2. Promotion
Promotion is upward movement of
employees
Promotion means an improvement in pay,
prestige, position and responsibilities of
an employee within an organization.
A mere shifting of an employee to a
different job which has beet working
hours, better location and more pleasing
working conditions does not amount to
promotions
3. MEANING
Promotion is advancement of an employee to a
better job – better in terms of greater
responsibility, more prestige or status, greater skill
and especially increased rate of pay or salary.
- Paul Pigors and Charles A. Myers
The upward assignment of an individual in an
organization’s hierarchy, accompanied by increased
responsibilities, enhances status and usually with
increased income though not always so.
- Arun Monappa & Mirza S. Saiyadain
4. CONDITIONS OF
PROMOTIONS
Reassignment of higher level job to an
employee than what he is presently
performing.
The employee will naturally be delegated with
greater responsibility and authority than what
he has had earlier.
Promotion normally companies higher pay.
5. Purposes of promotion
To motivate employees for higher productivity
To attract and retain the services of qualified and
competent people
To recognize and reward the efficiency of an employee
To increase the effectiveness of the employee and of the
organization
To fill up higher vacancies fro within the organization.
To build loyalty, morale and a sense of belongingness in
the employee.
To impress upon others that opportunities are available
to them too in the organization, if they perform well
6. PURPOSES OF PROMOTION
To utilize the employee’s skill, knowledge at the
appropriate level resulting in organizational
effectiveness and employee satisfaction.
To develop competitive spirit and inculcate the zeal
in the employees to acquire the skill, knowledge
etc. required by higher level job.
To develop competent employees inside who can
adapt to changing environments.
To promote employee’s self development. It
reduces employee turn over.
7. PURPOSES OF PROMOTION (contd..)
To promote feeling of contentment with the exist
conditions and also sense of belongingness.
To promote interest in training, development
programmes and team development.
To build loyalty and to boost morale.
To reward committed and loyal employees.
To get rid of problems created by leaders of unions
by promoting them to officer levels.
8. TYPES OF PROMOTION
Vertical Promotion – Employee is moved to the next
higher level, in the organizational hierarchy with
greater responsibility, authority, pay and status.
Upgradation – The job is upgraded in the
organizational hierarchy. Consequently, the
employee gets more salary, higher authority and
responsibility.
Dry Promotion – The employee is moved to the next
higher level in the organizational hierarchy with
greater responsibility, authority and status without
any increase in salary.
9. Principles of promotion
Clear policy for filling the positions from
internal employees or through recruitment.
Top positions are normally filled through
recruitment and lower and middle positions
through promotions
Basis of promotion usually is merit or
seniority
Basis of promotion may also be competence
of the individual
Vacancy or non vacancy promotion
No frequent promotions
Promotion should be preceded by job
analysis and performance evaluation
Promotional policy should be discussed with
the union
11. MERIT BASED PROMOTION
Merit is taken to denote an employee’s skill,
knowledge, ability, efficiency and aptitude
as measured from educational, training and
past employment record.
12. Merits :
The resources of higher order of an employee can
be better utilized at higher level.
It results in maximum utilization of Human
Resources in the organization.
Competent employees are motivated to exert all
their resources and contribute them to the
organizational efficiency and effectiveness.
It works as golden hand-cuffs regarding employee
turnover.
It continuously encourages employees to acquire
new skills, knowledge etc.
13. Demerits :
Measurement or judging of merit is highly difficult.
Many people distrust the management integrity in
judging merit.
Techniques of merit measurement are subjective.
Mostly based on past achievement, efficiency but
not about the future success.
14. SENIORITY BASED PROMOTION
Seniority refers to relative length of service
in the same job and in the same
organization.
By considering seniority as basis of
promotion, there is a positive correlation
between length of service and amount of
knowledge and level of skill acquired.
Also, it supports the custom of first come
first serve.
15. Merits :
Relatively easy to measure the length of service
and judge the seniority.
There will be full support from trade union.
Everybody trust’s management action as there is
no scope for favoritism and discrimination and
judgment.
Gives a sense of certainty of getting promotion to
every employee and of their turn of promotion.
16. Merits (contd..) :
Senior employees will have a sense of satisfaction
to this system as the older employees are
respected and their inefficiency cannot be pointed
out.
It minimizes the scope of grievances and conflicts
regarding promotion.
It seems to serve the purpose in the sense that
employees may learn more with increase in length
of service.
17. Demerits :
It demotivates young and more competent
employees and results in employee turnover among
dynamic force.
It kills the zeal and interest to develop as
everybody will be promoted with or without
improvement.
Organizational effectiveness may be diminished
through deceleration of the human resources.
18. Demerits (contd..)
Employees only learns upto a certain age and after
that the learning ability diminishes.
Judging seniority may seems easy but involves
problem areas job seniority, service in different
organizations, experience as apprentice,
researcher, length of service even in terms of hour.
20. A balance can be struck between the two basis by
some ways as below:
Minimum length of service and merit – A
minimum length of service is kept as basic
eligibility and then merit is made the sole criteria.
Measurements of seniority and merit through a
common factor
Minimum merit and seniority – Certain merit is
kept as eligibility criteria and then seniority is
considered.
21. BENEFITS OF PROMOTION
Promotion places the employees in a position
where an employee’s skills and knowledge can be
better utilized.
It creates and increases the interest of other
employees in the company as they believe that
they will also get their turn.
It creates among employees a feeling of content
with the existing conditions of work and
employment.
22. BENEFITS OF PROMOTION (contd..)
It increases interest in acquiring higher
qualifications, in training and in self development
with a view to meet the requirements of promotion.
Promotion improves employee morale and job
satisfaction.
It improves organizational health.
23. PROBLEMS WITH PROMOTION
Disappoints Some Employees – If some employees
don’t get promoted, then they develop negative
attitude and reduce their contribution to the
organization.
Employees Refuse Promotion – Like promotion with
transfer, promotion to a level of incompetency,
delegation of unwanted responsibilities etc.
Superiors does not relieve their subordinates.
