ChangeCHANGES IN PERSONNEL STATUSs in Personnel Status

CHANGES IN PERSONNEL STATUS

Reported by:

Marie Kristine N. Labitad

Why Study Possible Changes in Personnel Status

To know what are the possible changes in the status of an

employee and the causes of these changes in status from

the time he is hired until termination or retirement.

To understand the procedures in the transfer, promotion,

demotion or termination of an employee.

To understand the provisions of law regarding these

changes in the status of an employee.

Changes in Personnel Status

Kinds of Employees- Employer Managerial – A person who directs or manages an organization. Supervisory – A person who supervises workers or the work done by others. Rank and File - The non-executive and non- managerial employee of the company


Types of Employees in Terms of Tenure

Regular – An employee who has been appointed to a position in a classified service after completing the trial service period. Casual – An employee is employed when and if needed, and where there is no particular expectation of continuing employment. Contractual - An employee who is hired to work for a specific period of time on an hourly basis or a contracted amount.


Types of Employees in Terms of Tenure Probationary – A new employee who, for a period of time, is being tested to enable the employer to ascertain the suitability of the employee for its purposes. Job Order – Written instructions to perform a work according to specified requirements, within specified timeframe and cost estimates. Project-Based - An employee is one whose employment has been fixed for a specific project or undertaking the completion or termination of which has been determined at the time of the engagement of the employee or where the work or services to be performed is seasonal in nature and the employment is for the duration of the season.


Types of Employees in Terms of Tenure

Fixed Contract – which an employer recruits an employee for a limited period of time. Such contracts are possible only to perform a specific, temporary task.


PROMOTION

A promotion is the advancement of an employee’s rank or position in an organizational hierarchy system.

Promotion is a movement of the employee from one position to another of a higher level involving more difficult duties and greater responsibilities and carrying higher pay, higher status and/or offering better privileges. A promotion need not always involve a pay raise but it may involve either an improvement in the employee’s status in his chances for advancement, or in greater job satisfaction, or better working conditions.Changes in Personnel Status

Purpose and Advantages of Promotion

Recognize employee’s performance and commitment and motivate him towards better performance Develop competitive spirit among employees for acquiring knowledge and skills for higher level jobs Retain skilled and talented employees Reduce discontent and unrest To fill up job’s vacant position that is created due to retirement, resignation or demise of an employee. Utilize more effectively the knowledge and skills of employeesAttract suitable and competent employees.


Types of Promotion Up or Out Promotion An employee either earns a promotion or seeks employment elsewhere. Out promotion usually leads to termination of employee and joining some other organization in a better position.

Dry Promotion Promo is given in lieu of increase in salary.

Paper Promotion It happens on seniority of employee in government sector having different departments. Paper promotion is an employee promotion given to the employee belonging to the parent department, but indeed working in another department or transfer, on request of employee or due to exigency of work. Paper promoted employee draws salary pertaining to job in another department, but not according to promotion’s job in the parent department.Changes in Personnel Status

Promotion Program and Procedure

FORMULATION OF PROMOTION POLICY

IDENTIFICATION OF PROMOTION CHANNELS

PROMOTION APPRAISAL

CENTRALIZED RECORDS


Formulation of Promotion Policy:Each organization needs to maintain a balance between the internal sources of personnel promotion and external sources by means of recruitment. Hence, promotion must be based on consistent, fair and clear cut policy.

Encouragement of promotion within the organization instead of looking outside to fill vacancies in higher places. An understanding that ability as well as seniority will be taken into account in making promotions. Drawing up an organization chart to make clear to all the ladder of promotion. Making the promotion system clear to all concerned who may initiate and handle cases of promotion. Though department heads may initiate promotion, the final approval must lie with the top management, after the personnel dept has been asked to check from its knowledge whether any repercussion is likely to result from the proposed promotion. Changes in Personnel Status

Formulation of Promotion Policy: All promotions should be for a trial period to ascertain whether the promoted person is found capable of handling the job or not. Normally, during this trial period, he draws the pay of the higher post, but it should be clearly understood that if “ he does not make the grade” he will be reverted to his former post and former pay scale.


Promotion Channels

Promotion channels should be identified and recorded on paper. This process is related with job analysis and career planning of an organization.


Promotion Appraisals

The promotion of an employee is entirely dependent upon his/her performance appraisal outcome.

