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Promotions 2. Promoting from within is good business practice and has been shown to be a powerful employee motivator.

Internal promotion policies can generate loyalty through the recognition of individual merit and improved morale by fulfilling employees need for increased status. 3. The purpose of this policy is to ensure uniformity in the way that transfers and promotions are managed. a promotion is defined as a position change moving from a lower graded position to a higher graded position. Any move from a graded position to another position in the same grade shall be considered a lateral transfer and not a promotion . Such lateral transfers are not eligible for the promotional increase described in this Policy . 4. Employees must stay in a position for a minimum of six months before taking another position in a different department. Exceptions may only be considered with the prior approval of their supervisor. In most cases, an employee who is promoted to the next higher grade will have their pay increased to the minimum for the new grade or will receive an increase of 5% of their previous base pay, whichever is more advantageous for the employee. In most cases, for each additional grade over one grade higher, the employee will receive an additional 3% increase of their base pay per grade or the minimum for the new grade, whichever is more advantageous for the employee. 5. Promotional pay increases will never exceed the maximum for the positions grade. Prior to the effective date of the promotion , the employees supervisor must complete a final Development and Performance Review to evaluate the employees performance in the position prior to promotion . Employees who do not score satisfactory (meets expectations) or better overall will not be eligible for promotion . Ninety days after the promotion , the employees new supervisor must complete a ninety day Development and Performance Review. The employee is not eligible for a merit increase based on the ninety day review. All promotions must be approved by the appropriate college dean or vice-president. Following this approval, the request must be submitted to the Business Office and Human Resources. If the position was previously unbudgeted or exceeds the budgeted allocation, it must also be approved by the Vice-President of Finance and Administration. 6. Our first rule in promoting employees is that longevity should play a secondary role in the decision to promote. In fact it should be used only in the case where two or more employees are vying for a management position and all are equally qualified to be promoted. Rewarding long-term employees by promoting them into positions they are not well-suited for is unfair to the employee, fellow employees and the company. 7. Another common reason people are promoted is because they are well liked. Being well liked in and of itself is not a reason to promote someone. Certainly if the employee posseses the requisite skills and profile to be an effective manager they should be considered for the promotion. However, it seems that too many owners and managers promote people because they like the person. They want to reward the individual for making them feel good and for being a good team player. Some employees are promoted because they are doing an excellent job in their current positions. But does that alone indicate they will be effective at the next level? 8. It only makes sense when an employee has the ability to manage effectively. The problem in hiring and promoting employees is that gut feelings and subjective criteria are too often used in judging whether someone can move into a management role and be effective. When promoting employees, they should be taken through a rigorous process to determine their chances for success in a management position. Most

promotional decisions are made too quickly and without sound rationale. Putting some structure and objectivity into the process will help immensely in making the right decision. 9. While employees are traditionally rewarded with promotion and compensation for a job well done retrospectively, rarely do organizations ask themselves how well a person is psychologically prepared to manage power going forward. For example, it is as common for companies to promote individuals who exceed sales goals or who stand out for their customer service skills, as it is uncommon for employees to be promoted based on their ability to form and develop healthy relationships. 10. Strategic Pointers : Identify those who have performed well in quantifiable terms. Collect feedback from people who interact with those being considered for promotion who are above, beneath and lateral to them organizationally (360). Interview the candidate to assess his/her perspective on assuming a role that manages others and what they hope to get out of it. 11. who makes the best managers? Which individuals get the most out of their teams and produce the best business results for their employers? For starters, you need to find people who dont need power to feel important. Real leaders dont care who is above them enough to let it alter their standard of behavior. They care more about output than fiefdoms and treat everyone with the same degree of respect and responsiveness regardless of level. Driving results, creating synergies and building teams are paramount to them. In short, true leaders focus on others and not themselves. 12. Transfers A transfer refers to a horizontal or lateral movement of an employee from one job to another in the same organization without any significant changes status and pay. It has been defined as lateral shift causing movement of individuals from one position to another usually without involving any marked change in duties, responsibilities, skills needed or compensation. 13. Need and purpose of Transfers 1. To meet organizational needs 2. To satisfy employee Needs 3. To better utilization of Employees 4. To make the Employee More versatile 5. To adjust the work force 6. To provide Relief 7. To Punish Employees 14. Types of Transfers 1. Production Transfer 2. Replacement Transfer 3. Versatility Transfer 4. Remedial Transfer 5. Shift Transfer

Promotion is defined as giving higher position to the employee, which carries high status more responsibilities and higher status. Promotion means advancement of employee in terms of pay and status also improvement in working conditions. Promotions are used to fill the positions which are more important to fill rather than the present position of employee. It can be filled by external recruitment but employees having eligibility and experience must be appointed for their motivation. Also it will decrease labour turn over as external recruitment costs more. Also increase in salary and status will increase job satisfaction.

