Post on 10-Apr-2015
Promotion, Transfer and separation
By
Akash
contents
Promotion – purpose, principles and typesTransfer – Reasons principles and typesSeparation – Lay-off, resignation, dismissal,
retrenchment, Voluntary retirement scheme
Promotion
Promotion is upward movement of employeesPromotion 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 productivityTo attract and retain the services of qualified and
competent peopleTo recognize and reward the efficiency of an employeeTo increase the effectiveness of the employee and of
the organizationTo 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 seniorityBasis of promotion may also be competence of the
individualVacancy or non vacancy promotionNo frequent promotionsPromotion should be preceded by job analysis and
performance evaluationPromotional 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 issuesCorrection of faulty initial placement of an
employeeMonotony can be avoided by transfer, it also help
in raising productivityHealth 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
developmentThose making possible adjustment to varying
volumes of work within the firmThose designed to remedy the problem of poor
placement
Contd..
Specifically transfers may be production, replacement, versatility, shift and remedialProduction transfers: to meet the shortage of
employees during productionReplacement transfers: to replace senior positions by
junior officers Versatility Transfers: To make employees versatile and
competent in different areasShift transfers: transfers between work shifts Remedial transfer: on request of employees (also called
personal transfers)
Separations
Separations
Voluntary
quits
retirements
involuntary
Discharges
Layoffs
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, andRetirements: Occur when the employees reach end of
their careers
Involuntary separations
Employer terminates the employeeThree reasons
Organization is passing through a lean phaseFaulty 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 performingLayoffs: 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 onlyTriggered by –
The company’s bottom line is threatenedTechnological 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 elementMake ‘who goes and who stays’ decisions judiciouslyDelay and pay hikesFreeze hiringRestrict overtimeRetain or redeploy employeesEngage part-time employeesSwitch to job sharingImplement early retirement plansAttend to morale of serving employees
Managing separations
Positive outcomesOrganizations become fitter and trimmerSaving on wage and salary billFresh ideas brought by new entrants
Negative outcomesDisrupts employee morale, may rather add to costCost of turnover include retirement costs and hiring and
training costs
Thanks