Performance Appraisal It is a process of evaluating an employees performance of a job in terms of its requirements. It is a systematic evaluation of personnel by supervisors or those familiar with their performance. It is a systematic way of judging the relative worth /ability of an employee in performing his/her task. It is the systematic evaluation of the individual with respect to his/her performance on the job and his/her potential for development. It is also called as employee assessment, performance rating, performance evaluation and merit rating.PA is the systematic, periodic and an impartial rating of an employees excellence in matters pertaining to his present job and his potential for a better job- FLIPPO. PA is the systematic evaluation of the individual with regard to his/her performance on the job and his potential for development- BEACH. Thus PA is a systematic way of judging the relative worth of an employee in performing his task.Purpose/Importance of PA The data relating to PA of employees are recorded, stored and used Nave Oy for several purposes. Some of them are : For promotion For job change To confirm the service Assess T&D need Decide pay raise/hike To provide feedback to the employees for self development. To determine the effectiveness of HR programmes such as selection, training and transfers. To improve communication between supervisor and subordinate. Helps in planning the activities like fixing targets, responsibilities etc.Methods of PA 1. Traditional methods a) Rating scale method- In this method, the rater considers certain features and marks them accordingly to a scale. The selected features are analytical ability, dependability, initiative, attitude, co-operation etc. The typical rating scale consists of several numerical scales ranging from excellent to poor. The actual performance of an employee is then compared with these grades, and he is allotted the grade which best describes his performance. Then the total numerical score is computed. This method is simple and easy to operate. Large employees can be evaluated in a short period. The rater does not need any training to use the scale. But there may be chances for raters bias. It assumes that cach feature is equally important for all jobs.b) Check list — In this method, a check list of statements on the traits of the employee and his/her job is prepared in two columns-viz., Yes/No. The rater should tick the Yes if the answer to the statement is positive and NO if the answer is negative. After ticking off against all items, the rater forwards the list to HR Dept. where the actual assessment of the employee takes place. It is easy to use and administer. It is economical. The standardisation/uniformity helps to analyse the data quickly. The rater does the rating only but the evaluation done by the HR dept. It is also difficult to construct a good check list. A separate check list is require for each job.c) Forced choice method- In this one, the rater is given a series of statements about an employee. These statements are arranged in blocks or groups of two/more and the rater indicates which statement is most or least descriptive of the employee. It consists of favourable / unfavourable statements or both. The rater makes two checks in each group one for the statement which best describes the individual and one for the statement which is Icast descriptive. The rater is forced to tick two answers even though the statements in a group may not apply an employee. Hence it is called forced choice method. No chance for personal bias because the rater does not know which statement is important for effective job performance. If the statements are not properly framed, they may not correctly describe the employee traits.d) Critical incident method- This method attempts to measure the employees performance in terms of certain events/incidents that occur in the performance of the ratee’s job. These events are called as critical incidents. These critical job requirements are vital for the success or failure of the job. The supervisor keeps a written record of the events that can be easily recalled and used in the course of a formal appraisal. This method evaluates the person on the basis of actual job behaviour. It helps the subordinate to improve because they learn precisely what is expected of them. But the negative incidents are generally more noticed than the positive ones. In this one, very close supervision is required which is not liked by many employees. Certain incidents may be forgotten by the supervisor.e) Field review method- It is an appraisal by some one outside the assessee’s own dept. It is done by some one from the corporate office or the HR dept. The outsider reviews the employce records and holds intervicw with the ratee and his supervisor. It is used for making promotion decision at the managerial level. No chance for bias and accurate rating is possible because it is done by an outsider. An outsider is not familiar with conditions in an employee works and doesn’t have the chance to observe employees behaviour over a period of time. The overall rating may be done by using three answers-outstanding, satisfactory/unsatisfactory.f) Annual confidential reports- A CR by the immediate supervisor is also used for PA. In this one, each employee is rated confidentially by one /more senior officers for his performance. This will be used to assess the performance of the subordinates to decide promotion/transfer. The CR includes the employees job performance attendance, training/courses attended, technical ability, communication skills ,honesty, integrity, responsibility and defects such as memo served, LOP, participation in strike ete. The CR contains the recommendation & sign. of the rater, HOD &the GM. It is highly confidential &secret. Feedback is given to assessee in case of adverse entry. But