PROMOTION: A movement to a position in which responsibilities and presumably, prestige are increased - Dale Yoder.
Purpose / Objective of Promotion: Promotions have a positive impact on the employees. Beside higher wages they also satisfy the higher order needs of employees. Purpose / Objective of Promotion: To recognise an individuals performance and reward him for his work. To put the employee in a position where he will be of greater value to the company. To promote job satisfaction among the employees and give them an opportunity for unbroken continuous service.
To build up morale, loyalty and a sense of belonging on the part of the employees. To demonstrate effective career development plans. To attract suitable and competent employees for the organization. To create among employees a feeling of contentment with their present conditions and encourage them to succeed in the company.
Types of Promotion: Open promotions: An organization or a company considers all individuals within it as a potential candidate and announces it to various aspirants internally. Closed promotions: An organization or company in which the candidate for higher position opening or vacancies is restricted and not open for all the individuals,within the organization and also does not announce the vacancies internally. Frequently companies follow a combination of both the systems.
Types of Promotion: Multiple Chain promotions: Which provides for a systematic linkage of each position to several others. Such promotions identify multi- promotional opportunities through clearly defined avenues of approach. Dry promotions :Dry promotions are those that are given in lieu of increase in compensation. Horizontal promotion :Promotions have similar kind of work. Ex – lower grade to higher grade without any change in work content. Vertical promotion : Those which change the nature of the work. Ex – Supervisor to Manager.
Promotion Programme: It must provide for a uniform distribution of promotional opportunities throughout the organization. This means that the ratio of internal promotions to external recruitment must be the same at various levels in all departments. A sound promotion programme is that it must tell employees in advance what avenues for advancement exist. There should be some definite system for the selection of employees who are to be promoted from within the promotion zone. Finally all sanctions must be approved by the concerned line heads. A sound promotion policy must provide for suitable system of follow up and review.
Advantages of a well defined and documented Promotion scheme: It provides an opportunity for the present staff to move into jobs that provide greater personal satisfaction and prestige. It provides opportunities to the management to provide recognition and incentives to the better employees. It generates within an organization beneficial pressures on work performance and desired behaviour of all its members. It serves as an orderly logical and prompt source of recruitment for management to fill vacancies as they arise.
Promotion Policy Every organization should have a promotion policy. Each organization should strike a balance between the internal sources of personnel promotion and external sources of recruitment on one hand and between merit and ability as against length of service on the other.
Promotion Policy Characteristics of a sound promotion policy: 1) It should have consistency and be co-related to the career planning. 2) It should be fair and impartial. 3)It should be a planned activity, so that there is no phenomena of bunching or no period of promotional drought.
Promotion Policy Elements of Promotional Policy: 1)Promotional policy statement makes it clear whether vacancies are to be filled from within an organization or by recruitment from outside. 2)It helps to establish promotion criteria. 3)It traces transfer routes – establish some type of formal and systematic promotional channels. 4)It prepares employees for advancement, through the provision of some training. 5)It communicates the policy either in the form of manual or in the form of a set of standing orders or policy guidelines. 6)Detailed personnel and service records should be kept ready.
Promotion System: A promotion system involves clear cut definitions of line of future advancement, detailed personnel records,specific promotion plans,definite allocation of responsibility for identifying promotion able individuals and a certralised co-ordination of promotion function Promotion Criteria :- Seniority v/s Merit.
Seniority v/s Merit. Seniority refers to the length of service in the company or in its plants or in its departments or in a particular position. Under this method of promotion, the promotion goes to the senior-most person, provided he is fit for the job. Promotion on Merit will be given to a qualified man in recognition of his performance.This is not based on seniority. This method is an incentive for a him.
Should Promotions be given on seniority or merit ?
Practices in India. In India promotions are made sometimes on the basis of seniority and sometimes on the basis of merit.Usually in the case of lower cadre, the basis of promotion is seniority. In public sector concern, the promotion policy is based on seniority. But often due to political pressure, seniority is violated. In case of private sector concern, there is no clear-cut policy. Usually promotion is based on efficiency and merit. Sometimes due to the employees relationship with the employer, efficiency and merit is set aside. In a developing country like ours, where liberalisation and globalisation concepts are gaining prominence, promotions just based on seniority cannot be adopted.