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INTRODUCTION This research study is focusing on promotion scheme of an organization which comes under Employee movement sub area of human resource management function. Study attempt to analyze the satisfaction levels of employees about the promotion scheme and effectiveness of promotion scheme using a survey research. A fair and effective promotion process is key to advancing and retaining good employees in an organization. Promoting from within is a good business practice and has been shown to be a powerful employee motivator. Internal promotion policies can generate loyalty through the recognition of individual merit and improved morale by fulfilling employees need for increased status. A promotion may be defined as an upward advancement of an employee in an organization to another job which commands better wages, better prestige, responsibility and authority etc (Glueck, 1978). A good promotion scheme should consist of introduction, objectives, policies, promotion opportunities, criteria and procedures. Effectiveness of promotion scheme could be judged by looking at the level of acceptance of the same by employees. Promotion scheme is a part of reward system of the organization and employees perception about it is important for the future success of the organization. Therefore it is important to investigate the employees views about various aspects of promotion scheme and their satisfaction levels. This will further help organization to modify existing promotion scheme taking employees views also into consideration. 1.1 OVERVIEW OF CEYLON ELECTRICITY BOARD Ceylon Electricity board (CEB) was established under a parliamentary act in1969. In 2004 CEB was divided in to seven strategic business units (SBUs) with long term aim of unbundling the organization. It had the sole authority of Electricity generation, Transmission and distribution for selling purposes until the new Electricity act was enacted in year 2009 (Sri Lanka Electricity act No. 20 of 2009). Under new Electricity act SBUs of CEB had to obtain license from public utilities commission of Sri Lanka (PUCSL) to conduct the business. Lanka transformers Limited and the Lanka Electricity Company limited are subsidiaries of CEB. Present work force consists of 15366 employees. At present CEB is under heavy financial crisis. The major contributory factor for this loss is the over dependence on thermal

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power generation due to not implementing long term generation expansion plan in timely manner which describes the least cost generation options to cope with increase demand. CEB was a profit making Government entity until 1996. During this period major share of power generation was from hydro power stations which are the cheapest source of power generation. As a result of not implementing generation expansion projects to cope with average annual electricity demand growth of about 8% CEB had to purchase emergency power from independent power producers at very high cost. This resulted in declining financial position of CEB. During the period of prosperity, which is before 1996, no one talked about the productivity or cost effectiveness of CEB. But when electricity tariff is rising by several folds everyone started to criticize the CEB. At present CEB is having a severe shortage of unskilled workers and the practice adopted to cope with this problem is to use of outsourced labours. 1.1.1 SUMMARY STATISTICS OF CEB(as at December 2010) Total number of Employees Total number of consumers Average system loss Average selling Price per Unit Percentage Electrification Total Revenue Net assets in operation 15366 4480423 13.50% 13.03 (Rs/ Kwh) 88% Rs. Mn 120780 Rs. Mn 378207

1.2 BRIEF OVERVIEW OF PRESENT PROMOTION SCHEME Present promotion scheme has mainly been developed through four main service streams namely apprentice service (N salary scale), Clerical and allied services (M salary scale), Superintendent Service (L salary scale) and Executive service (K salary scale). Executive service stream is sub divided in to Engineering, Accounting, Human Resource and ancillary service streams. All these streams have different grades and there are policies and criteria to promote to thouse grades. In addition to the different grades within each stream they have the opportunity to change their stream through a competitive examination and interview after obtaining certain minimum functional experience as indicated in the diagram below.

