This document discusses promotion, transfer, separation, and voluntary retirement schemes (VRS) in organizations. It defines each concept and outlines the key reasons, types, benefits, and disadvantages. Promotion involves upward movement and improved responsibilities, pay and prestige. Transfer can be horizontal, vertical, or dry for reasons like training, addressing performance issues, or avoiding monotony. Separation occurs due to layoffs, retirement, discharge, resignation, or VRS. VRS is a voluntary scheme for early retirement that offers employees a golden handshake. Trade unions play a role in approving VRS schemes.

1. Purnima Raina Tikoo
Asst. Prof
CMD Modinagar

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 been working hours, better location and more
pleasing working conditions does not amount to
promotions

3. NEED FOR PROMOTIONNEED FOR PROMOTION
• To recognize an employee’s performance and
commitment/loyalty and motivate him towards better
performance
• To boost the morale and sense of belonging of employees.
• To retain skilled and talented employees.
• To develop a competent internal source of employees for
higher level jobs
• To utilize more effectively the knowledge and skills of the
employees
• To attract suitable and competent workers for the
organization.

4. ORGANIZATIONAL NEEDS:
 Retain Human talents over a long period of time
 Organizational culture and values: It is true that certain jobs
are similar in most of the organizations but the most jobs require
some sort of specialization which is organization specific.
INDIVIDUAL NEEDS:
Promotions are highly desirable to individual both for their intrinsic
benefits as well as their symbolic connotations of success values
 Promotions used as a reward for better work performance
 Enhances morale of the employees, productivity and loyalty to the
organization
 Provides avenues for continuous learning and development.
 To develop a competent internal source of employees for higher
level jobs
 To utilize more effectively the knowledge and skills of the
employees

5. BASES OF PROMOTION
 Seniority means length of
recognized service in an
organization
 Seniority means the
calculation of time from when
an employee has joined the
company and served for how
many years in the company.
 The senior most person in the
lower grade shall be promoted
as and when there is an
opening in the higher position
 Seniority is suggested as the
criteria for promotion on the
plea that there is a positive
correlation between length of
the service and talent
 Merit means ability to work .
 It denotes an individual
employee’s skill, knowledge,
ability, efficiency and
aptitude as measured from
educational, training and
past record
 If the merit is adopted as
basis of promotion then the
person in the lower grade ,no
matter his junior most in the
company, shall be promoted.
 It encourage all employee to
improve their efficiency
Seniority Merit

6. ADVANTAGES
Easy to measure the
length of service
Trade union generally
emphasis on seniority.
Security and certainty is
also plus point
Minimize the scope of
grievances and conflicts
Reducing labour turnover
It provides a sense of
satisfaction to senior
employees and is in line
with the Indian Culture of
respecting seniority in all
walks of life.
 It implies the knowledge,
skills and performance
record of an employee.
 It motivates competent
employees to work hard
and acquire new skills.
 It helps to maintain the
efficiency of the
organization by
recognizing talent and
performance
 It helps to attract and
retain young and
promising employees in
the organization
Seniority Merit

7. DISADVANTAGES
 The assumption that the
length of the service
indicates talent is not valid
because beyond a certain
age a person may not learn.
 Performance and potential
of an individual is not
recognized.
 It demotivates and
demoralize the young
employees who are
talented
 Kills the zeal and interest
for self development
 The concern fails to attract
young and hardworking
employees
 Measuring Merit is not
easy, subjective judgement
may involve.
 Many Employee,
particularly trade unions
distrust the management’s
integrity in judging merit.
 And when younger
employees are promoted
over the older one, the
older employees may feel
insecure.
 They may leave the
organization as well.
Seniority Merit

8. TYPES OF PROMOTIONTYPES OF PROMOTION
Classified into 3 types:
•Horizontal Promotion: This type of promotion involves
an increase in responsibility and pay with the change in
the designation. However the job classification remains
the same.
•E.g. A lower division clerk is promoted as higher
division clerk.
•Here the position of the employee concerned has been
upgraded with some pay increase but the nature of his
job remains the same.
•Vertical Promotion:- In this type the employee is moved
to the subsequent higher level accompanied by greater
power ,responsibility, position and salary.
• e.g a functional head is promoted as chief executive of
the organization.