When scale of pay is increased without changing job it is called up-gradation and promotion involves changes in job as well as high salary. When higher position is given without change in salary it is known as Dry Promotion. All these, Promotion Up-Gradation and Dry Promotion are used by management to increase morale of employee and as giving reward also. Advantages of promotion: Present employees if promoted can handle the process products and problems easily as they are already connected to organization but new incumbent may take some to adjust him or may not adjust himself at all. The cost of training the insiders for the higher position is nearly nil hence no extra training cost. Employees will give their best as they know that reward of giving good performance is sure. High morale of the employees is achieved.

Promotion practices
the aim of the promotion procedures of a company should be, first, to enable management to obtain the best talent available within the company to fill more senior posts and, second, to provide employees with the opportunity to advance their careers within the company, in accordance with the opportunities available and their own abilities. In any organization where there are frequent promotional moves and where promotion arrangements cause problems, it is advisable to have a promotion policy and procedure which is known to both management and employees. The basic points that should be included in such a procedure are: Promotion vacancies should be notified to the HR department. Vacancies should be advertised internally. Departmental managers should not be allowed to refuse promotions within a reasonable time unless the individual has been in the department for less than, say, one year, or the department has recently suffered heavy losses through promotions and transfers Promotion opportunities should be open to all, irrespective of race, creed, sex or marital status.

If the management of an organisation wants its employees to work in the expected manner, the employees must be rewarded properly and this can be done in different ways e.g. by creating healthy conditions, by increasing their salaries and wages, by giving them various facilities, etc. giving necessary promotions to the employee is one of the ways to motivate employees to perform their jobs in a better way. Organisations adopt different criteria for promoting their employees by framing suitable promotion policy. Generally, it is found that promotions are made on the basis of merits, potentials, seniority, etc. of employees. Elaborate rules are made for regulating the seniority of employees in different service cadres. For studying the purposes or objectives of promotion, promotion policies and its contents, promotion procedure, it is very essential to know the meaning of promotion.

In simple words, promotion is an upward movement or an advancement of an employee to another job or position in his organisation accompanied by increased responsibilities, better status or prestige, higher challenges, opportunities etc. and usually with better pay, certain privileges, facilities and benefits. It is a vertical move in rank and responsibility.

a. According to Edwin Flippo, A promotion involves a change from one job to another job that is better in terms of status and responsibility. b. According to Scott, Clothier and Spriegel, A promotion is the transfer of an employee to a job which pays him more money or one that carries some preferred status.
Promotions play an important role from the viewpoint of organisations as well as from the view point of their employees. Promotions allow the adjustments in the size of the workforce of the organisations in order to cope with the changing situations. Such changing situations include changes in organisational structure requiring regrouping or redesigning of jobs, changes in jurisdiction of departments and relocation of individuals; jobs etc. promotions help to provide work force flexibility as well as mobility to suit the requirements of an organisation according to circumstances. Besides, the promotions provide

incentive to initiate, enterprise and ambition and on other hand, they help to minimise discontent and unrest among the employees. Promotions should be viewed as effective reward for loyalty, hard work, sincerity etc. TYPES OF PROMOTIONS Promotions can be of different types i.e. multiple chain promotions, up or out promotions, and dry promotions. 1. Multiple chain promotions: provide for systematic and proper linking of each position to various other related positions. Multiple chain promotions help to identify multi-promotional opportunities through clearly defined avenues of approach to and also exit from each position in an organisation. 2. Up or out promotion: an employee must get a promotion in his organisation else he seeks employment somewhere else. 3. Dry promotions: are given in lieu of increases in compensation. These promotions give satisfaction to the promoted employees in the form of feeling of pride and well-being or bring greater esteem and higher status. In dry promotions, compensation is adjusted to keep pace with the cost of living and an employee is moved to higher level of job without increase in pay. OBJECTIVES OR PURPOSES OF GIVING PROMOTIONS Promotions have positive effects on the working of the employees. They make available the opportunity for greater self-actualisation through more varied and challenging assignments. Promotion provides incentive to initiate, enterprise, and ambition; minimises discontent and unrest; attracts capable individuals; necessitates logical training of advancement and forms an effective reward for loyalty and co-operation, long service, etc. Purposes of promotions are as under : a) To furnish an effective incentive for initiative, enterprise and ambition. b) To conserve proved skill, training and ability. c) To promote feeling of contentment with the existing conditions and also sense of belongingness.

