Promotions &

Transfers
 Meaning of
•
Promotion
According to E.B. flippo “promotion involves
a change from one job to another that is
better in the terms of status and
responsibilities.”

• According to Scott and Spreigal: “A

Promotion is the transfer an employee to a
job that pays more money or that enjoys
some preferred status.”
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 Purpose of
1. Promotions
Recognize and reward employee’s good/superior performance
and commitment.
2. Promote a feeling of content with the existing conditions of
the company and a sense of belongingness.
3. Build loyalty and to boost morale and job satisfaction.
4. Retain skilled and talented employees and reduce discontent
and unrest.
5. Promotions acts as a tool for reducing labour turnover.
6. Increase interest in acquiring higher qualifications, training and
self development with a view to meet the requirements of
promotion.
7. Reduce/Eliminate problems created by the leader of workers’
unions by promoting them to the officer’ levels where they
are less effective in creating problems.
8. Ultimately it improves organizational health.
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 Basis for
Promotions
Seniorit Merit
1.
y
Seniority means length of
recognized service in an 1. Merit means ability to work.
organization.
2. It denotes an individual employee’s
2. Seniority means the calculation of skill, knowledge, ability, efficiency and
time from when an employee has
joined the company and served aptitude as measured from
for how many years in the educational, training and past record
company.

3. The senior most person in the 3. If the merit is adopted as basis of

lower grade shall be promoted promotion then the person in the
as and when there is an opening lower grade ,no matter his junior most
in the higher position in the company, shall be promoted.

4. Seniority is suggested as the

criteria for promotion on the plea 4. It encourage all employee to
that there is a positive correlation improve their efficiency
between length of the service and
talent
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Advantages of Seniority and Merit
Based Promotions
Seniority Based Merit Based
1. Easy to measure the 1. Difficult to judge merit.
length of service
2. Implies the knowledge, skills and
2. Trade unions generally emphasis on
seniority. performance record of an
employee.
3. Security and certainty.
3. Motivates competent employees
4. Minimize the scope of to work hard and acquire new
grievances and conflicts. skills.

5. Reduce labour turnover 4. Maintains the efficiency of the

6. Sense of satisfaction to senior
employees and is in line with
the Indian Culture of respecting 5.
seniority in all walks of life.
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organization by recognizing talent
and performance
Attracts and retains young
and promising employees in 5
the organization
 Disadvantages of Seniority and
Merit Based Promotions
Seniority Based Merit Based

1. Length of Service is not 1. Measuring Merit is not easy.

directly proportional to talent. Subjective judgement may
be involved.
1. Performance and potential of
an individual is not recognized.
2. Many, particularly trade unions
distrust the management’s
2. Demotivates and demoralizes
the young employees who integrity in judging merit.
are talented.
3. When younger employees are
3. Kills the zeal and interest for promoted over the older one, the
self development older employees may feel
insecure or leave.
4. Fails to attract young
and hardworking
employees
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 Seniority cum Merit as a Basis for
Promotion
As both seniority and merit as basis suffer from certain
limitations, a sound promotion policy should be based on
a combination of both seniority and merit.

A proper balance between the two can be maintained

by differentiating the way minimum length of
service is prescribed.

Relative weightage may be assigned to seniority and merit

and employees with a minimum performance record and
qualifications are treated eligible for promotion. Seniority
is used to choose from the eligible candidates

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 Transfers

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 Meaning of
Transfer
• A transfer is a horizontal or lateral movement of an
employee from one job, section, department, shift plant or
position to another at some other place where salary,
status and responsibility are usually the same.

• Transfer is defined as “a lateral shift causing movement of

individuals from one position to another usually without
involving any kind of change in duties, responsibilities,
skills needed or compensation”.
 Types of
1. Transfers
Production Transfer: Such transfers are resorted to when there is a
need of manpower in one department and surplus manpower in
another department. Such transfers are made to meet the company
requirements.

2. Replacement Transfers: Replace an existing employee who has been in

the organization for a long time with a new employee and thereby
giving some relief to an old employee from the heavy pressure of
work.

3. Remedial Transfers: As the name suggest, these transfers are made

to rectify the situation caused by faulty selection and placement
procedures. Such transfers are made to rectify mistakes in placement
and recruitments.

4. Versatility Transfer: Such transfers are made to increase versatility of

the employees in more than one job and department. This type of
transfer, also referred to as ‘Job Rotation’ is a tool to train employees.

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 Types of Transfers,
5. contd.,
Shift Transfers: are transfers of workers from one shift to another
on the same type of work. Workers generally dislike second or third
shift as it affects their participation in community life.

6. Selection Transfers: they are made within the department or

section. It is to be train the workers and prepare them to
handle different types of operations within the department.

7. Departmental Transfers: transferring from one department

to another department within the plants.

8. Inter-Plant transfers: if there is more than one plant under

the control of same management transfer may be made from one
plant to another for varied reasons. Such transfers are called
inter- plant transfers.

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 Benefits of
Transfer
1. Increase in productivity and effectiveness of
the organization.
2. Greater job satisfaction to employees.
3. Stabilize fluctuating job needs.
4. Improve employee skills.
5. Remedy for wrong placement.
6. Improve labour relationships.
7. Develop employees for future promotions.
8. Avoid monotony and boredom.
 Reasons for
1. Transfer
Meet the organizational
employees.
requirements and also personal requirements of

2. Satisfy employee’s needs.

3. Utilize employees’ skill, knowledge etc., where they are more suitable or
badly needed.

4. Correct inter-personal conflicts.

5. Avoid favoritism and nepotism.

6. Creates transparency among the employees and their work

7. Maintain healthy relationship among staff in order to ensure

harmonious environment and to avoid unnecessary disputes.

8. Limits the ability of an employee to take advantage and sole control over the seat
or section.
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 Right Sizing the
•
Workforce
The process of reorganizing or restructuring a business by
cost-cutting, reduction of workforce or reorganizing upper-
level management. The goal is to get the company molded
properly to achieve maximum profit. The term rightsizing is
often used by companies instead of downsizing because it
sounds less drastic.

• It is proactive and needs to be a constant part of the process

of managing an organization. To do rightsizing of an
organization, the leaders first look at market needs and
trends, technologies, alternative approaches, and new ideas.

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 Need for Right
1. EnsuresSizing
that the required functions are
properly maintained.
2. Cost-control and to Maximize Profits
3. Avoid formation of trade unions
4. Enhance employee performance
and productivity
5. Improve employee collaboration
6. Create a sense of belongingness within
the employees.

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 Demotio
n
Demotion has been defined as the
assignment of an individual to a job of lower
rank and pay usually involving lower level of
difficulty and responsibility.

Demotions serves as a useful purpose in the

sense that they keep the employees alert
and alive to their responsibilities and duties.
 Separatio
n
Separation means cessation of service from the
organisation for one or more reasons.

The employee may be separated from HR payroll due to:

• Resignation
• Discharge and dismissal
• Suspension and retrenchment
• Lay off

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 Reference
Books s
Human Resources Management by Aswathappa
Human Resources Management by Shashi. K. Gupta and Rosy Joshi

Web References
Reference for Business
http://www.referenceforbusiness.com/management/De-Ele/Downsizing-and-
Rightsizing.html#ixzz3iOSzC3ou

CiteMan
http://www.citeman.com/949-bases-of-promotion-of-employees-in-

organization.html

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