Ch 4 contd.promotions and transfersPresentation Transcript
Promoting from within is good business practice and has been shown to be a powerful employee motivator. Internal promotion policies can generate loyalty through the recognition of individual merit and improved morale by fulfilling employees’ need for increased status.
The purpose of this policy is to ensure uniformity in the way that transfers and promotions are managed. a promotion is defined as a position change moving from a lower graded position to a higher graded position. Any move from a graded position to another position in the same grade shall be considered a lateral transfer and not a promotion . Such lateral transfers are not eligible for the promotional increase described in this Policy .
Employees must stay in a position for a minimum of six months before taking another position in a different department. Exceptions may only be considered with the prior approval of their supervisor. In most cases, an employee who is promoted to the next higher grade will have their pay increased to the minimum for the new grade or will receive an increase of 5% of their previous base pay, whichever is more advantageous for the employee. In most cases, for each additional grade over one grade higher, the employee will receive an additional 3% increase of their base pay per grade or the minimum for the new grade, whichever is more advantageous for the employee.
Promotional pay increases will never exceed the maximum for the position’s grade.
Prior to the effective date of the promotion , the employee’s supervisor must complete a final Development and Performance Review to evaluate the employee’s performance in the position prior to promotion . Employees who do not score satisfactory (“meets expectations”) or better overall will not be eligible for promotion .
Ninety days after the promotion , the employee’s new supervisor must complete a ninety day Development and Performance Review. The employee is not eligible for a merit increase based on the ninety day review.
All promotions must be approved by the appropriate college dean or vice-president. Following this approval, the request must be submitted to the Business Office and Human Resources. If the position was previously unbudgeted or exceeds the budgeted allocation, it must also be approved by the Vice-President of Finance and Administration.
Our first rule in promoting employees is that longevity should play a secondary role in the decision to promote. In fact it should be used only in the case where two or more employees are vying for a management position and all are equally qualified to be promoted. Rewarding long-term employees by promoting them into positions they are not well-suited for is unfair to the employee, fellow employees and the company.
Another common reason people are promoted is because they are well liked. Being well liked in and of itself is not a reason to promote someone. Certainly if the employee posseses the requisite skills and profile to be an effective manager they should be considered for the promotion. However, it seems that too many owners and managers promote people because they like the person. They want to reward the individual for making them feel good and for being a good team player.
Some employees are promoted because they are doing an excellent job in their current positions. But does that alone indicate they will be effective at the next level?
It only makes sense when an employee has the ability to manage effectively.
The problem in hiring and promoting employees is that gut feelings and subjective criteria are too often used in judging whether someone can move into a management role and be effective. When promoting employees, they should be taken through a rigorous process to determine their chances for success in a management position.
Most promotional decisions are made too quickly and without sound rationale. Putting some structure and objectivity into the process will help immensely in making the right decision.
While employees are traditionally rewarded with promotion and compensation for a job well done retrospectively, rarely do organizations ask themselves how well a person is psychologically prepared to manage power going forward.
For example, it is as common for companies to promote individuals who exceed sales goals or who stand out for their customer service skills, as it is uncommon for employees to be promoted based on their ability to form and develop healthy relationships.
Strategic Pointers :
Identify those who have performed well in quantifiable terms.
Collect feedback from people who interact with those being considered for promotion who are above, beneath and lateral to them organizationally (“360°).
Interview the candidate to assess his/her perspective on assuming a role that manages others and what they hope to get out of it.
who makes the best managers? Which individuals get the most out of their teams and produce the best business results for their employers?
For starters, you need to find people who don’t need power to feel important. Real leaders don’t care who is “above” them enough to let it alter their standard of behavior. They care more about output than fiefdoms and treat everyone with the same degree of respect and responsiveness regardless of “level.” Driving results, creating synergies and building teams are paramount to them. In short, true leaders focus on others and not themselves.
A transfer refers to a horizontal or lateral movement of an employee from one job to another in the same organization without any significant changes status and pay. It has been defined as “ lateral shift causing movement of individuals from one position to another usually without involving any marked change in duties, responsibilities, skills needed or compensation.
Need and purpose of Transfers
1. To meet organizational needs
2. To satisfy employee Needs
3. To better utilization of Employees
4. To make the Employee More versatile
5. To adjust the work force
6. To provide Relief
7. To Punish Employees
Types of Transfers
1. Production Transfer
2. Replacement Transfer
3. Versatility Transfer
4. Remedial Transfer
5. Shift Transfer
Demotion implies the assignment of an employee to a job of lower rank with lower pay. It refers to downward movement pf an employee in the organizational hierarchy with lower status and lower salary.
It is downgrading process and a serious type of Punishment, hence it should be used tactfully and only when it is absolutely necessary.
Need for Demotion: Why and When
1. Adverse Business Conditions
3. Technological Change
4. Disciplinary Measure.
Separation of an employee takes place when his service agreement with the organisation come to an end and the employee the organisation. It may occur due to resignation, death, dismissal and layoff. Following are various forms of separations.