Concept of Promotion and Demotion

Purpose,principles,benefits and reasons for promotion and demotion in the companies

1. Promotion and Demotion Human Resource Management Powerpoint presentation on

2. CONTENTS PROMOTION Meaning Defination Purposes of promotion Principles of promotion Benefits of promotion DEMOTION Introduction Defination Reasons for demotion Principles of demotion

3. PROMOTION MEANING Promotion means it is an upward movement of an employee from current job to another that is high in pay,responsibility,status and organisational level. Defination According to scott and spreigal , “a promotion is the transfer of an employee to a job than pays more money or that enjoys some preferred status.”

4. Purposes of promotion To develop competative spirit ,to acquire skill,knowledge etc in the employees To promote employee’s self development and make them await their turn of promotions.It reduces labour turnover. To promote the feeling of content with existing conditions of the company and the sense of belongingness. To promote interest in training and development programs and in team development areas. To build loyalty and to boost morale. To reward committed and loyal employees.

5. Principles of promotion The promotion policy should be in writing and must be understood by all the employees to avoid any suspicion regarding promotion in the minds of the employees. The promotion policy should lay down what percentage of vacancies in higher levels of hierarchy are to filled up by promotion and are to be followed strictly. Promotion programs must be closely alligned to training programs –which enables the employees to improve themselves for promotions. A vacancy should be notified to the employees in advance –so that the interested employees can apply with in specific period. The promotion first has to be made a probationthat is if he works satisfactorily during this probation period he should me made permanent.

6. Benefits of promotion Promotion places the employees ina position where an employee’s skills and knowledge can be better utilized. It creates among the employees the feeling of content with the existing conditions of work and employement . Creates an interest in acquiring higher qualifications , in training and self development the view to meet the requirements of the promotions. Promotion improves employee’s job satisfaction and morale. Ultimately it improves organisational health.

7. DEMOTION INTRODUCTION Demotion is just opposite to promotion. In demotion the employee is shifted to a job lower in status ,salary and responsibilities . DEFINATION According to Dale yoder , “Demotion is a shift to a position in which responsibilities are decreased.Promotion is an increase in rank and demotion is decrease in rank.”

8. Reasons for demotion Inadequacy on the part of the employees in terms of the performance,attitude and capability.It happens when the employee finds in difficult to meet job requirement standards . Demotion may result due to organisational staff reductions.Due to adverse business conditions ,organisations may decide to lay off some downgrade jobs. Demotions may be used as disciplinary tools against errant employees. Because of the changes in technology,methods and practices and because of employees ill health or personal issues ,cannot do their job properly.

9. Demotion Principles Organisations should clearly specify the demotion policy.Otherwise the superiors demote the employees according to their whims and fancies. A systematic demotion policy should contain the following terms: Specification of bases for demotion like length of service ,merit or both. Specification of a superior who is authorised and responsible to initiate a demotion. It should provide for open policy rather than a closed policy. It should contain clear cut norms for judging merit and length of service. Specification of nature of demotion ,that whether it is permanent or temporary .

10. Done by K.ALEKHYA 120415684069 BBM ll YEAR SEMESTER 3