Placement:-

It is the process of assigning a specific job to each one of the selected candidates. It involves
assigning a specific rank and responsibility to an individual. It implies matching the requirement
of a job with the qualifications of a candidate.

In the words of pigors and myers “placement is the determination of the job to which an accepted
candidate is to be assigned, and his assignment to that job. It is a matching of what the supervisor
has reason to think he can do with the job demands. It is a matching of what he imposes in strain,
working conditions, and what he offers in the form of payroll, companionship with others,
promotional possibilities etc. proper placement helps to improve employee morale. It also helps
to reduce employee turnover, absenteeism and accident rates. If a candidate adjusts himself to the
job and continuous to perform as per expectations, it might mean that the candidate is properly
placed. However, if the candidate has problem in adjusting himself to the job and he continuous
to perform below expectations, he might be misplaced. Supervisors/executives should review all
such cases to find out cases of misplacement. Such candidates should review all such cases to
find out cases of misplacement. Such candidates should be assigned some other more suitable
jobs. Alternatively, they may be given further training to make them fit for the job.

Induction:-

When a new employee joins an organization, he is completely a stranger to the people,

workplace and the work environment. Therefore, he is likely to feel insecure, shy and nervous. In
the absence of information and support there is likely to be anxiety and fear in his mind. He may
undergo reality shock caused by a gap between is expectations and real situation. Induction or
orientation can help overcome these problems. Once an employee is selected and placed on an
appropriate job, the process of familiarizing him with the job and the organization begins. This
process is called induction or orientation.

Orientation or induction is “the process of receiving and welcoming an employee when he first
joins a company and giving him the basic information he needs to settle down quickly and
happily and start work”. The new employee is introduced to the job and the organization. The
purpose of orientation is to make the new entrant feel at home and develop a sense of pride in the
organization and commitment to the job. The newcomer is explained his duties and
responsibilities, company policies and rules, and other relevant information to get acquainted and
accommodated with the organization. Orientation is, therefore, the process of indoctrination,
welcoming, acclimatization, acculturalisation and socialization.

Objectives of induction:-

Orientation helps to reduce labour turnover and absenteeism. It also reduces start up time and
costs. It develops realistic expectations and reduces anxiety. It prevents a worker from falling a
prey to subversive elements which thrive on creating labour unrest by misrepresenting
employers to illiterate employees.

An orientation programme is designed to achieve the following objectives:

• To helps the newcomer overcome his natural shyness and nervousness in meeting new
people in a new environment.

• To build up the new employee’s confidence in the organization and in himself so that he
may become an efficient employee.

• To develop among the newcomers a sense of belonging and loyalty to the organization.

• To foster a close and cordial relationship between the newcomers and old employees and
their supervisors.

• To ensure that the newcomers do not form false impression and negative attitude towards
the organization or the job because first impression is the last impression.

• To give the newcomers necessary information such as location of cafeteria, toilets and
locker room; rest periods and leave rules, etc.

Advantages of formal induction:-

• Induction helps to build p a two way channel of communication between management

and workers.

• Proper induction facilitates informal relations and teamwork among employees.

• Effective induction helps to integrate the new employee into the organization and to
develop a sense of belonging.

• Induction is helpful in supplying information concerning the organization, the job and
employee welfare facilities.

• Proper induction reduces employee grievances, absenteeism and labour turnover. A

large proportion of labour turnover occurs during the early weeks of employment
because no effort is made to make newcomer feel at home. Instead of letting the new
employee learn through trial and error a formal and systematic induction programme
should be arranged. Such a programme will avoid the possibility of new employee
acquiring a wrong impression. The first impression on the employee’s mind is very
critical.

• A formal induction programme proves that the company is taking a sincere interest in
getting him off to a good start.
• Induction helps to develop good public relations. Public relations begin at home when
new employees are convinced that what is good for the company is ultimately in their
own interest. Through induction new employees develop confidence in the company
and in them.

Contents of induction programme:-

A formal induction programme should provide information concerning the following:-

1. Brief history and operations of the company.

2. Products and services of the company.

3. The company’s organization structure.

4. Location of departments and employee facilities.

5. Politics and procedures of the company.

6. Rules, regulations and daily work routines.

7. Grievance procedures.

8. Safety measures.

9. Standing orders and disciplinary procedures.

10. Terms and conditions of service including wages, working hours, overtime,
holidays, etc.

11. Suggestion schemes.

12. Benefits and services for employees.

13. Opportunities for training, promotions, transfers, etc.

A formal orientation programme may be spread over from a day to a fortnight.

Induction involves two processes:

- Acquainting the new employee with his new surroundings,

- Indoctrinating him in the philosophy of the enterprise.

