INTERNAL MOBILITY

• Movement of employees from one level to

another and from one job to another within
the company

• Types

• Promotion
• Transfer
• Demotion
 PROMOTION
• Advancement of an employee to a better job
– in terms of greater responsibility, more prestige,
greater skills and increased rate of pay and salary”
Paul Pigors and Charles Myers
Main conditions of promotion are
– Reassignment of a higher level job to an employee
than what he is presently performing
– Delegation of greater responsibility and authority
– Higher pay
 PROMOTION
• Purpose

– Utilise employees skill, knowledge resulting in

organisational effectiveness and employee satisfaction

– Develop competitive spirit and inculcate the zeal in the

employees to acquire the KSA

– Develop competent source of employees for higher

level jobs

– Promote employees self development

– Reduce labour turnover

 PROMOTION
• Purpose

– Promote a sense of contentment with the existing

conditions and a sense of belongingness

– Promote interest in training and development

programs

– Build loyalty and boost morale

– Reward committed and loyal employees

 TYPES OF PROMOTION
• Vertical Promotion – employee moves to the next
higher level in the organisational hierarchy with
greater responsibility, authority, pay and status

• Upgradation – job is upgraded in the

organisational hierarchy leading to greater
responsibility, authority and pay

• Dry Promotion – employee is moved to the next

higher level in organisational hierarchy with greater
responsibility, authority and status but no increase
in salary
 BASES OF PROMOTION
Merit Seniority Merit cum
Seniority
Denotes an Assumes a Combination of
employees skill, positive co- both for satisfying
knowledge, relation between the management
ability, efficiency the length of and employees
and aptitude service in the and trade unions
measures from same job and the
educational, amount of
training and knowledge, skills
employment acquired by an
record employee
 BASES OF PROMOTION
Merit
Advantages Disadvantages

• Maximum utilisation of • Measurement of merit difficult

human resource
• Trade unions distrust
• Motivation to competent management‟s integrity in
employees judging merit

• Reduces employee turnover • Subjective techniques used

• Encouragement to acquire • Based on past achievement,

new skills and knowledge may not guarantee future
success
 BASES OF PROMOTION
Seniority
Advantages Disadvantages
• Easy to measure • Assumption that employees learn
more with the length of service not
• Full support from trade unions valid

• Minimises scope for favoritism and • Demotivates young and more

discrimination competent

• Certainty of promotion to every • Kills zeal and interest to develop as

employee all are promoted

• Respect to senior employees • Organisational effectiveness is

decreased
• Minimises scope for grievances and
conflicts regarding promotion • Increase in employee turnover
 BASES OF PROMOTION
Merit cum Seniority
Only merit considered for promotion

Increasing weight on Seniority

Increasing weight on merit

From most able, promote the senior

Minimum length of service required
before one can be considered for
promotion on merit
After excluding the truly incompetent,
promote the senior
Only seniority is considered for
promotion
 PROMOTION POLICY
• Sound Promotion Policy
– Uniform
– Consistent – applied uniformly to all employees
– Fair and impartial
– Systematic line of promotion channel
– Equal opportunities
– Clear-cut norms for judging the merit etc
– Appropriate authority should make the final decision
– Favoritism should be avoided
– Must contain promotional counseling,
encouragement, guidance and follow-up
– Definite basis for promotion
 PROMOTION
• Glass ceiling-It is an invisible barrier to
promotion, based on sex or race
 ASSIGNMENT
• What is promotion? What are its purposes?
Compare merit as a basis of promotion with that
of seniority?

• What is promotion policy? What are its

contents?
 TRANSFER
• Lateral movement of an employee in the hierarchy of
position with the same pay and status

• Moving of an employee from one job to another. It may

involve promotion, demotion or no change in the job
status

• “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” - Yoder and associates

• May be company or individual initiated

 REASONS OF TRANSFER
• Meet orgnisational requirement
• Satisfy employee needs
• Increase employee productivity
• Make employees more versatile
• Adjust the workforce from one plant to another, lay offs
and retrenchments
• Give relief to employees who are over burdened, engaged
in complicated or risky work
• Correct inter-personal conflicts
• Adjust employees timings and workplace
• Penalising employees
• Minimise corruption and frauds due to permanent stay and
contacts with customers, dealers and suppliers
• Maintenance of tenure system
 PRINCIPLES OF TRANSFER
• Should be in writing and known to all employees
• Should clearly state types and circumstances of transfer
• Should mention basis or grounds of transfer
• Should indicate authority responsible for initiating and
implementing transfer
• Should specify units or areas over which transfer would
take place
• Should specify rate of pay to be given to transferee
• Transfers should not be made too frequently
• Should state whether training or retraining is required on
the new job
 TYPES OF TRANSFER
• On The Basis Of Purpose

– Production transfer -
• Transfers caused due to changes in production
• Transfer from one department to another due to
decrease/increase in labour requirements to prevent lay
– offs.
• Transfer is carried out at the same occupational level i.e.
for similar type of work

– Replacement transfer -
• Due to initiation or replacement of a long standing
employee in the same job
• Also to prevent lay – offs
 TYPES OF TRANSFER
• On The Basis Of Purpose

