainty is also plus point

Minimize the scope of grievances and conflicts

Reducing labour turnover

It provides a sense of satisfaction to senior employees and is in line with the Indian Culture of respecting seniority in all walks of life.

It implies the knowledge, skills and performance record of an employee.

It motivates competent employees to work hard and acquire new skills.

It helps to maintain the efficiency of the organization by recognizing talent and performance

It helps to attract and retain young and promising employees in the organization

Seniority Merit

DISADVANTAGES

The assumption that the length of the service indicates talent is not valid because beyond a certain age a person may not learn.

Performance and potential of an individual is not recognized.

It demotivates and demoralize the young employees who are talented

Kills the zeal and interest for self development

The concern fails to attract young and hardworking employees

Measuring Merit is not easy, subjective judgement may involve.

Many Employee, particularly trade unions distrust the management’s integrity in judging merit.

And when younger employees are promoted over the older one, the older employees may feel insecure.

They may leave the organization as well.

Seniority Merit

TYPES OF PROMOTIONTYPES OF PROMOTIONClassified into 3 types:

•Horizontal Promotion: This type of promotion involves an increase in responsibility and pay with the change in the designation. However the job classification remains the same. •E.g. A lower division clerk is promoted as higher division clerk. •Here the position of the employee concerned has been upgraded with some pay increase but the nature of his job remains the same.•Vertical Promotion:- In this type the employee is moved to the subsequent higher level accompanied by greater power ,responsibility, position and salary.• e.g a functional head is promoted as chief executive of the organization.

Dry Promotion:- Where an employee is promoted to higher position and responsibility without any increment in salary

e.g a Professor in a university becomes Head of the Department. It is just an elevation of the professor without any increase in financial benefits.

TRANSFERTRANSFERTRANSFER

MEANING OF TRANSFER

REASONS/TYPES: TRANSFER• Production Transfer• Plant transfer• Shift Transfer• Remedial Transfer• Versatility Transfer• Tenure Transfer• Penal Transfer

BENEFITS OF TRANSFER• Increase in productivity and effectiveness of the

organization.• Greater job satisfaction to employees.• Stabilize fluctuating job needs.• Improve employee skills.• Remedy for wrong placement.• Improve labour relationships.• Develop employees for future promotions.• Avoid monotony and boredom.

SEPERATIONSeparation means cessation of service with the organisation for one or other reason.

The employee may be separated from HR payroll due to:•Lay off•Retrenchment•Discharge•Resignation•VRS

SEPERATIONLAY OFF: The separation of an employee initiated by the employee due to business reverses, the introduction of labor saving devices, or the reduction in the demand for particular skills. Management as temporary measures during periods of business recession, industrial depression or seasonal fluctuation resorts it to.

RETRENCHMENT: Permanent termination for economic reasons of the organisation. In the Industries Disputes ACT 1947, defines retrenchment as termination by the employer of the services of workmen for any reason.A 3 months’ notice in writing needs to be given to the employee and wages in lieu of such notice.

SEPERATIONDISCHARGE: A discharge involves permanent separation of an employee from the pay roll for violation of company rules or for inadequate reasons. Proper procedure of discharge must be conducted and it should not be an impulsive act. There has to be a written warning for the same along with discharge letter at the time of discharge. Adequate provision should exist for review of discharged employee’s case. RESIGNATION: Resignation may be put in voluntary by the employees on the ground of health, better opportunities elsewhere or maladjustment with the company policy and officers or for reasons of marriage.

WHAT IS VRS? The Voluntary Retirement Scheme

(VRS) is the latest mantra of many a corporate and Public sector units.

VRS is a scheme whereby the employee is offered to voluntarily retire from his services before his retirement date.

Subject to certain conditions the company offers VRS to its employees It is the golden route to cut the excess flab.

THE GOLDEN HANDSHAKE The most humane technique to retrench

the employees in the company today is the voluntary retirement scheme.

It is the golden handshake for the employees and the only option today for the companies to reduce organization staff.

The scheme which is formally permitted by the Department of Public Enterprises and which provides the lucrative way for the employees to terminate their services and accept VRS.

THE GOLDEN HANDSHAKE

As the name suggests the VRS is strictly voluntary i.e. one can neither compel the workers to accept it nor apply it selectively to certain individuals.

One can however choose the levels, units and age groups among whom one wants to offer VRS.

The company can always accept or reject the application for the VRS.

TRADE UNIONS & VRS Trade unions play a crucial role in introducing the VRS

in any organized sector firm. The scheme cannot be implemented without, at least, the tacit approval of the representative union. Sometimes without the consent of the trade unions, workers legalize the VRS by accepting it in mass.

Very recently, the entire workforce of Sri Ram Mills (1,400 workers) has accepted VRS while the major union opposed the scheme tooth and nail. Other companies such as Ind Auto, SKF Bearings, and Novartis have also been able to successfully reduce their workforce through the introduction of VRS. When the workers are convinced that the scheme is sufficiently attractive monetarily and/or the company is in deep crisis, they opt for the scheme.