Promotion of employees from lower positions to high positions is one aspect of personnel policy of management. Employees are given promotions as per certain well defined rules and procedures. Such promotions are necessary when vacancies occur at the higher level due to retirement, resignation or transfer of employees. Promotions are normally given in business enterprises and also in banks and government departments. Promotion is rightly described as “Advancement within an organization.” Promotion acts as an incentive for self-development through training and active interest in the work assigned. It is an essential feature of an individual’s career. It is advancement in an organization.

According to Edwin Flippo, “Promotion involves a change from one job to another that is better in terms of status and responsibilities.”

Feature of promotion:
1) Promotion means fiving higher position, status, responsibility and salary to an employee or supervisor etc. 2) Internal promotions are better than new recruitment from external sources. 3) An employee gets an opportunity to work at a higher level due to promotion. 4) Workers normally prefer promotion. 5) Promotion is rightly treated as a reward or an appreciation of efficiency. 6) An employer has to introduce impartial and scientific promotion policy. 7) Partially, favouritism, etc. should be avoided promotions. 8) Adequate publicity should be given to the promotion policy of the company. 9) It is desirable to introduce promotion policy after due consultations with the employees. 10) Promotions include horizontal promotions, vertical promotion and dry promotions. 11) Promotion by merits and seniority.

Objectives of promotion:
1) To provide higher status, salary and psychological satisfaction to existing employees. 2) To put the employee in a position where he will be of greater use to the company and where he will get more income, status and satisfaction. 3) To motivate employees to higher productivity, stability in service and loyalty to the organization. 4) To attract and retain the services of qualified and competent employees. 5) To recognize and reward the loyalty, efficiency and hard work of an employees. 6) To impress upon all employees that opportunities are available to them to move to higher positions. 7) To support the policy of filling vacancies at the higher level from within the organization. 8) To raise employees organizational effectiveness and to promote job satisfaction among the employees. 9) To raise employee morale and to motivate employees grow, develop and reach to higher position. 10) To raise loyalty, morale and a sense of attachment among the employees.

Benefits of promotion:
A) Benefits of promotion to Employees: 1) Higher salary: due to promotion, he gets higher pay scale. The regular income of the worker increases and this gives better life and welfare to worker and his family members. 2) Higher status: A worker gets higher status which carries honor and other benefits. It may even offer him higher social status. 3) Change in the nature of work: promotion brings change in the nature of work of an employee. Due to promotion the routine work is replaced by planning and decision-making work. 4) Non-monetary benefits: due to promotion, an employee gets non-monetary benefits such as housing, transport and medical facilities. 5) Higher position: due to promotion the worker gets higher position in the organizational set up. He gets membership of certain administrative committees. 6) Incentive to work efficiency: promotion acts as an incentive to an employee to work efficiency, to learn new things and to develop career in the organization.

7) Psychological satisfaction: promotion gives psychological satisfaction to workers.

B) Benefits to promotion to the management: 1) Scientific promotions raise the morale of employees. 2) It develops second line of leadership in the organization. 3) Promotions facilities the process of management development or manpower development activity in the organization. 4) It reduces the rate of labour turnover and labour absenteeism. 5) Scientific promotions develop cordial labour management relation. 6) It ensures orderly functioning of the organization and raises productivity. 7) Promotion can be used by the management as a motivational force. 8) Scientific promotion policy attracts capable, efficient and talented persons from other companies. 9) Promotion raises job satisfaction of workers and also raises their morale. 10) Promotion creates a sense of loyalty among the employees.