there are chances for bias. Chances for manipulation also because the evaluation was linked to promotion.g) Performance test & interview- In this one, a test may be conducted to assess the employees performance. This tests the employees potential than the actual performance. Conducting test is a task for mgt. and requires additional cost. h) Essay method- In this method, the rater writes a narrative description on an employees strengths, weaknesses, past performance, potential and suggestions for improvement. It is simple in use and provide complete information about an employee. But the success depends on the writing skill of the rater. It also depends on the memory power of the rater. Chances for bias and no common criteria for evaluation. It takes more time because the rater has to write essay.i) Ranking method- In this one, one employee is compared with all others for the purpose of placing them in a simple rank order of worth. The employees are ranked from the highest to the lowest or from the best to the worst. It may also be done by ranking a person on his job performance against that of another member of a competitive group by placing him as number one/two/three in total group ie., persons are tested in order of merit and placed in a simple grouping. It is a simple method and casy t use. But it is very difficult to compare a single individual with human beings having varied behaviour traits. It tells how a man stands in relation to others but doesn’t tell how much he is better/worse than other. It also becomes difficult when large group of persons are rated.Dp Paired comparison method- In this one, the rater compares each man in his group with every other man. It is done in pairs one at a time. The no. of times each individual is compared with another is tallied on a piece of paper. These numbers yield the rank order of the entire group. The no. of comparisons can be made is determined by using the formula: No. of comparisons= N(N-1)/2 N= No. of persons to be rated. The result of these comparisons are tabulated and a rank is assigned to each individual. This method is not suitable where a large no. of persons are appraised because the no.of judgements are excessively large.2. Modern Methods a) MBO ~— This method has been evolved by Peter F. Drucker. It is amethod of appraisal by results. MBO is defined as a process whereby the superior and subordinate managers of an organisation jointly identify its common goals, define each individuals major areas of responsibility in terms of results expected of him and use these measures as guides for operating the unit and assessing the contributions of each of its members. It is a management system that stresses goals rather than methods. It is result- oriented, it is performance that counts. It provides responsibility and accountability and recognises that employees have needs for achievement and self-fulfilment. It meets these needs by providing opportunities for participation in goal setting process.The three foundations of MBO are- Goal setting, feedback and participation- all these enhance performance. Process/steps of MBO: a) Establish goals each subordinate is to attain. b) Setting the performance standard for each subordinate. c) Comparing the actual performance with the standard. d) Feedback- If the performance is poor, training is arranged. Set new goals and new strategies for the goals not previously attained. Benefits of MBO: 1.Ithelps and increases employee motivation. 2. Managers are more likely to compete with themselves than other managers. 3. It results in a “means ends” chain ie., to reach organisations goals.4. Reduces role conflict and ambiguity. 5. Aids in planning. 6. Identifies problems better and early. 7. Identifies performance deficiencies. 8. Helps individual managers to develop personal leadership, planning, counseling, motivation and evaluation. b) Assessment centre method- An assessment centre is a central location where managers come together to have their participation in job related exercises evaluated by the trained observers. The main idea is to evaluate the managers over a period of time, 1-3 days, by observing their behaviours in a series of selected exercises or work samples. The assessces are requested to participate in in basket exercises, role play, GD without leader, simulations etc. Their behaviour is observed. After recording their observations, the raters meet to discuss these observations. Then the observer prepare a summary report with overall assessment score.Uses: 1. 2. 3. 4. To measure the potential of first level supervisors. To determine individual T&D needs of employees. To select fresh students for entry level positions. To provide more accurate HRP information. Demerits: 1, They feel like taking exam. 2. Employees who receive a poor report may react in negative ways. . Such ratings are often influenced by the participants inter personal skills and not by the ratees quality of decision making. . For evaluation, HR specialists and psychologists may be needed from outside. So it is costly for small organisations.c) Behaviourally Anchored Rating Scales-BARS It is also called as Behaviour Expectation Scales. These are rating scales in which scale points are determined by statements of effective and ineffective behaviours. They are said to be behaviourally anchored in that the scales represent a range of descriptive statements of behaviour varying from the least to the most effective. A rater must indicate which behaviour on each scale best describes an employees performance. BARS has the following features: i) Areas of performance to be evaluated are identified and defined by the people who will use the scales. ui) «The scales arc anchored by descriptions of actual job behaviour that , supervisors agree, represent specific levels of performance. iii) Since BARS are tailor made for