promotion plays key in development of an employee it is in the form of monetary and non monetary form. it gives motivation to the employee so that employee moves forward personally and as well professionally.

1. PROMOTION
Presented by
Manikanta.M
PGDM14027

2. Introduction To Promotion
A promotion is the advancement of an employees
rank or position in an organizational hierarchy
system. Promotion nay be an employee’s reward
for good performance that is positive appraisal.
Before a company promotes an employee to a
particular position it ensures hat the person is
able to handle the added responsibilities by
screening the employee with interviews and tests
and giving them training or no-the – job
experience.

3. Definition of promotion
Promotion is vertical movement of an employee
within the organization . In other words,
promotion refers the the upward movement
of an employee from one job to another
higher one, with increase in salary, status and
responsibilities. Promotion may be
permanent, depending upon the needs of the
organization.

4. promotion
Promotion is defined as giving higher position
to the employee, which carries high status
more responsibilities and higher status
• advancement of employee in terms of pay
and status also improvement in working
conditions

5. Types of promotion
1. horizontal promotion : when an employee is
shifted in the same category. It is important to
note that such promotion may take place when
an employee shifts within the same department,
from one department to other or from one plant
to another plant.
2.Vertical promotion: when an employee is
promoted from a lower category involving
increase in salary, status, authority and
responsibility. Generally, promotion means
‘vertical promotion’

6. 3. Dry promotion: when promotion is made
without increase in salary
Example : a lower level manager is promoted to
senior level manager without increase in
salary or pay

7. Purpose of promotion
1. To recognize an employee’s skill and knowledge
and utilize it to improve the organizational
effectiveness.
2. To reward and motivate employee to higher
productivity.
3. To develop competitive spirit and inculcate the
zeal in the employees to acquire skill, knowledge
etc.
4. To promote employees toward organization.
5. To build loyalty among the employees toward
organization.

8. 6. To promote good human relations.
7. To increase sense of belongingness.
8. To retain skilled and talented people.
9. To attract trained, competent and hard
working people.
10. To impress the other employees that
opportunities are available to them too if they
also perform well.

9. Basis of merit/ability
Ability is generally defined as ‘making ‘ the
demands of the position or job or ability to learn
the job in the normal training period. After
placement, the performance of the employees is
evaluated in terms of quality or quantity of work.
The traits usually applied for measuring the ability
include leadership, safety, character, co-
operation, judgement, responsibility, health etc.
personal interviews can also be held for getting
more information about the employees.

10. Management must in mind the
following limitations of ability
1. It is difficult to measure abilities. If a junior
person is promoted, a feeling may be
developed among the employees that
favoritism rather than the ability is the
criteria for promotion.
2. A person who is doing his present job
properly may not have the ability to do
prospective in a better manner.

11. Basis of seniority
a)Determination of seniority of the employee
starting from the date of hiring him. His
seniority must remain intact on being
promoted. Seniority is usually broken in case
of termination, resignation, overstaying leave
or absence.
b) Preferential groups may be given super
seniority (e.g., leaders of the union may get
super-seniority)

12. c). The unit for calculating seniority may be
company, plant, department, division etc. the
seniority list so prepared must be exact and
accurate.
d). Certain employment decisions are also based
on the seniority such as are lay off, transfer,
choice of machine etc,
The management must have a clear policy on
the calculation of seniority . The matter must
be negotiated with the union in case of
unionized firms.