TOPIC:

JOB CHANGES:
DEMOTION AND SEPARATION

Student Name: Abhishek Kumar Singh

Class: BBA LLB SEM 3
Section: A1
Subject Faculty: Dr. Seema Mam
Subject Code: BBA LLB 215

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 WHAT IS JOB CHANGES?

• Movement of Personnel within/outside of an

Organization.

• Job Changes done through transfers, promotions and

demotions are called Internal Mobility.

• In external mobility employees leaves the organization by

the process of Separation- resignation, retirement and
termination.

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• A transfer is horizontal or lateral movement of an employee.

• Transfers of employees can be done from one department to

another or from one branch to another branch in different
state or different town.

• A manager has to make a very difficult decisions of whom to

promote, whom to transfer and whom to fire.

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 USES OF JOB CHANGES

1) To Meet Organizational Needs

2) To Satisfy Employee Needs

3) To Better Utilize Employee

4) To Make the Employee More Versatile
5) To Adjust the Workforce

6) To Provide Relief
7) To Punish Employee

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 DEMOTION

• Demotion is opposite of promotion.

• “Demotion is refers to the lowering down of the status,

salary and responsibilities of an employee.”

• It is a downgrading process and is insulting to an employee.

• Employees can be demoted because of poor behavior,

violation of the rules and conduct, poor attendance record
and insubordination etc.
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• Demotion is a very serious penalty and given very rarely.

• Demotions maybe caused by any of these factors :

1) Adverse business condition : Because of recession faced by
company.
2) Incompetency of an employee.
3) Disciplinary measures

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 SEPARATION

 Separation is a negative recruitment. It may be in the form of

resignation, dismissal or discharge, suspension,
retrenchment or lay-off.
 An employee may be separated as consequence of
resignation, removal, death, permanent incapacity, discharge
or retirement.
 The employee may also be separated due to the expiration of
his contract .

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 REASONS FOR SEPARATION

1. Voluntary Separation
2. Professional reasons
3. Personal reasons

4. Involuntary Separation
5. Health problems
6. Behavioral problem

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 TYPES OF SEPARATION

• Involuntary separations-
 It occurs when an employer decides to terminate its
relationship with an employee.

• Voluntary separations-
 A separation that occurs when an employee decides, for
personal or professional reasons to end the relationship
with the employer.

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TYPES OF :-

• INVOLUNTARY SEPARATION (initiated by employer)

1) Discharge
2) Layoff
3) Retrenchment
4) Termination
5) Transfer

• VOLUNTARY SEPARATION (initiated by employee)

1) Quit/Resignation
2) Voluntary Retirement
3) Transfer by request

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 INVOLUNTARY SEPARATION

1) Discharge :- It means discharging an employee out of the

organization because of unacceptable behavior or other
reasons.
2) Layoff :- It implies denial of employment to the employees
for reasons beyond the control of employer. E.g. Breakdown
of machinery, shortage of power, raw materials, etc.
3) Retrenchment :- It means permanent termination of an
employee for economic reason. It occurs on account of
surplus staff, poor demand for products, general economic
slowdown, etc.

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 INVOLUNTARY SEPARATION

4) Termination :- It is an employee’s departure from a job and

the end of an employee’s duration with an employer.

5) Transfer :- It means shifting of an employee from one job to

another. It is done by the employer.

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 VOLUNTARY SEPARATION

1. Quit or Resignation :- It is initiated by employee. It is the

formal act of leaving a job. An employee decides to resign
when an he/she is dissatisfaction with his/her current job or
there is a better job offer awaiting for him.

2. Retirement :- It is the point where a person stops his/her

employment completely. A person may also semi-retire by
reducing work hours.

3. Transfer by request :- It is same as transfer but it is done

by employer on the request of the employee.

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 TYPES OF RETIREMENT

1) Compulsory – At the age of 60 years.

2) Forced – If a Crime is Committed by an employee
then he may be forced to retire.
3) Premature – If an employee becomes disabled
due to some accident or disease etc. He may retire
with full benefits.

4) Voluntary Retirement Scheme

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 VOLUNTARY RETIREMENT SCHEME
(VRS)

• This scheme offers an employee to voluntarily retire from

services before the retirement date. VRS is also known as
'Golden Handshake‘
• VRS applies to employees who have completed 10 years of
service or are above the age of 40 years.
• This method helps in reducing surplus labor in an
organization. It involves a mutual agreement between
organization and the retiring employee.
• Companies like ITC, ACC, Blue Star, Hindustan Lever,
Crompton Greaves, Mahindra etc. also use VRS.

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Thank
You
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