2. PROMOTIONS
Promotion is the term which covers a change and calls for greater
responsibilities, and usually involves higher pay and better terms and
conditions of service and therefore, a higher status or rank.
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 organization 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.
3. PURPOSE OF PROMOTIONS
To put the worker in a position where he will be of greater value to the
company and where he may derive increased personal satisfaction and
income from his work.
To recognize an individual’s performance and reward him for his work so
that he may have an incentive to forge ahead. Employees will have little
motivation if better jobs are reserved for outsiders.
To increase an employee’s organizational effectiveness.
4. To build up morale, loyalty and a sense of belongingness on the part of the
employees when it is brought home to them that they would be promoted
if they deserve it.
To promote job satisfaction among the employees and give them an
opportunity for unbroken or continuous service.
To attract suitable and competent workers for the organization.
To create among the employees a feeling of contentment with their present
conditions and encourage them to succeed in the company.
5. TYPES OF PROMOTIONS
Multiple chain promotions
Up or out promotions
Dry promotions
6. A SOUND PROMOTION POLICY MUST
SATISFY THE FOLLOWING CRITERIA:
It should enjoy consistency
It should be fair and impartial
Promotion should be a planned activity
7. PROMOTION POLICY INVOLVE SIX
ELEMENTS AS FOLLOW:
Promotion policy statement
Establish as plan of job
Trace transfer route
Prepare employees for advancement, through the provision of some
training
Communicate the policy
Detailed personnel and service records are kept ready on the bases of which
promotions may be made.
8. SENIORITY VS MERIT
Seniority refers to the length of service in the company or in bits various
plants, or in its departments or in a particular position.
Under straight plant wise seniority in all jobs promotions go the oldest
employees, provided that he is fit for the job
Occupational seniority may be within a department, within a division or
in the entire plant.
Trade unions are of the view that promotions should be given on the bases
of seniority or ability, while managements favour that promotions should
be on the bases of merit and ability.
9. If promotion is given to a qualified person in recognition of his
performance or with the view to creating an incentive for him, than it
should be based on his ability.
If on the other hand, promotion is given to recognize and reward senior
employees, than it should be on the basis of seniority.
The most widely used bases for promotion combines both ability and
seniority. The best policy should be to ensure that whenever there are two
employees of equal seniority, ability or merit should be the deciding factor
in a promotion
Where however there are two employees of equal competence, seniority
should be the decisive factor. Such policy should satisfy the management
which prefers ability, and trade unions which prefer seniority.
10. PROMOTION BY SENIORITY IS PREFERED
BY TRADE UNIONS BECAUSE:
The system is simple to understand and operate. All employees are assured
that promotion will come automatically when it is due.
It satisfies the personal aspirations of the employees for growth, builds
morale and is conductive to better labour management relations.
It leads to an optimum utilization of the existing workforce by training and
development.
This system is much more economical than open market recruitment by
negotiation with other candidate belonging to another organization.
The management will have a known man of good performance in a higher
position than take a risk in bringing an unknown outsider.
11. DRAWBACKS OF THIS SYSTEM ARE:
The internal sources may be quite inadequate, and possibilities are that
people who do not quite come up to the requirements of higher jobs,
may be promoted.
Since the working system and technology change very fast, it is
necessary that new blood should be infused with new and up-to-date
knowledge and ideas, which the older persons in organization may be
lacking.
The worth of an individual is not appreciated and given due
recognition. This generates frustration and may constrain a good
employee to leave the organization.
12. BENEFITS OF THE SYSTEM ARE:
It brings rewards for meritorious work, extra competence, achievement
and initiative.
It encourages an employee to work hard so that he may get an opportunity
for advancement in the organization.
It leads to increased productivity, for individuals are satisfied that their
merit and competence will be properly appreciated and rewarded.