the job, all dimensions of performance to be evaluated are related to the job.iv) Since raters who will actually use the scales are actively involved in the development process, they are more likely to be committed to the final product. BARS were developed to provide feed back which helps subordinates to improve their performance. d) 360 degree appraisal In this method, performance information such as employee skills, abilities and behaviour is collected “ all around” an employee, ic, from his /her supervisors, subordinates ,peers and even customers and clients. In other word, in 360 degree method, an employee is appraised by his supervisors, subordinates, peers and customers with whom he interacts in the course of his job performance. All these appraisers provide information/ feed back on an employee by completing the survey questionnaire used for that purpose. All these informations are analysed using computers and then the reports are prepared.Then these reports are also given to the ratees so that they can know their problems. Then they meet all rates to know the information's required for their self-development. e) Cost Accounting method — This method evaluates an employee’s performance from the monetary benefits the employee yields to his/her organisation. This is ascertained by establishing a relationship between the cost involved in retaining the employee, and the benefits an organisation derives from him/her. While evaluating an employee’s performance under this method, the following factors are also taken into consideration: 1) Unit wise average value of production/service ii) Quality of product produced/service rendered iii) Overhead cost incurred iv) Accidents, damages, wastages caused v) Human relationship with other vi) Cost of the time spent by supervisor in appraising the employee.Problems of PA 1. Bias of Appraiser -The presence of “Halo Effect” in rating evaluation of employees is the biggest weakness of this method. A high rate is given to favoured employees whereas low rate is given to unfriendly employees. There may be bias related to employees personal characteristics such as race, religion, gender, age groups etc. 2. Ambiguity in standards- If the standards are not clear, the supervisors may follow different standards for different employees. 3. Insufficient evidence — An employee who can impress the boss may get a positive evaluation though his impression in his own dept.may be v.poor. In such cases, the PA will be superfluous. 4. Several qualities remain without appraisal- In PA, only few qualities can be measured. All individuals differ from each other in terms of background, value and behaviour.5. Leniency/ Strictness tendency- Every evaluator has his own valuation procedure which is regarded as his own standard of evaluation. The lenient tendency is called as Positive Leniency Error and strict tendency is called as Negative Leniency Error. The rating may be high/low depending upon the nature of evaluators. 6. Average rating problems — In order to give v.low/v.high rating, the top managers are required to give reasons to justify the rating. The most common error in PA is to give average rating to all employees. 7. Influence of Man’s job — There is a tendency to give a high rating to highly paid jobs. So a senior employee may get a higher rating than a junior employee.8. Manipulating evaluation — The managers have control over the PA and can manipulate the system to favour some one who is friendly. 9. Appraiser inexperience — 10. Inconsistent rating — What one manager considers to be acceptable performance, another may consider not mecting expectations. This can be a challenge for any organisation. 11. Lack of outcome based measures — Many PA methods rate employees skill, leadership ability etc. and lack outcomes that can be tied to measurable results.12. Recency problem — The employees most recent behaviour becomes the primary focus of the PA. His past performance is forgotten. Or an excellent employee makes a mistake and it weighs down the rest of the review. 13. Negative perceptions — Often individuals have negative perceptions of PA’s. Receiving/ the anticipation of receiving a PA can be uncomfortable and distressful and potentially cause tension between superior and subordinates. 14. Legal issues- When PA’s are not carried out appropriately, legal issues could result that place the organisation at risk. The improper application of PA’s can affect employees negatively and lead to legal action against the organisation.GRIEVANCE Meaning- A complaint affecting one /more workers constitute a grievance. The complaint may relate to the quantum of wages, the mode of payment, payment for OD, leave, interpretation of service agreements, working conditions, promotions, seniority, transfers, work assignments, dismissal or a complaint against a foreman/ quality of food in canteen/ against the quality of machinery. A dissatisfaction which is orally made known by one employee to another is called as complaint. A complaint becomes a grievance when this dissatisfaction, which is mostly related to work, is brought to the notice of the management.Definition- Grievance is a written complaint filed by an employee and claiming unfair treatment-DALE YODER. Grievance is defined as any real or imagined feeling of personal injustice which an employee has concerning his employment relationship- KEITH DAVIS. Grievance is defined as any dissatisfaction or feeling of injustice in connection with ones employment situation that is brought to the notice of management- BEACH.Causes of Grievance 1. Grievances resulting from working conditions 1. Improper matching of the worker with job 2. Change in schedule/procedures 3. Non availability of tools and equipments 4. Tight production standards 5. Bad physical conditions at the work place 6Failure to maintain proper discipline 7. Poor