This presentation highlights on the bases for promotion in an organisation

2. MEANING
• “ The advancement of an employee to a higher job carrying higher salary, greater status and
more responsibility”
• Change from a lower level job to a better job
• Increase in pay, prestige and responsibilities

3. PROMOTION VS TRANSFER

4. PROMOTION & TRANSFER
PROMOTION
• Vertical
• Increase in pay
• Appreciable
• Status increases
• Irreversible
• Proved merit on job, special qualifications,
potential for assuming responsibilities
• To retain and reward for service
• Always positive
TRANSFER
• Lateral
• Not necessarily increase in pay
• Not appreciable
• Status remains the same
• Reversible
• No specific reason
• To correct erroneous placement, monotony,
conflict, personal considerations, to meet other
department’s emergencies
• May be positive, negative and neutral

5. NEED FOR PROMOTION
• Incentive for employees
• To stimulate ambitious and hard working employees
• Rewards for better work performance
• Gives job satisfaction
• Provides opportunity for career advancement
• Reduced labour turnover
• Insiders are familiar with structure, rules, policies of the organisation
• Cost of orientation and training are low

6. BASES OF PROMOTION
• SENIORITY
• MERIT
• COMBINATION OF BOTH

7. SENIORITY
• BENEFITS
• Little chance of favouritism and dispute
• Employees know their place in the promotion list
• Length of service indicates experience and perfection in his job
• Employees stick to the organisation to gain seniority
• Increases morale, commitment and reduces turnover.

8. SENIORITY
• DISADVANTAGES :
• Person promoted by seniority may not have required knowledge and skill
• Talented outsiders may not be employed
• Mobility of labour is topped
• Favouritism in the absence of criteria
• Expansion and growth of the organisation is restricted with limited talents.
• Junior employees have no incentives to improve their performance
• Junior employees know that there is no chance of promotion till seniors leave.
• Determining seniority is not easy – when seniority begins, effect of interruption in service

9. MERIT
• BENEFITS:
• Stimulates the employees to improve their performance.
• Young employees have incentive to improve their efficiency
• Performance appraisal is done
• Only competent employees will be successful.
• Job satisfaction and motivation are higher
• Productivity and profits increases.
• Appraisal reveals deficiencies which can be removed by training.

10. MERIT
• DISADVANTAGES :
• No formula to decide individual’s merit
• Involves favouritism
• Creates disputes
• Judgement may be faulty and varies from one manager to another.
• May demoralise and frustrate senior employees
• Ability criteria ignores experience.
• Trade unions do not favour merit-based promotions.
• Promotion based on competence in present job may not have potential to handle higher positions.

11. GOOD PROMOTION POLICY
• Percentage of higher level vacancies to be be filled by promotion from within should be mentioned.
• Schedule of positions to which promotions can be made should be prepared.
• Promotion policy should be published and explained.
• Job descriptions should be prepared
• Employees should be assisted and encourages to develop their skills
• Basis of promotion – relative weightage for merit and seniority should be specified.
• Performance appraisal done with scientific and accurate systems.
• Recommended by line manager and decided by superior.
• Employees must be given the right to appeal against promotion decisions
• Promotion decision may with the consent of the concerned employees without bais.
• Promotion policy must be flexible.