Centralised Records:

The education, experience, skills, abilities and evaluation of all employees should be recorded and maintained in a centralised manner by the department of the organization, because basing on these attributes, promotion is given to an employee.


Centralised Records:

The education, experience, skills, abilities and evaluation of all employees should be recorded and maintained in a centralised manner by the department of the organization, because basing on these attributes, promotion is given to an employee.


Bases of PromotionSeniority as a basis: It implies relative length of service in the same organization. The advantages of this are: relatively easy to measure, simple to understand and operate, reduces labour turnover and provides sense of satisfaction to senior employees. It has also certain disadvantages: beyond a certain age a person may not learn, performance and potential of an employee is not recognized, it kills ambition and zeal to improve performance.

Merit as a basis: Merit implies the knowledge, skills and performance record of an employee. The advantages are: motivates competent employees to work hard, helps to maintain efficiency by recognizing talent and performance. It also suffers from certain disadvantages like: difficulty in judging merit, merit indicates past achievement, may not denote future potential and old employees feel insecure.


DEMOTIONA demotion is the compulsory lowering of an employee’s job rank, job title, or status. An organization can provide a demotion at the choice of the organization or voluntarily, at the request of the employee, sometimes called deployment.


Reasons for Demotion Reduction in business so that the number of positions at certain levels must be reduced, or elimination of certain functions requiring a reduction in manpower.

Failure of the employee either to qualify for work on the occupational level to which he has been assigned or to meet established job standards.

As a form of disciplinary or punitive action against an employee found guilty of violation company policies or rules.

Inability of the employee to meet the requirements of the job due to age, poor health, or physical disability.


Process of Demotion All demotions must be discussed with Human Resource Dept. prior to communicating any information to employees.

If the demotion is at the employee’s request , a written letter from the employee requesting the demotion action will be required if the position wasn’t posted.

When considering a demotion, the department must ensure that there is a valid budget line and/or position that the employee will be occupying.

All demotions must be approved by the respective approver.


Demotion Policy The circumstances under which employees can be demoted (reduction in operations, serious indiscipline etc.) should be clearly specified and made known to employees.

Any violation of established rules & regulations should be competently investigated.

Once violations are proved there should be consistent & equitable application of the policy.

The policy should be fair & impartial.

The lines of demotion should be specified.

In case of demotions caused by adverse economic conditions & technological changes, the basis for demotion (seniority or merit) should be specified.Changes in Personnel Status

Demotion Policy Nature of demotion (Permanent or Temporary) should be formulated.

A promotion should be made for appeal & review of every demotion.

It should be an open rather than a closed policy.

The policy should be fair & impartial.

The lines of demotion should be specified.

In case of demotions caused by adverse economic conditions & technological changes, the basis for demotion (seniority or merit) should be specified.


TRANSFER Transfer is defined as “ a lateral shift causing movement of individuals from one position to another usually without involving any kind marked change in duties, responsibilities, skills needed or compensation”

Transfer is also defined as “ the moving of an employee from one job to another. It may involve a promotion, demotion or no change in job status other than moving from one job to another”


Transfer - ReasonsOrganizations resort to transfers with a view to attain the following purposes:

To meet the organizational requirements To satisfy employees’ needs To utilize employee’s skill, knowledge etc. where they are more suitable or badly needed To correct inter-personal conflicts To adjust the workforce of one section/plant in other section/plant during different business conditions To punish employees who violate the disciplinary rules To help employees to relocate as per convenient To minimize fraud etc. which result due to permanent stay and contact


JOB ROTATIONDefinition: Job rotation involves an employee changing positions within the same organization and eventually returning to the original position.


TYPES

Task Rotation usually takes place in jobs that involve a high degree of physical demands on the body or a high degree of repetitive tasks that can become extremely tedious. Employees are periodically removed from these mentally stressful or physically demanding tasks to a less demanding task for a while to give them a break. Position Rotation is the process of laterally moving an employee to different positions, departments or geographic locations for the purposes of professionally developing the employee by exposing her to knew knowledge, skills and perspectives.


2 KINDS OF POSITION ROTATION

o Within-function Rotation is where an employee rotates between jobs with similar levels of responsibility and in the same functional or operational areas.o Cross- functional Rotation usually involves a sequence of positions, often in increasing level of job responsibilities.

REASSIGNMENTReassign is a combination of re-, meaning “again”, and assign, which is from the Latin word assignare, meaning to mark out. Today reassign is often used in work related discussions to indicate a transfer.