(The essence of indoctrination is to convince the employee that he is working for

a good company and for a good cause. it is necessary of answer any questions and
clarifies any doubts that the newcomer may have about the job and the
organization).
How to make induction effective:-

Following are the guidelines may be helpful in making orientation more effective.

• Human side is the most important part of orientation. Therefore, first of all the new
employee should be introduced to the people with whom he will work-his colleagues,
superiors and subordinates. A tea party may be arranged for this purpose.

• Make the new employee aware of the general company policies that apply to him as well
as the specific work situation and requirements.

• Administer smaller doses of information over a period of time rather than giving
everything on a single day. Orientation should be a gradual process.

• Answer any questions and clarify any doubts that the employee may have about the job
and the organization.

• Provide on the job instructions, and counseling.

• Keep in close touch with the new employee to check back how he is doing and offer help
if required.

• Allow reasonable time to adapt to the new work environment and job demands.

Transfer:-

A transfer refers to a horizontal or lateral movement of an employee from one job to another
in the same organization without any significant change in status and pay. It has been defined
as “a lateral shift causing movement of individuals from one position to another usually
without involving any marked change in duties, responsibilities, skills needed or
compensation”.

Transfers may be initiated either by the company or the employee. A company may initiate a
transfer to place employees in positions where they are likely to be more effective. Similarly,
employees may initiative transfers to locations where they are likely to get greater
satisfaction. Transfers may be within the same departments. Transfers may be temporary or
permanent. Temporary transfers arise due to ill health, absenteeism, etc. of an employee
where as permanent transfers are made due to changes in work load or death, retirement,
resignation, etc. of some employee. Public may also initiate transfers when an employee’s
functioning is against the public interest or his behavior is against the society’s norms.

Need & purpose of transfers:-

The need for transfer may arise due to several reasons.

1. To meet organizational needs:- a company may transfer employees due to changes
in volume of production, in technology, in production schedule, in production
schedule, in product line, in organization structure, etc. all these changes require shift
in job assignments.

2. To satisfy employee needs: - employees may request their transfer because of dislike
of boss or fellow workers or due to lack of opportunities for future advancement.
Personal problems or employees like health, family circumstances etc. May also
require transfer. For example: - an employee may like to be shifted to or near his
native place. Sometimes, transfers are made to avoid interpersonal conflicts and to
provide an outlet from blind alley jobs.

3. To better utilize employees:- an employee may be transferred because management

feels that his capacities would be better utilized elsewhere. An employee who is not
performing satisfactorily may be more suitable in another job.

4. To make the employee more versatile:- employees may be transferred to different

jobs to widen their knowledge and skills. In some companies, transfers are made as a
matter of policy after employee has stayed on a job for a specified period. Such
rotation from one job to another serves as a method of training and reduce monotony.

5. To adjust the work force:- there may be changes in the volume of work in different
sections or plants. Employees from the overstaffed plant or office may be transferred
where vacancies exist.

6. To provide relief:- transfers may be made to give relief to the employees who are
overburdened or doing risk work for long period.

7. To punish employees:- employee indulging in undesirable activities may be

transferred to remote places. It is in the form of a disciplinary action. This practice is
widespread in government offices. In some organizations, transfers are made because
permanent stay may cause frauds, bribery, politicking, etc. problem employees may
be transferred to some other jobs.

Benefits:-

• Increase in productivity and effectiveness of the organization.

• Greater job satisfaction to employees

• Stabilize fluctuating work needs.

• Improve employee skills

• Remedy for faulty placements

 • Improve labour relations.

• Develop employees for future promotions.

• Avoid monotony and boredom.

Types of transfers:-

It can be classified as:-

1. Production transfer:- such transfer are made when labour requirements n

one factory or branch are declining. The surplus employees who are efficient
or trained might be absorbed in other places to avoid layoff. Such transfers
help to stabilize employment.

2. Replacement transfer:- this type of transfer is made to retain long service

employees. The long standing employee replaces a new employee and thereby
gets relief from the heavy pressure of work.

3. Versatility transfer:- also known as rotation this transfer is made to develop

all round employees by moving them from one job to another. It also helps to
reduce boredom and monotony.

4. Remedial transfer:- such a transfer is made to rectify mistakes in selection

and placement. As a follow up, the wrongly placed employee is transferred to
a more suitable job. The employee may not be getting along with his
supervisor or colleagues.

5. Shift transfer:- employees may be shifted from one shift to another for
personal reasons, e.g. marriage, infant care, old parents, etc.