relation with supervisor 8. Autocratic leadership. II. Grievances resulting from Management policy 1.Wage payments 2-Leave3. OT 4.Seniority 5. Transfer 6. Promotion/demotion 7_Lack of career planning. TH. Grievances resulting from the alleged violations of 1. CB agreement 2. Central/State laws 3. Past practice 4. Company rules 5. Managements responsibility IV. Grievances resulting from personal mal adjustment 1. Over-ambition 2. Excessive self-esteem 3. Impractical attitude to life etc.Grievance handling The following is the guideline for officers who handle grievance: Try to avoid problems in your dept.before they cause grievances. Be a good listener. Use a positive and friendly approach. Have patience. Don’t shout. Avoid personal considerations. Don’t get upset/ resort to threats. Remember that you and the employee will have to work together in future.Appeal to the managements interest Settle each grievance on its merit Remember that both management and workers must live up to the terms of the agreement Inform the aggrieved person regularly as to what is being done. Permit the employee to correct his mistake with out loss of face/dignity. After the decision taken, ensure that it has been implemented in time.Grievance Handling procedure A grievance is the initial stage of more serious trouble to come because accumulation of minor grievances may lead to major explosions. Hence prompt and effective handling of grievances is the key to industrial peace. This calls for a systematic procedure of handling grievances for the just and speedy disposal of grievances.There are 2 types of procedures for redressing the grievances of the employees. They are- i) Open door policy ii) Step ladder procedure. i) Open door procedure- In this one, employees are free to meet the top executive of the organisation and get their grievances redressed. It is good for small concern. It is not suitable for large one because in big firms top executives will be very busy always. Then the lower level executives may feel that they are bypassed. This may complicate the HR problems. The top management may not familiar with the working conditions of the operating employees. The employees may also hesitate to go to top executives with their grievances.ii) Step ladder procedure- In this one, the aggrieved employee has to proceed step by step in getting his grievance heard and redressed as shown below: First he has to file his grievance in writing to his supervisor/foreman. If he is not satisfied with his decision, he may go to the HOD. If the HOD’s decision is not acceptable, he has to meet the Joint Grievance Committee. If the JGC also fails to redress his grievance, the matter may be referred to the Chief Executive. The grievance procedure will be said to be exhausted if the CE is also not able to redress the grievance. The grievance assumes the form of a conflict after the worker is not satisficd with the decision of the CE. For maintaining industrial peace in the plant, it is advisable to refer such grievance to the Voluntary arbitration. The award of the arbitrator shall be binding on both the parties.The Model Grievance Procedure gives in detail the steps through which a grievance is to be processed. These may be summarized below: First step: The grievance is to be submitted to the dept. representative of the management ie., supervisor/foreman. He has to give his answer within 48 hours. Second step: If no solution is found at the first step, the aggrieved worker can take his grievance to the HOD who has to give his decision within 3 days. Third step: If a worker concerned is not satisfied with the decision of the HOD, he can take the grievance to the Grievance Committec. This committee must make its recommendations to the manager within 7 days. The final decision of the management on the report of the Grievance Committee must be comnmunicated to the concerned worker within 3 days of the receipt of the report.Fourth step: If the Grievance Committee decisions are not satisfactory/decisions not in time, the aggrieved worker may appeal to management for revision. A week for appeal to be considered. Fifth step: If the grievance is still remains unsettled, the case may be referred to voluntary arbitration. A time limit has been put at every stage of the procedure. Because the justice delayed is justice denied.The throughout the process of grievance procedure, the aggrieved worker is expected not to take resort to any direct action, the order against which representation is made must be complied with and the conciliation machinery will be resorted to only after the final decision of the management fails to satisfy the aggricved worker.Aggrieved Employee Departmental Representative 4 Head of Department 4 8 3 | Griewance H Committee D is 5 7 Chief Executive r y _ s s a 7 Voluntary y wy Arbitration 2 a : | 2 SETTLEMENT OF GRIEVANCEFEEDBACK The term work place feedback implies two things- (a) Job related performance- whether “X” is performing the tasks that have been assigned (b) work related behaviour- the way he performs his tasks, whether he speaks politely to customers and works cooperatively with the team members. The appraiser and appraisee need to follow certain things while giving and receiving feedback. They are:a) Adequate preparation- Formal meetings to be conducted periodically. One to one meetings must be conducted to establish mutual trust, understanding and friendship. b) Describe behaviour- The rater should give detailed feedback to the employee. This involves questions such as what happened, Where and when did it occur,who was involved and how did it affect others. While describing behaviour, the following cautions to be observed- i) Never attack personally ii) Focus on the future iii) Goal oriented iv) Listen to the recipient v) Data based feedback v) Offer constructive suggestions vi) It is