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Organizational environment is dynamic. Besides environmental changes there are


changes in the job, their specifications, the technology used to execute them and
the employees carrying out various organizational functions. The changes in the
employees can be in the form of their movement within and outside their
organization. The movement of employees within the organization can be in the
form of transfer, promotion or job rotation. Transfer is movement of employees
from one unit to another, the responsibilities and functions remaining the same.
Promotion relates to vertical movement of employees in the hierarchy involving
better status and increased responsibility. Job rotation is movement of the
employees from one job to another to break the job monetary and to enable the
employees to understand the total organizational system.

HRM at the enterprise level is integrated with transfer, promotion and job rotation.
For internal staffing of vacancies, suitable policies on the above areas must exist,
or else, the organization would be constrain to frequently go for redundancy,
leaving its fate only to external hiring. For managerial and executive levels, this is
addressed by succession planning. For non-executive positions, suitable policies on
promotion and transfer and also job rotation, facilitate restructuring of manpower
and their redeployment to meet the requirements of HRP.

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Transfer is the lateral movement of employees from one position, division,


department or unit to another. Such movement of employees from one job to
another may be either due to promotion, demotion, organizational restructuring or
may be for routine administrative reasons (some organizations do not allow the
employees to remain in the same job for a longer duration, which are sensitive in
nature). Generally transfer does not involve any significant change in
compensation, duties, responsibilities or even status.
Transfers may be initiated either by the company or the employee. A company
may initiate a transfer to place employees in positions where they are likely to be
more effective. Similarly, employees may initiate transfers to locations where they
are likely to get greater satisfaction. Transfers may be within the same department
or across departments. Transfers may be temporary or permanent. Temporary
transfers arise due to ill health, absenteeism, etc. of an employee whereas
permanent transfers are made due to changes in work load or death, retirement,
resignation, etc. of some employee. Public may also initiate transfers when an
employee¶s functioning is against the public interest or his behavior is against the
society¶s norms.

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The objectives of transfer are to:

1.? cncrease organizational effectiveness.


2.? Add to the versatility and competence of key personnel.
3.? Cope with the fluctuations in work requirements.
4.? Rectify erroneous placement.

A good transfer policy must answer the following questions:

1.? What type of transfers are to be used? When?


2.? What is the area over which transfers will be effected?
3.? What is the basis used for effecting transfers?
4.? Who is responsible for initiating and approving transfers?
5.? Should transfer be permanent or temporary?
6.? What is the rate of pay and other facilities the transferred employee should
receive on his new job?
7.? cs training necessary to effect a transfer?

However, in cndia, most of the organizations do not have a well formulated transfer
policy, resulting in its gross misuse (often as an instrument to victimize the
employees). Public sector enterprises and departmental undertakings (government
departments) often uses instrument without any regard to the cost aspect. Recently,
Ordinance Factories Board had been adversely criticized for effecting meaningless
transfers of officers and staff members, which involved crores of rupees of
expenditure from the public exchequer. For such irrational use transfer related
issues have now become important causal factors of industrial disputes in cndia.


  
 

The need for transfer may arise due to several reasons. Transfers may be made to
achieve the following objectives:

è ? 

 
 A Company may transfer employees due
to changes in volume of production, in technology, in production schedule,
in product line, in organization structure, etc. All these changes require shift
in job assignments.

 ? 
 ^mployees may request their transfer because
of dislike of boss or fellow workers or due to lack of opportunities for future
advancement. Personal problems of employees like health, family
circumstances, etc. may also require transfer. For example, an employee
may like to be shifted to or near his native place. Sometimes, transfers are
made to avoid interpersonal conflicts and to provide an outlet from blind
alley jobs.

- ?       An employee may be transferred because


management feels that his capacities would be better utilized elsewhere. An
employee who is not performing satisfactorily may be more suitable in
another job.

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 : ^mployees may be transferred to
different jobs to widen their knowledge and skills. cn some companies,
transfers are made as a matter of policy after an employee has stayed on a
job for a specified period. Such rotation from one job to another serves as a
method of training and reduce monotony 

‰ ?  !"#: There may be changes in the volume of work in
different sections or plants. ^mployees from the overstaffed plant or office
may be transferred where vacancies exist.