– Shift transfer -
• Transfer from one shift to another on the same type of work
• To balance the requirements of certain employees i.e. women
or specific reasons due to personal reasons
– Remedial transfer -
• To correct the wrong placements
• Due to inter-personal conflicts
– Versatility transfer -
• To increase the versatility of an employee
• To provide broader and wide perspective of the job
• Help the employee in job enrichment and job enlargement
• To help employee prepare for future promotions
 TYPES OF TRANSFER
• On The Basis Of Unit

– Sectional transfer -
• Within the department from one section to another
• To train and prepare workers to handle operations of
different sections in department

– Departmental transfer -
• Transfer from one department to another
• Nature of work is same in both departments- routine jobs

– Inter Plant transfer - Transfer from one plant to another

 SEPARATION
• Cessation of service agreement

• Types of separations

– Lay-offs
– Resignation
– Dismissal or discharge
– Retirement
– Retrenchment
– Turnover
– Voluntary Retirement Scheme
 LAY-OFFS
• Temporary separation of employee from employer at
the instance of later without any prejudice to former

• According to Section 2 of Industrial Dispute Act, 1947,

„Lay-off is the failure, refusal or inability of an employer
to give employment to a worker whose name is
present on the rolls but who has not been
retrenchment‟
• Lay – off may be for a definite period on the expiry of
which employee will be recalled by the employer for
duty
 LAY-OFFS
• Reasons

– Decline in sales
– Shortage of raw material
– Displacement caused by technology
– Delay in production
– Accumulation of goods in godown in large quantity
– Breakdown of machine
 LAY-OFFS
• Factors Determining Lay-offs

– Must be made clear at the time of appointment and that all

efforts will be made to recall the employee back
– In case of long term lay-off or lay-off for an indefinite term,
sufficient notice to be served to the employee
– Efforts must be made to get the laid-off employee appointed
in other enterprises
– Reasons must be made clear to the employee being laid-off
 LAY-OFFS
• Laws Relating to lay-offs - Provisions of the Act do
not apply to establishments

– In which less than 50 workmen on the average per working

day have been employed in the preceding one month
– Which is of seasonal character or in which work is performed
intermittently
 LAY-OFFS
• Right of Workmen Laid-off for Compensation

– On completion of one year of service, a workmen if laid off, is

entitled to compensation equal to 50% of basic wages and DA
payable to him had he not been laid –off
– If during any period of 12 months a worker is laid-off for more than
45 days, no compensation is to be paid in respect of any period of
lay-off after the expiry of first 45 days
– It is lawful for the employer to retrench the worker any time after
the expiry of 45 days
– If a worker is retrenched, then compensation paid to him for lay –
off in the preceding 12 months may be set off against the
compensation payable for retrenchment
 LAY-OFFS
• Cases In Which Workmen Are Not Entitled For Lay-
Off Compensation

– If he refuses to accept any alternative employment in the same

establishment from which he has been laid-off or in any other
establishment belonging to same employer situated in the same
town, village or within a radius of five miles from his workplace
– If he does not present himself for work at the establishment at the
appointed time during normal working hours at least once a day
– If such lay-off is due to a strike or slowing down of production on
the part of workmen in another part of the establishment
 JOB CHARACTERISTIC MODEL

• Given by J. Richard Hackman & Greg Oldham

• Five core dimensions required for JCM

– Skill Variety
– Task identity
– Task significance
– Autonomy
– Feedback
 JOB CHARACTERISTIC MODEL

• Skill Variety - Degree to which job

requires a variety of different activities.
e.g. An operator in a garage does electric
rebuilds engines, does body work and also
interact with customers.
• Task Identity - Degree of which a job
requires completion of a whole and
identifiable peace of work.
e.g. A cabinet maker designs a piece of
furniture, selects wood, builds object and
finish it to perfection.
 JOB CHARACTERISTIC MODEL
• Task Significance Degree to which job has a
substantial impact on the lives or work of other
people.
e.g. A nurse handling diverse needs of patients in a
hospital intensive care unit.
• Autonomy Degree to which a job provides
substantial freedom and discretion to individual in
scheduling the work and in determining the
procedure to be used in carrying it out.
e.g.: A sales person who schedules his work
according to his time and decide different sales
approach with different customer without
supervision.
 JOB CHARACTERISTIC MODEL

• Feedback Degree to which work activities

required by a job results in the individual
obtaining direct and clear information about the
effectiveness of his/her performance.
e.g.: A factory worker who assembles iPod and
test them to see if they operate properly.
 Core Job Critical Psychological Personal &
Dimension States Work Outcomes

Skill variety Experience

Task identity meaningfulness
Task significance of work High internal work
motivation, High
Autonomy Experience Quality
responsibility for performance, High
outcome of the Satisfaction with
work the work , Low
absenteeism and
Feedback Knowledge of the turnover
actual results of
work activities,
Employee growth
need strength
 JOB ROTATION

• Periodic shifting of an employee from one task to

another

• When activity is no longer challenging worker is

rotated to another job

• Carried out usually at the same level and have

similar skill requirement.
 JOB ENLARGEMENT

• Increasing the number and variety of task that

an individual performs.

• Difference between job rotation and job

enlargement is enlarging the scope of the job .

• e.g housingkeeping job in small hotel not only

includes cleaning of the bathrooms, making
beds and vacuuming but also replacing bulbs,
services and restocking bars.
 JOB ENRICHMENT

• The vertical expansion of jobs which increases

the degree to which the worker controls the
planning, execution, and evaluation of the work.