PRESENTED BY , Shruti Palkar :- 27

Promotion
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

Types of promotion
Vertical Promotion
Up-gradation Dry Promotion

Purpose
To utilise the employees skill, knowledge at the appropriate

level in the organisational hierarchy resulting in organisational effectiveness and employee satisfaction.
To develop competitive spirit to acquire the skill, knowledge

required by higher level jobs.

To promote employees self development and make them await

their turn of promotions. It reduces labour turnover.

 To promote a feeling of content with the existing

conditions of the company & a sense of belongingness.

To promote interest in training, development programmes

and in team development areas.

To build loyalty and to boost morale. To reward committed and loyal employees.

Bases of Promotion
Merit as a Basis of Promotion Seniority as a Basis of Promotion Seniority-cum-Merit

Benefits of Promotion
Promotion places the employees in a position where an employees skills

and knowledge can be better utilised;

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 & employment;

It increase interest in acquiring higher qualifications, in training & in self

development with a view to meet the requirement of promotion ;

Promotion improves employee morale and job satisfaction; Ultimately it improves organisational health

Problems
Promotion Disappoints some Employees Some Employees Refuse Promotion

Transfer
The permanent lateral movement of a staff member from one position to another position in the same or another job class assigned to the same salary range

Types of Transfer
Production transfer

Replacement transfer
Rotation transfer Shift transfer Remedial transfer Penal transfer

Reasons of Transfer
To utilise employees skill, knowledge, where they are more suitable

or badly needed;
To correct inter-personal conflicts; To adjust the workforce of one section in other section during lay-off,

closure or adverse business conditions or technological change

To punish the employee who violate the disciplinary rules

To minimise fraud, bribe; etc

To satisfy the employees needs

Employee initiated Transfer:1. Temporary Transfer 2. Permanent Transfer

Company initiated Transfer:-

Temporary Transfer 2. Permanent Transfer

1. Public initiated Transfer:-

If an employees behaviour in the society is against the social norms or if he indulges in any social evils 2. If the functioning of an employee is against the public interest
1.

Benefits of Transfer
Reduce employees monotony, boredom Increase employees job satisfaction Improve employees skills, knowledge Correct erroneous placement and inter-personal conflict Improve employees morale Enhance human resources contribution to organisational

effectiveness.

Problem of Transfer
Adjustment problems to the new job, place, environment,

superiors and colleagues,

Transfer from one place to another cause much

inconvenience and cost to the employee & his family members relating to housing, education of children
Company initiated transfers result in reduction in

employee contribution.
Discriminatory transfer affect employee morale, job

satisfaction, commitment & contribution.

Demotion
Demotion is the reassignment of a lower level job to an employee with delegation of responsibilities and authority required to perform that lower level job and normally with lower level pay

Reason for Demotion

Unsuitability of the employee to higher level job. Adverse business conditions. New technology & new methods of operation demand

new and higher level skill. If the existing employee do not develop themselves to meet these new requirements.
Employees are demoted on disciplinary ground grounds.

This is one of the extreme step & organisations rarely use this measure.