ORGANIZATION AND MANAGEMENT SHS SPECIALIZED SUBJECT IN ABM STRAND

1. Transfer ,Promotion, Demotion
Separation

2. Transfer
 A transfer is a change in job assignment. It
may involve a promotion or demotion or no
change at all in status and responsibility.

3. Purposes of Transfer
 To meet the organizational requirements
To satisfy the employee needs
To utilize employees better
To make the employee more versatile
To adjust the workforce
To provide relief
To reduce conflicts
To punish employees

4. Types of Transfer
 Production Transfers
 Replacement Transfers
 Rotation Transfers
 Shift Transfers
 Remedial Transfers
 Penal Transfers

5. Benefits of Transfers
- Improve employee skills.
-Reduce monotony, boredom
-Remedy faulty placement decisions
-Prepare the employee for challenging
assignments in future
-Stabilise changing work requirements in
different departments/locations
-Improve employee satisfaction and morale
-Improve employer-employee relations

6. Problems
-to employees who otherwise do not want to
move
-Employees may or may not fit in the new
location/department
-Shifting of experienced hands may affect productivity
-Discriminatory transfers may affect employee morale.

7. Transfer policy:
• Transfer policy: Organizations should clearly
specify their policy regarding transfers. Such a
policy would normally consist of the following
things
• Specify circumstances under which the transfer
has been effected
• Name the persons authorized to effect
transfers
• Mention the basis for the transfer
• Clarify the position regarding pay, allowances,
benefits etc

8. Promotion
 Promotion refers to upward movement of an employee from
current job to another that is higher in pay, responsibility and/or
organisational level.
 Purposes and Advantages of Promotion
 Promotion has powerful motivational value as it compels an
employee to utilise his talents fully, and remain loyal and
committed to his or her job and the organisation

9. Bases of Promotion
 Merit based promotions
 Seniority based promotions

10. Promotion Policy
 To be fair, an organization should institute a
promotion Policy that gives due weight age to both
seniority and merit.
 Promotion Opportunities must be thrown open to all
employees.
 The norms for promotion should be expressed in
writing.
 Detailed records must be maintained for this Purpose.
 A responsible official should be asked to take the
final decision regarding employee promotions.

11. Demotion
Demotion is the downward movement of an
employee in the organizational hierarchy with
lower status and pay.
It is a downgrading process where the
employee suffers considerable emotional
and financial loss in the form of lower rank,
power and status, lower pay and poor
working

12. Causes of demotion
 Employee unable to meet job requirements.
 Organization forced to demote employees
because of adverse business conditions.
 Demotions happening to check errant
employees

13. Demotion policy
 A clear cut policy regarding demotions would
help employees adjust to complex
organizational demands admirably.
 Punishable offences must be listed in
advance. Better to state the reasons before
punishing an employee.
 Any violation must be properly investigated
and followed by a consistent and equitable
application of the penalty. There should be
enough room for review.

14. Employee Separations
Employee separations occur when employees
cease to be members of an organization.
The service agreement between the employee
and the employer comes to an end and
the employee decides to leave the
organization.

15. Separations can take several forms
• Resignation: A voluntary separation initiated by the employee himself
is called resignation. It is always better to find why the employee has
decided to quit the organization. Properly conducted exit interviews
would help throw light on factors behind the curtain .
• Retirement: Termination of service on reaching the age of
superannuation is called retirement.
• Compulsory Retirement
• Voluntary Retirement
To avoid problems, organizations normally plan replacements to retiring
employees beforehand.
• Death: Some employees may die in service. Death caused by
occupational hazards, of course, would attract the provisions of
Workmens Compensation Act, 1923. The normal separation of people
from an organization due to resignation, retirement or death is known as
attrition.

16. • Lay off: A lay off entails the separation of the
employee from the organization temporarily for
economic or business reasons. Employee get
50% excluding holidays of his normal basic
pay plus dearness allowances.
• Retrenchment: A permanent lay off for
reasons other than punishment but not
retirement or termination owing to ill health is
called retrenchment. Legally speaking,
employers in India are required to give
advance notice or pay equivalent wages
before the actual lay off date.

17. • Outplacement: Outplacement assistance includes Efforts made
by the employer to help a recently separated employee find a
job. Apart from training support to such employees, some
organizations offer assistance in the form of paid leave travel
charges for attending interviews, search firm expenses ,etc.
• Suspension: Suspension means prohibiting an employee from
attending work and performing normal duties assigned to him.
He receives Subsistence allowances.
• Discharge and dismissal: The termination of the services of an
employee as a punitive measure for some misconduct is called
dismissal. Discharge also means termination of the services of
an employee but not necessarily as a punishment. A discharge
does not arise from a single irrational act such as alcoholism,
willful violation of rules, insubordination, carelessness,
dishonesty, inefficiency, violent acts, unauthorized absence for a
long time .