September 8, 2010: Transfers

September 8, 2010 [TRANSFERS]
University of Mumbai
Project report on
“TRANSFERS”
Submitted by
Ms. Babita Singh Roll no- 246
Mst. Ishaan Varma Roll no- 247
Mst. Pritesh Visaria Roll no- 248
Mst. Priyank Roll no- 249
Mst. Amit Roll no- 250
Project guide
Prof. Megha Khedekar
Semester V
Bachelor of Management Studies (BMS).
Khar Education Society, College

Of Commerce & Economics.
Khar(W).
2010-11
TY.BMS – K.E.S COLLEGE
SEM - (V) Page 1
Declaration
We the Students of K.E.S. College of Commerce & Economics, Khar(W) of

TY.BMS(Semester V) hereby declare that I have complete this project on
“TRANSFERS” in the academic year 2010-11. This information submitted
is true & original to the best of my knowledge.
_______
___________
Date:________ (Signature of the Students)

SEM - (V) Page 2
CERTIFICATE
We Hereby certify that students of Khar Education Society, College Of

Commerce & Economics, Khar(W). of TY.BMS (Semester V) has
completed a project on “TRANSFERS” in the Academic Year 2010-11.
The information submitted is true &original to the best of my
Knowledge.
_________________ _________________
Signature of the Signature of the
Project Guide Co-ordinator

SEM - (V) Page 3
ACKNOWLEDGEMENT
Project work is never the accomplishment of an individual. Rather, it is an

amalgamation of the efforts, ideas and co-operation of a number of entities.
The compilation and presentation of this opuscule has bestowed us with an
opportunity to show our gratitude to those subservient to it.
We are highly indebted to our guide Prof. Megha Khedekar who has been
the hallmark of this effort. Their guidelines made us comprehend the
enigmatical portion of the subject and were the sole animating force that
coerced us to meliorate our efforts without the support and guidance the
project report would not have taken shape.

SEM - (V) Page 4
PREFACE
Management training has gained rapid importance only recently.
Management was previously considered as an inborn art or talent. But in
today’s fast developing word this view has been abandoned.
To develop managerial capabilities and to supplement their theoretical
knowledge with practical experience, the management students are
required to go training in business organization.
This study would not only help me as a management student to gain a
deep insight of how an organization works but also practical usage of all
management techniques that I have learnt during the course of my study.
This project would also help me analyze the difference between the
organizational realities and the theories that have been taught in my
academic session and also gave me a real experience of the corporate
world let me better understand how it function.

SEM - (V) Page 5
It also taught me how to take every experience in the right and learn from
each one. Finally the analysis feasible to be put to test in real life situations.
I shall consider all my hard work worthwhile if this endeavor of mine is able
to satisfy all those concerned and proves useful to anyone or for any further
study in the future.

SEM - (V) Page 6
INDEX
Introduction………………………………………………………….
Reasons of Transfers………………………………………………...
Principles of Transfers………………………………………………

SEM - (V) Page 7
Transfer
Meaning:
In business organizations, employees are shifted from one post to the other
or from one department to other or one unit/ branch/ plant of the company to the
other. This is called as job transfer of transfer of employees. Such transfers are
quite common in case of Banks, government department, manufacturing
companies and other business organizations.

SEM - (V) Page 8
A transfer is defined as, “a change in job where the new job is substantially
equal to the old in term of pay, status and responsibilities.”
Transfers of employees do cerate some resentment from concerned

employees. This is natural as transfers may create certain personal and family
problems. In addition, an employee has to adjust with new situation. Finally it may
be pointed out that transfer is neither promotion nor demotion but merely a
horizontal or lateral movement of an employee from one job, to another at same
other place where the salary, status and responsibilities are more or less the same.

SEM - (V) Page 9
Reasons of Transfer
1. Variation in the volume of work: Transfers are necessary due to variation

in the volume of work in different department/ sections. Shortage of
employees or increase in the work load in one department leads to transfer of
employees.
2. Providing training to employee: Transfers are made for providing
opportunities to employees for training and development.
3. Rectification of poor placement: Transfers are necessary for the

rectification of poor placement made in the initial period. Similarly, transfers
are necessary in order to utilize the service of an employee in the best
possible manner.
4. Satisfied the personal need of employee: Transfers are necessary satisfy

the personal needs (Personal Difficulties) of the employees. They include
family problems, sickness, and education of children and so on. Such
transfers take place especially among female employees.

