HRM Assign Report

1. INTRODUCTION

This research study is focusing on promotion scheme of an organization which comes under

Employee movement sub area of human resource management function. Study attempt to

analyze the satisfaction levels of employees about the promotion scheme and effectiveness of

promotion scheme using a survey research.

A fair and effective promotion process is key to advancing and retaining good employees in

an organization. Promoting from within is a good business practice and has been shown to be

a powerful employee motivator. Internal promotion policies can generate loyalty through the

recognition of individual merit and improved morale by fulfilling employees need for

increased status. A promotion may be defined as an upward advancement of an employee in

an organization to another job which commands better wages, better prestige, responsibility

and authority etc (Glueck, 1978).

A good promotion scheme should consist of introduction, objectives, policies, promotion

opportunities, criteria and procedures. Effectiveness of promotion scheme could be judged by

looking at the level of acceptance of the same by employees. Promotion scheme is a part of

reward system of the organization and employee’s perception about it is important for the

future success of the organization. Therefore it is important to investigate the employee’s

views about various aspects of promotion scheme and their satisfaction levels. This will

further help organization to modify existing promotion scheme taking employees views also

into consideration.

1.1 OVERVIEW OF CEYLON ELECTRICITY BOARD

Ceylon Electricity board (CEB) was established under a parliamentary act in1969. In 2004

CEB was divided in to seven strategic business units (SBUs) with long term aim of

unbundling the organization. It had the sole authority of Electricity generation, Transmission

and distribution for selling purposes until the new Electricity act was enacted in year 2009

(Sri Lanka Electricity act No. 20 of 2009). Under new Electricity act SBUs of CEB had to

obtain license from public utilities commission of Sri Lanka (PUCSL) to conduct the

business.

Lanka transformers Limited and the Lanka Electricity Company limited are subsidiaries of

CEB. Present work force consists of 15366 employees. At present CEB is under heavy

financial crisis. The major contributory factor for this loss is the over dependence on thermal

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power generation due to not implementing long term generation expansion plan in timely

manner which describes the least cost generation options to cope with increase demand.

CEB was a profit making Government entity until 1996. During this period major share of

power generation was from hydro power stations which are the cheapest source of power

generation. As a result of not implementing generation expansion projects to cope with

average annual electricity demand growth of about 8% CEB had to purchase emergency

power from independent power producers at very high cost. This resulted in declining

financial position of CEB. During the period of prosperity, which is before 1996, no one

talked about the productivity or cost effectiveness of CEB. But when electricity tariff is rising

by several folds everyone started to criticize the CEB.

At present CEB is having a severe shortage of unskilled workers and the practice adopted to

cope with this problem is to use of outsourced labours.

1.1.1 SUMMARY STATISTICS OF CEB(as at December 2010) Total number of Employees 15366

Total number of consumers 4480423

Average system loss 13.50%

Average selling Price per Unit 13.03 (Rs/ Kwh)

Percentage Electrification 88%

Total Revenue Rs. Mn 120780

Net assets in operation Rs. Mn 378207

1.2 BRIEF OVERVIEW OF PRESENT PROMOTION SCHEME

Present promotion scheme has mainly been developed through four main service streams

namely apprentice service (N salary scale), Clerical and allied services (M salary scale),

Superintendent Service (L salary scale) and Executive service (K salary scale). Executive

service stream is sub divided in to Engineering, Accounting, Human Resource and

ancillary service streams. All these streams have different grades and there are policies

and criteria to promote to thouse grades. In addition to the different grades within each

stream they have the opportunity to change their stream through a competitive

examination and interview after obtaining certain minimum functional experience as

indicated in the diagram below.

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15%

50%

5%

Simple schematic showing career path for employees of CEB

Source: CEB Promotion policy manual

2 STATEMENT OF PROBLEM

Companies spend lot of time and money interviewing for key positions, with somewhat

inconsistent results. Alternatively, many companies promote from within, often using an ad-

hoc process that rewards the most ambitious, not necessarily the most prepared, to lead, even

when those who are promoted are placed in established leadership development programs.

