TRANSFER AND By Prof.

Teena Bharti

SEPARATION Bennett University

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.

Purpose of Transfer-
• To meet organisational requirements
• To satisfy employee needs
• To utilise employees better
• To make the employee more versatile
• To adjust the workforce
• To provide relief to overburdened employees
• To reduce conflicts
• To punish employees
Benefits and Problems associated with Transfers:
B e n e fits P r o b le m s
 Im p ro v e e m p lo y e e s k ills  In c o n v e n ie n t to e m p lo y e e s w h o o th e r w is e
d o n o t w a n t to m o v e
 R e d u c e m o n o to n y, b o re d o m  E m p lo y e e s m a y o r m a y n o t fit in th e n e w lo c a tio n /d e p a r tm e n t
 R e m e d y fa u lty p la c e m e n t d e c is io n s  S h iftin g o f e x p e r ie n c e d h a n d s m a y a ffe c t p ro d u c tiv ity
 P r e p a re th e e m p lo y e e fo r c h a lle n g in g  D is c rim in a to r y tra n s fe rs m a y a ffe c t
a s s ig n m e n ts in fu tu re e m p lo y e e m o ra le .
 S ta b ilis e c h a n g in g w o rk re q u ire m e n ts in
d iffe re n t d e p a r tm e n ts /lo c a tio n s
 Im p ro v e e m p lo y e e s a tis fa c tio n a n d m o ra le
 Im p ro v e e m p lo y e r-e m p lo y e e r e la tio n s
Transfer Policy:

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
An Example- Transfer policy of Hindustan
Unilever:
Company Info-

Hindustan Unilever is India's largest company dedicated to the FMCG segment. It

was founded in 1932 and has its head office in Mumbai, Maharashtra. It
manufactures products in 20 different categories spanning over 35 brands
comprising shampoos, soaps, skin care products, detergents, deodorants, cosmetics,
toothpastes, coffee, tea, packaged food items and the likes.

TRANSFER POLICY AND PROCEDURE:

Hindustan Unilever recognizes that staff motivation,
productivity, and retention are dependent upon people
working in jobs that are well suited to their interests, and
therefore offers and encourages transfer opportunities for
current employees. Likewise, supervisors should be
supportive of staff members who have the desire to enhance
their skills or develop new competencies to pursue different or
greater responsibilities internally.
Demotion:
Employee movement that occurs when an employee is moved from one job
to another that is lower in pay, responsibility and/or organisation level is
called demotion.
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. To this end,
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.
How to Trim the Workforce? (cntd)
HMT has gone a one step ahead and offered the chance to workers who opt for
VRS to start retail and ancillary activities on behalf of these companies.

Caltex sold petrol pumps to workers accepting the VRS others like Philips,
Sandoz, TISCO offered more attractive packages to employees who accepted
VRS like accommodation in Urban area, free education to children etc.
Employee Separations:

 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. 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 Workmen's 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. OR Suspension or
termination of employment (with or without notice) by the employer or management. 
Layoff survivors:

• Layoff survivors are employees who continue to

work for the downsizing organization. It seems
better to be a survivor than a victim. However,
even those whose jobs are not eliminated often
react negatively to downsizing.
 Coping with Job Loss and Unemployment:

Source: Adapted from Frances M. McKee Ryan, Zhaoli Song, Connie Wanberg, and Angelo J. Kinicki, ‘‘Psychological and Physical Well-
Being During Unemployment: A Meta-Analytic Study,’’ Journal of Applied Psychology 90 (2005): 56. Adapted with permission.
Employee Separations: (cntd)

 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. (50
per cent of basic wages plus 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.
Employee Separations:
 Suspension: Suspension means prohibiting an employee from attending work
and performing normal duties assigned to him.
 Discharge and dismissal: The termination of the services of an employee
as a punitive measure for some misconduct is called dismissal and done on legal
basis. 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, unauthorised absence for a long time.
Employee Separations : (cntd)
Merits and demerits of outplacement
M e rits
 S h o w s th e h u m a n fa c e o f th e c o m p a n y.
 E a s e s t h e p a in o f r e t r e n c h m e n t .
 P r e s e r v e s t h e m o r a le o f t h o s e w h o r e m a in 
w it h t h e c o m p a n y .
 S m o o th e n s th e w a y fo r fu tu re d o w n s iz in g
m oves.
 H e lp s y o u r e t a in y o u r f o r m e r e m p lo y e e s ’
re s p e c t.
S o u r c e : B u s in e s s In d ia J a n 7 -2 1 , 1 9 9 6 p p . 3 0 0 -5 0 4
D e m e r its
 M a y b e t im e c o n s u m in g a n d c o s t ly.
 M a i n t a in in g d a t a b a s e s o n o t h e r jo b s is
n o t e a s y.
C a n w o r k o n ly w h e n r e tr e n c h in g a
fe w m a n a g e rs a t a tim e .
 C a n b e t u r n e d d o w n b y a n g r y, d i s i l l u s i o n e d
e m p lo y e e s .
 D if f i c u lt t o c o n v i n c e a n d i m p le m e n t a t t h e
le v e l o f w o rk e r s .
Thank You