$ ? %& ' Transfers may be made to give relief to the employees
who are overburdened or doing risk work for long period.

· ?  %!  : ^mployees indulging in undesirable activities may


be transferred to remote places. ct is the form of a disciplinary action. This
practice is widespread in Government offices. cn some organizations,
transfers are made because permanent stay may cause frauds, bribery,
politicking, etc. Problem employees may be transferred to some other jobs.

  
 

^mployee transfers may be classified as follows:

è ? %!#   
 Such transfers are made when labour
requirements in one factory or branch are declining. The surplus
employees who are efficient or trained might be absorbed in other places
to avoid layoff. Such transfers help to stabilise employment.

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#  
 This type of transfer is made to retain long
service employees. The long standing employee replaces a new employee
and thereby gets relief from the heavy pressure of work.

- ? 
   
 Also known as rotation this transfer is made to
develop all round employees by moving them from one job to another. ct
also helps to reduce boredom and monotony .

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 such a transfer is made to rectify mistakes in
selection and placement. As a follow up, the wrongly placed employee is
transferred to a more suitable job. The employee may not be getting
along with his supervisor or colleagues.

‰ ?  
 ^mployees may be shifted from one shift to another for
personal reasons, eg: marriage, infant care, old parents etc.


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^very organization should have a just and impartial policy concerning transfer of
employees. Such a policy will help to avoid an adhoc and arbitrary approach to
transfers. ^very transfer involves some discruption and cost. Therefore, transfers
should not be made frequently or without justified reasons. cnstead of deciding
each case separately, a policy should be formulated to govern all types of
employee transfers. This will ensure uniformity or treatment and avoid transfers
for petty reasons.

A good transfer policy should satisfy the following requirements:

1.? Transfer policy should clearly specify the types of transfers and the
circumstances under which transfers will be made.
2.? ct should prescribe the basis for transfers. When two persons want transfer to
the same job, whether the decision will be based on seniority or merit or
some other factor.
3.? ct should indicate the executives responsible the initiating and approving the
transfers.
4.? ct should indicate whether the transfers can be made only within a
department or also within departments.
5.? ct should specify the effect of transfer on the seniority and pay of the
employee.
6.? ct should be put in writing.
7.? ct should be communicated and explained to the employee¶s.
8.? The transfer should as far as possible be made in consultation with the
employee. Alternatively the transfer should be made known to the employee
well in advance.
A.? Reasons which will be considered for personal transfers and their order of
priority should be specified.
10.?Facilities to be extended to the transferred employee should be prescribed.

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è ? cncrease in productivity and effectiveness of the organization.


 ? greater job satisfaction to the employees.
- ? Stabilize fluctuating work needs
 ? cmprove employee skills
‰ ? Remedy for faulty placements
$ ? cmprove labour relations
· ? |evelop employees for future promotions
* ? Avoid monotony and boredom.

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The right of transferring abroad is not implied. However, in the absence of a


provision in a contract of service to the contrary, a firm of Chartered Accountants
with accounts in foreign countries may order an employee to go into a foreign state
to work on a client¶s accounts. Many organizations, however, make it a point to
include a paragraph in terms and conditions of the letter of appointment of their
would be employees before its issue in a language or similar there to ³you would
be liable to transfer from your present place of posting to anywhere in cndia or
abroad.´ This often saves the organization from future confusion or
embarrassment.

When an employee is hired by a firm with no branches, there is no implied contract


which permits his transfer to a branch thereafter established. Although transfer, per
se is not punishment in the eye of law, transfers are limited by the standard of
reasonableness. For example, although a bank can transfer its employees, it cannot
harass them by doing so repeatedly. An order of transfer cannot be made which
will result in a material change for the worse in the employee¶s contractual rights,
such as reduction in his amenities like free quarters, medical assistance, fuel,
electricity and cheap rations. Similarly, a radical change in the employee¶s duties
may invalidate a transfer. And, in any event, an employee is entitled to reasonable
time upon transfer to wind up his affairs.