PURPOSE

To meet organizational needs over the short to medium-term To cover a gap in coverage left by one or more vacant position (s) or leave (s) of absence within a unit or department. To provide the opportunity for professional development and/or cross-training.

EMPLOYEE SEPARATIONEmployee Separation is the termination of employment as a result of resignation, lay of, or discharge.


BENEFITS

Reduced labor costs Replacement of poor performers Increased innovation Opportunity for greater diversity

TYPES EMPLOYEE SEPARATIONConstructive Dismissal aka Constructive discharge, occurs when an employee quits under duress and believes that they have no choice but to leave their employer. Often they feel that they have been forced to leave by an employer who has intentionally made their working conditions very difficult.

Fired- when an employer servers ties with a worker due to poor performance or violations of company policy. In some cases, an employee can be fired without a reason or without warning.

Lay Off refers to a separation when the employer has let an employee go because their services are no longer needed. Lay offs occur when employer experience a reduced volume of business or funding, or when a reorganization occurs which renders a job unnecessary.


TYPES EMPLOYEE SEPARATIONResignation occurs when employee decides to leave a job of their own accord.

Forced resignation means that an employer has offered an employee an ultimatum- either resign or fired.

Termination for Cause – when employee is terminated for cause they are fired from their job for a specific reason.

Involuntary Termination takes place when an employer either fires of layoffs an employee.

Voluntary Termination occurs when employee resigns or retires of their own will.Changes in Personnel Status

TYPES EMPLOYEE SEPARATIONTermination without Prejudice means an employee has been let go for reasons other than performance, behavior or attitude on the job as in a layoff.

Termination with Prejudice indicates that an employee has been fired due to inadequate performance, poor attitude or ethical/legal transgressions. Employees terminated with prejudice would be ineligible for rehire.


TYPES EMPLOYEE SEPARATIONTermination by Mutual Agreement covers situations where both the employer and employee consent to a separation. Mutual agreement does not necessarily mean that both parties are happy with the arrangement. It just means that they have formally agreed to stipulations for a separation.

Wrongful Termination happens when an employee is discharged from employment for illegal reasons or if company policy is violated when the employee is fired.


TIPS AND PRACTICES TO AVOID WRONGFUL TERMINATION LITIGATION

Define work expectations. If the time comes to terminate the employee, it should not be a huge surprise. Documenting the process is important especially documenting progressive disciplinary measures.

Terminate thoughtfully. Even if the employee recognizes that they may be terminated the actual event may still come as a bit of a surprise. Keep in mind that it’s a form of rejection and not all people take rejection the same way.

Consider Liability Insurance. While liability insurance premiums can be expensive, they pale in comparison to the expense of defending lawsuit. Defending a termination is always an expensive downside for the employer. If the suit cannot be avoided, it may make sense to consider negotiating a settlement versus going to court.Changes in Personnel Status

TIPS AND PRACTICES TO AVOID WRONGFUL TERMINATION LITIGATION

Follow the law. It’s not fun to be wrongfully accused and even if you know you have done everything right, you will still need to prove it. Be sure that your books are kept in order, and also that you obey government guidelines. Even things that seem simple, such as posting government required labor and employment materials can be downfall to your defense.

Write the Book. Having an employee handbook with human resources guidelines and policies can go along way to providing a defense.

Train your Team. Be sure that your employees understand how to communicate without the stigma of discrimination or harassment. Knowing the responsibility of being an employer or a manager and using effective and efficient communication should be the subject of training your team. Changes in Personnel Status

TYPES EMPLOYEE SEPARATIONRetirement is a separation whereby an employee opts to cease working once they have met the age and tenure stipulations laid out by the employer or negotiated by the employer and a union.

Mandatory Retirement rules are limited to a few occupations where workers are deemed a risk to the public or themselves as they experience diminished capacities after a specified age.

Turnover is the rate at which an employer loses and gains employees. Simple ways to describe it are “how long employees tend to stay” or “the rate of traffic through the revolving door”.


2 Main Categories of Turn Over Voluntary Turn Over is when the employee quits. This can be due to finding a better position at another company, a conflict with a supervisor, or a personal reason such as staying home with a family member.

Involuntary Turn Over is when an employee is laid off or fired, generally due to reducing staff due to business turndown or change in business focus, or due to an employee taking some action that is cause for termination, such as theft.



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ChangeCHANGES IN PERSONNEL STATUSs in Personnel Status