Promotions & Succession

8/2/2019 Promotions & Succession

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M S . A S H I T A C H A D H A

Promotion and Succession


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Internal/External Mobility

The lateral or vertical movement(promotion,

transfer, demotion or separation) of an employee

within an organization is called internal mobility.

Some employees leave the organization for reasons

such as better prospects, retirement, termination etc.

Such movement is called external mobility.


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Reasons for Internal Mobility

Improve organizational effectiveness

Improve employee effectiveness

Adjust to changing business operations

Ensure discipline


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Transfer

Definition:A transfer is horizontal or lateral

movement of an employee from one job, section,

department, shift, plant or position to another at the

same or an other place where his salary, status and

responsibility are the same.

A transfer is a change in job assignment at the same levelof hierarchy, requiring similar skills, involving similar

level of responsibility, same status and pay.


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Purpose of Transfer

To meet the organizational requirements

To satisfy employee needs

To better utilize the skills of the employee

To make the employee more versatile through job rotation

To adjust the workforce

To provide relief

To reduce conflicts


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PROMOTIONS

Definition: An upward advancement or movement of

an employee in an organization from current job to

another, which commands better pay, better status and

prestige and higher opportunities and challenges,

responsibility and authority, better working

environment and facilities and a higher rank.

Promotion has an in-built motivational value, as it

elevates the status and power of an employee within an

organization.


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Purpose of Promotion

1. To furnish an effective incentive for initiative, enterprise

and ambition

2. To conserve proved skill, training and ability

3. To reduce discontent and unrest

4. To attract suitable and competent workers

5. To suggest logical training for advancement


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Types of Promotions

Merit Based Promotions based on superior performance in

the current job.

Advantages- Motivates to work hard, improve knowledge, skills and contribute to

organizational efficiency

The employer focuses attention on talented people, recognize and

reward their contributions

Inspires other employees to improve their standards of performance


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Failures of the system to deliver the results

Not easy to measure merit-personal prejudices, biases etc

Younger employees can get ahead of senior employees

leading to frustration and discontentment

Past performance may not guarantee good performance in

another job


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Seniority Based Promotion

Promoting employees on the relative length of service in the

organization. Its a measure against favoritism, discrimination and

subjective judgement.

Limitations-

The assumption the employee learns more with length of service is not

always true.

It de-motivates the competent employees.

Employees do not show interest in enhancing skills as there is no

promise of fast growth.


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PROMOTION POLICY

It should be fair and impartial

Promotion should be a planned activity

It should provide equal opportunity for promotion in all categories of

jobs, departments etc

It should contain clear cut norms and criteria

Appropriate authority for making final decision

It should contain reinforcing future chances in minds of rejected

candidates

Preferably selection for higher positions internally

Balance between seniority and merit

Promotion policy should be transparent


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Judging employees for promotion

Margin of performance-he managed to perform or has some

reserve left

Flexibility or versatility-has restricted field or can he perform

on many jobs

Intelligence-how does he think for decision making

Motivation-what are his wants


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Succession

Succession management is used to examine existing

managerial talent in light of future competencies and future

business needs and challenges.

Right talent should be available when needed with the

appropriate experience and development required for

higher level jobs.

It focuses on creating a pool of candidates with high

leadership potential.


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Succession Planning

It ensures that planned training and development of the

potential employees takes place.

Employees identified are nurtured, trained and developed

for future leadership roles.


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Succession management activities:

Identifying the shortage of leadership skills and defining the requirements-

Executive competencies and skills for various levels are determined.

Identifying potential successors for critical positions- People with the

requisite talent move into senior leadership roles.

Coach and groom the selected employees- Enriching developmental

opportunities must be given to them such as handling important projects

Secure top managements commitment and support- Consistent supportand direction help in assessment, training, development and retention

programmes

Promotions & Succession

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