PRESENTED BY,

Deepa viswaroopan
Roll No. 7
II sem , MBA@JMC
 MEANING

Promotion is advancement of an employee to a

better job – better in terms of greater
responsibility, more prestige or status, greater skill
and especially increased rate of pay or salary.
- Paul Pigors and Charles A. Myers

The upward assignment of an individual in an

organization’s hierarchy, accompanied by increased
responsibilities, enhances status and usually with
increased income though not always so.
- Arun Monappa & Mirza S. Saiyadain
 CONDITIONS OF
PROMOTIONS
Reassignment of higher level job to an
employee than what he is presently performing.

The employee will naturally be delegated with

greater responsibility and authority than what
he has had earlier.

Promotion normally companies higher pay.

 PURPOSES OF PROMOTION
To utilize the employee’s skill, knowledge at the
appropriate level resulting in organizational
effectiveness and employee satisfaction.

To develop competitive spirit and inculcate the zeal

in the employees to acquire the skill, knowledge
etc. required by higher level job.

To develop competent employees inside who can

adapt to changing environments.

To promote employee’s self development. It

reduces employee turn over.
PURPOSES OF PROMOTION (contd..)
To promote feeling of contentment with the exist
conditions and also sense of belongingness.

To promote interest in training, development

programmes and team development.

To build loyalty and to boost morale.

To reward committed and loyal employees.

To get rid of problems created by leaders of unions

by promoting them to officer levels.
 TYPES OF PROMOTION
Vertical Promotion – Employee is moved to the next
higher level, in the organizational hierarchy with
greater responsibility, authority, pay and status.

Upgradation – The job is upgraded in the

organizational hierarchy. Consequently, the
employee gets more salary, higher authority and
responsibility.

Dry Promotion – The employee is moved to the next

higher level in the organizational hierarchy with
greater responsibility, authority and status without
any increase in salary.
BASES OF PROMOTION
 MERIT BASED PROMOTION

Merit is taken to denote an employee’s skill,

knowledge, ability, efficiency and aptitude
as measured from educational, training and
past employment record.
Merits :
The resources of higher order of an employee can be
better utilized at higher level.
It results in maximum utilization of Human
Resources in the organization.

Competent employees are motivated to exert all

their resources and contribute them to the
organizational efficiency and effectiveness.

It works as golden hand-cuffs regarding employee

turnover.

It continuously encourages employees to acquire

new skills, knowledge etc.
Demerits :
Measurement or judging of merit is highly difficult.

Many people distrust the management integrity in

judging merit.

Techniques of merit measurement are subjective.

Mostly based on past achievement, efficiency but

not about the future success.
 SENIORITY BASED PROMOTION

Seniority refers to relative length of service

in the same job and in the same
organization.

By considering seniority as basis of

promotion, there is a positive correlation
between length of service and amount of
knowledge and level of skill acquired.

Also, it supports the custom of first come

first serve.
Merits :
Relatively easy to measure the length of service
and judge the seniority.

There will be full support from trade union.

Everybody trust’s management action as there is

no scope for favoritism and discrimination and
judgment.

Gives a sense of certainty of getting promotion to

every employee and of their turn of promotion.
Merits (contd..) :
Senior employees will have a sense of satisfaction
to this system as the older employees are
respected and their inefficiency cannot be pointed
out.

It minimizes the scope of grievances and conflicts

regarding promotion.

It seems to serve the purpose in the sense that

employees may learn more with increase in length
of service.
Demerits :
It demotivates young and more competent
employees and results in employee turnover among
dynamic force.

It kills the zeal and interest to develop as

everybody will be promoted with or without
improvement.

Organizational effectiveness may be diminished

through deceleration of the human resources.
Demerits (contd..)

Employees only learns upto a certain age and after

that the learning ability diminishes.

Judging seniority may seems easy but involves

problem areas job seniority, service in different
organizations, experience as apprentice,
researcher, length of service even in terms of hour.
 SENIORITY-CUM-MERIT
BASED PROMOTION

Seniority-cum-merit based promotion

satisfies the management for organizational
effectiveness and the employees and trade
unions for respecting the length of service.
A balance can be struck between the two basis by
some ways as below:

Minimum length of service and merit – A minimum

length of service is kept as basic eligibility and then
merit is made the sole criteria.

Measurements of seniority and merit through a

common factor

Minimum merit and seniority – Certain merit is kept

as eligibility criteria and then seniority is
considered.
 BENEFITS OF PROMOTION
Promotion places the employees in a position where
an employee’s skills and knowledge can be better
utilized.

It creates and increases the interest of other

employees in the company as they believe that
they will also get their turn.

It creates among employees a feeling of content

with the existing conditions of work and
employment.
BENEFITS OF PROMOTION (contd..)
It increases interest in acquiring higher
qualifications, in training and in self development
with a view to meet the requirements of promotion.

Promotion improves employee morale and job

satisfaction.

It improves organizational health.

PROBLEMS WITH PROMOTION
Disappoints Some Employees – If some employees
don’t get promoted, then they develop negative
attitude and reduce their contribution to the
organization.

Employees Refuse Promotion – Like promotion with

transfer, promotion to a level of incompetency,
delegation of unwanted responsibilities etc.

Superiors does not relieve their subordinates.