Professional Documents
Culture Documents
Principles of Promotion
1. Uniformity: A promotion policy must provide for a uniform distribution
of promotional opportunities throughout the organization. The ratio of
internal promotions to external recruitment must be the same at various
levels in all the departments otherwise morale of employees will be
seriously impaired in the department notorious for its low rate of
promotions.
2. Consistency: A promotion policy should enjoy consistency i.e., it should
be applied irrespective of the persons concerned. Policy should be
correlated to career planning so that there should not be a sudden spurt of
promotion conferring premature benefits on a number of persons followed
by a long period of absence of promotion.
3. Fair and Impartial: Promotion policy should be fair and impartial i.e.,
management should be able to remove all suspicion of arbitrariness,
aphorism to suit particular individuals, nepotism etc.
4. Planned Activity: Promotion should be a planned activity i.e.,
management should make a correct assessment of the requirements or
opportunities of promotion within the organization so that there is no
underestimation or overestimation. For this, promotion charts may be
prepared.
5. Definite Basis: There should a definite criterion for promotion. In the
absence of a contract to the contrary, the employer has the right to establish
any criteria for evaluation of promotability if they are reasonable, pertinent
to the job and not applied in a discriminatory manner. The two criterion
often used for making promotion decisions are merit and seniority.
Objectives of Promotion
The following are the important objective of promotion:
1. It is recognition of a job well done by the employee.
2. It is to increase the employee’s and the organization’s effectiveness.
3. Promotion builds loyalty, morale, and belongingness on the part of the
employee.
4. Promotion impresses upon others that opportunities are available to them
also if they perform well.
5. Promotion is a device to retain and reward an employee for his years of
service to the organization.
6. A concrete promotion policy should be based on the following aspects.
7. Encouragement of promotion within the organizations, instead of looking
outside to fill vacancies in higher posts.
8. An understanding that ability as well as seniority will be taken into account
in making promotions.
9. Drawing up an organization chart to make clear to all the ladders of
promotion.
10.All promotion should be for a trial period. Normally during this trial period
the employee draws the pay of the higher post.
11.It should be clearly understood that if “he does not make the grade” he will
be reverted to his former post.
Types of Promotion
Employee promotions can come in many forms, but typically will involve some
combination of:
Higher salary
More senior job title
More and higher-level responsibilities
Decision-making power
New leadership responsibilities
Promotion given to employees in an organization can be classified into three
types:
1. Horizontal Promotion: This type of promotion involves an increasement
in responsibilities and pay, and a change in designation. When an employee
is shifted in the same category, it is called “horizontal” promotion. This
type of promotion is referred to as “upgrading” the position of an
employee. Examples of a horizontal promotion including moving from a
Manager to a Senior Manager, or Specialist to a Senior Specialist.
When the candidates are invited from outside the organization it is called an
external source of recruitment. It includes direct recruitment, advertisement
Employment Exchange, Recommendations from present employees (It includes
the friend and relatives).
There are some advantages and disadvantages to promote or recruit from the
internal sources. They are described below:
Principles of Promotion
1. Joint responsibility: The responsibility to select employees should render
to a committee rather than a special manager. This will be more fruitful
and helpful it one representative of labor union stay as a member of this
committee.
2. Harmonization: Promotion standard should be one and, in every sector, it
will be applied. More clearly in an organization capability is the standard
or basis to give promotion. Then in every level capability will be the
considering issue to give promotion.
3. Equity and Impartiality: Promotion basis should be impartial and equal
for all. If in promotion process exists any mistake it may hamper, the
progress of the organization.
4. Pre-planning: Preplanning is very important for the promotion. So that no
hazardous situation spread out over the organization. For example - After
five years how many posts will be comply? Who are eligible for that post?
These questions are answered in advanced.
5. Pervasiveness: In the large organization there are various department, sub-
department and braches. So, it is not easy to control all these departments
from Centre or by a person. That is why the promotion decision and process
should handle over the entire department specifically and it will be possible
to app all job policy in the organization properly.