Principals of sound promotion policy:
1) Rules of promotion should be clear and precise: The rules of promotion that is qualification, qualities, experience, other terms and conditions and ladders of promotion within the organization should be defined clearly and precisely. 2) Wide publicity to promotion policy: The promotion policies should be given wide publicity so as to enable every employee to understand well in advance the rules procedures and eligibility for promotion. 3) No scope for partially, favouritism or injustice in promotions: there should be any scope for partially, favoritism and injustice while giving promotions and more particularly to those who are loyal, efficient and sincere. 4) Based on scientific work performance: the promotion decisions should be based on scientific work performance appraisal of employees over a long period. 5) Grievances relating to promotions should be settled properly: every employee should be given an opportunity to place his grievances regarding his promotion before an appropriate authority. 6) Opportunity of promotion should be provided to every worker: every employee should be given an opportunity

for promotion. In addition, service records of all employees should be maintained properly for ready reference. 7) Importance of merits and seniority in promotions should be clear: the importance of merits and seniority in the promotion to different posts should be clearly defined and strictly followed. This avoids confusion and misunderstanding among workers. 8) Stability to promotion policy: the promotion policy should be prepared for a longer period in the case of all categories of employees. 9) Promotion should not be forced: an employee should not be forced to accept promotion against his wish or desire. There should be full freedom to employees in this regard. 10) Priority to promotion from within: more importance should be given to promotions from within posts at the higher levels should be given to outsiders. 11) Publicity to promotion openings: when openings of promotion are expected these should be notified through circular, etc. 12) Wide acceptability: promotion policy should be finalized after due consultations with employees and their unions. This brings general acceptability to policy.

Meaning and Definition:
In business organization, employees are shifted from one post to the other or from one department to the other or from one unit of the company to the other. This is called job transfer. Such transfers are quite common in the case of banks, government departments manufacturing companies and other business and service organization. A transfer is defined as “a change in job where the new job is substantially equal to the old in terms of pay, status and responsibilities.” Transfer is neither promotion nor demotion but merely a horizontal or lateral movement of an employee from one job to another. A transfer differs from a promotion.

1) Variation in the volume of work: transfers are necessary due to variation in the volume of work in different department. 2) Providing training to employees: transfers are made for providing opportunities to employees for training and development. 3) Rectification of poor placement: transfers are necessary for the rectification of poor placement made in the initial period. 4) Satisfying personal needs of employees: transfers are necessary in order to satisfy1 the personal needs of the employees. 5) Meeting organizational needs: transfers are necessary in order to meet the organizational needs developed out of expansion program. 6) Solution to poor performance: transfers are sometimes made when the worker fails to perform his job efficiently. 7) Avoiding fatigue and monotony: transfers are made for avoiding fatigue and monotony of work. 8) Removing poor personal relations: the relations between the worker and his superior may not be smooth and cordial. 9) Providing relief and to punish employees: transfers may be made in order to give relief to the employees.

Principles of sound transfer policy:
1) Transfers should be made only when absolutely necessary. 2) The basis of transfers should be properly decided. 3) Large scale transfers should be avoided by selection and placement procedure for the purpose. 4) Responsibility for initiating and approving transfer decisions should be clearly. 5) Transfer should be not be made as a punishment or as a revenge on an employee. 6) Transfer should be made after taking concerned employee into confidence. 7) A request for transfer by an employee on sound personal grounds. 8) All transfers should be made in the best interest of the organization. 9) Management should prepare a sound transfer policy for a long period. 10) An employee should be given an opportunity to appeal to an appropriate authority over the decision of his transfer.

Procedure for transfers:
1) Transfer from one place to the other: the transfer involves considerable change in the job and working conditions. The transfers should be made when absolutely essential. 2) Inter-departmental transfers: an employee is transferred from one department to the other. Such transfers are decided by mutual consultations among the departmental head. 3) Intra- departmental transfers: transfers are rather simple. They are made within the same department. They are decided by the foreman or plant manager. The personnel manager must be informed of such transfers.

1) Production transfers: a shortage or surplus of labour force is quite common in different departments in a plant or several plants in an organization. Such transfers necessary for the adjustment of surplus staff with shortage of staff are called production transfers. 2) Replacement transfers: replacement transfers are made for suitable adjustment of employees in different department. The purpose of replacement transfers is to give protection to senior employees as long as possible. 3) Versatility transfers: versatility transfers are made in order to make employees versatile and competent through training facility which again is possible through transfers. 4) Shift transfers: transfers of employees from one shift to the other are commonly made on a rotation basis. 5) Remedial transfers: remedial transfers are for the rectification of faulty placements made in the initial period. The employee fails to show good performance due to faulty placement.