It’s of value for companies to have in place a documented promotion process that is available

to all employees, and that explicitly lays out the steps to promotion and the expected abilities

at each step (career path). Further, it would be of value for a company to have in place a

process that periodically tests all its employees for skills and attributes required at certain

positions with the objective of identifying potential future leaders.

Effectiveness of the promotion scheme will be reflected in the level of satisfaction and

acceptance of the same by employees. Loyalty, job related skills and motivation levels of

employees could be maintained and enhanced through a fair promotion policy. Employee

dissatisfactions due to unfair treatment in promotion process has become a common in

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Clerical and Allied Services

Human Resource Executive

External recruitment 95% 959595

External recruitment 95%

General Manager (CEO)

Engineering executive

Superintendent Service

Labour services

Finance Manager

Accounting Executive

Ancillary service Executive

External recruitment - 85% of the carder

External recruitment - 50% of the Carder


External recruitment


Government sector. It is therefore time to conduct an empirical study to investigate the

satisfaction levels and perceived effectiveness of promotion policies, criteria’s,

opportunities and procedures of the promotion scheme of Ceylon Electricity Board

2.1 OBJECTIVES OF THE STUDY

1. To study the opinion of employees (workers/supervisors/executives) regarding the

existing promotion scheme in the organization.

2. To study whether the objectives of the present promotion scheme is achieved and to

quantify the satisfaction levels of employees about the existing promotion scheme.

3. To study about the effectiveness of policies, promotion opportunities, criteria and

procedures of promotion scheme.

4. To recommend the modification required to the existing promotion scheme to

improve the effectiveness.

5. To analyze any relationship among different dimensions of the issue.

3 METHODS, DATA AND VARIABLES

Both primary and secondary data were used in this study. Secondary data was collected

through promotion policy manuals and other HR related manuals of CEB. A structured

questionnaire was developed modifying the Organization Diagnostic Questionnaire (ODQ)

developed by M.R. Weisbord in order to collect primary data. The questionnaire developed

consists of two parts. The first part requires the respondents to provide demographic data, the

second part consists of 27 questions which is divided in to five dimensions of the issue, that is

promotion related Job satisfaction, promotion policy, Promotion criteria, Promotion

opportunities and Promotion procedures.

The questions allow index scores to be calculated on satisfaction levels of five dimensions of

promotion scheme. All content questions are scored on seven-point scales (1-2-3-4-5-6-7).

Index scores are derived from the mean scores on the questions and mean of mean scores for

each dimension of the issue for all respondents to examine satisfaction levels. Unanswered

questions were given score of 4.

Criteria for satisfaction levels

All the statements in the questionnaire were positive type and therefore strong agreement

means high level of satisfaction and strong disagreement means high level of dissatisfaction.

Accordingly if score is 7, then satisfaction level is very high. If score is 6, then satisfaction

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level is high. If score is 5, then satisfaction level is moderate. If score is 4, then satisfaction

level is neutral. If score is 3, then satisfaction level is slightly dissatisfied. If score is 2, then

level of satisfaction is dissatisfied. If score is 1, then level of satisfaction is strongly

dissatisfied.

Pearson’s correlation coefficient (r) was used to examine any linear relationships among

different dimensions of the issue.

In this analysis promotion related job satisfaction was considered as dependent variable and

Promotion policy, Promotion criteria, Promotion opportunities and Promotion procedures as

independent variables.

Microsoft Excel software was used to analyze quantitative data which involve data

preparation, counting, grouping and presentation and calculation of mean, standard deviation

and Pearson’s correlation coefficient(r) etc.

Criteria for linear relationship:

If 0.9<r<1 then very strong linear relationship between the variables

If 0.7<r<0.9 then strong linear relationship between the variables

If 0.4<r<0.7 then moderate linear relationship between the variables

If 0.1<r<0.4 then weaker linear relationship between the variables

The Sample – in order to collect data the research questionnaire was administered among 80

employees of Ceylon Electricity Board Southern province. These employees were selected in

such a way that sample will include workers, Supervisors and Executives.

