MOVEMENTS OF PERSONNEL

Since transfer and promotion are such important phases of personnel function, a
definite and clearly understood policy regarding them must be established. A company
that does not establish such a policy risks poor employee morale and high labor
turnover.

Transfer
The term "transfer" refers to the shifting of an employee from one position to
another without increasing his duties, responsibilities, or pay. Every business finds it
necessary to transfer workers to different positions. There may come a time when older
workers must be given assignments that require lighter work. Or if a worker has been
assigned to a job which was satisfactory, he may be shifted to another. There are times,
too, when the workload in some departments are heavier than in others, or when it is
desirable to rotate workers into and out of dangerous positions. Occasionally, transfer is
necessary because of personal differences among employees, or because of
personality conflicts between workers and supervisors. Also, employees are often
rotated from position to position as a training device. When a transfer has been made,
management has to double-check to make sure that there are valid reasons for it, and
that the employee will not suffer any setback as a result of it. And, it is important for
management to tell employees its reason for moving them to make them feel that they
are being treated fairly and are not being shifted merely for the convenience of
someone else. Rules and policies relative to transfer should be clearly stated and
understood by the members of the firm. Management should also tell people their shifts,
whether the transfer is permanent or temporary, and if it is temporary, how long will they
be working in new job.

Promotion
The term "promotion" refers to the shifting of an employee to a new position to
which both his status and responsibilities are increased. Higher pay does not always
accompany a promotion, although it usually does or at least follow soon after.
Promotions are advantageous to the firm as well as to the employee. Management
knows that deserving employees should be taken care of. The workers are situated
where they can produce the most and that the cost of orienting and training new people
has been reduced. When a promotion is made however, it should be deserved. An
employee should not be given a promotion when he has not earned it or when others
are better qualified and more deserving. Length of service must also be considered.
When employees are equally deserving to be promoted as far as ability and
performance are concerned, promotion usually goes to the person who has seniority.
An advancement in pay that does not involve a move into a new job classification is
called a horizontal promotion. An advancement that moves an employee into a job with
a higher rank or classification is called a vertical promotion.

Separation
Separation from the employment of the company may either be temporary or
permanent, voluntary or involuntary.
1. Lay-off is temporary and involuntary, usually traceable to a negative business
condition. It is customarily assumed that those who are laid off will be re-
employed as soon as business returns to normal. The usual procedure is first to
lay-off those workers with the least seniority.
2. A discharge is a permanent separation of an employee, at the will of the
employer, a person may be discharged if he is not competent in his job even
after (as often happens, but not always) an honest effort has been made. Though
transfers are done to find a suitable job for him, a worker guilty of breaking rules
may be also be subject to a discharge if the seriousness of the infraction merits
such action, or if the worker has a history of delinquency, as far as rules are
concerned. Insubordination is also just cause for discharge. When the workers of
a company are members of a union, the conditions that govern discharge are
included in the labor agreement entered into or agreed upon by the company and
the union called Collective Bargaining Agreement (CBA).
3. Resignation is the voluntary and permanent separation of an employee due to
low morale, low salary, etc. In some instances, forced resignation is used as a
good substitute for discharge. This is because resignation connotes a positive
meaning while discharge is negative.
4. Retirement can either be voluntary or involuntary. it is voluntary if an employee
retires upon reaching the number of years of services in the company as
provided for by its policies. It is involuntary if one retires upon reaching the
retirement age of 65. When employees leave the company of their own free will,
management should make a sincere attempt to find out the reason for their
departure, for it can use this information to improve conditions, and thus, reduce
labor turnover. The basic reasons why employees leave business to take
positions elsewhere are: inadequate pay (wages below the going to rate in the
area), lack of opportunity for advancement, lack of consideration or appreciation
by the employer, internal policies, too much overtime, and favoritism shown to
certain employees.