9.  Dry Promotion:- Where an employee is promoted to higher
position and responsibility without any increment in salary
e.g a Professor in a university becomes Head of the Department. It
is just an elevation of the professor without any increase in
financial benefits.

10. TRANSFERTRANSFER
TRANSFER

11. MEANING OF TRANSFER

12. REASONS/TYPES: TRANSFER
• Production Transfer
• Plant transfer
• Shift Transfer
• Remedial Transfer
• Versatility Transfer
• Tenure Transfer
• Penal Transfer

13. BENEFITS OF TRANSFER
• Increase in productivity and effectiveness of the organization.
• Greater job satisfaction to employees.
• Stabilize fluctuating job needs.
• Improve employee skills.
• Remedy for wrong placement.
• Improve labour relationships.
• Develop employees for future promotions.
• Avoid monotony and boredom.

14. SEPERATION
Separation means cessation of service with the
organisation for one or other reason.
The employee may be separated from HR
payroll due to:
•Lay off
•Retrenchment
•Discharge
•Resignation
•VRS

15. SEPERATION
LAY OFF: The separation of an employee initiated by
the employee 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 it to.
RETRENCHMENT: Permanent termination for economic
reasons of the organisation. In the Industries Disputes
ACT 1947, defines retrenchment as termination by the
employer of the services of workmen for any reason.
A 3 months’ notice in writing needs to be given to the
employee and wages in lieu of such notice.

16. SEPERATION
DISCHARGE: A discharge involves permanent
separation of an employee from the pay roll for
violation of company rules or for inadequate
reasons. Proper procedure of discharge must be
conducted and it should not be an impulsive act.
There has to be a written warning for the same
along with discharge letter at the time of
discharge. Adequate provision should exist for
review of discharged employee’s case.
RESIGNATION: Resignation may be put in voluntary
by the employees on the ground of health, better
opportunities elsewhere or maladjustment with the
company policy and officers or for reasons of
marriage.

17. WHAT IS VRS?
 The Voluntary Retirement Scheme (VRS)
is the latest mantra of many a corporate
and Public sector units.
 VRS is a scheme whereby the employee is
offered to voluntarily retire from his
services before his retirement date.
 Subject to certain conditions the company
offers VRS to its employees It is the
golden route to cut the excess flab.

18. THE GOLDEN HANDSHAKE
 The most humane technique to retrench the
employees in the company today is the
voluntary retirement scheme.
 It is the golden handshake for the employees
and the only option today for the companies to
reduce organization staff.
 The scheme which is formally permitted by the
Department of Public Enterprises and which
provides the lucrative way for the employees to
terminate their services and accept VRS.

19. THE GOLDEN HANDSHAKE
 As the name suggests the VRS is strictly voluntary
i.e. one can neither compel the workers to accept it
nor apply it selectively to certain individuals.
 One can however choose the levels, units and age
groups among whom one wants to offer VRS.
 The company can always accept or reject the
application for the VRS.

20. TRADE UNIONS & VRS
 Trade unions play a crucial role in introducing the VRS in
any organized sector firm. The scheme cannot be
implemented without, at least, the tacit approval of the
representative union. Sometimes without the consent of
the trade unions, workers legalize the VRS by accepting it
in mass.
 Very recently, the entire workforce of Sri Ram Mills (1,400
workers) has accepted VRS while the major union opposed
the scheme tooth and nail. Other companies such as Ind
Auto, SKF Bearings, and Novartis have also been able to
successfully reduce their workforce through the
introduction of VRS. When the workers are convinced that
the scheme is sufficiently attractive monetarily and/or the
company is in deep crisis, they opt for the scheme.