Promotion, Objectives of Promotion, Types of Promotion, Bases of Promotion, Seniority, Merit, Seniority cum Merit, Promotion Policy, Essentials of Sound Promotion Policy, Transfer, Need for Transfer, Types of Transfer, Production Transfer
Remedial Transfer, Replacement Transfer, Versatility Transfer, Shift Transfers, Penalty Transfer,
Voluntary Transfer/ Personal Transfer, Essentials of Sound Transfer Policy, Dismissal, Reasons for Dismissal, Essentials of Sound Dismissal Policy,
3. Dr. Parveen Kaur Nagpal
Promotion
Promotion refers to the placement of an employee to a higher job
with better pay, position, power, responsibilities and status.
Promotions are necessary when vacancies arise at higher level
due to retirement, resignation or transfer of employees.
Pigors and Myers define promotion as “the advancement of an
employee to a better job.”
Promotion and recruitment are linked because the HR
practitioners supposedly indifferent to whether that candidate is
recruited from inside or outside the organization.
4. Dr. Parveen Kaur Nagpal
Objectives/ Purpose of Promotion
◎ To attract trained, competent, and hard-working people
◎ To reward employees for their efficiency and performance
◎ To motivate and retain the employees
◎ To increase organizational effectiveness
◎ To increase a sense of belongingness to the organization
among the employees
◎ To bring about job satisfaction
◎ To enhance goodwill of the organization
◎ To reduce discontent and labor unrest
◎ To enhance creativity and positive thinking among employees
◎ To conserve intelligence, skill, talent, knowledge, creative
abilities, and competence
5. Dr. Parveen Kaur Nagpal
Types of Promotion
▪ Horizontal Promotion: An employee is shifted in the same
category, e.g.: a junior clerk being promoted as senior clerk.
The promotion can be made within the same department, from
one department to other or from one plant to another plant.
▪ Vertical Promotion: An employee is shifted from a lower
category to a higher one involving higher pay, more authority,
increased opportunities e.g. Supervisor to Manager.
▪ Dry Promotion: During the times of monetary and financial
crisis the management may grant promotions without any rise
in pay and allowances. Such promotions are known as dry
promotions.
6. Dr. Parveen Kaur Nagpal
Essentials of a Sound Promotion Policy
• Internal Employees
• Transparency
• Performance-based
• Formal Procedure
• Well Planned
• Fair and Impartial
• Effective Communication
• Acceptance
• Maintenance of Proper Records
• Provision for Appeal
7. Dr. Parveen Kaur Nagpal
Bases of Promotion
Bases of
Promotion
Promotion by
Seniority
Promotion by
Merit
Seniority –
cum- Merit
8. Dr. Parveen Kaur NagpalPromotion by Seniority
Length of service/ tenure of an employee in the organization is
the dominant factor considered for promotion.
This method is generally preferred by trade unions as well as most
employees in public sector undertakings and educational
institution.
Here the ability and competence of employee is not considered
while promoting them.
9. Dr. Parveen Kaur NagpalPromotion by Seniority
Advantages Limitations
Seniority is an objective basis for
promotion and so each employee is sure
of getting promotion
Since the employees are sure of getting
promotion, it makes them lethargic in
performing their duties
It develops a sense of loyalty among the
employees and boasts morale
Senior people may not have the necessary
skill and competencies.
It limits the scope for favoritism, casteism,
partiality etc.
New and creative employees will be left
with no motivating factor for improving
their performance
It avoids promotion related disputes
among employees
There may be greater labour turnover
This method is simple to administer
Senior employees being more
experienced, take better decisions.
Talented and average workers are
considered alike.
10. Dr. Parveen Kaur NagpalPromotion by Merit
Meritorious work/ good performance of an employee in the
organization is the dominant factor considered for promotion.
Such employees have the necessary skills and competence to
handle additional responsibilities.
This method is generally preferred the management in modern
organizations and the MNCs.
11. Dr. Parveen Kaur NagpalPromotion by Merit
Advantages Limitations
It encourages the employees to increase
their knowledge in maintaining a high
level of productivity
It may result in partiality, favoritism,
casteism, etc. by the management
It helps in putting the most productive
and competent person for specialized jobs
Senior employees in the organization may
become unsatisfied and they may indulge
in certain activities that may lead to
industrial unrest, strikes, lockouts, etc.
New employees are encouraged to
improve their performance as promotion
is made on the basis of competence,
capability and efficiency.
Merit as a basis of promotion is normally
opposed by workers and their
representatives
It results in overall improvement of the
organization.
It requires proper method of performance
appraisal or merit rating, that may not
always be done
12. Dr. Parveen Kaur NagpalPromotion by Seniority cum Merit
Management prefers merit as the basis of promotion as they are
interested in enriching organizational effectiveness by enriching
its human resources.
Trade unions favour seniority as the sole basis for promotion in
order to satisfy the interests of majority of their members.
Both seniority and merit as the bases of promotions have their
advantages and disadvantages.
Hence it is necessary for the organizations to give due weightage
to both seniority and merit while promoting their employees.