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General Manager (CEO) Finance Manager Human Resource Executive


External recruitment 95% 959595

Accounting Executive
External recruitment 95%

Ancillary service Executive


External recruitment

Engineering executive 15% Superintendent Service 50%

External recruitment - 85% of the carder

Clerical and Allied Services

External recruitment - 50% of the Carder

External recruitment 95%

5% Labour services
External recruitment 100%

Simple schematic showing career path for employees of CEB Source: CEB Promotion policy manual 2 STATEMENT OF PROBLEM

Companies spend lot of time and money interviewing for key positions, with somewhat inconsistent results. Alternatively, many companies promote from within, often using an adhoc process that rewards the most ambitious, not necessarily the most prepared, to lead, even when those who are promoted are placed in established leadership development programs. Its of value for companies to have in place a documented promotion process that is available to all employees, and that explicitly lays out the steps to promotion and the expected abilities at each step (career path). Further, it would be of value for a company to have in place a process that periodically tests all its employees for skills and attributes required at certain positions with the objective of identifying potential future leaders. Effectiveness of the promotion scheme will be reflected in the level of satisfaction and acceptance of the same by employees. Loyalty, job related skills and motivation levels of employees could be maintained and enhanced through a fair promotion policy. Employee dissatisfactions due to unfair treatment in promotion process has become a common in
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Government sector. It is therefore time to conduct an empirical study to investigate the satisfaction levels and perceived effectiveness of promotion policies, criterias, opportunities and procedures of the promotion scheme of Ceylon Electricity Board 2.1 OBJECTIVES OF THE STUDY 1. To study the opinion of employees (workers/supervisors/executives) regarding the existing promotion scheme in the organization. 2. To study whether the objectives of the present promotion scheme is achieved and to quantify the satisfaction levels of employees about the existing promotion scheme. 3. To study about the effectiveness of policies, promotion opportunities, criteria and procedures of promotion scheme. 4. To recommend the modification required to the existing promotion scheme to improve the effectiveness. 5. To analyze any relationship among different dimensions of the issue.

METHODS, DATA AND VARIABLES

Both primary and secondary data were used in this study. Secondary data was collected through promotion policy manuals and other HR related manuals of CEB. A structured questionnaire was developed modifying the Organization Diagnostic Questionnaire (ODQ) developed by M.R. Weisbord in order to collect primary data. The questionnaire developed consists of two parts. The first part requires the respondents to provide demographic data, the second part consists of 27 questions which is divided in to five dimensions of the issue, that is promotion related Job satisfaction, promotion policy, Promotion criteria, Promotion opportunities and Promotion procedures. The questions allow index scores to be calculated on satisfaction levels of five dimensions of promotion scheme. All content questions are scored on seven-point scales (1-2-3-4-5-6-7). Index scores are derived from the mean scores on the questions and mean of mean scores for each dimension of the issue for all respondents to examine satisfaction levels. Unanswered questions were given score of 4. Criteria for satisfaction levels All the statements in the questionnaire were positive type and therefore strong agreement means high level of satisfaction and strong disagreement means high level of dissatisfaction. Accordingly if score is 7, then satisfaction level is very high. If score is 6, then satisfaction
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level is high. If score is 5, then satisfaction level is moderate. If score is 4, then satisfaction level is neutral. If score is 3, then satisfaction level is slightly dissatisfied. If score is 2, then level of satisfaction is dissatisfied. If score is 1, then level of satisfaction is strongly dissatisfied. Pearsons correlation coefficient (r) was used to examine any linear relationships among different dimensions of the issue. In this analysis promotion related job satisfaction was considered as dependent variable and Promotion policy, Promotion criteria, Promotion opportunities and Promotion procedures as independent variables. Microsoft Excel software was used to analyze quantitative data which involve data preparation, counting, grouping and presentation and calculation of mean, standard deviation and Pearsons correlation coefficient(r) etc. Criteria for linear relationship: If 0.9<r<1 then very strong linear relationship between the variables If 0.7<r<0.9 then strong linear relationship between the variables If 0.4<r<0.7 then moderate linear relationship between the variables If 0.1<r<0.4 then weaker linear relationship between the variables The Sample in order to collect data the research questionnaire was administered among 80 employees of Ceylon Electricity Board Southern province. These employees were selected in such a way that sample will include workers, Supervisors and Executives. 4. RESULTS AND FINDINGS Out of 80 questionnaires issued 60 completed and returned and it showed that 75% response rate which is a high percentage. Total number of CEB employees was 15366 and the selected sample is 0.5% of the total population. 63% of the respondents were males and 37% were females. Out of 60 respondents 17% were engineering executives, 15% non engineering executives, 22% supervisors and 46% workers. 38% of the population is in above 40 years age category and 62% under 40 years age category. Following abbreviations were used in presenting results. promotion related Job satisfaction -PRJS, Promotion criteria -PCA, promotion policy - PPC, Promotion opportunities POP, Promotion procedures PPS, Engineering Executives EE, Non Engineering Executives NEE, Supervisors SU, Workers - WK