4. RESULTS AND FINDINGS

Out of 80 questionnaires issued 60 completed and returned and it showed that 75% response

rate which is a high percentage. Total number of CEB employees was 15366 and the selected

sample is 0.5% of the total population. 63% of the respondents were males and 37% were

females. Out of 60 respondents 17% were engineering executives, 15% non engineering

executives, 22% supervisors and 46% workers. 38% of the population is in above 40 years

age category and 62% under 40 years age category.

Following abbreviations were used in presenting results.

promotion related Job satisfaction -PRJS, Promotion criteria -PCA, promotion policy - PPC,

Promotion opportunities – POP, Promotion procedures – PPS, Engineering Executives – EE,

Non Engineering Executives – NEE, Supervisors – SU, Workers - WK

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Table 4.1 Mean score of PRJS questions, Source: Survey data, 2011

Employee categoryEE NEE SU WK

1 Promotion is a motivational factor for me. 6.00 5.90 5.62 4.00

2 After getting a promotion my responsibility and accountability towards my work is increased.

6.00 5.80 5.46 6.00

3 Promotion is, to a great extent, vital and beneficial in my service. 5.67 5.70 5.23 5.73

4 I feel that promotion is an upward movement in the organization which gives me more responsibility, authority, status and pay.

5.33 6.30 4.85 5.73

5 Increase in employee benefits as a result of a promotion is fair among different categories of employees in our organization

4.56 3.50 4.46 4.70

6 My job is a good use and application of my skills, experience and qualification.

5.33 5.50 5.15 5.57

Mean score 5.48 5.45 5.13 5.68

The results in table 4.1 shows that mean scores given for PRJS questions by all employee

categories are above 5 which mean satisfaction level is above moderate level. But NEE

employee category is slightly dissatisfied about perceived fairness of increase in benefits as a

result of promotion.

Table 4.2 Mean score of PCA questions, Source: Survey data, 2011


7 I am satisfied with the internal examination system for employee promotions

4.00 4.20 2.54 4.97

8 I am satisfied with how performance appraisal review grading process is linked to promotion process

4.00 4.20 2.92 5.10

9 I believe that span functional experience required for next promotion is proper

4.22 5.20 2.85 5.47

10 Educational qualification and other related skills are well considered in promoting employees.

5.00 6.30 4.46 5.37

11 Functional experience is not over considered for promotions. 5.44 3.60 4.00 4.17

12 Present promotion criteria do not very much subject to favoritism of evaluators

4.78 5.10 4.54 4.10

Mean score 4.57 4.97 3.55 4.86

Results of table 4.2 shows that mean scores given for PCA questions by EE, NEE and WK

employees are around 5.This implies that they are moderately satisfied about the promotion

Criteria. But SU employees have given mean score of 3.55 showing slight dissatisfaction

about the present promotion criteria.

Results of table 4.3 shows that mean scores given for PPC questions by EE, NEE and WK

employees are around 5. This implies that they are moderately satisfied about the promotion

policy. But SU employees have given score of 4.34 showing very marginal satisfaction about

the present promotion policy.

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Table 4.3 Mean score of PPC questions, Source: Survey data, 2011


13 CEB has a fair promotion policy 3.56 4.40 3.23 4.70

14 I feel that present seniority plus merit based policy is better than purely merit based promotion policy.

4.89 5.10 4.62 4.57

15 CEB promotion process do not discriminate people based on age, race, religion, national origin, color, sex, pregnancy or disability.

