Promotion,

Transfer and
separation
By: S Group
Sankalp Gupta,
Savita Upadhyay,
Shreya Singh,
Surbhi Agarwal,
Shivam Singh Bhadauria

CONTENTS

PROMOTION
Promotion is an upward movement of
employees.
Promotion 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 best working
hours, better location and more
pleasing working conditions does not
amount to promotions.

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 seniority.
Basis of promotion may also be competence of the
individual.
Vacancy or non vacancy promotion.
No frequent promotions.
Promotion should be preceded by job analysis and
performance evaluation.
Promotional policy should be discussed with the union.

PURPOSES:
To motivate employees for higher productivity.
To attract and retain the services of qualified and
competent people.
To recognize and reward the efficiency of an
employee.
To increase the effectiveness of the employee and
of the organization.
To fill up higher vacancies 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.

TYPES OF PROMOTIONS

LIMITED PROMOTION
Limited promotion is also known as upgrading. It
is the movement of an employee to a more
responsible job within the same occupational unit
and with a corresponding increase in pay. Thus
upgrading means an increase of pay on the same
job or moving to a higher scale without changing
the job.

DRY PROMOTION

Dry promotion is a promotion as a

result of which there is no increase
in the employees pay. Dry
promotion are those which are
given in lieu of increase in
compensation. It is usually made
decorative by giving a new and
longer title to the employee.

MULTIPLE CHAIN PROMOTION

Multiple chain promotion provide for
a systematic linking of each
position to several other positions.
Such promotions identify multipromotional opportunities through
clearly defined avenues of
approach to and exist from each
position in the organization.

UP AND OUT PROMOTION

Up and out promotion often leads to
termination of services. In this type of
promotion, a person must either earn a
promotion or seek employment
elsewhere.

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 issues.
Correction of faulty initial placement of an employee.
Monotony can be avoided by transfer, it also help in
raising productivity.
Health 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 development.
Those
making
possible
adjustment to varying volumes
of work within the firm.
Those designed to remedy the
problem of poor placement.

Contd..
Specifically transfers may be production, replacement,
versatility, shift and remedial.
Production transfers: To meet the shortage of
employees during production.
Replacement transfers: To replace senior positions
by junior officers.
Versatility Transfers: To make employees versatile
and competent in different areas.
Shift transfers: Transfers between work shifts.
Remedial transfer: On request of employees (also
called personal transfers).

Separations

Voluntary separations
When employee decides to
terminate his/her relationship
with the employer.
Two types are :
Quits: out of dissatisfaction in
the current job, and
Retirements: Occur when the
employees reach end of their

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
companys retirement age)
Prizes such as computers, trucks, houses,
and so forth (99 in all) to be decided on

Involuntary separations
Employer terminates the
employee.
There are three reasons:
Organization is passing through a
lean phase.
Faulty hiring leading to a
mismatch.
Employee exhibits deviant
behavior vitiating the

Contd..
Types :
Discharges: Also called termination and is done when the
employer find the employee to be non performing.
Lay-offs: 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..
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 only
Triggered by
The companys bottom line is threatened
Technological
advancements
renders
redundant, and
Organizational restricting

people

It is quite painful for the employee and his family.

Affects the morale of all the employees.

Guidelines to manage
downsizing
Consider the human element
Make who goes and who stays decisions
judiciously
Delay and pay hikes
Freeze hiring
Restrict overtime
Retain or redeploy employees
Engage part-time employees
Switch to job sharing
Implement early retirement plans
Attend to morale of serving employees

Managing separations
Positive outcomes
Organizations become fitter and trimmer
Saving on wage and salary bill
Fresh ideas brought by new entrants

Negative outcomes
Disrupts employee morale, may rather add to
cost
Cost of turnover include retirement costs and
hiring and training costs