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Table 4.1 Mean score of PRJS questions, Source: Survey data, 2011
EE 6.00 6.00 5.67 5.33 4.56 5.33 5.48 Employee category NEE SU WK 5.90 5.62 4.00 5.80 5.46 6.00 5.70 6.30 3.50 5.50 5.45 5.23 4.85 4.46 5.15 5.13 5.73 5.73 4.70 5.57 5.68

1 2 3 4 5 6

Promotion is a motivational factor for me. After getting a promotion my responsibility and accountability towards my work is increased. Promotion is, to a great extent, vital and beneficial in my service. I feel that promotion is an upward movement in the organization which gives me more responsibility, authority, status and pay. Increase in employee benefits as a result of a promotion is fair among different categories of employees in our organization My job is a good use and application of my skills, experience and qualification. Mean score

The results in table 4.1 shows that mean scores given for PRJS questions by all employee categories are above 5 which mean satisfaction level is above moderate level. But NEE employee category is slightly dissatisfied about perceived fairness of increase in benefits as a result of promotion. Table 4.2 Mean score of PCA questions, Source: Survey data, 2011
EE 4.00 4.00 4.22 5.00 5.44 4.78 4.57 Employee category NEE SU WK 4.20 2.54 4.97 4.20 5.20 6.30 3.60 5.10 4.97 2.92 2.85 4.46 4.00 4.54 3.55 5.10 5.47 5.37 4.17 4.10 4.86

I am satisfied with the internal examination system for employee promotions 8 I am satisfied with how performance appraisal review grading process is linked to promotion process 9 I believe that span functional experience required for next promotion is proper 10 Educational qualification and other related skills are well considered in promoting employees. 11 Functional experience is not over considered for promotions. 12 Present promotion criteria do not very much subject to favoritism of evaluators Mean score

Results of table 4.2 shows that mean scores given for PCA questions by EE, NEE and WK employees are around 5.This implies that they are moderately satisfied about the promotion Criteria. But SU employees have given mean score of 3.55 showing slight dissatisfaction about the present promotion criteria. Results of table 4.3 shows that mean scores given for PPC questions by EE, NEE and WK employees are around 5. This implies that they are moderately satisfied about the promotion policy. But SU employees have given score of 4.34 showing very marginal satisfaction about the present promotion policy.
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Table 4.3 Mean score of PPC questions, Source: Survey data, 2011
EE 3.56 4.89 6.00 5.33 5.22 5.00 Employee category NEE SU WK 4.40 3.23 4.70 5.10 4.62 4.57 5.90 5.20 5.50 5.22 4.85 4.08 4.92 4.34 5.30 4.60 4.43 4.72

13 CEB has a fair promotion policy 14 I feel that present seniority plus merit based policy is better than purely merit based promotion policy. 15 CEB promotion process do not discriminate people based on age, race, religion, national origin, color, sex, pregnancy or disability. 16 CEB promotion system do not Eliminate certain categories of people from job advancement 17 Ratio of external recruitment to internal promotion is fair in CEB Mean score Table 4.4 Mean score of POP questions, Source: Survey data, 2011

18 Opportunity for promotions exist in this organization 19 Cadre restrictions do not have much effect on promotional prospect of Employees. 20 I have access to job opportunities in different areas of my organization. 21 I am happy with the formal career planning that happens in work place 22 My present work will help me grow in my career. Mean score Table 4.5 Mean score of PPS questions, Source: Survey data, 2011

