1. PERSONNEL MANAGEMENT - IES MCRC, Bandra.

2. Transfers, Promotions & Voluntary Retirements - Lecture 4

3. Transfers Reasons for Transfers Principles of transfers Types of Transfers Benefits of Transfers Problems with Transfers Transfer Policy

4. Transfer It is a change in job assignment In the same level of hierarchy Requiring similar skills Involving approximately same level of responsibility, same status & same level of pay.

5. Reasons for Transfers There is a shortage of employees in one department or plant because of a heavy demand Removal of the incompatibilities between the worker and boss Correction of faulty initial placement of employee Change in interests and capacities of an individual Monotony of an employee’s job Unsatisfactory climate for an employee’s health Family related issues, female employees on marriage join their spouses.

6. Principles of Transfers The frequency of transfers & minimum period between transfers need to be decided upon The authority which would handle transfers need to be decided upon The criteria for entertaining transfers need to be decided upon The area of the organization over which transfers can be made need to be defined. The effect of transfer on the pay & seniority of the transferred employee may be clearly evaluated Transfers should be clearly defined as permanent or temporary The employee performance needs to be assessed before transfer.

7. Types of Transfer Production Transfers – shortage/ excess of labour Replacement Transfers – senior employee replaces junior employee Versatility Transfers – clerical employee transferred from 1 section to another Shift transfers – Rotation between night & day shifts Remedial Transfers – Employee requests transfer

8. Benefits of Transfers Improve employee skills Reduce monotony, boredom Remedy faulty placement decisions Prepare the employee for challenging assignments in future Stabilize changing work requirements in different departments/ locations Improve employee satisfaction & morale Improve employee-employer relations

9. Problems with Transfers Inconvenient to employees who otherwise do not want to move Employee may not fit in the new location/ department Shifting of experienced hands may affect productivity Discriminatory transfers may affect employee morale

10. Transfer Policy contains Specifications of circumstances under which an employee will be transferred Name of the superior authorized & responsible to initiate a transfer Jobs from & to which transfers will be made, based on job analysis

11. Transfer Policy contains The region or unit of the organization within which transfers will be administered Reasons which will be considered for personal transfers, their order of priority Norms to decide priority when 2 or more employees request transfers, like priority of reason, seniority

12. Transfer Policy Contains Specification of basis for transfer, like job analysis, merit, length of service Specification of pay, allowances, benefits Other facilities extended to transferee like special allowance for packaging luggage, transportation

13. Promotion Purposes of Promotion Principles of Promotion

14. Promotion It refers to upward movement of an employee From current job To another job That is higher in pay, responsibility and/ or organizational level

15. Purposes of Promotion To motivate employees to higher productivity To attract & retain the services of qualified & competent people To recognize & reward employee efficiency To increase employee & organization effectiveness To fill up higher vacancies within the organization To build employee loyalty, morale & sense of belongingness To impress upon others that opportunities are available to them too in the organization.

16. Principles of Promotion The HRM must make it clear whether to fill up higher positions by internal promotions or recruit people from outside A further decision on the basis of promotion should be made by the HRM Basis of Seniority Basis of Competence

17. Promotion Policy contains A fair & equitable basis for promotion, i.e. merit/ seniority or both It should provide equal opportunities for promotion in all categories of jobs, departments & regions of an organization Every eligible employee should be aware of various career growth avenues.

18. Promotion Policy contains Norms for judging merit, length of service, potentiality etc. Mode of acquiring new skills, knowledge etc. to prepare for career advancement Appropriate authority should be entrusted with responsibility

19. Promotion Policy contains Detailed records of service, performance etc. to be considered Applied uniformly to all employees Alternatives to promotion when deserving candidates are not promoted due to lack of vacancies at higher level

20. Promotion Policy contains A provision for appeal against (alleged) arbitrary actions of management & its review. Promotions may be for a trial period to minimize the mistakes of promotion Promotion policy must be communicated to all employees, trade union leaders etc.

21. VRS Objective Eligibility Procedure

22. Voluntary Retirement Schemes It involves Employees, who voluntarily retire After putting in minimum qualifying service & Normal retirement benefits are calculated & paid.

23. VRS Objective: To achieve optimum manpower utilization. To improve the average age-mix of the employee. To improve the overall skill and efficiency of the employee. To downsize surplus and unproductive labor force.

24. VRS- Eligibility (sample) The employees must have been in regular service of the PSU continuously for not less than, say specified period of Ten (10) years. No employee whose continuance is considered essential for the Public Enterprises concerned shall be permitted to be covered under the scheme. An employee shall not be eligible to retire Voluntarily within three years of his normal retirement. Certain cadre of employees, with 7 (seven) years of completed and uninterrupted service will be entitled for a special package.

25. Procedure (sample) The eligible employees who desire to seek Voluntary Retirement may apply to the competent authority through his/her Head of the Dept. in the prescribed format. The decision of the competent Authority regarding the acceptance/rejection of the VR application shall be communicated to the employee within specified period of 30 (thirty) days of submission of the application.

26. Pick the most appropriate one 1. Benefits of transfers a) Improve employee skills b) Reduce monotony, boredom c) Both the above 2. Basis of employee promotion a) Production Transfers b) Basis of seniority & Competence c) Replacement transfers

27. Match the term with its definition 1. Transfer 2. Promotion 3. VRS A. It refers to upward movement of an employee from current job to another job that is higher in pay, responsibility and/ or organizational level B. It involves employees, who voluntarily retire after putting in minimum qualifying service & Normal retirement benefits are calculated & paid. C. It is a change in job assignment in the same level of hierarchy requiring similar skills involving approximately same level of responsibility, same status & same level of pay

28. Activity Develop a policy on Employee Promotion for a suitable organization in the following sectors IT Banking Pharmaceutical FMCG. Make assumptions wherever necessary

29. 1.The HRM must make it clear whether to fill up higher positions by internal promotions or recruit people from outside 2.A further decision on the basis of promotion should be made by the HRM 1.Basis of Seniority 2.Basis of Competence 3.A fair & equitable basis for promotion, i.e. merit/ seniority or both 4.It should provide equal opportunities for promotion in all categories of jobs, departments & regions of an organization 5.Every eligible employee should be aware of various career growth avenues. 6.Norms for judging merit, length of service, potentiality etc. 7.Mode of acquiring new skills, knowledge etc. to prepare for career advancement 8.Appropriate authority should be entrusted with responsibility 9.Detailed records of service, performance etc. to be considered 10.Applied uniformly to all employees 11.Alternatives to promotion when deserving candidates are not promoted due to lack of vacancies at higher level 12.A provision for appeal against (alleged) arbitrary actions of management & its review. 13.Promotions may be for a trial period to minimize the mistakes of promotion 14.Promotion policy must be communicated to all employees, trade union leaders etc

30. Thank You