INTERNAL MOBILITY &

SEPARATIONS

U.KALPANADEVI II- MBA

MICHAEL INSTITUTE OF
MANAGEMENT
 Employees move with in an organisation, laterally or
vertically for a variety of reasons.

 To ensure the effectiveness of the employees in

the organisation.
 To satisfy both employee & organisational needs.
 To provide for career & succession planning.
 To effect changes in jobs & organisational
structure.
 To ensure discipline and make organisational
rewards contingent on employee performance.
O Promotion
O Demotion Vertical
movement
O Transfer of employees

O Separation (better prospects,

retirement, termination etc…,)
PROMOTION
• Upward movement of employees from one job to another
higher one
• With increase in salary, status, responsibilities
• May be temporary or permanent
• In-build motivational value
• Removes feelings of stagnation and frustation
• Good promotional policy to fill the vacancies in a higher
job.
PURPOSES/OBJECTIVES

 To recognize an employees skill and knowledge

 To reward and motivate employees to higher productivity
 To promote employees satisfaction
 To build loyalty among the employees
 To promote good Human relations.
 To retain skilled and talented people
 To attract trained, competent and hard working people.
TYPES OF PROMOTION

• Horizontal Promotion
• Vertical Promotion
• Dry Promotion
Promotion can be made on various bases:

 Seniority
 Merit
 Educational and Technical qualification
 Potential for better performance
 Career and succession plan
 Vacancies based on organisational charts
 Training
 Motivational strategies like Job enlargement
• Lateral movement of employees within the
same grade.

“ a transfer is a change in the job of an

employees without a change in
responsibilities or remuneration”
- Edwin Flippo
• To meet organisational needs
• To satisfy employee needs
• To better utilize employee
• To make the employee more Versatile
• To adjust the workforce
• To provide relief
• To punish employee
• Production Transfer
• Remedial Transfer
• Replacement Transfer
• Versatility Transfer
• Shift Transfer
• Penalty Transfer
• Specify the circumstances under which
transfers will be made.
• Specify the basis for transfer.
• Intimate the fact of transfer to the person
concered well in advance.
• Clarify whether transfer is permanent or
temporary.
• Not to be made frequently.
 Advantages:

• Improve employee skills

• Reduce monotony and boredom
• Remedy faulty placement decisions
• Prepare the employee for challenging
assignments in future
• Stabilize changing work requirements in
different departments
• Improve employee satisfaction and morale
• Improve employer-employee relations
Disadvantages:
• Inconvenient to employees who
otherwise don’t want to move
• Employees may or may not fit in the
new location/department
• Shifting of experienced hands may
affect productivity
• Discriminatory transfers may affect
employee morale
• It is just opposite of promotion.
• It is the downward movement of an
employee in the organisational hierarchy
with lower rank/status and pay.
“the assignment of an individual to a
job of lower rank and pay usually involving
lower level of difficulty and responsibility”
- D.S.Beach.
Causes
• Incompetence- inability to meet the
challenges posed by the new higher job
• Adverse Business Conditions-
Circumstances and conditions like
recession and other crisis
• Disciplinary measures- Disciplinary action
against erring employees
 Effects of Demotion

 Status, Pride, Career and income of the

employee
 Causes feel of insecurity in employees mind
 Can create positive impact on employee’s morale
and career planning
 It can generate disciplinary care in other
employees
Meaning
• It is situation when the service
agreement of employees with his
organization comes to an end and
employee leaves the organization.

• It is a decision that the individual and

organization part from each other.
 Forms of Separation

 Retirement-
- Compulsory
- Voluntary (golden handshake)

 Resignation
 Layoffs
 Retrenchments
 Dismissal
 Employee Separation
 Reasons for employee separations:
 Pressures on firms to remain competitive and efficient
 Decline in employee commitment to individual
employers
 The importance of managing separations:
 Transitions of employees out of the firm go smoothly.
 Continuing operations of the firm are not disrupted.
 Important professional relationships are not damaged.
 Types of separations
 Reductions-in-force, turnover, and retirements

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 Reductions-in-Force (RIFs)
 Causes of reductions:
 Restructuring as a result of mergers and acquisitions
 Attempts to make the organization more cost
competitive
 Adjustments to declining business environment
conditions
 Reasons for reductions:
 Inefficiency in operations
 Lack of adaptability in the marketplace
 A weakened competitive position in the industry
 Methods for dealing with reductions:
 Continuance pay and outplacement programs

00–20 Copyright © 2002 South-Western. All rights reserved.

 Reductions-in-Force (RIFs)
 Worker Adjustment Retraining and Notification Act
(WARN) of 1989:
 Requires employers with more than 100 employees
to provide affected employees with a minimum of
sixty days written notice of any facility closings or
large-scale layoffs of 50 or more employees.
 WARN does no apply to governmental agencies.
 Exceptions to WARN:
 “unforeseeable circumstance”
 natural disaster
 “temporary facility”

00–21 Copyright © 2002 South-Western. All rights reserved.

 Workforce Management Strategies

EXHIBIT 13-1: STRATEGIES FOR MANAGING EMPLOYEE SURPLUSES AND AVOIDING LAYOFFS

00–22 Copyright © 2002 South-Western. All rights reserved.

 Turnover
 Involuntary turnover
 Employees who are asked to leave the organization
for cause (e.g., poor performance) or due to
circumstances that cause a reduction-in-force.
 Voluntary turnover
 Employees who leave an organization on their own
initiative.
 “Beneficial” turnover
 When low performing employees depart and/or
when new higher performing employees are
promoted or hired as replacements.

00–23 Copyright © 2002 South-Western. All rights reserved.

 Retirement
 Age Discrimination Act of 1967
 Prohibits an employer from setting a mandatory
retirement age except in certain occupations such
as airline pilots.
 Retirement
 Creates advancement opportunities for younger
employees and reduces payroll costs.
 Can cause a loss of vital accumulated historical
knowledge of the organization, its industry and the
marketplace.
 Employers can offer part-time and consulting work
to older workers to ease the transition to retirement.

00–24 Copyright © 2002 South-Western. All rights reserved.