d) To promote interest in training, development programmes and team development. e) To build loyalty and to boost morale. f) To reward committed and loyal employees. g) To get rid of problems created by leaders of unions by promoting them to officer levels.


THE OBJECTIVES, MANPOWER AND INDIVIDUAL CAREER PLANS ETC. ARE REFLECTED IN THE PROMOTION POLICY OF AN ORGANISATION. The contents are given below: A. Promotion policy statement : One of the important requirements of a promotion policy is a promotion policy statement in which the ratio of internal promotions to external recruitment at each level, the method and procedure of trade test, interview i.e. selection, qualifications desired or required should be specified. This statement helps individual employees as well as manpower planners to project the number of internally available employees for vacancies. This helps to bring clarity. B. Basis of giving promotions : This indicates the norms and criteria to judge the merits, capabilities, skills etc. of the employees to be promoted. Some of the organisations take into consideration the up gradation of knowledge and skills by appearing and getting through the examination for promotion of employees. C. Promotion charts : A promotion chart conveys to the employees the avenues of advancement available to them. In a promotion chart each position is linked to several other positions to which promotions can be made. D. Communication :

The promotion policy should be made known to all the employees in the organisation for clear understanding and clarity. Otherwise it creates doubts and suspicions. E. Detailed records : a sound promotion policy ensures that detailed records of employee service and performance are maintained.


Merit is taken to denote an employees skill, knowledge, ability, efficiency and aptitude as measured from educational, training and past employment record. merits: 1. The resources of higher order of an employee can be better utilized at higher level. 2. It results in maximum utilization of Human Resources in the organization. 3. Competent employees are motivated to exert all their resources and contribute them to the organizational efficiency and effectiveness. 4. It works as golden hand-cuffs regarding employee turnover. 5. It continuously encourages employees to acquire new skills, knowledge etc. demerits: 1. Measurement or judging of merit is highly difficult. 2. Many people distrust the management integrity in judging merit. 3. Techniques of merit measurement are subjective. 4. Mostly based on past achievement, efficiency but not about the future success.



Seniority refers to relative length of service in the same job and in the same organization. By considering seniority as basis of promotion, there is a positive correlation between length of service and amount of knowledge and level of skill acquired. Also, it supports the custom of first come first serve. merits: 1. Relatively easy to measure the length of service and judge the seniority. 2. There will be full support from trade union. 3. Everybody trusts management action as there is no scope for favouritism and discrimination and judgment. 4. Gives a sense of certainty of getting promotion to every employee and of their turn of promotion. 5. Senior employees will have a sense of satisfaction to this system as the older employees are respected and their inefficiency cannot be pointed out. 6. It minimizes the scope of grievances and conflicts regarding promotion. 7. It seems to serve the purpose in the sense that employees may learn more with increase in length of service. demerits: 1. It demotivates young and more competent employees and results in employee turnover among dynamic force. 2. It kills the zeal and interest to develop as everybody will be promoted with or without improvement. 3. Organizational effectiveness may be diminished through deceleration of the human resources. 4. Employees only learn up to a certain age and after that the learning ability diminishes. 5. Judging seniority may seems easy but involves problem areas job seniority, service in different organizations, experience as apprentice, researcher, length of service even in terms of hour.



Seniority-cum-merit based promotion satisfies the management for organizational effectiveness and the employees and trade unions for respecting the length of service. A balance can be struck between the two basis by some ways as below: 1. Minimum length of service and merit - A minimum length of service is kept as basic eligibility and then merit is made the sole criteria. 2. Measurements of seniority and merit through a common factor. 3. Minimum merit and seniority - Certain merit is kept as eligibility criteria and then seniority is considered.