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According to Dale Yorder,”A transfer
involves shifting of an employee from one job
to another without special reference to
change in responsibility or compensation”
Transfer is viewed as change in
assignment in which the employee
moves from one job to another in the
same level of hierarchy requiring
similar skills involving approximately
same level of responsibility, same
status and the same level of pay.
• To meet the organizational requirements
• To satisfy the employees’ needs
• Better utilisation of employees
• Making employees versatile
• To correct inter-personal conflicts
• Avoidance of overstaffing
• Disciplinary action
• To minimise fruad,bribe etc
• Production transfer
Transfer caused due to changes in
• Replacement transfer
Transfer caused due to initiation or
replacement of a long standing employee
in the same job.
• Versatility Transfer or rotation of
Transfer initiated to increase the
versatility of employees
• Shift transfer
Transfer of an employee from one shift
to another shift
• Remedial transfer
Transfer initiated to correct the wrong
• Penal transfer
Transfer initiated as a punishment for
indisciplinary action of employees
Three reasons for transfer
• Employee initiated transfer
• Company initiated transfer
• Public initiated transfer
• Employee initiated transfer
It is also known as personal transfer.
These transfers are primarily in the
interest of an employee.
It is classified into temporary and
permanent transfer.
• Reasons for temporary transfer
i. Due to ill health
ii. Due to family problems
iii. Due to other adhoc problems
• Reasons for permanent transfer
i. Due to chronic ill health
ii. Due to family problems
iii. With a view to correct his wrong placement.
iv. In order to relieve from the monotony or
v. To avoid conflicts with his superiors.
vi. With a view to search for challenging and
creative jobs
vii. search for a job with opportunities for
• Company initiated transfer
Transfer due to the initiative of the company
It is classified into temporary and permanent
Reasons for temporary transfer
i. Due to temporary absenteeism of
ii. Due to fluctuations in quality of
production and thereby in workload,
iii. Due to short vacations.
Reasons for permanent transfer
• Change in quality of production,
lines of activity, technology, organ
isational structure etc
• To improve the versatility of
• To improve the employees’ job
• To minimise bribe or corruption.
• Public initiated transfer
It is generally through the politicians/govt
for the following reasons
• If an employees’ behaviour in the
society is against the social norms or if
he indulges in any social evils.
• If the functioning of an employee is
against the public interest.
• It reduces employees monotony, boredom
• Increase employees job satisfaction
• improve employees skill,knowledge etc
• Improve employees morale
• Correct erroneous placement and inter-
personal conflicts
• Adjustment problems to the employee to the new
job, place, environment,superiors and colleagues
• Transfer from one place to another cause much
inconvenience and cost to the employee and his
family members relating to housing, education of
• Transfer from one place to another result in loss
of mandays,
• Company initiated transfer result in reduction in
employee contribution
• Discriminatory transfers affect employee morale,
job satisfaction,commitment and contribution
Transfer Policy
• Every organisation should have its
own transfer policy. Such a policy
should be just and impartial.
Frequent transfer may be avoided.
Transfer should be made only when
a need arises.
Features of a good transfer
i. Specification of circumstances under which an employee will be
transferred in the case of company initiated transfer.
ii. Specification of a superior who is authorized and responsible to initiate
a transfer
iii. Jobs from and to which transfer will be made based on the job
specification, description and classification etc
iv. The region or unit of the organisation within which transfer will be
v. Reasons which will be considered for personal transfers, their order of
priority etc
vi. Reasons for mutual transfer of employees
vii. Specification of basis for transfer like job analysis, merit and length of
viii. Specification of pay, allowances, benefits etc that are to be allowed to
the employee in the new job.
ix. Other facilities to be extended to the transferee like special leave
during the period of transfer, special allowance for packaging luggage,
transportation etc
• Demotion is the reassignment of a
lower level job to an employee with
delegation of responsiblities and
authority required to perform that
lower level job and normally with
normal level pay.Organisations use
demotions less frequently as affects
the employee's career prospects and
Reasons for demotions
i. Unsuitability of the employee to
higher level jobs.
ii. Adverse business conditions
iii. Technological change
iv. Bad business condition
v. Incompetence
Demotion principles
Organizations should clearly specify the demotion
policy. A systematic demotion policy should contain
following items.
i. Specification of circumstances under which an
employee will be demoted.
ii. Specification of a superior who is authorized and
responsible to initiate a demotion.
iii. The policy should be just and fair.
iv. Specification of nature of demotion
v. The lines of demotion should be specifically
vi. Specification of basis for demotion like length of
service, merit or both.