Promotion, Transferand separation

contents

⚫ Promotion – purpose, principles and types⚫ Transfer – Reasons principles and types⚫ Separation – Lay-off, resignation, dismissal,

retrenchment,suspension

Promotion

⚫ Promotion is upward movement of employees⚫ Promotion means an improvement in pay, prestige,

position and responsibilities of an employee withinan organization.

⚫ A mere shifting of an employee to a different jobwhich has beet working hours, better location andmore pleasing working conditions does notamount 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 theyperform well

Principles of promotion

⚫ Clear policy for filling the positions from internalemployees or through recruitment. Top positions arenormally filled through recruitment and lower andmiddle 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 lateralmovement of employees.

⚫ Transfer involves change of job (accompanied bya change in the place of the job) of an employeewithout a change in responsibilities andremuneration

Reasons of transfer

⚫ Shortage of employees in one department andsurplus 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 minimumperiod between transfers need to be decided uponand made known to all the employees.

⚫ The authority which would handle transfers is tobe decided

⚫ The criteria for entertaining transfers need to belaid down and strictly adhered to.

⚫ The area of the organization over which transferscan be made need to be defined.

⚫ Performance of the employee should be assessedbefore 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

Separations

Voluntary

quits

retirements

involuntary

Discharges

Layoffs

Retrenchments

VRS

Suspension

Voluntary separations

⚫ When employee decides to terminate his/herrelationship 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 toa worker whose name is present on the rolls but who hasnot been retrenched. It may be for a definite period, afterwhich the employee may be recalled

⚫ Retrenchment: termination by the employer because ofproductivity or economic reasons. It differs from thedismissal because here it takes place without any fault ofthe employee.

Contd..

⚫ VRS (Voluntary Retirement Scheme): sendinghome surplus labor. Also called golden handshakeplan. 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 tillthe 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 theworkforce or increasing it to maintain theemployee 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 managedownsizing

⚫ 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