Transfer, Promotion, Demotion Separation

Promotion

• Promotion refers to upward movement of an employee from current job to

another that is higher in pay, responsibility and/or organisational level.

Purposes and Advantages of Promotion

• Promotion has powerful motivational value as it compels an employee to

utilise his talents fully, and remain loyal and committed to his or her job and
the organisation
 Bases of Promotion

• Merit based promotions

• Seniority based promotions
 Promotion Policy

• To be fair, an organisation should institute a promotion Policy that gives due

weightage to both seniority and merit.
• Promotion Opportunities must be thrown open to all employees.
• The norms for promotion should be expressed in writing.
• Detailed records must be maintained for this Purpose.
• A responsible official should be asked to take the final decision regarding
employee promotions.
 Transfer

• A transfer is a change in job assignment.

• It may involve a promotion or demotion or no change at all in status and
responsibility.
 Purposes of Transfer
• To meet the organizational requirements
• To satisfy the employee needs
• To utilize employees better
• To make the employee more versatile
• To adjust the workforce
• To provide relief
• To reduce conflict
• To punish employees
 Types of Transfer

• Production Transfers
• Replacement Transfers
• Rotation Transfers
• Shift Transfers
• Remedial Transfers
• Penal Transfers
 Benefits of Transfers

• Improve employee skills.

• Reduce monotony, boredom
• Remedy faulty placement decisions
• Prepare the employee for challenging assignments in future
• Stabilise changing work requirements in different departments / locations
• Improve employee satisfaction and morale
• Improve employer-employee relations
 Problems

• Employees who otherwise do not 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.
 Transfer policy

• Organisations should clearly specify their policy regarding transfers. Such a

policy would normally consist of the following things
• Specify circumstances under which the transfer has been effected
• Name the persons authorised to effect transfers
• Mention the basis for the transfer
• Clarify the position regarding pay, allowances, benefits etc.,
 Demotion

• Demotion is the downward movement of an employee in the organisational

hierarchy with lower status and pay.

• It is a downgrading process where the employee suffers considerable emotional

and financial loss in the form of lower rank, power and status, lower pay and
poor working
 Causes of demotion

• Employee unable to meet job requirements.

• Organisation forced to demote employees because of adverse business
conditions.
• Demotions happening to check errant employees
 Demotion policy

• A clear cut policy regarding demotions would help employees adjust to complex
organisational demands admirably.
• Punishable offences must be listed in advance.
• Better to state the reasons before punishing an employee.
• Any violation must be properly investigated and followed by a consistent and
equitable application of the penalty. There should be enough room for review.
 Employee Separations

• Employee separations occur when employees cease to be members of an

organisation.

• The service agreement between the employee and the employer comes to an
end and the employee decides to leave the organisation.
 Separations can take severalforms
Resignation: A voluntary separation initiated by the employee himself is called
resignation. It is always better to find why the employee has decided to quit the
organisation. Properly conducted exit interviews would help throw light on factors
behind the curtain .
Retirement: Termination of service on reaching the age of superannuation is
called retirement. - Compulsory Retirement - Voluntary Retirement
To avoid problems, organisations normally plan replacements to retiring
employees beforehand.
Death: Some employees may die in service. Death caused by occupational
hazards, of course, would attract the provisions of Workmens Compensation Act,
1923. The normal separation of people from an organisation due to resignation,
retirement or death is known as attrition.
• Lay off: A lay off entails the separation of the employee from the organisation
temporarily for economic or business reasons. Employee get 50% excluding
holidays of his normal basic pay plus dearness allowances.
• Retrenchment: A permanent lay off for reasons other than punishment but not
retirement or termination owing to ill health is called retrenchment. Legally
speaking, employers in India are required to give advance notice or pay
equivalent wages before the actual lay off date.
• Suspension: Suspension means prohibiting an employee from attending work
and performing normal duties assigned to him. He receives Subsistence
allowances.
Outplacement: Outplacement assistance includes Efforts made by the employer
to help a recently separated employee find a job. Apart from training support to
such employees, some organisations offer assistance in the form of paid leave
travel charges for attending interviews, search firm expenses, etc.
Discharge and dismissal: The termination of the services of an employee as a
punitive measure for some misconduct is called dismissal. Discharge also means
termination of the services of an employee but not necessarily as a punishment. A
discharge does not arise from a single irrational act such as alcoholism, willful
violation of rules, insubordination, carelessness, dishonesty, inefficiency, violent
acts, unauthorized absence for a long time .
 Questions

1. How to make an employee accept a transfer order?

2. What are the contents to be included in a promotion order?