1. Human Resource Management
By Prof. Jayalakshmi
Promotions & Transfers
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2. Meaning of Promotion
• According to E.B. flippo “promotion involves a
change from one job to another that is better
in the terms of status and responsibilities.”
• According to Scott and Spreigal: “A Promotion
is the transfer an employee to a job that pays
more money or that enjoys some preferred
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3. Purpose of Promotions
1. Recognize and reward employee’s good/superior performance and
2. Promote a feeling of content with the existing conditions of the
company and a sense of belongingness.
3. Build loyalty and to boost morale and job satisfaction.
4. Retain skilled and talented employees and reduce discontent and
5. Promotions acts as a tool for reducing labour turnover.
6. Increase interest in acquiring higher qualifications, training and self
development with a view to meet the requirements of promotion.
7. Reduce/Eliminate problems created by the leader of workers’
unions by promoting them to the officer’ levels where they are
less effective in creating problems.
8. Ultimately it improves organizational health.
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1. Seniority means length of
recognized service in an
2. Seniority means the calculation of
time from when an employee has
joined the company and served for
how many years in the company.
3. The senior most person in the
lower grade shall be promoted as
and when there is an opening in
the higher position
4. Seniority is suggested as the criteria
for promotion on the plea that
there is a positive correlation
between length of the service and
1. Merit means ability to work.
2. It denotes an individual employee’s
skill, knowledge, ability, efficiency and
aptitude as measured from
educational, training and past record
3. If the merit is adopted as basis of
promotion then the person in the lower
grade ,no matter his junior most in the
company, shall be promoted.
4. It encourage all employee to improve
Basis for Promotions
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5. Seniority Based
1. Easy to measure the length
2. Trade unions generally emphasis on
3. Security and certainty.
4. Minimize the scope of grievances
5. Reduce labour turnover
6. Sense of satisfaction to senior
employees and is in line with the
Indian Culture of respecting
seniority in all walks of life.
1. Difficult to judge merit.
2. Implies the knowledge, skills and
performance record of an employee.
3. Motivates competent employees to
work hard and acquire new skills.
4. Maintains the efficiency of the
organization by recognizing talent
5. Attracts and retains young and
promising employees in the
Advantages of Seniority and Merit Based
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6. Seniority Based
1. Length of Service is not directly
proportional to talent.
1. Performance and potential of an
individual is not recognized.
2. Demotivates and demoralizes
the young employees who are
3. Kills the zeal and interest for self
4. Fails to attract young and
1. Measuring Merit is not easy.
Subjective judgement may be
2. Many, particularly trade unions
distrust the management’s integrity
in judging merit.
3. When younger employees are
promoted over the older one, the
older employees may feel insecure
Disadvantages of Seniority and Merit
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7. As both seniority and merit as basis suffer from certain
limitations, a sound promotion policy should be based on a
combination of both seniority and merit.
A proper balance between the two can be maintained by
differentiating the way minimum length of service is
Relative weightage may be assigned to seniority and merit and
employees with a minimum performance record and
qualifications are treated eligible for promotion. Seniority is
used to choose from the eligible candidates
Seniority cum Merit as a Basis for
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9. • A transfer is a horizontal or lateral movement of an
employee from one job, section, department, shift plant or
position to another at some other place where salary, status
and responsibility are usually the same.
• Transfer is defined as “a lateral shift causing movement of
individuals from one position to another usually without
involving any kind of change in duties, responsibilities, skills
needed or compensation”.
Meaning of Transfer
10. Types of Transfers
1. Production Transfer: Such transfers are resorted to when there is a need
of manpower in one department and surplus manpower in another
department. Such transfers are made to meet the company
2. Replacement Transfers: Replace an existing employee who has been in
the organization for a long time with a new employee and thereby giving
some relief to an old employee from the heavy pressure of work.
3. Remedial Transfers: As the name suggest, these transfers are made to
rectify the situation caused by faulty selection and placement
procedures. Such transfers are made to rectify mistakes in placement
4. Versatility Transfer: Such transfers are made to increase versatility of the
employees in more than one job and department. This type of transfer,
also referred to as ‘Job Rotation’ is a tool to train employees.
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11. 5. Shift Transfers: are transfers of workers from one shift to another on
the same type of work. Workers generally dislike second or third shift
as it affects their participation in community life.
6. Selection Transfers: they are made within the department or
section. It is to be train the workers and prepare them to handle
different types of operations within the department.
7. Departmental Transfers: transferring from one department to
another department within the plants.
8. Inter-Plant transfers: if there is more than one plant under the
control of same management transfer may be made from one plant
to another for varied reasons. Such transfers are called inter- plant
Types of Transfers, contd.,
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12. 1. Increase in productivity and effectiveness of the
2. Greater job satisfaction to employees.
3. Stabilize fluctuating job needs.
4. Improve employee skills.
5. Remedy for wrong placement.
6. Improve labour relationships.
7. Develop employees for future promotions.
8. Avoid monotony and boredom.
Benefits of Transfer
13. 1. Meet the organizational requirements and also personal requirements of employees.
2. Satisfy employee’s needs.
3. Utilize employees’ skill, knowledge etc., where they are more suitable or badly
4. Correct inter-personal conflicts.
5. Avoid favoritism and nepotism.
6. Creates transparency among the employees and their work
7. Maintain healthy relationship among staff in order to ensure harmonious
environment and to avoid unnecessary disputes.
8. Limits the ability of an employee to take advantage and sole control over the seat or
Reasons for Transfer
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14. • The process of reorganizing or restructuring a business by
cost-cutting, reduction of workforce or reorganizing upper-
level management. The goal is to get the company molded
properly to achieve maximum profit. The term rightsizing is
often used by companies instead of downsizing because it
sounds less drastic.
• It is proactive and needs to be a constant part of the process
of managing an organization. To do rightsizing of an
organization, the leaders first look at market needs and
trends, technologies, alternative approaches, and new ideas.
Right Sizing the Workforce
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15. 1. Ensures that the required functions are properly
2. Cost-control and to Maximize Profits
3. Avoid formation of trade unions
4. Enhance employee performance and
5. Improve employee collaboration
6. Create a sense of belongingness within the
Need for Right Sizing
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16. Demotion has been defined as the assignment
of an individual to a job of lower rank and pay
usually involving lower level of difficulty and
Demotions serves as a useful purpose in the
sense that they keep the employees alert and
alive to their responsibilities and duties.
Separation means cessation of service from the organisation
for one or more reasons.
The employee may be separated from HR payroll due to:
• Discharge and dismissal
• Suspension and retrenchment
• Lay off
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Human Resources Management by Aswathappa
Human Resources Management by Shashi. K. Gupta and Rosy Joshi
Reference for Business
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