6.00 5.90 4.85 5.30

16 CEB promotion system do not Eliminate certain categories of people from job advancement

5.33 5.20 4.08 4.60

17 Ratio of external recruitment to internal promotion is fair in CEB 5.22 5.50 4.92 4.43

Mean score 5.00 5.22 4.34 4.72

Table 4.4 Mean score of POP questions, Source: Survey data, 2011


18 Opportunity for promotions exist in this organization 5.22 4.50 4.08 4.47

19 Cadre restrictions do not have much effect on promotional prospect of Employees.

2.56 4.40 3.62 3.83

20 I have access to job opportunities in different areas of my organization.

5.22 4.40 5.31 4.10

21 I am happy with the formal career planning that happens in work place 4.33 5.40 4.62 4.20

22 My present work will help me grow in my career. 4.89 5.00 5.15 5.20

Mean score 4.44 4.74 4.55 4.36

Table 4.5 Mean score of PPS questions, Source: Survey data, 2011


23 I believe that promotions are received in time 4.00 3.20 3.08 4.03

24 Employees have sufficiently been notified about the qualifications required to qualify for higher positions.

5.44 4.80 4.00 5.50

25 I am satisfied with the confidential report submitted by branch head for my promotion.

4.78 4.40 4.08 4.87

26 I am satisfied with the promotion interview panels of this organization.

4.78 5.10 3.54 4.60

27 In case where a promotion is not given, reason for not giving the promotion is informed back to the employee promptly.

4.11 4.60 4.31 3.70

Mean score 4.62 4.42 3.80 4.54

Results in the table 4.4 shows that all the employees have given scores of around 4.5 for POP

questions showing marginal satisfaction about promotion Procedures. But EE, SU and WK

employees are slightly dissatisfied about the cadre restrictions.

Results in the table 4.5 shows that EE, NEE and WK employees have given scores of around

4.5 for PPS questions showing marginal satisfaction about promotion opportunities. But SU

employees are slightly dissatisfied about the present promotion procedure.

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Table 4.6 Mean Score of all questions, Source: Survey data, 2011

Variable Mean ScoreEE NEE SU WK Over

40 yearUnder 40 year

All Employees

1 PRJS 5.48 5.45 5.13 5.68 5.25 5.44 5.472 PCA 4.57 4.97 3.55 4.86 4.58 4.34 4.503 PPC 5.00 5.22 4.34 4.72 4.73 4.57 4.734 POP 4.44 4.74 4.55 4.36 4.50 4.31 4.465 PPS 4.62 4.42 3.80 4.54 4.35 4.24 4.346 All Variables 4.84 4.97 4.28 4.86 4.70

Results of table 4.6 show that employees overall satisfaction level about present promotion

scheme is 4.7 which is higher than the neutral satisfaction level of 4.0 and therefore

according to the results employees are satisfied with the present promotion scheme. It also

shows that SU employees have given least mean score of 4.28 for all questions showing least

satisfaction about the present promotion scheme while NEE employees have given highest

mean score of 4.97 giving highest satisfaction about the present promotion scheme. It also

shows that there is no significant satisfaction level difference based on age of employees.

Respondents have given lowest mean score for the following two statements

Statement Mean scoreCadre restrictions do not have much effect on promotional prospect of Employees.

3.62

I believe that promotions are received in time 3.70

Respondents have given highest mean score for the following five statements all of which related to promotion related job satisfaction

Statement Mean score

Promotion is a motivational factor for me. 6.00

After getting a promotion my responsibility and accountability towards my work is increased.

5.73

Promotion is, to a great extent, vital and beneficial in my service. 5.55I feel that promotion is an upward movement in the organization which gives me more responsibility, authority, status and pay.

5.48

My job is a good use and application of my skills, experience and qualification.

5.47

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Table 4.7 Correlations among different variables, Source: Survey data, 2011

Variable Mean Score

Std Deviation

Correlation coefficient(r)PRJS PCA PPC POP PPS

PRJS 5.47 0.72PCA 4.50 0.90 0.42PPC 4.73 0.85 0.42 0.54POP 4.46 0.94 0.10 0.37 0.23PPS 4.34 0.99 0.06 0.52 0.26 0.36

Results of table 4.7 shows that correlation coefficient(r) between dependent variable PRJS

and PCA is 0.42 which means that promotion related job satisfaction has a moderate positive

linear relationship with promotion criteria and similarly it also shows that promotion related

job satisfaction has a moderate positive linear relationship with promotion policy. But

according to the results promotion opportunities is weakly related to promotion related job

satisfaction and no relationship with promotion procedure.

