This document discusses various types of internal employee mobility and separations within an organization. It describes promotion as upward movement to a higher position with increased pay and responsibilities. Lateral transfers move employees to different roles at the same level, while demotions lower employees' positions. Separations occur when employees leave the organization, such as through retirement, resignation, layoffs or termination. The document provides details on the objectives, types and processes around these different forms of internal employee movement and separation.

1. INTERNAL MOBILITY &
SEPARATIONS
U.KALPANADEVI II- MBA
MICHAEL INSTITUTE OF
MANAGEMENT

2.  Employees move with in an organisation, laterally or
vertically for a variety of reasons.
 To ensure the effectiveness of the employees in
the organisation.
 To satisfy both employee & organisational needs.
 To provide for career & succession planning.
 To effect changes in jobs & organisational
structure.
 To ensure discipline and make organisational
rewards contingent on employee performance.

3. OPromotion
ODemotion Vertical
movement
OTransfer of employees
OSeparation (better prospects,
retirement, termination etc…,)

4. PROMOTION
• Upward movement of employees from one job to another
higher one
• With increase in salary, status, responsibilities
• May be temporary or permanent
• In-build motivational value
• Removes feelings of stagnation and frustation
• Good promotional policy to fill the vacancies in a higher
job.

5. PURPOSES/OBJECTIVES
To recognize an employees skill and knowledge
To reward and motivate employees to higher productivity
To promote employees satisfaction
To build loyalty among the employees
To promote good Human relations.
To retain skilled and talented people
To attract trained, competent and hard working people.

6. TYPES OF PROMOTION
• Horizontal Promotion
• Vertical Promotion
• Dry Promotion

7. Promotion can be made on various bases:
 Seniority
 Merit
 Educational and Technical qualification
 Potential for better performance
 Career and succession plan
 Vacancies based on organisational charts
 Training
 Motivational strategies like Job enlargement

8. • Lateral movement of employees within the
same grade.
“ a transfer is a change in the job of an
employees without a change in
responsibilities or remuneration”
- Edwin Flippo

9. • To meet organisational needs
• To satisfy employee needs
• To better utilize employee
• To make the employee more Versatile
• To adjust the workforce
• To provide relief
• To punish employee

10. • Production Transfer
• Remedial Transfer
• Replacement Transfer
• Versatility Transfer
• Shift Transfer
• Penalty Transfer

11. • Specify the circumstances under which
transfers will be made.
• Specify the basis for transfer.
• Intimate the fact of transfer to the person
concered well in advance.
• Clarify whether transfer is permanent or
temporary.
• Not to be made frequently.

12. Advantages:
• Improve employee skills
• Reduce monotony and boredom
• Remedy faulty placement decisions
• Prepare the employee for challenging
assignments in future
• Stabilize changing work requirements in
different departments
• Improve employee satisfaction and morale
• Improve employer-employee relations

13. Disadvantages:
• Inconvenient to employees who
otherwise don’t 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

14. • It is just opposite of promotion.
• It is the downward movement of an
employee in the organisational hierarchy
with lower rank/status and pay.
“the assignment of an individual to a
job of lower rank and pay usually involving
lower level of difficulty and responsibility”
- D.S.Beach.

15. Causes
• Incompetence- inability to meet the
challenges posed by the new higher job
• Adverse Business Conditions-
Circumstances and conditions like
recession and other crisis
• Disciplinary measures- Disciplinary action
against erring employees

16. Effects of Demotion
 Status, Pride, Career and income of the
employee
 Causes feel of insecurity in employees mind
 Can create positive impact on employee’s morale
and career planning
 It can generate disciplinary care in other
employees

17. Meaning
• It is situation when the service
agreement of employees with his
organization comes to an end and
employee leaves the organization.
• It is a decision that the individual and
organization part from each other.

18. Forms of Separation
 Retirement-
- Compulsory
- Voluntary (golden handshake)
 Resignation
 Layoffs
 Retrenchments
 Dismissal

19. Employee Separation
 Reasons for employee separations:
 Pressures on firms to remain competitive and efficient
 Decline in employee commitment to individual
employers
 The importance of managing separations:
 Transitions of employees out of the firm go smoothly.
 Continuing operations of the firm are not disrupted.
 Important professional relationships are not damaged.
 Types of separations
 Reductions-in-force, turnover, and retirements
Copyright © 2002 South-Western. 00–19 All rights reserved.

20. Reductions-in-Force (RIFs)
 Causes of reductions:
 Restructuring as a result of mergers and acquisitions
 Attempts to make the organization more cost
competitive
 Adjustments to declining business environment
conditions
 Reasons for reductions:
 Inefficiency in operations
 Lack of adaptability in the marketplace
 A weakened competitive position in the industry
 Methods for dealing with reductions:
 Continuance pay and outplacement programs
Copyright © 2002 South-Western. 00–20 All rights reserved.

21. Reductions-in-Force (RIFs)
 Worker Adjustment Retraining and Notification Act
(WARN) of 1989:
 Requires employers with more than 100 employees
to provide affected employees with a minimum of
sixty days written notice of any facility closings or
large-scale layoffs of 50 or more employees.
 WARN does no apply to governmental agencies.
 Exceptions to WARN:
 “unforeseeable circumstance”
 natural disaster
 “temporary facility”
Copyright © 2002 South-Western. 00–21 All rights reserved.

22. Workforce Management Strategies
EXHIBIT 13-1: STRATEGIES FOR MANAGING EMPLOYEE SURPLUSES AND AVOIDING LAYOFFS
Copyright © 2002 South-Western. 00–22 All rights reserved.

23. Turnover
 Involuntary turnover
 Employees who are asked to leave the organization
for cause (e.g., poor performance) or due to
circumstances that cause a reduction-in-force.
 Voluntary turnover
 Employees who leave an organization on their own
initiative.
 “Beneficial” turnover
 When low performing employees depart and/or
when new higher performing employees are
promoted or hired as replacements.
Copyright © 2002 South-Western. 00–23 All rights reserved.

24. Retirement
 Age Discrimination Act of 1967
 Prohibits an employer from setting a mandatory
retirement age except in certain occupations such
as airline pilots.
 Retirement
 Creates advancement opportunities for younger
employees and reduces payroll costs.
 Can cause a loss of vital accumulated historical
knowledge of the organization, its industry and the
marketplace.
 Employers can offer part-time and consulting work
to older workers to ease the transition to retirement.
Copyright © 2002 South-Western. 00–24 All rights reserved.