Transfer policy:-

Every organization should have a just and impartial policy concerning transfer of employees.
Such a policy will help to avoid an adhoc and arbitrary approach to transfers. Every transfer
involves some description and cost. Therefore, transfer should not be made frequently or without
justified reasons. Instead of deciding each case separately, a policy should be formulated to
govern all types of employee transfers. This will ensure uniformity of treatment and avoid
transfers for petty reasons.

A good transfer policy should satisfy the following requirements:

• Transfer policy should clearly specify the types of transfers and the circumstances under
which transfers will be made.
 • It should prescribe the basis for transfers. When two persons want transfer to the same
job, whether the decision will be based on seniority or merit or some other factor.

• It should indicate the executives responsible for initiating and approving the transfers.

• It should tell whether the transfers can be made only within a department or also between
departments.

• It should specify the effect of transfers on the seniority and pay of the employee.

• It should be put in writing.

• It should be communicated and explained to the employees.

• The transfer should as far as possible be made in consultation with the employee.
Alternatively the transfer should be made known to the employee well in advance.

• Reasons which will be considered for personal transfers and their order of priority should
be specified.

• Facilities (e.g., leave, special allowance for shifting to the new place, etc.) to be extended
to the transferred employee should be prescribed.

Promotion:-

Promotion refers to advancement of an employee to a higher post carrying greater

responsibilities, higher status and better salary. It is the upward movement of an employee in the
organization’s hierarchy, to another job commanding greater authority, higher status and better
working conditions. When an employee is assigned a higher level job without increase in pay, it
is called a ‘dry’ promotion. For example, when a university professor is made head of the
department, there is no increase in pay.

Promotion vs. upgradation:- upgradation implies movement of an employee to a higher pay

scale without change of job. The job itself is elevated to a higher grade without increase in status
and authority. On the other hand, promotion involves change of job with increase in status,
authority and salary. Both promotion and upgradation are used to reward employees for better
performance and to motivate them for greater effort. Due to limited vacancies at higher levels, it
is not possible for management to promote all employees. Therefore, upgradation may be used to
motivate those employees who cannot be promoted.

Promotion vs. transfer:- transfer implies movement of an employee to another job at the same
level and pay scale without increase in authority and status. On the other hand, promotion means
movement of an employee to a higher level job with increase in authority, status and pay.
Transfer is a horizontal shift of an employee whereas promotion is a vertical movement.
Promotion is a tool of motivating employees but transfer has little motivational value.

Purpose and advantages of promotion:-

• To recognize an employee’s performance and commitment/loyalty and motivate him

towards better performance.

• To boost the morale and sense of belonging of employees.

• To develop a competitive spirit among employees for acquiring knowledge and skills
required by higher level jobs.

• To retain skilled and talented employees.

• To develop a competent internal source of employees for higher level jobs.

• To utilize more effectively the knowledge and skills of employees.

• To attract competent and suitable employees for the organization.

The policy of filling higher level jobs by promoting employees working at lower levels creates a
feeling of content among employees. It improves their job satisfaction and motivation by
providing greater income, status and responsibilities. By building up loyalty, promotion reduces
labour turnover.

Promotion stimulates self development and creates interest in training and development
programmes.

Criteria (bases) for promotion:-

Promotions can be made on the basis of seniority or merits or a combination of both.

Seniority as a basis of promotion:- seniority implies relative length of service in the same
organization. Seniority is suggested as the criteria for promotion on the plea that there is a
positive correlation between length of service and talent. This system is also based on the
tradition of respect for older people. Advantages of seniority as the basis of promotion are as
follows:

• It is relatively easy to measure length of service and thereby judge the seniority of an
employee.

• The system is simple to understand and operate. Every employee can himself find his
place in the promotion list.
 • It is an objective criteria owned there is no scope for favouritism . therefore, it creates a
sense of security among employees and avoids grievances and conflicts arising from
promotion decisions.

• It helps to reduce labour turnover because every employee has a chance for promotion
provided he remains with the organization.

• This system enjoys the full support of trade unions and, therefore, contributes to cordial
industrial relations.

• It provides a sense of satisfaction to senior employees and is in line with the Indian
culture of respecting seniority in all walks of life.

Disadvantages:-

• The assumption that length of service indicates talent is not valid. Beyond a certain age a
person may not learn. So oldest is not always the ablest.

• In this system the performance (worth) and potential of an individual is not recognized.
Therefore, it demotivates and demoralize the young employees who are talented. They
have to wait for long to get promotion and may, therefore, leave the organization due to
frustration.

• The system kills ambition and zeal to improve performance because everybody will be
promoted without improvement.

• The efficiency of the organization suffers in the absence of incentive for hard work and
self development.

• The concern fails to attract young and hardworking employees.