6. Definite Basis: There should a definite criterion for promotion. In the
absence of a contract to the contrary, the employer has the right to establish
any criteria for evaluation of promotability if they are reasonable, pertinent
to the job and not applied in a discriminatory manner. The two criteria often
used for making promotion decisions are merit and seniority.
7. Follow up: A sound promotion policy should provide for a suitable system
of follow up, counseling and review. Say, month or two after the change,
the personnel department should hold a brief interview with the promoted
employee and his new superior to determine whether all is going on well.
All promotions should be made for a trial period so that if the promoted
employee is not found capable of handling the job he can be reverted to his
former post and his former pay scale.
Bases of Promotion
Organizations undertake different bases of promotion. It depends upon the nature,
size, and management of the organizations. Some organizations (Public Sector
Undertakings) decide promotions solely on the basis of seniority while others
(Private Corporate) finalize promotions on the basis of merit. There are also
organizations those who decide promotions on the basis of combination of
seniority and merits. Top 3 bases of promotion are:
1. Seniority: Seniority of an employee refers to the relative length of service
in an organization. When seniority is considered as the basis of promotion,
the rule is to promote the employee having the longest length of service,
irrespective of the employee is competent to occupy a higher post or not.
The reason behind seniority as the basis of promotions is that there is a
positive correlation between the length of service in the same job and the
amount of knowledge and the level of skill acquired by an employee in an
organization. This practice of promoting employees is followed in
unionized industrial establishments, government-owned undertakings and
sometimes in private corporate and educational institutions.
2. Competence or Merit: In this case an employee is promoted on the basis
of excellent and superior performance in the current job. This is known
through performance appraisal done by the organization. Merit indicates
an employee’s knowledge, skills, abilities, and efficiency measured from
the employee’s educational qualifications, experience, job performance
and training records.
To get promotion on the basis of merit requires hard work and sincerity on
the part of the employee. In non- unionized organizations promotions are
made on the basis of merit. In unionized organizations merit is the basis of
promotion for non-productive employees. Seniority should be considered
as the basis of promotion when there is more than one employee of equal
merit.
According to Peter and Hull (1969) the members of an organization where
promotion is based on achievement, success, and merit will eventually be
promoted beyond their level of ability. Employees tend to be given
increasing responsibility and authority until they cannot continue to work
competently. This is commonly known as Peter Principle. The principle
holds that in a hierarchy, members are promoted so long as they work
competently. Eventually they are promoted to a position at which they are
no longer competent (their level of incompetence), and there they remain,
being unable to earn further promotions and thus reach their careers’
ceiling in the organization.
3. Combination of Seniority and Merits: Managements mostly prefer merit
as the basis of promotion as they are interested in enriching organizational
effectiveness by enriching its human resources. But trade unions favor
seniority as the sole basis for promotion in order to satisfy the interests of
majority of their members. Both seniority and merit as the bases of
promotions have their advantages and disadvantages.
Hence it is necessary for the organizations to give due weightage to both
seniority and merit while promoting their employees. A combination of
both seniority and merit can be considered as the basis of promotions, there
by satisfying the management for organizational effectiveness and the
employees and trade unions for respecting the length of service.
These posts may be filled from internal or external source, promotion employees
from internal source and recruit employee form external source there has some
contradiction between them as they stand at different pole. Some arguments too
far and against recruiting from external source are discussed below:
Arguments for:
1. To provide better opportunities eligible and competent candidate are
impressed toward the organization. It increases organizations human
resource.
2. By recruiting from outside, organization may able to select and talented
person as an executive from a vast area.
3. It helps to innovates new ideas, enthusiasms. Organization becomes
dynamic in its operation rather than traditional.
4. It is easy to recruiter from external source for sudden empty post.
Arguments against:
1. An external person cannot understand the activities of an organization t a
short time. For this it may loss its organization efficiency.
2. Every organization has some trait and culture. An outsider may not cope
with this and it may result of inconsistency with executive and the
organization.
3. Organization has to pay high training cost for external recruitment.
4. It is difficult to find out real efficient and capable person from many. By
taking interview for a few minutes, interviewers may become fail to take
right decision.
