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Promotion, Transfer and Separation

This document discusses promotion, transfer, and separation within organizations. Promotion involves upward movement to roles with more responsibility and pay. Transfer is a lateral move to a different role or location without changes to pay or responsibilities. Separation includes both voluntary leaving (resignation, retirement) and involuntary termination (layoffs, dismissal). The document outlines the purposes, principles, types, and guidelines for managing each of these workforce changes.

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Akash saxena
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7K views

Promotion, Transfer and Separation

This document discusses promotion, transfer, and separation within organizations. Promotion involves upward movement to roles with more responsibility and pay. Transfer is a lateral move to a different role or location without changes to pay or responsibilities. Separation includes both voluntary leaving (resignation, retirement) and involuntary termination (layoffs, dismissal). The document outlines the purposes, principles, types, and guidelines for managing each of these workforce changes.

Uploaded by

Akash saxena
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Promotion, Transfer

and separation

By
Akash
contents
Promotion – purpose, principles and types
Transfer – Reasons principles and types
Separation – Lay-off, resignation, dismissal,
retrenchment, Voluntary retirement scheme
Promotion
Promotion is upward movement of employees
Promotion means an improvement in pay, prestige,
position and responsibilities of an employee within
an organization.
A mere shifting of an employee to a different job
which has beet working hours, better location and
more pleasing working conditions does not amount
to promotions
Purposes of promotion
To motivate employees for higher productivity
To attract and retain the services of qualified and
competent people
To recognize and reward the efficiency of an employee
To increase the effectiveness of the employee and of the
organization
To fill up higher vacancies fro within the organization.
To build loyalty, morale and a sense of belongingness in
the employee.
To impress upon others that opportunities are available
to them too in the organization, if they perform well
Principles of promotion
Clear policy for filling the positions from internal employees
or through recruitment. Top positions are normally filled
through recruitment and lower and middle positions through
promotions
Basis of promotion usually is merit or seniority
Basis of promotion may also be competence of the individual
Vacancy or non vacancy promotion
No frequent promotions
Promotion should be preceded by job analysis and
performance evaluation
Promotional policy should be discussed with the union
Transfer
Transfer is also called as horizontal or lateral
movement of employees.
Transfer involves change of job (accompanied by a
change in the place of the job) of an employee
without a change in responsibilities and
remuneration
Reasons of transfer
Shortage of employees in one department and
surplus employees in other department
To sort out boss employee issues
Correction of faulty initial placement of an
employee
Monotony can be avoided by transfer, it also help
in raising productivity
Health reasons (climate may not be good to work
for longer periods)
Family related issues
Principles of transfer
The frequency of transfers and the minimum period
between transfers need to be decided upon and made
known to all the employees.
The authority which would handle transfers is to be
decided
The criteria for entertaining transfers need to be laid
down and strictly adhered to.
The area of the organization over which transfers can
be made need to be defined.
Performance of the employee should be assessed
before transfer.
Types of transfer
Broadly transfers can be classified into three types
–
Those designed to enhance training and
development
Those making possible adjustment to varying
volumes of work within the firm
Those designed to remedy the problem of poor
placement
Contd..
Specifically transfers may be production,
replacement, versatility, shift and remedial
Production transfers: to meet the shortage of
employees during production
Replacement transfers: to replace senior positions by
junior officers
Versatility Transfers: To make employees versatile and
competent in different areas
Shift transfers: transfers between work shifts
Remedial transfer: on request of employees (also called
personal transfers)
Separations

quits

Voluntary
retirements

Discharges
Separations
Layoffs

involuntary Retrenchments

VRS

Rightsizing
Voluntary separations
When employee decides to terminate his/her
relationship with the employer. Tow types are
Quits: out of dissatisfaction in the current job, and
Retirements: Occur when the employees reach end of
their careers
Involuntary separations
Employer terminates the employee
Three reasons
Organization is passing through a lean phase
Faulty hiring leading to a mismatch
Employee exhibits deviant behavior vitiating the
environment
Contd..
Types
Discharges: also called termination and is done when the
employer find the employee to be non performing
Layoffs: Temporary separation. Section 2 (KKK) of the
Industrial Disputes Act, 1947, defines lay-off as a failure,
refusal or inability of an employer to give employment to a
worker whose name is present on the rolls but who has not
been retrenched. It may be for a definite period, after which
the employee may be recalled
Retrenchment: termination by the employer because of
productivity or economic reasons. It differs from the dismissal
because here it takes place without any fault of the
employee.
Contd..
VRS (Voluntary Retirement Scheme): sending
home surplus labor. Also called golden handshake
plan. It is with benefits
Like Hindustan Lever VRS consisted –
A lump sum payment equal to 2.25 times in July 1992
salary multiplied by remaining years of service
(subsequently reduced to 15 years service)
Pension equal to 70% of the July 1992 salary payable till
the age of 60 (the company’s retirement age)
Prizes such as computers, trucks, houses, and so forth
(99 in all) to be decided on the basis of a lucky draw.
Contd..
Rightsizing: means reducing the size of the
workforce or increasing it to maintain the employee
strength at the most desired level.
Mostly it is downsizing only
Triggered by –
The company’s bottom line is threatened
Technological advancements renders people redundant,
and
Organizational restricting
Contd..
It is quite painful for the employee and his family.
Affects the morale of all the employees
Guidelines to manage
downsizing
Consider the human element
Make ‘who goes and who stays’ decisions judiciously
Delay and pay hikes
Freeze hiring
Restrict overtime
Retain or redeploy employees
Engage part-time employees
Switch to job sharing
Implement early retirement plans
Attend to morale of serving employees
Managing separations
Positive outcomes
Organizations become fitter and trimmer
Saving on wage and salary bill
Fresh ideas brought by new entrants
Negative outcomes
Disrupts employee morale, may rather add to cost
Cost of turnover include retirement costs and hiring and
training costs
Thanks

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