promotion, demotion, transfer and separation

 

CHAPTER 9

PROMOTION, TRANSFER AND SEPARATION

Promotion

Promotion is a term used to describe the movement of personnel within an organization, which can include upward reassignments, increased responsibilities, enhanced status, and usually higher pay.

There are different types of promotions based on the changes that occur.

1.      Horizontal Promotion: This type of promotion involves an increase in responsibilities, pay, and a change in designation, but the employee does not move beyond their current job classification. For example, a lower division clerk may be promoted to an upper division clerk without a change in the nature of the job.

2.      Vertical Promotion: In vertical promotion, an employee moves beyond their current job classification, resulting in increased responsibility and status. For instance, a superintendent may become a departmental manager, indicating a higher level of authority.

3.      Dry Promotion: A dry promotion refers to a promotion where there is no increase in the employee's pay. Instead, it is given as a symbolic recognition, often accompanied by a new and longer job title. Dry promotions are typically used in place of monetary compensation increases.

Basis of promotion

1.      Promotion Based on Seniority: This promotion system considers the length of service of an employee in the organization.

v Employees are promoted to higher positions purely based on their length of service, regardless of their qualifications, experience, performance, and track record.

v Trade unions often prefer seniority-based promotions because layoffs, recalls, and discharges are typically based on seniority.

Arguments for Promotion by Seniority:

·         All employees are assured of promotion when it is due.

·         Seniority is a measurable and easily understood factor, reducing charges of favoritism and discrimination.

·         Management has a known employee, reducing the risk of bringing in an unknown person from outside.

·         Seniority is believed to contribute to an employee's ability as they gain more experience in a job.

·         Promotion by seniority satisfies employees' personal aspirations, leading to better morale.

Arguments against Promotion by Seniority:

·         Capable young employees may become impatient and seek better prospects elsewhere if seniority is the sole basis for promotion.

·         Internal sources may be inadequate to meet the organization's growing requirements.

·         Promotion based solely on seniority can result in frustration, low morale, and the organization being run by less capable individuals.

·         infusing new talent into the organization may be hindered by a seniority-based promotion policy.

2.      Promotion Based on Merit: In this system, employees are promoted to higher positions based on their performance, work record, qualifications, and experience. Service seniority is not considered for promotion.

v Merit-based promotions are commonly followed in commercial and industrial enterprises where efficiency and work performance are the main considerations for assessment.

Arguments for Promotion by Merit:

·         Promotion based on merit rewards employees for their hard work, encouraging them to strive for advancement.

·         Merit-based promotions enhance organizational efficiency and maximize talent utilization.

·         Merit-based promotions act as motivators, leading to increased productivity.

Arguments against Promotion by Merit:

·         Objective recognition of merit can be challenging, requiring management to develop controls to refute allegations of favoritism.

·         Trade unions may view merit-based promotions as favoritism and distrust management's claims of promoting solely based on merit.

·         Efficiency in a current job does not necessarily predict ability in a higher-level position.

·         Methods used to judge merit, such as performance appraisals and confidential reports, can be subjective and biased.

3.      Merit cum Seniority Promotion: This approach combines both seniority and merit as factors in promoting employees.

v Employees with a blend of seniority and merit are given priority in promotion over others who possess only one of these factors.

v This method aims to balance seniority-based objectivity with the efficiency-based promotion.

4.      Promotion by Selection: Under this system, employees undergo rigorous tests and screening before being promoted. A committee appointed for this purpose scrutinizes the service records, merit, qualifications, and experience of employees eligible for promotion. Employees are put through various tests and interviews, and selection is made based on the committee's evaluation.

5.      Time Bound Promotion Scheme: This method involves promoting employees according to predetermined time standards for promotions to higher positions, provided they possess the minimum qualifications required for the higher position.

v Neither seniority nor merit is considered in this scheme, and employees may need to pass departmental examinations or tests to be considered for promotion.

6.      Temporary Promotion Scheme: Also known as, officiating promotion, this scheme involves temporarily promoting officials to higher positions when vacancies arise and they are due for promotion.

v Temporary promotions do not guarantee permanent promotion, but if the employee's performance during the officiating period is satisfactory, the promotion may become permanent.

Demotion

Demotion involves moving an employee to a job with less responsibility, status, or compensation than their current position. It is considered the opposite of promotion and is often seen as a punishment for inefficiency or incompetence.

Negative Connotation and Employee Dissatisfaction:

v Demotion carries a negative connotation and can lead to employee dissatisfaction.

v The act of demoting an employee may impact their morale, productivity, and the overall discipline of the workforce. It is essential to handle demotions tactfully to minimize these negative effects.

Causes of Demotion:

v Demotion may be used as a disciplinary measure for employees who have violated company rules and regulations.

v It can also be a consequence when an employee is unable to perform their job adequately due to health issues or personal reasons.

v During periods of organizational restructuring or downsizing, employees may be required to accept lower-level positions until normal operations are restored.

Conditions for Demotion:

v Demotion should be reserved for serious violations of rules and regulations, rather than minor infractions such as poor attendance or insubordination.

v A proper and detailed investigation of alleged violations should be conducted to establish the grounds for demotion.

v Consistency and equity should be maintained in applying the penalty, avoiding hasty decisions.

v Provision for review should be available to allow employees to present their case or challenge the demotion decision.

v Demotions should be infrequent due to their significant impact on employees.

Transfer

Transfer refers to a change in job assignment where an employee is moved from one position to another within an organization.

v It is a lateral shift that does not involve a change in responsibilities, skills, or compensation.

v Transfers can be initiated by the organization or by the employee themselves.

