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Purpose of Job changes To improve Organisational Effectiveness To maximize Employee Efficiency To cope up with changes in Operations To ensure Discipline

Transfer refers to the shifting of employees form one job to another within the same organization where salary, responsibilities and category of the new job and the previous job are almost same. Transfer of an employee can be done in other department of the same plant or office or to the same department of plant or office located in other region/city.

To meet Organisational Needs To Satisfy Employee Needs To Better Utilise Employees To Make the Employee More Versatile To adjust the Work Force To Provide Relief To Punish Employees

Production Transfer Remedial Transfer Versatility Transfer

It should be Written document. It should be communicated and explained to all the employees. It should specify the types of transfers and circumstances under which transfers will be made. Decision to be based on seniority or merit should be specified Reasons which are considered for personal transfers and their priority should be Specified. Facilities available for the transferred employee. Employee should be notified well in advance about the transfer. It should indicate the executives responsible for initiating and approving the transfers.

It refers to advancement of an employee to a higher post carrying greater resposibilities,higher status and better salary. Upward movement of the employee in the organisations hierarchy. When an employee is assigned to a higher level job without increase in pay, it is called a Dry Promotion. Ex: HOD / Director

Upgradation : Movement of an employee to a higher pay scale without change of job. Status and authority is not increased. Promotion : Change of job with increase in status, authority and salary.
Both of them are used to reward employees for better performance and to motivate them.

Transfer : Transfer refers to the shifting of employees form one job to another within the same organization where salary, responsibilities and category of the new job and the previous job are almost same. Promotion : advancement of an employee to a higher post carrying greater resposibilities,higher status and better salary.

Transfer is horizontal shift of an employee whereas promotion is a vertical movement. Promotion is main tool for motivating but transfer less motivating.

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It should be flexible. It should consider merit, potential and seniority of the employees. Merits : 1. Increases Job satisfaction. 2. Increases the effectiveness of the organisation. 3. Increases loyalty 4. Attracts efficient people to the organisation. 5. Gives recognition to the good performer.

In open promotion system, the company considers all the employees as a potential candidates and announces internally these positions are opened. Ex : Lower level vacancies. Closed system candidacy is restricted or is not open to all the employees and the vacancies are not announced. Selection is done in more secret manner. Ex : Managerial level vacancies.

Demotion implies the assignment of an employee to job of lower rank with lower pay. It refers to downward movement of an employee in the organisational hierarchy with lower status and lower salary. Demotion is just opposite to Promotion. It affects the status, career and income of the employee.

Adverse Business Conditions Incompetence Technological Changes Disciplinary Measure

Separation of an employee takes place when his service agreement with the organisation comes to an end and the employee leaves the organisation. It may occur due to resignation,retirement,death,dismissal and layoff.

Resignation or quitting is a voluntary separation initiated by the employee himself. An Employee may resign due to ill- health, marriage , better opportunities in other organisations,etc. Sometimes employee may be asked to resign as an alternative to termination on grounds of gross negligence of duty serious change against him. Excess turnover will lead to problems in the organisation.

Layoff implies temporary removal of an employee from the payroll of the organisation for an indefinite period due to circumstances beyond the control of the employer. The employee is not terminated and is expected to be called back in future. Laid off worker is entitled to compensation equal to 50 % of the basic wages and DA that would have been payable to him had he not been laid off.

Retrenchment : It means permanent termination of an employees services for economic reasons in a growing concern. Termination of services on account of disciplinary action, or prolonged illness or retirement. The Industrial Dispute Act 1947 lays down the following conditions for retrenchment.

The Employee must be given one months notice in writing indicating the reasons for retrenchment. The employee must be paid compensation equal to 15 days wages for every completed year of service. Notice period prescribed manner must be served on the appropriate Government authority.

Dismissal or discharge involves separating an employee from the payroll for violation of organisation rules or for inadequate performance.
An employee may be discharged on the ground of unsatisfactory performance or misconduct. Unsatisfactory performance refers to failure to perform the assigned duties in the Job. An employee is discharged when it is proven that he has no potential to improve over the job. Misconduct refers to willful violation of organisation rules and regulation by the employees.

Majority of the separations of employees from the organisation are by way of retirement. Every organisation has certain rules for retirement and it helps the employees to adjust himself after the retirement.
Retirement is an important event in employees life where he has worked for a major portion of his life. Its the duty of the Personnel Manager to arrange for a farewell for the employee and thank the employee for the contributions he has made to the organisation.

Compulsory retirement Forced Retirement Premature retirement

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