SEM - (V) Page 10
5. Meeting mutual need of employees: Transfers are, sometimes, made in

order to meet the mutual needs of to employees. It is a type of mutual
exchange and is usually accepted by the management.
6. Meeting Organizational needs: transfers are necessary to meet the

organizational needs developed out of expansion programmes or fluctuation
in work requirements or changes in the organizational structure or dropping
of existing product lines. For example, experienced workers and supervisors
are transfer to new plants/ factories in order to manage the work smoothly.
7. Solution to poor performance: transfers are, sometimes, made when the

worker fail to perform his job efficiently. He is transferred to and new place
or post and is given an opportunity to improve his performance at a new
place. Here, transfer is treated as a deter alternative to outright dismissal.
8. Avoiding fatigue and monotony: Transfers are made of avoiding fatigue

and monotony of work. The productivity of an employee may decline due to
monotony of his or her job. To break his monotony, the employee is
transferred.
9. Removing poor personal relations: the relations between the workers and
his supervisor may not be smooth and cordial. This may affect the work of
department. One method to solve the problem is to transfer the worker that
department. This transfer may be necessary for removal of the

SEM - (V) Page 11
incompatibilities between the worker and his/her boss or between one

worker and the other.
10. Providing relief and to punish employees: Transfers may be made in

order to give relief to employees who are over burdened or are working
under heavy risk or tension over a long period. Similarly, transfers are made
as a disciplinary action for serious mistakes on the part of employees. This
practice is widespread mainly in government offices and police department.
Principles of Sound Transfer Policy
Company managements must frame a policy on transfers and apply it to all

transfers instead of treating each transfer on its own merits. Such policy must be
based on the following principles of transfers:
1. Necessary Transfer: Transfers should be made only when absolutely

necessary. The frequency of transfers and the minimum period between
transfers need to be decided clearly and made know to all employees. The
basis of transfers should be properly decided. Large scale transfers,
frequent transfers and transfers for the sake of transfers should be avoided
by laying down adequate selection and placement procedures for the
purpose.

SEM - (V) Page 12
2. Responsibility of Transfers: Responsibility for initiating and approving

transfer decisions should be clearly defined and properly located. The
authority to handle transfers should be decided clearly. The best course is
to centralize the authority handling transfers and make the personnel/HR
department responsible for all transfers.
3. Fair Transfers: Transfer should not be made as a punishment or as

revenge on an employee or simply to trouble an employee and his family
members.
4. Consideration of Employees: Transfers should be made after taking

concerned employee in to confidence and after explaining how transfer is
in the best interest of the organization and employee.
5. Interest of Organization: All transfers should be made in the best interest

of the organization. In addition, there should be sound justification in the
case of all transfers made. The management should be able to prove its
objectivity and impartiality as regards transfers made.
6. Sound Transfer Policy: Management should prepare a sound transfer

policy for a long period. It should be given wide publicity for the
information of employees. The interests of the organization should not be
forgotten while framing a policy of transfers.

SEM - (V) Page 13
7. Employees View: An employee should be given an opportunity to appeal

to an appropriate authority with full opportunity to an employee to express
his views.
8. And request for transfer by an employee on sound personal grounds

(e.g. family problems, health, schooling of children, unsuitability of
climate, etc.) Should be considered sympathetically and granted
promptly.
Types of Transfer
There are different types of transfers depending on purpose for which the
transfers made. Employee transfer may be classified into three types bases on its
purpose and they are:
(1) Transfers that are effected for the Training and Development of the
employees.
(2) Transfers designed to correct the problem of poor employment
placement.
(3) Transfers made for adjustments of varying volume within the
organization

SEM - (V) Page 14
The important ones will now be highlighted as follows:
1. Production Transfers: These transfers are made from one department

where the labour requirements are generally reduced to departments where
labour needs are increasing or vacancies have occurred through separations.
Such production transfers are made to prevent lay-offs.
It is meaningless to have in the same organization lay-offs on one job and

employees being needed in another department for a similar type of work.

SEM - (V) Page 15
Thus, production transfers, at about the same occupational level, help to

stabilize employment in an organization and therefore need some form of
centralized control, say, through the Personnel Department. Sometimes,
production transfers may involve downgrading, that is, being transferred to
less skilled jobs.
Although it is called production transfers, similar situations can also exist in

non-manufacturing enterprises or divisions where an employee is transferred
from one department to another for similar reasons.
2. Replacement transfers: From the view-point of purpose, replacement

transfers are similar to production transfers as they also try to avoid lay-offs.
Replacement transfers are used, however, to replace a new employee with an
employee who has been in the organization for a long time.
3. Shift transfers: This is a common type of transfer of an employee from one

shift to another on the same type of work. Workers generally dislike a
second shift assignment as it affects their participation n community life.
Therefore, to minimize this, shift transfers are introduced. Of course,

