The document discusses various types of employee movements within an organization such as promotion, transfer, and separation. Promotion involves an upward movement to a higher position with increased pay and responsibilities. Transfer is a lateral or horizontal movement to a different job or location without changes to pay or responsibilities. Separations can be voluntary through retirement or quitting, or involuntary through layoffs, retrenchment, or termination. The principles and purposes of these movements are outlined along with guidelines for managing separations such as downsizing.

1. Promotion, TransferPromotion, Transfer
and separationand separation
(Retrenchment & VRS)(Retrenchment & VRS)

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. 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

4. 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
No frequent promotions
Promotion should be preceded by job analysis and
performance evaluation
Promotional policy should be discussed with the union

5. Transfer
Transfer is also called as horizontal or lateral
movement of employees.
Transfer involves change of job (accompanied by
a change in the place of the job) of an employee
without a change in responsibilities and
remuneration

6. Need and purpose of Transfers
transfer
1. To meet organizational needs
2. To satisfy employee Needs
3. To better utilization of Employees
4. To make the Employee More versatile
5. To adjust the work force
6. To provide Relief
7. To Punish Employees

7. Principles of transfer
The frequency of transfers and the minimum
period between transfers need to be decided upon
and made known to all the employees.
The authority which would handle transfers is to be
decided
The criteria for entertaining transfers need to be
laid down and strictly adhered to.
The area of the organization over which transfers
can be made need to be defined.
Performance of the employee should be assessed
before transfer.

8. Types of transfer
Specifically transfers may be production,
replacement, versatility, shift and remedial
Production transfers: to meet the shortage of
employees during production
Replacement transfers: to replace senior positions by
junior officers
Versatility Transfers: To make employees versatile and
competent in different areas
Shift transfers: transfers between work shifts
Remedial transfer: on request of employees (also called
personal transfers)

9. Separations

10. Voluntary separations
When employee decides to terminate his/her
relationship with the employer. Tow types are
Quits: out of dissatisfaction in the current job, and
Retirements: Occur when the employees reach end of
their careers

11. Involuntary separations
Employer terminates the employee
Three reasons
Organization is passing through a lean phase
Faulty hiring leading to a mismatch
Employee exhibits deviant behavior vitiating the
environment

12. Contd..
Types
Discharges: also called termination and is done when
the employer find the employee to be non performing
Layoffs: Temporary separation. Section 2 (KKK) of the
Industrial Disputes Act, 1947, defines lay-off as a failure,
refusal or inability of an employer to give employment to a
worker whose name is present on the rolls but who has
not been retrenched. It may be for a definite period, after
which the employee may be recalled
Retrenchment: termination by the employer because of
productivity or economic reasons. It differs from the
dismissal because here it takes place without any fault of
the employee.

13. Contd..
VRS (Voluntary Retirement Scheme): sending
home surplus labor. Also called golden handshake
plan. It is with benefits
Like Hindustan Lever VRS consisted –
A lump sum payment equal to 2.25 times in July 1992
salary multiplied by remaining years of service
(subsequently reduced to 15 years service)
Pension equal to 70% of the July 1992 salary payable till
the age of 60 (the company’s retirement age)
Prizes such as computers, trucks, houses, and so forth
(99 in all) to be decided on the basis of a lucky draw.

14. Contd..
Rightsizing: means reducing the size of the
workforce or increasing it to maintain the employee
strength at the most desired level.
Mostly it is downsizing only
Triggered by –
The company’s bottom line is threatened
Technological advancements renders people redundant,
and
Organizational restricting

15. Contd..
It is quite painful for the employee and his family.
Affects the morale of all the employees

16. Guidelines to manage
downsizing
Consider the human element
Make ‘who goes and who stays’ decisions judiciously
Delay and pay hikes
Freeze hiring
Restrict overtime
Retain or redeploy employees
Engage part-time employees
Switch to job sharing
Implement early retirement plans
Attend to morale of serving employees

17. Managing separations
Positive outcomes
Organizations become fitter and trimmer
Saving on wage and salary bill
Fresh ideas brought by new entrants
Negative outcomes
Disrupts employee morale, may rather add to cost
Cost of turnover include retirement costs and hiring and
training costs