continuous c) Proper timing- Feedback should be given in proper time. d) Help both the parties- It should satisfy the needs of both rater and ratee. The ratee should ask questions and clarify doubts. Seek suggestion for future action. Thank the person for giving the feedback.TT EE: Quits / Resignations Retrenchments ET www, vhatishumanresource.con SALTS) TetEMPLOYEE SEPARATION It means the termination of service with the organisation for one or other reason. Separation means cessation of service or agreement with the organisation for one/other reason. The employee may be separated from the company as a result of: Resignation, Discharge and dismissal, Suspension, Retrenchment and Layoff.Causes of Separation ik Voluntary separation- It is due to the initiation taken by the employee himself / herself. It causes due to quits and retirements. Involuntary separation- It is due to the initiation taken by the employer to separate an employee. It may be due to discharge, lay off, retrenchment and VRS. It is faulty hiring, bad behaviour or loss of the organisation.Quit/Resignation: An employee may quit the job if he is dissatisfied with the present job or may get better offer. It may also arise due to health problems, marriage, spouse relocation etc. Sometimes an employee may be asked to resign after an enquiry due to misconduct. Retirement: It occurs when an employee superannuates/ reach the end of his/her career. The age of superannuation is normally 58 years / 60 years in some cases.Discharge: When the termination of employment is initiated by the employer, it is called as dismissal/ discharge. It is a drastic step taken by the management and should be supported by just and sufficient reasons. It is a punitive measure. The causes of dismissal are- excessive absenteeism, serious misconduct, false statement of qualification at the time of recruitment, indiscipline and theft of companies property. Lay off: It is defined as the failure, refusal/ inability of an employer to give employment to a worker whose name is present on the rolls but who has not been retrenched. A lay off is given due to the following causes- Shortage of coal/power/materials, accumulation of stocks, breakdown of machinery and economic recession. It is temporary and may be for a definite period and on the expiry of which the employee may be recalled for duty.The employee has to be compensated for the period of lay off as per Sec.25 of the ID Act,1947. The compensation must be equal to half the normal wages the employee would have eamed if he/she has not been laid off. The employees may be laid off either on seniority basis or performance basis if performance is poor. Retrenchment: It means permanent termination of employees services for economic reasons. It occurs on account of surplus staff, poor demand for products, general economic slow down. It also causes due to replacement of labour by machines or the closure of a department due to poor demand for the product manufactured by that department. It is common in plantations, agri services, forestry, food products and cotton textiles.The organisation has to give 3 months notice to the employee to be retrenched and also seek prior approval of the govt. He/she should be given compensation equal to 15 days wages for every completed years of services. VRS- Voluntary Retirement Service: It is a scheme whereby the employee is offered to voluntarily retire from his services before his retirement date. It is a method adopted by companies for trimming the workforce employed in an organisation.It is a method of workforce reduction and to reduce long term costs.It applies to an employee who has completed 10 years of service or is above 40 years of age. It is now a commonly used method to disposed off the excess manpower and thus improve the performance of the organisation. It is generous, tax free severance payment to persuade the employees to voluntarily retire from the company. It is also called as Golden handshake as it is the golden route to retrenchment. The organisation has to obtain the prior approval of the government before offering and implementing the scheme. It is offered due to recession in business, merger/takeover ,obsolescence of technology/product. The compensation paid is 45 days emoluments for each completed years of service/monthly emoluments at the time of retirement multiplied by the remaining months of service before the normal date of service which ever is less.PROMOTION It means advancement of an employee to a higher post with greater responsibilities and higher salary, better service conditions and thus higher status. A promotion may be defined as upward advancement of an employee in an organisation to another job, which commands better pay/ wages, better status/prestige, and higher opportunities/ challenges, responsibility and authority, better working environment, hours of work and facilities and a higher rank. Promotion is a term which covers a change and calls for greater responsibilities, and usually involves higher pay and better terms and conditions of service and therefore a higher status/ rank.Purposes of promotion: 1. To motivate employees to higher productivity 2. To attract and retain the competent people 3. To recognise and reward the efficiency of an employee 4. To increase the effectiveness of the employee and of the organisation 5. To fill up higher vacancies within an organisation 6. To build loyalty, morale and a sense of belongingness in the employee 7. To reduce unrest and discontent 8. To impress upon others that opportunities are available to them also in the firm, if they perform well 9. To promote job satisfaction among the employees 10. To remove a worker from his job as an alternative to avoid the demotion/firing him.Types of promotion a) b) Horizontal promotion- It is a promotion in which the employee may be promoted to higher