there are certain employees who would prefer the second or the third shift.
For example, were the women are working, mothers might prefer to work in
such shift so that they could be during the day with their children’s.
4. Remedial transfers: As the title suggests, these transfers are made to

remedy the situation.
SEM - (V) Page 16
For example, if the initial placement has been faulty, or the worker cannot
gat along with his supervisor, a transfer to a more appropriate job or more
agreeable supervisor might result in better performance.
In this way, a good organization treats its employees as individuals, of

course, within the broad policy framework.
5. Versatility transfers: The objective of these transfers is to increase the

versatility of the employee by shifting hid from one job to another. In this
way, the employee is provided a varied and broader job experience.
This helps the employee through job enrichment and job enrichment. It can
also help him get prepared for future promotions. Besides, it helps the
organization, as enrichment of an employee would make him not only more
effective but also ready for higher openings.
6. Penal transfers: The word itself says “TRANSFERS AS PENALTY”, here

the management in the organization may transfer an employee from one
position to another as a punishment due to non – productive, or not
performing well in the work or job assigned to him. It is also given cause of
undesirable or unexpected acts/behavior by him. In such transfers the
employee is shifted to a less important position in the organization by the
management

SEM - (V) Page 17
ADVANTAGES OF TRANSFERS
SEM - (V) Page 18
(1) It increases the productivity in an organization because it acts as

a motivator and it creates an effectiveness in the organization.
(2) It acts as a boost which ultimately results in high levels of
satisfaction among the employees.
(3) It also stabilizes the fluctuating needs and wants in the
organization.
(4) It improves the working skills of the employees which imparts
knowledge in them.
(5) It avoid the situations of monotony and boredom in their work.
(6) It acts as a remedy or a medicine for faulty or wrong placements
in the organization

SEM - (V) Page 19
(7) It also improves the labour relations which are of great

importance to the organizations in today’s world.

SEM - (V) Page 20

SEM - (V) Page 21
EXAMPLE OF TRNSFERS
Transfer’s in Bank of Baroda

In Bank of Baroda there is different policy for Clerk and Officer.
Clerks are transfer every 5 year from one branch to another branch in
the same region. Region indicates the cities like Mumbai, Pune and Nashik
etc.
Officers of the branch are transfer every 3 year from one branch to
another branch from one zone to another zone. Zone indicates south, north, west
and west.

SEM - (V) Page 22

SEM - (V) Page 23
PROCEDURE OF TRANSFER
1. Employee
(1) Select a position from the Employment Opportunities bulletin.
(2) Complete a Transfer Application Form, PM 9-2, and submit it to Employment.
(3) Indicate on the application whether or not the present supervisor may be
contacted.
2. Employment Representative
(1) Review the Transfer Application, and, if appropriately qualified, send it to the
requisitioning supervisor. Where expeditious processing is necessary, the
Employment Representative will notify the requesting supervisor by telephone that
the application is forthcoming.
(2) Schedule department interviews for the candidates with the requisitioning
supervisor.
(3) Maintain records of Transfer Applications and their disposition.
(4) Notify all transfer applications after the position has been filled.
3. Requisitioning Supervisor
(1) Review all Transfer Applications submitted by Employment.
(2) When an acceptable applicant who has not applied for the position has been
identified, the employee's current supervisor and the Employment Representative
should be advised prior to any employee contact. If the employee's current
supervisor objects to such contact, the requisitioning supervisor should refer this
objection to the Deputy Director of Personnel for review and disposition.

SEM - (V) Page 24
(3) Notify Employment which candidates the department has chosen to interview.
(4) Interview appropriate candidates.
(5) When a decision is made on a candidate, the requisitioning supervisor must

contact an Employment Representative, who will make the official job offer. If the
employee accepts the new job offer, the requisitioning supervisor and the current
supervisor should mutually agree on a transfer date. Two weeks is a standard
transition period; however, if agreement cannot be reached with the current
supervisor, the requisitioning supervisor should contact Employment for guidance.
(6) The evaluation results of all Transfer Applicants not hired must be recorded on
the Transfer Application.
(7) A change of salary or wage rate is to occur at the time of transfer only if the
employee is reclassified and/or promoted at the same time. Otherwise, salary or
rate changes may not be made concurrent with the transfer.

SEM - (V) Page 25
(8) The approvals of the releasing and receiving organizations and the Personnel
Department are required before any transfer is effected.
4. Current Supervisor
(1) After the offer has been accepted, initiate a Personnel Action Notification Form
(PAN #1 and PAN #2). These forms are signed and sent to the requisitioning
supervisor.
(2) Assure that the employee's Vacation and Sick Leave Record, Form P-60A or P-
60B, or other reasonable record is brought up to date and is forwarded to the new
department.