EE 5.22 2.56 5.22 4.33 4.89 4.44

Employee category NEE SU WK 4.50 4.08 4.47 4.40 3.62 3.83 4.40 5.40 5.00 4.74 5.31 4.62 5.15 4.55 4.10 4.20 5.20 4.36

23 I believe that promotions are received in time 24 Employees have sufficiently been notified about the qualifications required to qualify for higher positions. 25 I am satisfied with the confidential report submitted by branch head for my promotion. 26 I am satisfied with the promotion interview panels of this organization. 27 In case where a promotion is not given, reason for not giving the promotion is informed back to the employee promptly. Mean score

EE 4.00 5.44 4.78 4.78 4.11 4.62

Employee category NEE SU WK 3.20 3.08 4.03 4.80 4.00 5.50 4.40 5.10 4.60 4.42 4.08 3.54 4.31 3.80 4.87 4.60 3.70 4.54

Results in the table 4.4 shows that all the employees have given scores of around 4.5 for POP questions showing marginal satisfaction about promotion Procedures. But EE, SU and WK employees are slightly dissatisfied about the cadre restrictions. Results in the table 4.5 shows that EE, NEE and WK employees have given scores of around 4.5 for PPS questions showing marginal satisfaction about promotion opportunities. But SU employees are slightly dissatisfied about the present promotion procedure.

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Table 4.6 Mean Score of all questions, Source: Survey data, 2011 Variable EE 1 2 3 4 5 6 PRJS PCA PPC POP PPS All Variables 5.48 4.57 5.00 4.44 4.62 4.84 NEE 5.45 4.97 5.22 4.74 4.42 4.97 SU 5.13 3.55 4.34 4.55 3.80 4.28 Mean Score WK Over Under All 40 year 40 year Employees 5.68 5.25 5.44 5.47 4.86 4.58 4.34 4.50 4.72 4.73 4.57 4.73 4.36 4.50 4.31 4.46 4.54 4.35 4.24 4.34 4.86 4.70

Results of table 4.6 show that employees overall satisfaction level about present promotion scheme is 4.7 which is higher than the neutral satisfaction level of 4.0 and therefore according to the results employees are satisfied with the present promotion scheme. It also shows that SU employees have given least mean score of 4.28 for all questions showing least satisfaction about the present promotion scheme while NEE employees have given highest mean score of 4.97 giving highest satisfaction about the present promotion scheme. It also shows that there is no significant satisfaction level difference based on age of employees. Respondents have given lowest mean score for the following two statements Statement Cadre restrictions do not have much effect on promotional prospect of Employees. I believe that promotions are received in time Mean score 3.62 3.70

Respondents have given highest mean score for the following five statements all of which related to promotion related job satisfaction Statement Promotion is a motivational factor for me. After getting a promotion my responsibility and accountability towards my work is increased. Promotion is, to a great extent, vital and beneficial in my service. I feel that promotion is an upward movement in the organization which gives me more responsibility, authority, status and pay. My job is a good use and application of my skills, experience and qualification. Mean score 6.00 5.73 5.55 5.48 5.47

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Table 4.7 Correlations among different variables, Source: Survey data, 2011 Variable PRJS PCA PPC POP PPS Mean Score 5.47 4.50 4.73 4.46 4.34 Std Deviation 0.72 0.90 0.85 0.94 0.99 PRJS 0.42 0.42 0.10 0.06 Correlation coefficient(r) PCA PPC POP PPS

