This document discusses changes in personnel status within an organization. It covers promotion, which involves moving to a higher level job through demonstration of good performance. Demotion moves an employee to a lower level job as a disciplinary action or due to inability to perform duties. Transfer involves a lateral move to another similar role. Layoff is initiated by management during downturns. Resignation and retirement occur when employees voluntarily leave their roles. Termination ends the employment relationship due to some fault of the employee.

1. CHANGES IN PERSONNEL
STATUS
 Promotion
 Transfer
 Demotion
 Separation

2. PROMOTION
Involves the reassignment of an employee to a
higher level job. This also refers to the upward or
vertical movement of employees in an organization
from lower level jobs to higher level jobs involving
increases in duties and responsibility, higher pay and
privileges.

3. Reasons for Employee Promotions
• An effective way to keep good men in the firm
• As recognition of and reward for good
performance
• To boost employee morale and encourage the
employees to render to the company the best
service they are capable of

4. Basis or Criteria Used for Promotion
1. Seniority – length of service
a. Straight seniority – the length of service of an employee is the sole basis for
determining who gets the promotion.
b. Qualified seniority – the more competent employee as compared to another
employee with longer service will be the one promoted.
2. Current and past performance
3. Assessment centers evaluate the qualified candidate for promotion,
w/c focus on the kinds of skills and abilities to effectively perform the
higher level jobs that the candidates seek.
4. Competency or merit determined by the ratings or evaluation received by the
employees.

5. Unofficial Promotion
Criteria
 Personal Characteristics
 Nepotism – showing of favoritism or
patronage to relatives
 Social Factors
 Friendship

6. Promotion from Within
Filling up vacancies in upper level management positions by
promoting lower level managers.
A major advantage of this policy is its positive effect upon
employee motivation. Knowing that they have opportunity to
be promoted tends to motivate employee’s performance with
the company and to solidify their feelings of loyalty toward
the company.

7. Promotion from Within
Advantages Disadvantages
Provides greater motivation Creates a narrowing of thinking
for good performance and stale ideas
Provides greater promotion Creates political infighting
Opportunities for present
employees

8. DEMOTION
The reassignment of an employee to a lower job
involving fewer skills and responsibilities. The
movement of an employee to a less important job from
a higher level job in the organization which may not
involve a reduction in pay but a reduction in status
or privileges.

9. Basis or Criteria for Demotion
1. Reorganizations, company merger or business
contractions may result in fewer jobs, forcing
some employees to accept lower positions.
2. Inability of the employees to perform their jobs
according to acceptable standards.
3. As a form of disciplinary action or a way to
handle disciplinary problems, also viewed as a
routine form of punishment for wrongdoing.
4. The tool used to communicate to employees
that they are beginning to be “liabilities” rather
than assets to an organization.

10. TRANSFER
This is the reassignment of employee to a
job with similar pay, status, duties, and
responsibilities. It also involves horizontal
movement from one job to another.

11. Reasons for Transfer
 Because personnel placement practices are not
perfect, an employee-job mismatch may have
resulted.
 An employee becoming unsatisfied with his job
for one or a variety of reasons
 Organizations sometimes initiate transfers to
further the development and advancement of the
employee especially at management and staff.
 Due to business expansion, retrenchment
erroneous placement, the need to meet
departmental requirement during peak season.

12.  For personal enrichment/greater convenience
and for more interesting jobs.
 For employee to be better suited or adjusted to
his job (remedial transfer)
2 Kinds of Transfer
Permanent – made to fill vacancies requiring the
special skills or abilities of the employee being
transferred.
Temporary – made due to the temporary absence
of an employee, e.g,in case of sick, leave,
vacation leave, or shifts in the work load during
peak periods.

13. LAYOFF
The separation of an employee initiated
by the employer due to business reverses,
the introduction of labor saving devices, or
the reduction in the demand for particular
skills. Management as temporary measures
during periods of business recession,
industrial depression or seasonal
fluctuation resorts to it.

14. RESIGNATION
This is when employees voluntarily
decide to end their employment with an
organization.

15. CAUSES OF RESIGNATION
• Dissatisfaction about wages and
working conditions .
• Misunderstandings with supervisors or
fellow workers .
• Inconvenient work hours are among the
chief reasons for employee resignation.

16. RETIREMENT
This is when employees having satisfied certain
conditions under existing laws and/or provisions
of the collective bargaining agreements or upon
reaching the age of 60 are separated from
employment with entitlement to retirement
benefits. This is given either in a lump sum
amount or in a form of a monthly pension for life.

17. TERMINATION/DISCHARGE OR
DISMISSAL
The practice of putting an end to the employer-
employee relations initiated by the employer with
prejudice to the worker. A discharge is due to some fault
of the employee such as inability to meet the company’s
standards of performance, incompetence, violation of
company rules, insubordination, etc.