Transfer is defined as a change in job or workplace without affecting pay, position or responsibilities. The main purposes of transfer are to retain employees, recognize achievement, and fill vacancies. There are four types of transfers: replacement, versatility, shift, and remedial. Promotion is defined as an improvement in pay, prestige, position and responsibilities within an organization. The purposes of promotion include motivating higher productivity, attracting and retaining employees, recognizing achievement, and increasing effectiveness. Promotions are categorized as horizontal, vertical, or dry based on the level of increased responsibilities, pay, and prestige.

1. Transfer
Defined as the mere change in job, place of work without affecting pay, position or
responsibilities
Purpose
 To retain employees
 To recognise the achievement
 Fillup vacancies
Types
 Replacement Transfer
 Versatility Transfer
 Shift Transfer
 Remedial Transfer

2. Promotion
Defined as the improvement in pay, prestige, position and responsibilities of a
employee within his/her organisation
Purpose
 Motivate employees to higher productivity
 To attract and retain employees
 To recognise the achievement
 To increase the effectiveness
 Fillup vacancies
Principles
 Clear the strategy- Whether management go for internal or external hiring
 Decision regarding the basis for promotion- Seniority or Merit

3. Promotion- Types
Promotions are of three types which include:
 Horizontal Promotion- Involves increase in responsibilities, pay and designation
 Vertical Promotion- Results in greater responsibility, prestige and pay together
with change in the nature of job
 Dry Promotion- Causes increase in remuneration