5. ANALYSIS AND DISCUSSION

According to the findings of table 4.6 supervisory grade employees are the least satisfied

group of employees. But further analysis of findings of table 4.2 and table 4.5 shows that this

least satisfaction is due to slight dissatisfaction of this category of employees about present

promotion criteria and promotion opportunities. Results of table 4.6 further shows that

highest promotion related job satisfaction has been expressed by workers and least by

supervisors. In this study, the workers category mostly includes the clerical staff employees.

Further analysis of results of table 4.6 was carried out to check the views of four employee

categories among five dimensions of the issue. This shows that Engineering executives have

expressed least satisfaction about the promotion opportunities while non engineering

executives have expressed least satisfaction about promotion procedures. Supervisors have

expressed least satisfaction about promotion criteria and workers have expressed least

satisfaction about promotion opportunities. When considering all respondents mean score it

shows that least score was given for statements on cadre restrictions and timeliness of getting

promotions. This shows that there is a delay in getting a promotion in Ceylon Electricity

Board and cadre restrictions have created a barrier for employees in getting promotions. By

further analyzing results of table 4.4, it is seen that least mean score of 2.56 has been given

for the statement about cadre restrictions by engineering executives. This shows that

engineering executives have been worst affected by cadre restrictions.

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Finding of the correlation analysis of this study indicated that promotion related job

satisfaction is significantly related to promotion criteria and promotion policy but least

related to promotion opportunities. However a study conducted by Ellickson and Logsdon

(2002) reflected that job satisfaction of public sector employees was significantly influenced

by perceptions of employee satisfaction in terms of pay, promotional opportunities,

relationships with supervisors, employees’ performance management systems and fringe

benefits. Further analysis of results of table 4.2 shows that supervisory grade employees have

expressed their dissatisfaction about internal examination system for promotions, how

performance appraisal review grading process is linked to promotion process and span of

functional experience required for promotions.

6. CONCLUSION AND RECOMMENDATIONS

A main objective of this study was to analyze the opinions of the employees about promotion scheme and to quantify the level of satisfaction. Findings of the study shows that overall satisfaction level of 4.7 leading to marginal satisfaction of employees about present promotion scheme of Ceylon Electricity Board. This indicates a marginal achievement of main objective of the promotion scheme. But analysis of satisfaction levels of different categories of employees about different dimensions of the issue indicated that they are dissatisfied about some dimensions of the issue. Cadre restrictions and delay in getting a promotion are two common problems identified and management should take action to rectify these problems. Non engineering executives have shown their dissatisfaction about the perceived fairness of benefit increased as a result of a promotion. To rectify this, amendments have to be made for the promotion scheme taking equity and fairness into considerations.

Supervisory grade employees have shown their dissatisfaction about promotion criteria and promotion procedure. Their poorly responded questions indicated that they are dissatisfied about internal examination system for promotions, linking process of performance review grading system to promotion system and span of functional experience required for promotions. Promotion policy and procedure has to be revised taking their views also into considerations. By looking at the results of the correlation analysis, promotion policy and promotion criteria is more positively correlated to promotion related job satisfaction of employees. Therefore modifications to the promotion system should be carried out giving more attention to the policies and criteria’s.

More research is needed to provide a more thorough and detailed analysis of the links between job satisfaction and different dimensions of promotion scheme like promotion criteria, promotion policy, promotion opportunities and promotion procedure. This additional research will clarify how effective promotion systems can be developed in order to improve the results achieved by those systems. This will help to insure that promotion systems can contribute consistently to organizational effectiveness.

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7. REFERENCES

Alan O. Sykes, An Introduction to Regression Analysis

Henarath H.D.N.P.Opatha. (2009), Human Resource Management, Chapter 16

http://www.itrainonline.org/itrainonline/mmtk/, 2011/5/25

Mekissa Williamson (2004), Step by step guide to writing research papers, Massachusetts College of Liberal Arts.

Conclusion

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HRM Assign Report