Date post: | 14-Jul-2015 |
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Recruiting & HR |
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Employees move with in an organisation, laterally or
vertically for a variety of reasons.
To ensure the effectiveness of the employees in
the organisation.
To satisfy both employee & organisational needs.
To provide for career & succession planning.
To effect changes in jobs & organisational
structure.
To ensure discipline and make organisational
rewards contingent on employee performance.
OPromotion
ODemotion Vertical
movement
OTransfer of employees
OSeparation (better prospects,
retirement, termination etc…,)
PROMOTION
• Upward movement of employees from one job to another
higher one
• With increase in salary, status, responsibilities
• May be temporary or permanent
• In-build motivational value
• Removes feelings of stagnation and frustation
• Good promotional policy to fill the vacancies in a higher
job.
PURPOSES/OBJECTIVES
To recognize an employees skill and knowledge
To reward and motivate employees to higher productivity
To promote employees satisfaction
To build loyalty among the employees
To promote good Human relations.
To retain skilled and talented people
To attract trained, competent and hard working people.
Promotion can be made on various bases:
Seniority
Merit
Educational and Technical qualification
Potential for better performance
Career and succession plan
Vacancies based on organisational charts
Training
Motivational strategies like Job enlargement
• Lateral movement of employees within the
same grade.
“ a transfer is a change in the job of an
employees without a change in
responsibilities or remuneration”
- Edwin Flippo
• To meet organisational needs
• To satisfy employee needs
• To better utilize employee
• To make the employee more Versatile
• To adjust the workforce
• To provide relief
• To punish employee
• Production Transfer
• Remedial Transfer
• Replacement Transfer
• Versatility Transfer
• Shift Transfer
• Penalty Transfer
• Specify the circumstances under which
transfers will be made.
• Specify the basis for transfer.
• Intimate the fact of transfer to the person
concered well in advance.
• Clarify whether transfer is permanent or
temporary.
• Not to be made frequently.
Advantages:
• Improve employee skills• Reduce monotony and boredom• Remedy faulty placement decisions• Prepare the employee for challenging
assignments in future• Stabilize changing work requirements in
different departments• Improve employee satisfaction and morale• Improve employer-employee relations
Disadvantages:
• Inconvenient to employees whootherwise don’t want to move
• Employees may or may not fit in thenew location/department
• Shifting of experienced hands mayaffect productivity
• Discriminatory transfers may affectemployee morale
• It is just opposite of promotion.
• It is the downward movement of an
employee in the organisational hierarchy
with lower rank/status and pay.
“the assignment of an individual to a
job of lower rank and pay usually involving
lower level of difficulty and responsibility”
- D.S.Beach.
Causes
• Incompetence- inability to meet the challenges posed by the new higher job
• Adverse Business Conditions-Circumstances and conditions like recession and other crisis
• Disciplinary measures- Disciplinary action against erring employees
Effects of Demotion
Status, Pride, Career and income of the
employee
Causes feel of insecurity in employees mind
Can create positive impact on employee’s morale
and career planning
It can generate disciplinary care in other
employees
Meaning
• It is situation when the service agreement of employees with his organization comes to an end and employee leaves the organization.
• It is a decision that the individual and organization part from each other.
Forms of Separation
Retirement-
- Compulsory
- Voluntary (golden handshake)
Resignation
Layoffs
Retrenchments
Dismissal
Employee Separation
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Reasons for employee separations:
Pressures on firms to remain competitive and efficient
Decline in employee commitment to individual
employers
The importance of managing separations:
Transitions of employees out of the firm go smoothly.
Continuing operations of the firm are not disrupted.
Important professional relationships are not damaged.
Types of separations
Reductions-in-force, turnover, and retirements
Reductions-in-Force (RIFs)
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Causes of reductions:
Restructuring as a result of mergers and acquisitions
Attempts to make the organization more cost competitive
Adjustments to declining business environment conditions
Reasons for reductions:
Inefficiency in operations
Lack of adaptability in the marketplace
A weakened competitive position in the industry
Methods for dealing with reductions:
Continuance pay and outplacement programs
Reductions-in-Force (RIFs)
Copyright © 2002 South-Western. All rights reserved.00–21
Worker Adjustment Retraining and Notification Act
(WARN) of 1989:
Requires employers with more than 100 employees
to provide affected employees with a minimum of
sixty days written notice of any facility closings or
large-scale layoffs of 50 or more employees.
WARN does no apply to governmental agencies.
Exceptions to WARN:
“unforeseeable circumstance”
natural disaster
“temporary facility”
Workforce Management Strategies
Copyright © 2002 South-Western. All rights reserved.00–22
EXHIBIT 13-1: STRATEGIES FOR MANAGING EMPLOYEE SURPLUSES AND AVOIDING LAYOFFS
Turnover
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Involuntary turnover
Employees who are asked to leave the organization
for cause (e.g., poor performance) or due to
circumstances that cause a reduction-in-force.
Voluntary turnover
Employees who leave an organization on their own
initiative.
“Beneficial” turnover
When low performing employees depart and/or
when new higher performing employees are
promoted or hired as replacements.
Retirement
Copyright © 2002 South-Western. All rights reserved.00–24
Age Discrimination Act of 1967 Prohibits an employer from setting a mandatory
retirement age except in certain occupations such as airline pilots.
Retirement Creates advancement opportunities for younger
employees and reduces payroll costs.
Can cause a loss of vital accumulated historical knowledge of the organization, its industry and the marketplace.
Employers can offer part-time and consulting work to older workers to ease the transition to retirement.