SEM - (V) Page 26
5. Again Requisitioning Supervisor
Enter appropriate changes (e.g., home department, time sheet distribution, check
distribution, mail code) to the PAN #1 and PAN #2 forms, sign both documents
and forward them to the Employment Section. Detailed instructions are contained
in Personnel Memorandum No. 52.
Note: The effective date for a transfer is normally any Monday. However, if the
transfer involves a change in classification or pay rate, the effective date must
coincide with the beginning of a pay period.

SEM - (V) Page 27
Conclusion
At the most it is likely to conclude with the transfer policy as the most
appropriate fundamentals that increases the morale of a transferred
employee depending the type of transfer is is given.
Transfers are now have become the most important virtues as considered
by management in today’s world that encompasses the vulnerability of
the productiveness that needs to the most favorable outcome in an
organization.
It either initiated by the company or the employee working in the

organization which is same for all. It sounds to be the best way to
enhance a job to be more efficient and more productive made by the
employee for the betterment and upliftment of the organization and
nevertheless of the employee himself.

SEM - (V) Page 28
WEBLIOGRAPHY
1. http:/hr.calltec.edu/policies/PM/pm9-2,html
2. http://utb.edu/ba/hoop/policy/8-3-8,pdf
3. http://www.google.co.in/#q=procedure+of+transfe
r+of+employees&hl=en&ei=6SiUTO3YHI2avgOt
rNmZDQ&start=10&sa=N&fp=dfab7220e6f673c1
BIBLIOGRAPHY
1. Human Resource Management in Banking and
Insurance
- by Vinay Prabhu and B. Pithadia
2. Human Resource Management
- by K. Ahswathappa
3. Notes of HRM – by Mrs. Meghaa Khedekar

SEM - (V) Page 29

SEM - (V) Page 30

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September 8, 2010 [TRANSFERS]

Khar Education Society, College

We the Students of K.E.S. College of Commerce & Economics, Khar(W) of

TY.BMS – K.E.S COLLEGE

We Hereby certify that students of Khar Education Society, College Of

TY.BMS – K.E.S COLLEGE

Project work is never the accomplishment of an individual. Rather, it is an

TY.BMS – K.E.S COLLEGE

Management training has gained rapid importance only recently.

Management was previously considered as an inborn art or talent. But in

today’s fast developing word this view has been abandoned.

To develop managerial capabilities and to supplement their theoretical

knowledge with practical experience, the management students are

required to go training in business organization.

This study would not only help me as a management student to gain a

management techniques that I have learnt during the course of my study.

organizational realities and the theories that have been taught in my

academic session and also gave me a real experience of the corporate

world let me better understand how it function.

TY.BMS – K.E.S COLLEGE

study in the future.

TY.BMS – K.E.S COLLEGE

TY.BMS – K.E.S COLLEGE

TY.BMS – K.E.S COLLEGE

Transfers of employees do cerate some resentment from concerned

TY.BMS – K.E.S COLLEGE

1. Variation in the volume of work: Transfers are necessary due to variation

3. Rectification of poor placement: Transfers are necessary for the

4. Satisfied the personal need of employee: Transfers are necessary satisfy

TY.BMS – K.E.S COLLEGE

5. Meeting mutual need of employees: Transfers are, sometimes, made in

6. Meeting Organizational needs: transfers are necessary to meet the

7. Solution to poor performance: transfers are, sometimes, made when the

8. Avoiding fatigue and monotony: Transfers are made of avoiding fatigue

TY.BMS – K.E.S COLLEGE

incompatibilities between the worker and his/her boss or between one

10. Providing relief and to punish employees: Transfers may be made in

Principles of Sound Transfer Policy

Company managements must frame a policy on transfers and apply it to all

1. Necessary Transfer: Transfers should be made only when absolutely

TY.BMS – K.E.S COLLEGE

2. Responsibility of Transfers: Responsibility for initiating and approving

3. Fair Transfers: Transfer should not be made as a punishment or as

4. Consideration of Employees: Transfers should be made after taking

5. Interest of Organization: All transfers should be made in the best interest

6. Sound Transfer Policy: Management should prepare a sound transfer

TY.BMS – K.E.S COLLEGE

7. Employees View: An employee should be given an opportunity to appeal

8. And request for transfer by an employee on sound personal grounds

TY.BMS – K.E.S COLLEGE

The important ones will now be highlighted as follows:

1. Production Transfers: These transfers are made from one department

It is meaningless to have in the same organization lay-offs on one job and

TY.BMS – K.E.S COLLEGE

Thus, production transfers, at about the same occupational level, help to

Although it is called production transfers, similar situations can also exist in

2. Replacement transfers: From the view-point of purpose, replacement