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