ranks in other departments. It helps to lear all the jobs and get wider experience. Eg.LDC to UDC . So it is in the same clerical category only. Vertical promotion- It is a promotion in which the employees are promoted from one rank to the next higher rank in the same department. Eg. Head clerk to Manager. So there is a change in the nature of job. C) Dry promotion- When as a result of promotion there is no increase in the employees pay it is called a dry promotion. A dry promotion is made decorative by giving a new and longer title to the employee. Employers generally get rid of their incompetent employees by giving them such dry promotion.Promotion policy The promotion may be based on Seniority or Merit. Seniority based promotion - It refers to the length of service in the company or in various plants or in its departments or in a particular position. So the promotion go to the oldest employee provided he is fit for the job. Merits of seniority 1. Itis simple, easy to operate and understand 2. All employees are assured that promotion will come automatically when it is due It builds morale 4. It satisfies the personal aspirations of the employees for growth 5. It creates a better labour-management relations It is economical than open market recruitment 7. Labour unions welcome this policy o an8. It leads to optimum utilisation of the existing workforce by training and development 9. The management can get a known person of good performance than to take a risk in bringing an unknown person Demerits of seniority 1. It is inadequate source. Sometimes people with lesser skills may be promoted. 2. Since technology changes fast, it is necessary to have new talents and tech savvy, which older people may be lacking. 3. The worth of an individual is not appreciated and given due recognition 4. Young and new employees may get frustrated and leave the company 5. No single criteria for fixing the seniority of an employee.Merit based promotion- It is the promotion based on merit, ability, hard work, honesty, cooperation etc. In this one, the competency of the employee is taken into account for promotion. The best employee is rewarded. Merits 1. Efficiency is rewarded and encouraged 2. Helps to increase the productivity 3. Encourage people to work hard, so that they get a chance for promotion 4. Competent people can be retained Demerits 1. Discontentment among senior employees 2. Chance for favoritism 3. Loyalty and length of service are not rewarded A Onnoacitone fram the inian leadersDEMOTION It is defined as the assignment of an individual to a job of lower rank and pay usually involving lower level of difficulty and responsibility. It refers to the lowering down of the status, salary and responsibilities of an employee. It is used as a punitive measure when there are serious breaches of duty on the part of an employee.TRANSFER It means a change in the job of an employee without a change in responsibilities or remuneration. A transfer is a horizontal or lateral movement of an employee from one job , section, department, shift, plant or position to another at the same or another place where his salary, status and responsibility are the same.Awst WN Purposes of transfer To satisfy the needs of an organisation like change in the organisation structure, introduction of new lines of product, dropping of existing product lines etc. To meet an employees own request To utilise properly the services of an employee To increase the versatility of an employee To adjust the work force of one plant with that of another To replace an employee who has been in the organisation for long time by a new employee To help employees work according to their convenience- shift transfer is made8. To penalise the employee transfer is made to remote area 9. Transfer for the maintenance of tenure system- after a time period they are transferred to other area in govt.service 10.To correct the faulty initial placement of an employee 11. The climate may be unsatisfactory for the employees health 12. Women employees may be transferred after marriage in order to join their family.Types of transfer Production transfer- There is a shortage or surplus of the labour force in different departments in a plant or in an organisation. The surplus employees may be transferred to another department. Such transfers made to avoid the lay off is called as Productiontransfer. Replacement transfer- The old employee who is working for long time given some relief from the heavy pressure of work by replacing him by a new employee. Such transfer is called as Replacement transfer.3. Versatility transfer- An employee may be transferred from one job to another in order to learn all the jobs and become a competent person. Such transfer is called as Versatility transfer. Eg. A clerk in bank is transferred to all sections. 4. Shift transfer- Some industrial organisations operate more than one shift. Transfer between shifts are common, such transfers are made mostly on a routine basis. Some employees also request a transfer to the other shift to work as per his convenience. 5. Remedial transfer- Such transfers are effected to correct the initial wrong placement or the employees may not get along with his boss or colleagues in the department.Transfer policy Every organisation should have a just and impartial transfer policy which must be known to all the employees. QO A good transfer policy must clarify the type of transfer QO) There must be some authority to initiate and implement transfer Q Indicate whether the transfer is made within/between departments/plants O Also indicate the basis of transfer-seniority/skill based C) Intimate the transfer to the person well in advance QO) The communication must be in writing O Not to be made frequently In transfers, the organisation should pay the actual cost of moving the household to the place of transfer.