5. It creates conflict in the organization for recruiting from outside as it reduce
promotion chance of employees work inside the organization.
Though there are many ornaments for external recruitment for medium and high
level executives, internal promotion is better for the organization. Promotion
process may reduce the conflict, dissatisfaction and frustration among employees
and organization can run in consistent way.
Definition of Demotion
Demotion is considered as a punishment when an employee is transferred from
present post to lower post is called demotion more clearly, descend employee
from higher post to tower post. Demoting increase when discipline of the
organization, breaks. By demotion employee lost his dignity, responsibility,
privilege and salary and reduce power also.
Demotion Policy
Demotion is the instrument to save rules and regulation in the organization. For
an employee job is very important. But when they do excess than their power,
they are punished as demotion. Job dignity is the conductor of an employee's
social dignity. But a demotion can change everything of a man's life. So every
organization should have a fair and proper specific policy for demotion. These
policies are written below:
1. When demotion is granted as punishment, person will get chance for self-
defense and reviewing the punishment.
2. Employees are well informed about the causes of demotion.
3. This law is applicable for all. Any partially may increase dissatisfaction
among employees.
4. Rules of the organization should be logical and acceptable. The reasons
behind demotion should be specific.
5. If any employees do something against the organization, authority should
enquire the incident and take decision by discussion.
Reasons of Demotion
To transfer an employee to a non-important is called demotion. Demotion
decreases the opportunities and advantages of the employee. It is one kind of
punishment for the employees. There may be a lot of reason behind demotion.
These are discussed below:
1. Misbehavior: Subordinate should by his superior in the organization. But
sometimes it is seen that, subordinates are not willing to listen them. They do
misbehave with them. For this reason they may be punished as demotion.
2. Negligence in duty: If an employee doesn't complete his assign work and
shows a path to do it, superior may blame him. He neglects his duty and for
the same occurrence in regular basis they may take decision for this
employee's demotion.
3. Irregular promotion: It may be happened that an incompetent person gets
promotion by unsolicited. To correct this mistake, they may decide to demote
this employee from the current post.
4. Physical Barrier: An employee can not do every thing. If his promoted post
is not favorable for his physical strength and condition. In that case
organization may loss its position. So, without demotion there is no
substitute/alternative.
5. Unfitness: Sometimes employees may be demoted because of fitness. If the
employees have not enough fitness then the employees may get demotion.
That is why authority may provide him in lower post.
6. Problems of adjustment: If an employee cannot adjust with his working
environment, he cannot do good job and con not provide his best effort. For
the perfect job organization have to demote this employee.
7. Punishment: If an employee committee get any crime or corruption which
has bad impact on the organization. They can decide to give him demotion as
punishment.
There are lots of reasons to take decision over demotion. Some decision over it
may raise negative reaction in employees mind. So, the authority should take
decision very carefully for this touchy issue.
Effects of Demotion
Demotion is the transfer of an employee from higher post to lower post in same
department or another department. It is very natural to create a negative reaction
of among the employees. The effects of demotion are discussed in following:
1. Agitation: Demoted employees have no faith and respect to the organization.
Rather they try to create an agitation with labor against the organization.
2. Frustration: Demotion makes an en employee frustrated. He gets no
encouragement to do the work in the further spirit.
3. Reduce output: Quality and quantity of job reduce adversely of a demoted
employee. For this reason organization losses it productivity.
4. Dissatisfaction: A demotion may create dissatisfaction among the employees.
They organized to create an agitation rather work for due organization.
5. Create a Chaos: Demoted employee try to create a barrier in the way success
of the organization.
6. Disgusted: Demoted employees become disgusted towards the management
and organization. They wait for the chance to leave the organization and try
to spoil the image of the organization.
There are some demerits of demotion but for the fear of demotion employees'
work attentively. It makes them responsible and loyal to the organization.
Transfer
Shifting an employee or manager from one place to another by same
responsibility, salary and opportunity is called transfer, Transfer only changes the
working place and other everything remains same, Company can follow its policy
while making any transfer discussion or it may be on the need basis. Usually it
does not create any difference of performance, sometime it can.