Ø  Organizational-initiated transfers are made to place employees in positions where they can be more effective or better meet the organization's work schedules.

·         For example, an employee may be transferred to a different department or division within the company.

Ø  employee-initiated transfers, also known as personnel transfers, are requested by employees for various reasons such as wanting a change of boss, location, or to avoid conflicts with colleagues.

Transfers can be temporary or permanent, contingent upon the requirements of the organization. The primary aim of transferring employees is to make use of their capacities and provide them with opportunities for growth and job satisfaction. By changing positions, employees can gain new experiences and skills, and vacancies can be filled by competent individuals.

Types of transfers

1.      General Transfer: This type of transfer is implemented at a specific time of the year and involves all employees who have completed a certain period of service in a particular post or location.

v It is commonly seen in large organizations, quasi-governmental organizations, and government departments.

2.      Production Transfer: Production transfers are made to move employees from one department to another where their skills are needed more.

v This helps avoid laying off efficient and trained employees and stabilizes employment within the organization.

v It can also occur in non-manufacturing enterprises or divisions.

3.      Replacement Transfer: These transfers involve moving long-service employees to similar jobs in other departments to replace employees with shorter service who may be leaving the organization.

v The objective is to retain efficient and trained employees, but it may result in some short-service employees losing their jobs.

4.      Shift Transfer: Shift transfers involve moving workers from one shift to another while performing the same type of work.

v This is done to minimize the impact on their participation in community life and to alleviate routine fatigue.

5.      Remedial Transfer: are made to address situations where an employee is not performing well in their current job or when the job does not suit their health.

v It provides a way for management to correct unsatisfactory placements and transfer employees to a more suitable position.

6.      Versatility Transfer: The purpose of versatility transfers is to increase the employee's versatility by shifting them from one job to another.

v It provides them with varied job experiences and helps create a flexible workforce that can be easily shifted to different roles when needed.

7.      Punishment or Penal Transfer: This type of transfer is used as a form of punishment for employees who have committed errors or misconduct.

v They may be transferred to a location with risks or hazards or to a remote branch where their activities can be limited.

8.      Request Transfers: The employee initiates Request transfers themselves, usually for personal or family reasons.

v These transfers are often granted on humanitarian grounds to help employees deal with their personal issues.

9.      Mutual Transfers: When two employees mutually agree to exchange positions, it is referred to as a mutual transfer.

v If one employee is willing to go to another place, the organization may consider granting the transfer requests.

Transfer Policy

Transfers within an organization can pose challenges if left solely to the discretion of supervisors or employees.

v To address potential issues like favoritism or victimization, it is imperative for every organization to establish a clear and impartial transfer policy.

v This policy should be well-defined, known to all employees, and based on proper job descriptions and analyses. The absence of such a policy can create uncertainty among employees.

A comprehensive transfer policy should cover:

·         Clearly define the types of transfers and the circumstances under which they will be utilized.

·         Specify the authority responsible for initiating and approving transfers.

·         Clarify whether transfers are limited to sub-units or extend between departments, divisions, and plants.

·         Examine the transferability of both jobs and individuals based on job descriptions, specialization, and individual background and training.

·         Clearly state whether transfers are based on seniority or skill and competence.

·         Specify whether an employee retains seniority credit upon transfer.

·         Clearly outline pay scales, wages, and perquisites associated with the transferred job.

·         Ensure timely communication of transfer decisions, with written notification to all concerned parties.

·         Discourage frequent transfers and provide procedures to avoid large-scale transfers.

·         Consider reimbursing employees for the actual cost of moving households during transfers.

Separation

Separation refers to the termination or cessation of an employee's agreement or service with an organization.

Types of separation

1.      Resignation: occurs when an employee voluntarily initiates the termination of their employment.

v Employees may resign for various reasons, such as getting married, health issues, better job opportunities elsewhere, or dissatisfaction with company policies.

2.      Discharge: involves the permanent separation of an employee from the organization due to poor performance, rule violations, or misconduct.

v Discharge may be necessary when there is a reduction in business volume, and the employee fails to meet job requirements or forfeits their right to a job.

3.      Dismissal: occurs when the organization initiates the termination of an employee's services.

v It is a more severe action and is usually the result of misconduct or prolonged absence from duty.

v Dismissal should be a last resort after attempts at reconciliation have failed.

v The employee should be given an opportunity to explain their conduct and show cause why they should not be dismissed.

4.      Retrenchment: involves the permanent termination of an employee's services due to redundancy in a going concern.

v It typically occurs when a part of the workforce is found to be surplus to requirements

v Retrenchment can have destabilizing effects on other employees who may become anxious about their own job security.

v The last person employed in each category is usually the first to be retrenched, and retrenched workers may be given preference for re-employment when vacancies arise.

5.      Layoff: denotes the temporary and indefinite separation of an employee from the payroll, typically resulting from factors beyond the employer's control.

v The employee is expected to be called back to work in the foreseeable future.

v Layoffs are often the result of market fluctuations, shortage of resources, production delays, or other unforeseen circumstances.

6.      Golden Handshake: A golden handshake is a form of retrenchment where employees with a specified minimum service can choose voluntary retirement and receive a lump sum payment.

v Golden handshakes are often offered by the government to reduce the size of the bureaucracy or close down chronically loss-making public sector enterprises.

7.      Retirement: is a significant milestone for employees who reach a certain age or fulfill the criteria for retirement.

v It may require preparation and counseling regarding pension choices and insurance benefits.

v Retired employees can sometimes be rehired during staff shortages and provide valuable assistance to the organization.

  

Thank you!!!