435229289-35113705-Promotion-Transfer-and-Separation-ppt.ppt

promotion , transfer, separation

1. Promotion, Transfer
and separation

2. Promotion
Promotion is upward movement of employees
Promotion means an improvement in pay, prestige,
position and responsibilities of an employee within
an organization.
A mere shifting of an employee to a different job
which has more working hours, better location and
more pleasing working conditions does not amount
to promotions

3. Purposes of promotion
To motivate employees for higher productivity
To attract and retain the services of qualified and
competent people
To recognize and reward the efficiency of an employee
To increase the effectiveness of the employee and of
the organization
To fill up higher vacancies from within the organization.
To build loyalty, morale and a sense of belongingness
in the employee.
To impress upon others that opportunities are available
to them too in the organization, if they perform well

4. Principles of promotion
Clear policy for filling the positions from internal
employees or through recruitment. Top positions
are normally filled through recruitment and lower
and middle positions through promotions
Basis of promotion usually is merit or seniority
Basis of promotion may also be competence of the
individual
Vacancy or non vacancy promotion
Promotion should be preceded by job analysis and
performance evaluation

5. Transfer
Transfer is also called as horizontal or lateral
movement of employees.
Transfer involves change of job (accompanied by a
change in the place of the job) of an employee
without a change in responsibilities and
remuneration

6. Reasons of transfer
Shortage of employees in one department and
surplus employees in other department
To sort out boss employee issues
Correction of faulty initial placement of an
employee
Monotony can be avoided by transfer, it also help
in raising productivity
Health reasons (climate may not be good to work
for longer periods)
Family related issues

7. Principles of transfer
The frequency of transfers and the minimum period
between transfers need to be decided upon and
made known to all the employees.
The authority which would handle transfers is to be
decided
The criteria for entertaining transfers need to be
laid down and strictly adhered to.
The area of the organization over which transfers
can be made need to be defined.
Performance of the employee should be assessed
before transfer.

8. Types of Transfers
Specifically transfers may be production,
replacement, versatility, shift and remedial
Production transfers: to meet the shortage of
employees during production
Replacement transfers: to replace senior positions by
junior officers
Versatility Transfers: To make employees versatile and
competent in different areas
Shift transfers: transfers between work shifts
Remedial transfer: on request of employees (also called
personal transfers)

9. Separations

10. Voluntary separations
When employee decides to terminate his/her
relationship with the employer. Tow types are
Quits: out of dissatisfaction in the current job, and
Retirements: Occur when the employees reach end of
their careers

11. Involuntary separations
Employer terminates the employee
Three reasons
Organization is passing through a lean phase
Faulty hiring leading to a mismatch
Employee exhibits deviant behavior vitiating the
environment

12. Contd..
Types
Discharges: also called termination and is done when
the employer find the employee to be non performing
Layoffs: Temporary separation. Section 2 (KKK) of the
Industrial Disputes Act, 1947, defines lay-off as a failure,
refusal or inability of an employer to give employment to a
worker whose name is present on the rolls but who has
not been retrenched. It may be for a definite period, after
which the employee may be recalled
Retrenchment: termination by the employer because of
productivity or economic reasons. It differs from the
dismissal because here it takes place without any fault of
the employee.

13. Contd..
VRS (Voluntary Retirement Scheme): sending
home surplus labor. Also called golden handshake
plan. It is with benefits
Like Hindustan Lever VRS consisted –
A lump sum payment equal to 2.25 times in July 1992
salary multiplied by remaining years of service
(subsequently reduced to 15 years service)
Pension equal to 70% of the July 1992 salary payable till
the age of 60 (the company’s retirement age)
Prizes such as computers, trucks, houses, and so forth
(99 in all) to be decided on the basis of a lucky draw.

14. Contd..
Rightsizing: means reducing the size of the
workforce or increasing it to maintain the employee
strength at the most desired level.
Mostly it is downsizing only
Triggered by –
The company’s bottom line is threatened
Technological advancements renders people redundant,
and
Organizational restricting

15. Contd..
It is quite painful for the employee and his family.
Affects the morale of all the employees

16. Managing separations
Positive outcomes
Organizations become fitter and trimmer
Saving on wage and salary bill
Fresh ideas brought by new entrants
Negative outcomes
Disrupts employee morale, may rather add to cost
Cost of turnover include retirement costs and hiring and
training costs