Unit 3 HRM KMB202 AKTU By Dr Vibhuti

2. PROMOTION
 Promotion of employees from lower positions to
higher positions is one aspect of personnel policy
of management
 Promotion acts as an incentive for self
development through education, training, active
interest in the work assigned.
Features of promotion
 Promotion means giving higher position
 An employee gets opportunity to work at a higher
level
 Promotion is rightly treated as a reward or an
appreciation of efficiency
 Partiality and favoritism should be avoided

3. Reasons for promotion
 Retirement or resignation
 Sudden death of an employee
 Transfer of supervisory staff
 New posts may be created
 Open new branches, division, regional offices

4. Methods of Promotion
 Promotion by seniority
Promotion are given as per seniority i.e. The period/
length of service of employees in the enterprise.
Seniority has been defined as the length of recognized
service in an org. Here the date of appointment serves as
the basis of promotion. Promotion by seniority is a
normal practice in government departments and banks
etc.

5.  Promotion by merits
It is an alternative to promotion by seniority. Promotion
are given as per the merits of worker, which include
educational qualification, experience and qualities such
as honesty, sincerity and involvement in the work
assigned. Management always prefer promotion by
merits while employees and union demand promotion
by seniority

6. Promotion practices in India
 In India companies normally use merit-cum-seniority
as the base for promotion. Professional managements
prefer promotion by merits. In private sector
organization, every organization has its own promotion
policy. Efficiency is the main consideration as the
companies have to face market competition effectively
for their survival and growth. “Rule followed in many
private companies is to promote best man
available.”

7. DEMOTION
 Along with promotion, the terms demotion & separation
are also used.
 Demotion is the antithesis of promotion wherein an
employee is demoted to the post at a lower level. For
example, a manager may be demoted as supervisor.
“Demotion is lowering of status, salary &
responsibilities of an employee”.
 It is a type of punishment for serious mistakes or
irregularities on the part of the employee. It is a lesser
punishment as compared to dismissal.
 Promotions are very common but demotions are rare &
used as a method of last resort. Moreover, demotion carries
adverse psychological effect on the employee.