Promotions,Transfers,Demotions....... Kalpanadevi.U

1. INTERNAL MOBILITY &
SEPARATIONS
U.KALPANADEVI II- MBA
MICHAEL INSTITUTE OF
MANAGEMENT

2.  Employees move with in an organisation, laterally or
vertically for a variety of reasons.
 To ensure the effectiveness of the employees in
the organisation.
 To satisfy both employee & organisational needs.
 To provide for career & succession planning.
 To effect changes in jobs & organisational
structure.
 To ensure discipline and make organisational
rewards contingent on employee performance.

3. OPromotion
ODemotion Vertical
movement
OTransfer of employees
OSeparation (better prospects,
retirement, termination etc…,)

4. PROMOTION
• Upward movement of employees from one job to another
higher one
• With increase in salary, status, responsibilities
• May be temporary or permanent
• In-build motivational value
• Removes feelings of stagnation and frustation
• Good promotional policy to fill the vacancies in a higher
job.

5. PURPOSES/OBJECTIVES
To recognize an employees skill and knowledge
To reward and motivate employees to higher productivity
To promote employees satisfaction
To build loyalty among the employees
To promote good Human relations.
To retain skilled and talented people
To attract trained, competent and hard working people.

6. TYPES OF PROMOTION
• Horizontal Promotion
• Vertical Promotion
• Dry Promotion

7. Promotion can be made on various bases:
 Seniority
 Merit
 Educational and Technical qualification
 Potential for better performance
 Career and succession plan
 Vacancies based on organisational charts
 Training
 Motivational strategies like Job enlargement

8. • Lateral movement of employees within the
same grade.
“ a transfer is a change in the job of an
employees without a change in
responsibilities or remuneration”
- Edwin Flippo

9. • To meet organisational needs
• To satisfy employee needs
• To better utilize employee
• To make the employee more Versatile
• To adjust the workforce
• To provide relief
• To punish employee

10. • Production Transfer
• Remedial Transfer
• Replacement Transfer
• Versatility Transfer
• Shift Transfer
• Penalty Transfer

11. • Specify the circumstances under which
transfers will be made.
• Specify the basis for transfer.
• Intimate the fact of transfer to the person
concered well in advance.
• Clarify whether transfer is permanent or
temporary.
• Not to be made frequently.

12. Advantages:
• Improve employee skills
• Reduce monotony and boredom
• Remedy faulty placement decisions
• Prepare the employee for challenging
assignments in future
• Stabilize changing work requirements in
different departments
• Improve employee satisfaction and morale
• Improve employer-employee relations

13. Disadvantages:
• Inconvenient to employees who
otherwise don’t want to move
• Employees may or may not fit in the
new location/department
• Shifting of experienced hands may
affect productivity
• Discriminatory transfers may affect
employee morale

14. • It is just opposite of promotion.
• It is the downward movement of an
employee in the organisational hierarchy
with lower rank/status and pay.
“the assignment of an individual to a
job of lower rank and pay usually involving
lower level of difficulty and responsibility”
- D.S.Beach.

15. Causes
• Incompetence- inability to meet the
challenges posed by the new higher job
• Adverse Business Conditions-
Circumstances and conditions like
recession and other crisis
• Disciplinary measures- Disciplinary action
against erring employees

16. Effects of Demotion
 Status, Pride, Career and income of the
employee
 Causes feel of insecurity in employees mind
 Can create positive impact on employee’s morale
and career planning
 It can generate disciplinary care in other
employees

17. Meaning
• It is situation when the service
agreement of employees with his
organization comes to an end and
employee leaves the organization.
• It is a decision that the individual and
organization part from each other.

18. Forms of Separation
 Retirement-
- Compulsory
- Voluntary (golden handshake)
 Resignation
 Layoffs
 Retrenchments
 Dismissal

19. Employee Separation
 Reasons for employee separations:
 Pressures on firms to remain competitive and efficient
 Decline in employee commitment to individual
employers
 The importance of managing separations:
 Transitions of employees out of the firm go smoothly.
 Continuing operations of the firm are not disrupted.
 Important professional relationships are not damaged.
 Types of separations
 Reductions-in-force, turnover, and retirements
Copyright © 2002 South-Western. 00–19 All rights reserved.

20. Reductions-in-Force (RIFs)
 Causes of reductions:
 Restructuring as a result of mergers and acquisitions
 Attempts to make the organization more cost
competitive
 Adjustments to declining business environment
conditions
 Reasons for reductions:
 Inefficiency in operations
 Lack of adaptability in the marketplace
 A weakened competitive position in the industry
 Methods for dealing with reductions:
 Continuance pay and outplacement programs
Copyright © 2002 South-Western. 00–20 All rights reserved.

21. Reductions-in-Force (RIFs)
 Worker Adjustment Retraining and Notification Act
(WARN) of 1989:
 Requires employers with more than 100 employees
to provide affected employees with a minimum of
sixty days written notice of any facility closings or
large-scale layoffs of 50 or more employees.
 WARN does no apply to governmental agencies.
 Exceptions to WARN:
 “unforeseeable circumstance”
 natural disaster
 “temporary facility”
Copyright © 2002 South-Western. 00–21 All rights reserved.

22. Workforce Management Strategies
EXHIBIT 13-1: STRATEGIES FOR MANAGING EMPLOYEE SURPLUSES AND AVOIDING LAYOFFS
Copyright © 2002 South-Western. 00–22 All rights reserved.

23. Turnover
 Involuntary turnover
 Employees who are asked to leave the organization
for cause (e.g., poor performance) or due to
circumstances that cause a reduction-in-force.
 Voluntary turnover
 Employees who leave an organization on their own
initiative.
 “Beneficial” turnover
 When low performing employees depart and/or
when new higher performing employees are
promoted or hired as replacements.
Copyright © 2002 South-Western. 00–23 All rights reserved.

24. Retirement
 Age Discrimination Act of 1967
 Prohibits an employer from setting a mandatory
retirement age except in certain occupations such
as airline pilots.
 Retirement
 Creates advancement opportunities for younger
employees and reduces payroll costs.
 Can cause a loss of vital accumulated historical
knowledge of the organization, its industry and the
marketplace.
 Employers can offer part-time and consulting work
to older workers to ease the transition to retirement.
Copyright © 2002 South-Western. 00–24 All rights reserved.