In this presentation, we will discuss the characteristics of systematic promotion policy, principles, types and meaning of Transfer, promotion and demotion. To know more about Welingkar School’s Distance Learning Program and courses offered, visit: http://www.welingkaronline.org/distance-learning/online-mba.html

1. HUMAN RESOURCE MANAGEMENT II
CHAPTER 4: PROMOTION, TRANSFER
AND DEMOTION

2. CHAPTER 4

3. CHAPTER 4
PROMOTION PRINCIPLES AND ITS
CHARACTERISTICS
Every organization has to specify clearly its policy
regarding promotion based on its corporate policy
The basic characteristics of a systematic
promotion policy are:
It should be consistent
It should be fair and impartial
contd.

4. CHAPTER 4
PROMOTION PRINCIPLES AND ITS
CHARACTERISTICS
It should be consistent
It should be fair and impartial
Systematic line of promotion channel
should be created
It should provide equal opportunities for
promotion in all categories of jobs,
departments and regions of an
organization
contd.

5. CHAPTER 4
PROMOTION PRINCIPLES AND ITS
CHARACTERISTICS
It should ensure open policy in the sense
every eligible employee should be
considered
It should contain clear cut norms and
criteria for judging merit, length of service,
potentiality etc.
Appropriate authority should be entrusted
with the task of making a final decision

6. CHAPTER 4
Transfer – Meaning
Transfer is defined as “ 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”
Transfer is also defined as “…the moving of an
employee from one job to another. It may involve a
promotion, demotion or no change in job status other
than moving from one job to another”
Transfer is also viewed as change in assignment and
promotion is upward reassignment of a job, demotion is
downward job reassignment whereas transfer is a latter
or horizontal job reassignment

7. CHAPTER 4
Transfer – Reasons
Organizations resort to transfers with a view to attain the
following purposes:
To meet the organizational requirements
To satisfy employees’ needs
To utilize employee’s skill, knowledge etc. where
they are more suitable or badly needed
To correct inter-personal conflicts
To adjust the workforce of one section/plant in other
section/plant during different business conditions
To punish employees who violate the disciplinary rules
To help employees to relocate as per convenient
To minimize fraud etc. which result due to permanent
stay and contact

8. CHAPTER 4
TRANSFER TYPES
Production transfer
Replacement transfer
Rotation transfer
Shift transfer
Remedial
Penal

9. CHAPTER 4
REASONS FOR TRANSFER
Employee initiated transfers
Temporary transfers
Permanent transfers
Company initiated transfers
Temporary transfers
Permanent transfers
Public initiated transfers
Generally through the politicians/government

10. CHAPTER 4
Demotions
It is one type of internal mobility
It is the opposite of promotion
It is the reassignment of a lower level job to an
employee with delegation of responsibilities and
authority required to perform that lower level job
and normally with lower level pay
Organizations use demotion less frequently as
it affects the employee’s career prospects and
morale

11. CHAPTER 4
REASONS FOR DEMOTIONS
Unsuitability of the employee to Higher Level
Jobs
Adverse Business Conditions
New technology and new methods of operation
demand new and higher skills
Employees are demoted on disciplinary
grounds

12. CHAPTER 4
DEMOTION PRINCIPLES
Organizations should clearly specify the
demotion policy. A systematic demotion
policy should contain the following items:
Specification of circumstances under which
an employee will be demoted like reduction in
operations and indisciplinary cases
Specification of a superior who is authorized
and responsible to initiate a demotion
Contd.

13. CHAPTER 4
Jobs from and to which demotions will be
made and specifications of lines or ladders of
demotion
Specification of basis for demotion like length
of service, merit or both
Should provide for an open policy rather than
a closed policy
Should contain clear cut norms for judging
merit and length of service
Specification of provisions regarding placing,
nature of demotion, guidelines etc.

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