TRANSFER AND DEMOTION

Presented by

DIVYA ANN CHACKO

MBA, SECOND SEMESETER
TRANSFER
DEFINITIONS:

Type of mobility which is restricted to movement of an

employee from one job to another in the same level of
organizational hierarchy.
OR
Lateral shift causing movement of individuals from one position
to another usually without involving any marked change in
duties, responsibilities, skills needed or compensation.
 Moving of an employee from one job to another. It may
involve a promotion, demotion or no change in job status.

 Change in assignment.

 Require similar skills.

 Involves same level of responsibility, same status and same

level of pay.

 To place the right employee in the right job.

REASONS OF TRANSFER
 To meet the organizational requirements.
 To satisfy the employee’s needs.
 To utilize employee’s skill, knowledge.
 To improve employee’s background.
 To correct interpersonal conflicts.
 To give relief to the employees.
 To punish the employees.
 To help the employees.
 To minimize fraud, bribe etc.
TYPES OF TRANSFERS

1) Production Transfer : Due to changes in production.

2) Replacement Transfer : Due to initiation or replacement of a

long standing employee in the same job.

3) Rotation Transfer : Initiated to increase the versatility of

employees.

4) Shift Transfer : Transfer of an employee from one shift to

another.
5) Remedial Transfer : Transfers initiated to correct the wrong
placements.

6) Penal Transfer : Transfers initiated as a punishment for

indisciplinary action of employees.
CATEGORIES OF TRANSFERS
Transfers are basically of three categories. They are:

1) Employee initiated Transfer

a) Temporary Transfer
b) Permanent Transfer

2) Company initiated Transfer

a) Temporary Transfer
b) Permanent Transfer

3) Public Initiated Transfer

EMPLOYEE INITIATED TRANSFER

 Also known as Personal Transfers.

 Due to the interest of employees and according to his desire.

a) Temporary Transfers: Reasons for this are

- Due to ill health, family problems, ad hoc problems.

b) Permanent Transfers:

- Due to chronic health ill health, family problems, to

correct his wrong placement.

- To relieve himself from the monotony or boredom.

- To avoid conflicts with superiors.

- To search for challenging and creative jobs.

- To search for a job with opportunities for advancement

to a higher level job, opportunities for financial games.
COMPANY INITIATED TRANSFER

 Transfers at the initiative or at the requirement of the

company.

a) Temporary Transfer:
- Due to temporary absenteeism.

- Due to fluctuations in quality of production and

thereby in work load.
b) Permanent Transfer:
- Change in the quality of production, lines of
activity, technology, organizational structure.
- To improve the versatility of employees.

- To improve the employee’s job satisfaction.

- To minimize bribe or corruption.

PUBLIC INITIATED TRANSFER

Public also initiate the transfers generally through the politicians

or government for the following reasons. They are:

 If an employee’s behavior is against the social norms.

 If the functioning of an employee is against the public interest.

Major drawback of this type of transfer is politicalisation of

issue which is more severe in government departments.
BENEFITS OF TRANSFER

Benefit to both the employees and the organization.

 Reduce employee’s monotony, boredom etc. and increase job

satisfaction.
 Improve employee’s skills, knowledge.
 Correct erroneous placements and interpersonal conflicts.
 Improve employee’s morale.
 Enhances human resources contribution to organizational
effectiveness.
PROBLEMS OF TRANSFER

 Adjustment problems and inconvenience and cost

 Company initiated transfer result in reduction in employment

contribution.

 Loss of man days.

 Discriminatory transfers affect employee morale, job

satisfaction, commitment and contribution.
TRANSFER PRINCIPLES
 Specification of circumstances.

 Specification of a superior who is authorized and responsible

to initiate a transfer.

 Jobs from and to which transfers will be made based on the

job satisfaction, description, and classification etc.

 The region or unit of the organization within which transfers

will be administered.

 Reasons which will be considered for personal transfers.

 Reasons for mutual transfer of employees.

 Norms to decide priority when two or more employees request

for transfer like priority of reason, seniority etc.

 Specification of basis for transfer like job analysis, merit and

length of service.

 Specification of pay, allowances, benefits etc. that are to be

allowed to the employee in the new job.
 Other facilities to be extended to the transferee like special
leave during the period of transfer, special allowance for
packaging luggage, transportation etc.

Generally line mangers administer the transfers and personnel

managers assist the line managers.
DEMOTIONS
 Type of internal mobility.

 Opposite of promotion.

 It is the reassignment of a lower level job to an employee with

delegation of responsibilities and authority required to
perform that lower level job and normally with lower level
pay.

 Organizations use demotions less frequently bcoz it affects

employee’s career prospects and morale.
REASONS FOR DEMOTIONS

1) Unsuitability of the Employee to Higher level of job.

2) Adverse Business Conditions.

3) New technology and new methods of operation.

4) Demoted on disciplinary grounds. Organizations rarely use

this.
DEMOTION PRINCIPLES
 Specification of circumstances under which an employee will
be demoted like reduction in operations, indisciplinary cases.

 Specification of a superior who is authorized and responsible

to initiate a demotion.

 Jobs from and to which demotions will be made and

specifications of lines of ladders of demotion.
 It should provide for an open policy rather than a closed
policy.

 Contain clear cut norms.

 Specification of provisions regarding placing the demoted

employee’s in their original places if the normal conditions are
restored.

 Specification of nature of demotion.

REFERENCE

 Subba Rao P. 2009. Essentials of Human Resources

Management and Industrial Relations. Himalaya
Publishing House. Mumbai. 613p.
THANK YOU…..