13. Dr. Parveen Kaur NagpalPromotion by Seniority cum Merit
A combination of both seniority and merit can be considered as
the basis of promotions, there by satisfying the management for
organizational effectiveness and the employees and trade unions
for respecting the length of service.
14. Dr. Parveen Kaur NagpalTransfers
A transfer refers to lateral movement of employees within the
same grade, from one job to another.
According to Flippo “a transfer is a change in the job (accompanied
by a change in the place of the job) of an employee without a
change in responsibilities or remuneration”.
Transfer may be initiated either by the company or the employee.
In practice, the company may transfer the employee to the place
where he/she can prove more useful and effective.
Similarly, employee may initiate transfer to a location where
he/she is likely to enjoy greater satisfaction.
15. Dr. Parveen Kaur NagpalNeed/ Purposes of Transfers
• To Meet Organizational Needs
• Optimum Utilization of Human Resources
• To Satisfy Personal Needs of Employees
• To Make the Employee More Versatile
• To Adjust the Workforce
• To Punish Employee who are indulged in undesirable activities.
• To Provide Relief to the employees who are
overburdened or doing hazardous work for
long period
16. Dr. Parveen Kaur NagpalTypes of Transfers
◎ Production Transfer: Surplus employees from one division are
transferred to those divisions or branches where there is
shortage of employees.
◎ Remedial Transfer: A wrongly placed employee is transferred
to more suitable job in order to protect their interest.
◎ Replacement Transfer: Affected when labour requirements are
declining and are designed to replace a new employee by an
employee who has been in the organization for a sufficiently
long time.
◎ Versatility Transfer: These transfers are also known as ‘job
rotation’. Employees are made to move from one job to
another to gain varied and broader experience of work.
17. Dr. Parveen Kaur NagpalTypes of Transfers
◎ Shift Transfers: Employees are transferred from one shift to
another usually on the basis of mutual understanding and
convenience.
◎ Penalty Transfer: An instrument to penalize employees’
involved in undesirable activities in the organization.
◎ Voluntary Transfer/ Personal Transfer: It is employee-initiated
movement to another position in the same or different role in
the same pay band.
18. Dr. Parveen Kaur NagpalEssentials of Transfer Policy
• Consistency
• Written
• Objective
• Communicated to employees
• Specific
• Provide Clarity
• Avoid Frequent Transfers
• Provision for Appeal
19. Dr. Parveen Kaur NagpalCase – let: Transfer
Mr. Sharma has been working as a branch manager in ABC Ltd. He
has worked in several branches of the company and currently has
been transferred to Nainital branch. He is one of the most
committed employees who works for 10-12 hours and is also
present on holidays. Mr. Sharma’s wife is a house wife and has 2
kids who have approached the HR manager to help her with the
admission of her kids. The regional manager has requested the HR
manager to help Mrs. Sharma.
Discuss the concept of transfer and its different types?
Identify the type of transfer involved in the above case
20. Dr. Parveen Kaur NagpalDismissal
Dismissal refers to the act of terminating the employment of an
employee by the employer in an organization.
It is sometimes also termed as firing or sacking.
Dismissals are generally the last resort for an employer to take.
In the event of an employer deciding that dismissal is the only
option, it must be conducted fairly and without prejudice.
21. Dr. Parveen Kaur NagpalReasons for Dismissal
• Lack of capacity
• Lack of Qualification
• Unsatisfactory Performance
• Misconduct at Workplace
• Redundancy
• Changed Job Requirements.
22. Dr. Parveen Kaur NagpalTypes of Dismissal
◎ Fair Dismissal: when an employer has sound and justifiable
reasons for carrying out a dismissal
◎ Voluntary Redundancy: If the employee knows that the
employer is going to be making redundancies, he/ she can
volunteer to put himself/ herself forward for it. This is like the
VRS.
◎ Unfair Dismissal: include situations where an employee has not
been informed of a sufficient reason for their dismissal, or the
employer has not followed their own policy regarding
dismissals or disciplinaries
23. Dr. Parveen Kaur NagpalTypes of Dismissal
◎ Constructive Dismissal: when an employee feels that he/ she
has to leave the job or feel “pushed out” due to the way the
employer treats him/ her. The employer may change the
employees working conditions that will force him/ her to quit.
◎ Wrongful Dismissal: A typical wrongful dismissal would be
when an employer has breached the terms of an employee’s
contract during the dismissal process.
24. Dr. Parveen Kaur NagpalEssentials of Sound Dismissal Policy
• Consistency
• Written
• Communicated to the employees
• Provide Clarity
• Fair and Objective
• Counselling
• Provision for Appeal
25. Dr. Parveen Kaur NagpalReferences
1. Aswathappa, K., Human Resource Management: Text and
cases. Delhi: Tata McGraw-. Hill Publishing Company Limited,
2008
2. Gary Dessler, “A Framework for Human Resource
Management”, Pearson
3. Nagpal, Human Resource Management, M. Com Part II, Sem 3,
Sheth Publishers
4. Sharma, Nagpal, OB and HRM, BMS, Vipul Prakashan
26. Dr. Parveen Kaur Nagpal
Thank You
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