Purposes of Transfer
There are some purposes of transfer. These purposes are discussed below in brief:
1. Suitable use of merit: If an employee cannot adjust with his working
environment he has been transferred to a suitable place so that he can show
and utilize his merit for the welfare of organization.
2. Acceptance of good job: Sometimes for the good job employees are
transferred to another place with a higher level responsibility. It also works
as acceptance of good job.
3. Work in advantageous position: To get best work from an employee it is
an instrument of the organization to allot a place favorable and suitable for
the employee. Employee also gets pleasure to work in a advantageous
position.
4. Reduce corruption: To work in a same place employee may become
corrupted that is harmful for the organization. But by transferring
employee this corruption may keep in mild stays.
5. Need for organization: To set a branch in the place, organizations need
some qualified and competent employee there to handle the work with
efficiency. That is why organization may transfer the employee.
6. Disagreement with executive: For the disagreement with executive
employees may be transferred to the remote is a punishment.
7. Correction of appointment: Sometimes appointment may wrong. To
correct this mistake transfer is occurred in the organization
8. Various experience: To make an employee more experienced in various
side organization chamfered them in the various places.
Types of Transfer
Transfer is committed for the interest of organization. Transfer is divided into
five types with the mission and objective of the organization. These types are
discussed as follows:
1. Replacement transfer: The main objective of this transfer is to stop the
layoff. By this transfer employee are shifted from one department to
another department. When a negative impression creates in an organization
and if it is felt the old employees are necessary for the organization, this
type of transfer takes place.
2. Shift transfer: To accomplish the task in a short time organization takes
this policy. Mainly in garments industries this types of shifting system is
observed. In this system, employees request to the management for their
suitable shift and the management grants their request.
3. Versatility transfer: Main objective of this transfer process is to keep
employees busy with work. Generally there are some organizations which
have no pressure of work. This transfer is occurred before production and
replacement. It makes a strong and competent team of employees.
4. Production transfer: There are different types of departments and
activities in the organization. When the productivity of a department is
reduced then organization transfers employees to another department to
increase the production of the organization. So the main objective of this
type of transfer is to keep production level at par. And this transfer is
occurred by the office central authority.
5. Remedial transfer: This type of transfer mainly reminds that employees
are human being, not machine. By this process employees express their
problems, advantages and disadvantages, their loyalty to the management
and by evaluates their opinion management take decision about transfer.
6. Miscellaneous transfer: Management of an organization can transfer
employees if necessary which does not fall into above types is called
miscellaneous transfer. Authority can do it anytime for the betterment of
the organization.
Dismissal or Discharge
When an employee his behaves, breaks rules and regulations, neglects duty and
inefficient in assign job authority may fired him for the service is called discharge
or dismiss. In short, dismissal is the termination of employment by an employer
against the will of the employee.
Generally to protect organizational interest this type of decision is taken. If
manager think that by the employee productivity is decreased crime is occurred
and any other corruptions are done he has taken this type of decision.
As dismissal or discharge is a legal lawful punishment so the authority should
have clear idea about the labor law and act. Employees become frustrated and
dissatisfy if the decisions go against the law. It hampers the organizational
goodwill and productivity as well.
Reasons of Discharge
In the organization, organizational interests get priority first. If any activities
occurred by the employees go against it may decide to fire him. There are some
reasons behind discharge are discussed in details:
1. Neglect of duty: Total activities of an organization depend on efficient and
strong employee to do properly. If they neglect their duty it impacts on the
prosperity of the organization and the management can discharge them.
2. Inability to work: If any employee physically and mentally in capable to do
work may be discharged from the organization.
3. Reducing excess workers: Sometimes organization recruits employees to
meet quick order in short and fast time. After and of the necessity management
may discharge them.
4. Change in policy: To keep pace with the flexible or dynamic environment
organizations have to change their policy. But some employees cannot accept
the changed policy and protest the new policy. Then management may
discharge them from the service.
5. Indefinites workers: If the employee becomes failure to do the assigned job
and cannot adjust with the environment management may take decision to
dismiss him from the job.