0.54 0.37 0.52

0.23 0.26

0.36

Results of table 4.7 shows that correlation coefficient(r) between dependent variable PRJS and PCA is 0.42 which means that promotion related job satisfaction has a moderate positive linear relationship with promotion criteria and similarly it also shows that promotion related job satisfaction has a moderate positive linear relationship with promotion policy. But according to the results promotion opportunities is weakly related to promotion related job satisfaction and no relationship with promotion procedure. 5. ANALYSIS AND DISCUSSION According to the findings of table 4.6 supervisory grade employees are the least satisfied group of employees. But further analysis of findings of table 4.2 and table 4.5 shows that this least satisfaction is due to slight dissatisfaction of this category of employees about present promotion criteria and promotion opportunities. Results of table 4.6 further shows that highest promotion related job satisfaction has been expressed by workers and least by supervisors. In this study, the workers category mostly includes the clerical staff employees. Further analysis of results of table 4.6 was carried out to check the views of four employee categories among five dimensions of the issue. This shows that Engineering executives have expressed least satisfaction about the promotion opportunities while non engineering executives have expressed least satisfaction about promotion procedures. Supervisors have expressed least satisfaction about promotion criteria and workers have expressed least satisfaction about promotion opportunities. When considering all respondents mean score it shows that least score was given for statements on cadre restrictions and timeliness of getting promotions. This shows that there is a delay in getting a promotion in Ceylon Electricity Board and cadre restrictions have created a barrier for employees in getting promotions. By further analyzing results of table 4.4, it is seen that least mean score of 2.56 has been given for the statement about cadre restrictions by engineering executives. This shows that engineering executives have been worst affected by cadre restrictions.
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Finding of the correlation analysis of this study indicated that promotion related job satisfaction is significantly related to promotion criteria and promotion policy but least related to promotion opportunities. However a study conducted by Ellickson and Logsdon (2002) reflected that job satisfaction of public sector employees was significantly influenced by perceptions of employee satisfaction in terms of pay, promotional opportunities, relationships with supervisors, employees performance management systems and fringe benefits. Further analysis of results of table 4.2 shows that supervisory grade employees have expressed their dissatisfaction about internal examination system for promotions, how performance appraisal review grading process is linked to promotion process and span of functional experience required for promotions. 6. CONCLUSION AND RECOMMENDATIONS A main objective of this study was to analyze the opinions of the employees about promotion scheme and to quantify the level of satisfaction. Findings of the study shows that overall satisfaction level of 4.7 leading to marginal satisfaction of employees about present promotion scheme of Ceylon Electricity Board. This indicates a marginal achievement of main objective of the promotion scheme. But analysis of satisfaction levels of different categories of employees about different dimensions of the issue indicated that they are dissatisfied about some dimensions of the issue. Cadre restrictions and delay in getting a promotion are two common problems identified and management should take action to rectify these problems. Non engineering executives have shown their dissatisfaction about the perceived fairness of benefit increased as a result of a promotion. To rectify this, amendments have to be made for the promotion scheme taking equity and fairness into considerations. Supervisory grade employees have shown their dissatisfaction about promotion criteria and promotion procedure. Their poorly responded questions indicated that they are dissatisfied about internal examination system for promotions, linking process of performance review grading system to promotion system and span of functional experience required for promotions. Promotion policy and procedure has to be revised taking their views also into considerations. By looking at the results of the correlation analysis, promotion policy and promotion criteria is more positively correlated to promotion related job satisfaction of employees. Therefore modifications to the promotion system should be carried out giving more attention to the policies and criterias. More research is needed to provide a more thorough and detailed analysis of the links between job satisfaction and different dimensions of promotion scheme like promotion criteria, promotion policy, promotion opportunities and promotion procedure. This additional research will clarify how effective promotion systems can be developed in order to improve the results achieved by those systems. This will help to insure that promotion systems can contribute consistently to organizational effectiveness.
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7. REFERENCES Alan O. Sykes, An Introduction to Regression Analysis Henarath H.D.N.P.Opatha. (2009), Human Resource Management, Chapter 16 http://www.itrainonline.org/itrainonline/mmtk/, 2011/5/25 Mekissa Williamson (2004), Step by step guide to writing research papers, Massachusetts College of Liberal Arts. Conclusion

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