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Hrm presentation

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  • 1. A STUDY ONPROMOTION, TRANSFER, DEMOTIO N• PRESENTED BY E. VENKATA RAO
  • 2. CONTENTSPROMOTIONSTRANSFERDEMOTIONS
  • 3. PROMOTIONS• Meaning• Types of Promotion• Purpose of Promotion• Bases of Promotion• Benefits of Promotion• Promotion Principles
  • 4. Meaning• According Pulapa Subba Rao “Promotion is the reassignment of a higher level job to an internal employee (which is supposed to be assigned exclusively to internal employees) with delegation of responsibilities and authority required to perform that higher job and normally with higher pay”
  • 5. Types of Promotion• Promotion is of three types. They are:1. Vertical promotion2. Upgradation3. Dry promotion1. Vertical promotion: Under this type of promotion, employee ismoved to the next higher level, in theorganizational hierarchy with graterresponsibility, authority, pay and status.
  • 6. • Continue…..2. Upgradation: Under this Promotion, the job is upgraded inthe organizational hierarchy. Consequently, theemployee gets more salary, higherauthority, responsibility.3. Dry promotion: Under this Promotion, the employee ismoved to the next higher level in theorganizational hierarchy with greater
  • 7. Purpose of Promotion• Organizations promote the employees with a view to achieve the following purposes: To utilize the employee’s skill, knowledge at the appropriate level in the organizational hierarchy resulting in organizational effectiveness and employee satisfaction To develop competent internal source of employees ready to take up jobs at higher levels in the changing environment To promote training, development programs and in team development areas To build loyalty and to boost morale
  • 8. Bases of Promotion• Organizations adopt different bases of promotion depending upon their nature, size, management etc.• Generally, they may combine two or more bases of promotion.• The well-established bases of promotion are:MeritSeniority
  • 9. • Merit: Merit is taken to denote an individual employee’s skill, knowledge, ability, efficiency and aptitude as measured from educational, training and past employment record.• Seniority: Seniority refers to relative length of service in the same job and in the same organization. The logic behind considering the seniority as a bases of promotion is that there is a positive correlation between the length of service in the same job and the amount of knowledge and the level of skill acquired by
  • 10. • Merit-cum-seniority: A combination of both merit and seniority can be considered as the basis for promotion satisfying the management for organizational effectiveness and the employees and trade unions for respecting the length of service.
  • 11. Benefits of PromotionPromotion of employees from lower ranks to higher positions benefits the organization as well as employees: It places the employees in a position where an employee’s skill and knowledge can be better utilized; It creates and increases the interest of the other employees in the company ass they believe that they will also get their turn; Promotion improves employee morale and job satisfaction; Ultimately it improves organizational health.
  • 12. Promotion principles• Every organization has to satisfy clearly its policy regarding promotion based on its corporate policy. The principles are: Systematic line of promotion channel should be incorporated, It should provide equal opportunities for promotion in all categories of jobs, departments and regions of an organization, It should contain clear cut norms and criteria for judging merit, length of service, potentiality etc., Appropriate authority should be entrusted with the task
  • 13. TRANSFER• Meaning• Purpose of Transfer• Types of Transfer• Benefits of Transfer• Problems of Transfer• Transfer Principles
  • 14. • Meaning:It is defined as “…the moving of employee from one job to another. It may involve a promotion, demotion or no change in job status other than moving from one job to another”
  • 15. Purpose of Transfer: Organizations resort to transfers with a view to attain the following purposes:To meet the organizational requirements: Organizations may have to resort to transfer of employees due to changes in technology, change in volume of production, production scheduled, product line, quality of production etc.,To satisfy the employees’ needs: Employees do need transfer in order to satisfy their desire to work under a friendly superior, in a department/region where opportunities for
  • 16. Types of TransferTransfer can be classified into the following types:I. Production Transfer: transfer caused due to changes in productionII. Replacement Transfer: it is caused due to replacement of a long standing employee in the same jobIII. Rotation Transfer: transfers initiated to increase the versatility of emp..IV. Shift Transfer: transfer of an employee from one shift to anotherV. Remedial Transfer: transfers initiated to correct the
  • 17. Benefits of Transfer Transfer benefits both the employees and the Organization. Transfer reduce employees’ monotony, boredom etc. and increase employees’ job satisfaction. Further, they improve employees’ skill, knowledge etc. They correct erroneous placements and inter-personal conflicts. Thus, they improve employees’ morale. Further, they prepare the employee to meet organizational exigencies including fluctuations in business and organizational requirements. Thus, they enhance human resource contribution to organizational effectiveness.
  • 18. Problems of Transfer• Despite these benefits, some problems are associated with transfers. They are;• Adjustment problem to the employee to the new job, place, environment, superior and colleagues• Transfer from one place to another result in Mandays,• Company initiated transfers result in reduction in employee contribution• Discriminatory transfers effect employee morale, job satisfaction, commitment and
  • 19. Transfer Principles• Organizations should clearly specify their policy regarding transfer.• Systematic transfer policy should contain the following items: Specification of circumstances under which an employee will be transferred in the case of company initiated transfer Reasons which will be considered for personal transfers, their order of priority etc. Reasons for mutual transfer of employees Specification of basis for transfer like job analysis, merit and length of service
  • 20. DEMOTIONS• Meaning• Reasons for Demotions• Demotion Principles
  • 21. Meaning: Demotion is the “ reassignment of a lowerlevel job to an employee with delegation ofresponsibilities and authority required toperform that lower level job and normally withlower pay ”.Organizations use demotions less frequently as it affects the employee’s career prospects and morale.
  • 22. Reasons for DemotionsUnsuitability of the Employee to Higher Level Jobs: Employees are promoted based on seniority and past performance. But some of the employees are demoted on these two bases may not meet the job requirements of the higher jobs.Adverse Business Condition: Generally it force the organization to reduce quality of production, withdrawal of some lines of products. Consequently, organizations minimize the number of employees.
  • 23. Reasons for Demotions continue….New technologies and new methods of operation demand new and higher level skills.• If the existing employees do not develop themselves to meet these new requirements, organization demote them to the lower level jobs where they are suitable.Employees are demoted on disciplinary grounds. This is one of the extreme steps and as such organizations rarely use this measure
  • 24. Demotion Principles• Organizations should clearly specify the demotion policy. A systematic demotion policy should contain following items: 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 line or ladders of demotion Specification of basis for demotion like length of service, merit or both It should provide for an open policy rather than a closed policy