Merits as a basis of promotion:- merits implies the knowledge, skills and performance record
of an employee.

Advantages of this system are as under:-

• It motivates competent employees to work hard and acquire new skills.

• It helps to maintain the efficiency of the organization by recognizing talent and

performance.

• It helps to attract and retain young and promising employees in the organization.

This system suffers from some disadvantages:-

 • It is very difficult to judge merit and subjective judgment is involved.

• Trade union and workers distrust the integrity of management in judging merit.
Therefore, employer employee relations may be strained.

• Merit indicates past achievement. It may not denote the future potential and past
experience of an employee.

• When young employees are promoted over older employees, the old and experienced
people may leave the organization.

• Old employees feel insecure.

Seniority -cum –merit:- both seniority and merit suffer from certain limitations. None of them
is by itself a complete criterion. Therefore, a sound promotion policy should be based on a
combination of both seniority and merit. A proper balance between the two criteria can be
created in several ways:

1. Minimum length of service may be prescribed. For example, employees with 5 years of
service or more are made eligible for promotion. Among these merit is used as the sole
criteria to select the employee for promotion. Clerks in commercial banks are generally
promoted to officers on this basis.

2. Relative weightage may be assigned to seniority and merit. For instance, 40% for
seniority & 60% for merit weightage may be used.

3. Employees with a minimum performance record and qualifications are treated eligible for
promotion. Seniority is used to choose from among the eligible candidates.
In India, seniority is generally used for promotion in government offices and public sector
undertakings. In government departments a certain percentage of higher level vacancies are
reserved for scheduled caste and scheduled tribe employees. In the private sector, the policy by
and large is ‘promote the best man available’.

Promotion policy:-

Every organization should formulate a sound policy regarding promotion of its employees. The
company that has no recognized promotion policy is likely to have frustrated and restless
employees as they have no opportunity for advancement. The main features of a good promotion
policy re as follows:

• It must provide for a uniform distribution of promotional opportunities throughout the

company. It means the ratio of internal promotions to external recruitment must be the
same in all departments. Otherwise there will be discontent and frustration in the
department where this ratio is lower. Therefore, equal opportunities for promotion should
be provided to all categories of jobs in all the departments.
• It must tell employees the avenues of advancement available to them. Multiple chain
promotion charts may be prepared for this purpose. In such a chart each position is linked
to several other positions to which promotions can be made.

• The basis of promotion should be clearly specified. Due weightage should be given to
seniority , merit and future potential of an employee. Clear cut norms and criteria should
be laid down for judging length of service, merit and potential. The assessment and
reporting system should be objective.

• Appropriate authority should be entrusted with the responsibility of taking decision on

promotion. The final authority to sanction a promotion should rest with concerned line
executive. The human resource department should only suggest the names along with
their records.

• Suitable training and development opportunities should be provided so that employees

can prepare themselves for advancement.

• Detailed records of service and performance should be maintained for all employees.

• The policy should be fair and impartial. Arbitrariness, favourtism, etc. should be
eliminated.

• It should be consistent .i.e., it should be applied uniformly irrespective of the person

concerned.

• It should be correlated with career planning. Sudden spurt of promotions (bunching) and
long period of no promotion (promotion drought) should be avoided.

• A suitable system of follow-up, counseling and review should be established. All

promotions should be on a trial basis and the progress of the promoted employee should
be monitored to ensure that all is going on well. Counseling and guidance should be
provided to the employees rejected for promotion. Alternatives like upgradation may be
provided for deserving candidates.

• A provision for appeal against the management’s decision and its review should be made.
This is necessary to satisfy employees who accuse management of being baised.

• Provision should be made for timely release of the promoted employee from his present
superior.

• The promotion policy should be in writing and should be communicated to the

employees. The policy may also specify that whenever a senior person is not selected for
promotion. He will be old the reason for his suppression.
 • The policy should be flexible. Internal staff should be given a fair chance of promotion
before higher level posts are filled from outside.

seniority merit

Simple to understand and executed. Recognition to hard work and skills

Respect to old employees. Motivation for improvement.

Sense of security due to clear job Retention of competent employees.

prospects.

More objective criteria. Higher productivity.

Open vs. closed promotion:-

Under the open promotion system, the company considers all the existing employees as potential
candidates and announces internally such position openings. On the other hand, under the closed
system candidacy is restricted or is not open t all the employees and vacancies are not
announced. Generally, a company uses a combination of both the systems. For example, for
openings below a certain managerial level an open system is used and for openings above that
level, the selection is done in a more secret manner. Such a combined system helps to avoid
undesirable cross comparisons between levels of responsibility and compensation. At lower
levels, the need for such secrecy may not be felt.