Dismissal or Discharge is a complex task. It may create opposite reaction to the
organization among the employees. So the management should take cautious
steps for these types of decision.
Contents of Orientation
In orientation, employees are given various ideas about the organization and the
working environment. These are given below:
1. Principles, history and management procedure of the organization.
2. Products or Services of the organization.
3. Factory, machineries and other instruments of the organization.
4. Organizational structure.
5. Duties and responsibilities to the organization.
6. Wages structure.
7. Rules and regulations of the organization.
8. Idea about tours formalities and facilities.
9. Work schedule.
10.Joint negotiation contract.
11.Employee’s facilities such as, life insurance, group insurance, medical
allowances, pensions, provident fund etc.
12.Safety measurement.
13.Training facilities.
14.Requirements of promotion.
15.Pattern of relations with the co-workers.
16.Employee equalization.
17.Specification of employee’s duty.
From the above discussion, we can say that in an orientation program, employees
are given above contents so that they can be will acquainted with various types
of ideas regarding organizing.
Objective of Orientation
The main objective of orientation is to introduce the new employees with the
organization. By providing various ideas, organization tries to represent the real
situation to the new employees. There are some objectives of orientation which
are given below:
1. To introduce with the goals and objectives of the organization.
2. To enhance interest of employees towards the organizations.
3. To create positive attitude towards the organization.
4. To build morale of employees.
5. To raise the potentiality of the employees.
6. To help the new employees to adjust themselves with the organization
7. To encourage the employees to maintain the rules and principles of the
organization.
In conclusion we can say that if the employees know the objectives of orientation
program and get clear idea about the organization they may feel comfortable
while going to perform their duties.
From the above discussion, we can conclude that there are some important factors
which are discussing above are necessary to make the orientation a successful
one.
“Orientation has a direct impact on future productivity, performance, and job satisfaction. And
you (the supervisor) play a key role in the success of the orientation process.”
Now we can conclude that socialization is the process by which a person learn
the values, norms, and required behaviors which permit that individual to
participate as a member of organization.
Or we can say that, “Socialization is the process of adjusting of the new member
to the organization.”
Objectives of Socialization
Socialization is a process which helps the new employees to adjust themselves
with organizations culture, rules and regulations, working procedure etc. The
main objectives of socialization are to make the employees comfortable while
they are performing their job in organization. There are three types of objectives
which are given below:
1. Training on rules and regulations of an organization.
2. Buildings inter personal relationship.
3. Ensuring belongingness.
Types of Socialization
Organization needs to determine which methods of socialization to be used.
Because different types of socialization programs influence on employees in
different ways. There are several types of socialization which are given below:
1. Formal Socialization: Formal socialization is a process by which new
appointed employees are given clear and complete ideas about
organization’s goal, expectation, rules and regulations and introduce with
other employees.
2. Informal Socialization: When organization does not introduce the new
employees formally and devote the new employees with this activity
directly it is called informal socialization. In this process the new
employees can gain knowledge about the organization from different
working experience.
3. Individual Socialization: Individual socialization is as such type of
program when any employee gets opportunity to introduce himself with
other employees of the organization separately.
4. Collective Socialization: When new employees are introduced
collectively with other employees of the organizations it is called
collective socialization.
5. Fined Socialization: Organization adapts fined socialization program to
accept the new employees cordially and introduce the employees with
organizations activities.
6. Variable Socialization: It is just the appropriate of fined socialization.
Where organization adapts different types of socialization program which
is more suitable.
7. Serial Socialization: Serial socialization is such types of socialization
program where an experienced employee guides the employees in a proper
way so that they can get new employee’s idea about the organization
clearly.
8. Disjunctive Socialization: Where socialization is not maintained
continuously and where organization does not appoint any guide officer
for the new employees, it is called disjunctive socialization.
9. Investiture Socialization: Investiture is home self when senior executives
are elected and appointed. In this program organization tries to appoint or
sheet them without any complain formalities.
10. Divestiture Socialization: In this program organization give the new
employees extra pressure to perform. Those who are not able to show this
attitude under pressure.