Presentation by

Bineesh.N.K
PROMOTION
Definition
 According to Scott and Clothier:
“ A promotion is the transfer of an employee to a
job which pays more money or one that carries some
preferred status.”
 “A promotion may be defined as an upward
advancement of an employee in an organisation to
another job, which commands better pay/wages,
better status/prestige, and higher
opportunities/challenges, responsibility, and
authority, better working environment, hours of work
and facilities, and a higher rank.”
i. To motivate employees to higher productivity.
ii. To attract and retain the services of qualified and
competent people.
iii. To recognize and reward the efficiency of an
employee.
iv. To increase the effectiveness of the employee and of
the organization.
v. To fill up higher vacancies from within the
organisation.
vi. To build loyalty, morale and a sense of
belongingness in the employee.
vii. To impress upon others that opportunities are
available to them also in the organisation, if they
perform well.
 Consistency
 Fair and impartial
 Planned activity
 (i) Horizontal promotion
 (ii) Vertical promotion
 (iii) Dry promotion
 (i) Horizontal promotion
Promotion involves an increase in
responsibilities and pay, and a change in designation.
But the employee concerned does not transgress the
job classification.
eg : a lower division clerk is promoted as an upper
division clerk. This type of promotion is referred to
an “upgrading” the position of an employee.
 (ii) vertical promotion

A promotion is vertical when a canteen employee

is promoted to an unskilled job. The concerned
employee naturally transgresses the job classification.
 (iii) Dry promotions
Dry promotion refers to increase in
responsibilities and status only.
Definitions.
A transfer may be defined as “ a change in job
within the organization where the new job is
substantially equal to the old in terms of pay,
status and responsibilities.”
- T.N.Chhabra.
 A lateral shift causing movement of individuals

from one position to another usually without

involving any marked change in duties,
responsibilities, skills needed or compensation.-
C.B.Gupta.
Concepts Of Transfer.
A transfer refers to a horizontal or lateral movement of
an employee from one job to another in the same
organization without any significant change in the
status or pay.
 A transfer may be initiated either by the organization

or by the employee.
 A transfer may be temporary or permanent.
NeedAnd Purpose Of
Transfer.
To meet organization needs.
 Companies may transfer employees due to :-
• Change in volume of production.
• Change in technology.
• Change in production schedule.
• Change in product line.
• Change in organization structure
•

To satisfy the employee needs.
 Employees may request their transfer due
to :-
• Dislike of boss or fellow workers.
• Lack of opportunities for future advancement.
• Personal problems.
To better utilize employees.
• The employee maybe transferred because the
management feels that his capabilities would be
better utilised elsewhere.
• An employee who is not performing satisfactorily
may be more suitable in another job.
To make the employee more versatile.
 The employees may be transferred to different
jobs to :-
• Widen their knowledge and skills.
• Reduce monotony and as a method of training.
To adjust the workforce.
 Workers are transferred from the surplus
department or plant where there is shortage of
staff.
To provide relief.
 It give relief to the employees who are
overburdened or doing risk work for long period.
To punish employees.
• Employees indulging in undesirable activities
may be transferred to remote places or to some
other jobs.
• It is in the form of disciplinary action.
• Transfers are made because permanent stay may
cause frauds, bribery, etc.
Types Of Transfers.
Transfers may be classified into five
types.
• Production transfer.
• Shift transfer.
• Replacement transfer.
• Remedial transfer.
• Versatility transfer.
Production transfer.
• Such transfers are made when there is a need
of manpower in one department and surplus
manpower in the other.
• Such transfers help to stabilise employment.
Shift transfer.
• Employees may be shifted from one shift to another
for personal reasons.
• Eg:- Marriage, infant care, old parents.
•
Replacement Transfer
• It is used when all operations are declining
and to retain long-service employees as long as
possible.
• The long standing employee replaces a new
employee and thereby gets relief from the
heavy pressure of work.
Remedial Transfer.
• Such transfers are made to rectify mistakes in
selection and placement.
• These transfers are effected at the request of the
employees and are, therefore, called personal
transfer.
Versatility Transfer.
• It is effected to make employees versatile and
competent in more than one skill.
• It helps to reduce boredom and monotony,
Principles Of Transfer.
 Transfer policy should clearly specify the types of
transfers and the circumstances under which
transfers will be made.

 It should prescribe the basis for transfers.

 It
should indicate the executives responsible for
initiating and approving the transfers.
 It
should specify the effect of transfer on the
seniority and pay of the employee.

 It should be put in writing.

 It
should be communicated and explained to the
employees.
 Thearea of the organization over which transfers
can be made need to be defined.

 It
should be clearly defined as permanent or
temporary.
Benefits Of Transfer.
 Increase in productivity and effectiveness of
the organization.
 Greater job satisfaction to employees.
 Stabilise fluctuating work needs.
 Improve employee skills.
 Remedy for faulty placement.
 Improve labour relations.
 Avoid monotony.
 Human Resource And Personnel Management
 - K.Aswathappa.
 Human Resource Management
 - C.B.Gupta.
 Human Resource Management
 - T.N.Chhabra.