Employee Movements

Promotions, Demotions, Transfer

Promotion

 refersto upward movement of an employee from

current job to another that is higher in pay,
responsibility and organization level.
 Promotion usually brings enhanced status, better
pay, increased responsibility and better working
condition to promotee
Basis of Promotion
Promotion based on seniority
Promotion based on merit.
Merit cum seniority.
Promotion by selection.
 Promotion based on seniority

Seniority based promotion is based on the length of

the service of an employee in an organization.
Seniority system puts a premium on length of service
and job experience.
The logic behind considering the seniority as a basis
of promotion is that there is a positive correlation
between the length of service in the same job and
the amount of knowledge and level of skill acquired
by an employee in the organization.
Advantages and Disadvantages of Promotion based
on seniority
Advantages:
1.Itis relatively easy to measure the length of
service and judge the seniority.
2.Generally trade unions support this system.
3.Every party would trust management’s
action as there is no scope for favoritism,
discrimination and judgment.
4.It gives a sense of certainty of getting
promotion to every employee and of their
turn of promotion.
5.Senior employees will have a sense of
satisfaction as the older employees are
respected and their inefficiency cannot
be pointed out.
6.It minimizes the scope for grievances
and conflicts regarding promotions.
Disadvantages
Less motivation among employees to excel,
as it doesn't factor into promotions.
Increases resentment among motivated or
talented employees if mediocre employees
are promoted over them.
Can cause challenges with recruiting, as
new employees will be promoted last.
Hard work isn't being rewarded.
Promotion based on merit.
Merit-based promotions occur when an
employee is promoted because of superior
performance in the current job. In principle,
it is agreed by all that promotion should be
based on merit. Merit-based promotion
occurs when an employee is promoted
because of superior performance in the
present job.
Advantages of promotion on the basis of merit:

 It evaluates the creativity.

 Itcreates a competitive environment among employees and they try to
show their capability.
 Innovative and creative employees get chance to perform according to
their ideas.
 This process is able to remove the traditionalism and conservatism.
 By this process, meritorious, competent, energetic employees are
rewarded.
 Hard works are encouraged by this process.
 Young but energetic employees are motivated and encouraged by this
process.
Disadvantages of promotion on the basis
of merit
 By this process of partiality, nepotism etc are increased in the
organization.
 Senior employees become frustrated during this process.
 Itis very difficult to find out meritorious and competent employees and
also there is no standard to evaluate it.
 This process does not deal with experience, obedience, and reliability.
 Employees are discouraged and they get no reason to stay in the same
organization for a long time.
 This process increases the autocratic among the superior. They take a
decision by their own self without evaluating the employees.
 Asfar as promotion or recruitment by transfer to a higher
category or different service is concerned if the method of
promotion is seniority-cum-merit or seniority per se,
there is no question of eligible senior being superseded.
Other things being equal, senior automatically gets
promoted. But in the case of selection based on merit-
cum-seniority, it is a settled principle that seniority has to
give way to merit. Only if merit being equal senior will get
the promotion.
 Merely because a person is senior, if the senior is not
otherwise eligible for consideration as per the rules for
promotion, the senior will have to give way to the eligible
juniors.
 DEMOTION
A demotion is a company’s (or sometimes an employee’s)
decision to lower an employee’s status, title, and (often)
salary or payment. Demotions are generally seen as
negative events, often because they involve a step back in
an employee’s career path. Demotions may also be
accompanied by a pay cut.
 Demotions can be voluntary or involuntary and may come
with a pay cut. There are a few different reasons why an
employee may be demoted.
Types of Demotion
1. Performance-based demotion

A performance-based demotion is when an

employee is demoted due to poor job
performance. This type of demotion is usually
the result of the employee not meeting the
expectations of their position, such as not
meeting deadlines, not following instructions,
or producing poor quality work.
 2. Restructuring

A company may go through a restructuring

process in which the company’s structure
or operations are changed. This can often
lead to employees being demoted to lower
positions within the company.
3. Pay cuts

In some cases, an employee may be

demoted and have their pay cut as well.
This usually happens when an employee is
demoted to a lower position within the
company or if their workload is reduced.
4. Voluntary demotion

Demotions can also be voluntary, which

typically happens when an employee
requests a lower position within the
company in order to take on different
responsibilities or for personal reasons.
 Reasons for Demotions
1. Poor Performance
 One of the most common reasons for a demotion is
the poor performance at work. This can be due to a
variety of factors such as not meeting deadlines, not
following instructions, or not producing quality work.
2. Misconduct
 Demotionscan also be the result of misconduct, such
as harassment, theft, or violence.
3. No Longer Needed Skills
 Insome cases, an employee may be demoted due to a
company reorganization or because they no longer have
the necessary skills for their current position.
 4. Requested by Employee
 Itis a type of voluntary demotion in which an employee
demands to get demoted due to some specific reasons.
 5. To Avoid Being Fired
 Insome cases, an employee may agree to a demotion in
order to avoid being fired.