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8/11/2019 Internal Mobility- Policy & Practise
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INTERNAL MOBILITYChapter 8
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Definition of internal mobility p3 Types of mobility-promotions, transfer & demotions p3 Factors & objectives of internal mobility p4&5 Promotions p6
Reasons for promotion p7 Effects of promotion p8 Criteria f or promotion p9 Promotion policy(seniority, merit, seniority vs merit, seniority
cum merit) p10-14 Transfer-2 conditions- individual & organizational driven p15-17 Need for transfer policy p18
Demotion - Why? & what are the policy p19-20
Glance of the chapter
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Employee movement within the organization is called internal
mobility (lateral / Vertical)
3 kinds of movement Upward mobility (promotions)
Sideward mobility (transfers)
Downward mobility (demotions)
Such movement may be between jobs, within sections, across
sections, or even between plants in multiplant operation
Definition
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2 factorsindividual (+ve/ -ve) Organisational
Main Objective:
To satisfy both organisational requirements and the needs of the employees in amutually acceptable manner
Reasons for Internal Mobility:
Restructuring of Organisation (increase of business/ constraints due to
competition / unavailability of staff / merging or adding depts/ relocating units)
Business expansion / introduction of new products/ services or processes
Employee turnover due to resignations/ dismissals/ succession Planning
Factors and Objectives
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Maximum utilization of available manpower to achieve the Organizational goals
Internal mobility acts as a motivational force and has an impact on employee
attitudes
Cost and time effective in-terms of recruiting and training a fresh candidate Matching the competence of the employee with job requirement
Reduces job destruction
Internal mobility is more related to the biographic profile of the employeesPromotions and demotions purpose of operational adjusments
Transfers purpose of economic adjustments
Objectives of Internal Mobility
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Upward reassignment of an individual in an Organisations hierarchy
accompanies with
Increase in responsibility
Enhanced status
Increased income
Promotions
Promotion Post up gradation
Change in responsibility, status andincome
Change in income, some times change indesignation, whereas responsibilitiesremains same
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Promotion is a way of important form of recruitment within the
organisation
Business growth expansion in production, marketing and
employment
It is a reward for effective performance of the job due to
employee commitment- enhance job satisfaction and loyalty to theorgn
Strategic move to retain the good performers
Reasons for Promotion
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Ungroomed or less trained employee when promoted not capable of
handling new responsibilities makes an organization to lose a good pre-
promoted effective employee & gets a highly ineffective promoted employee
Instead being a morale booster, may act as de motivator for employees notinterested in promotion due to family, social and economic reasons
If promotion criteria is not very transparent, among 2 employees of same
cadre, one being promoted but not the other one leads to demotivation.
Effects of Promotion
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Based on various research the following criterias are listed down Experience Educational Qualification Performance Appraisal Written Test Interview Performance
Personality Socio-environmental Interpersonal relationship Informal influences (religion, nationality, political affiliation,
membership of the right club and family connections
Criteria for Promotion
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Promotion policy helps to formulate organizational manpower and individual career
plan
Based on the ratio framed by the union between internal promotion Vs external
recruitment, considering the qualification the promotion decisions are made
By identifying the network of related jobs (through job analysis) and promotional
channels for each job (succession Planning)
Promotion by consideration of disciplinary action
Promotion is not the only means of wage rise for an employee in a pyramid type of
organisation
Promotion should be a twofold balance (Win-Win situation) between individual
(fulfilling individual aspiration) and organisation (achieving Orgn mission)
Promotion Policy (based on culture, size,, business/based on seniority/ merit)
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Length of service of the employee in an Organization (job experience
First In First Choice )
Difficulty in finding out the seniority (plant wise/ unit wise/ occupation wise)
Mostly it is considered unit wise unless it has a homogenous technology. For white collared employee - technical background, general job, legal or other
specialized job and general stream
Escapes chances of favoritism and discrimination Reverse effect of seniority Trained incapability
Reduces employee turnover
Promotion based on Seniority
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Promotion of deserving employees based on the assessment of
their abilities for higher responsibility and status
Difficulties Devices used for judging ability such as performance appraisal
ratings, confidential reports, tends to have bias in judging
merits. Difficulties in indentifying the characteristics traits of a person Issue of merit cum ability
Promotion based on Merit
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Management prefers merit to be the basis for promotion whereasUnions want seniority to be considered.
Drawback is that when seniority is considered the merit or ability is
ignored yet it is essential to function effectively. There is no incentives for employees to learn or improve if
promoted based on seniority.
It may undermined the morale of others Problem in claiming seniority rights when it comes to employees
joined on the same day
Promotion based on seniority is a reward for loyalty
Seniority Vs Merit
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Most organizations have tried to combine seniority and merit where thebasic principle is to consider the years of services (minimum years of
service required for a particular designation) as a first step and subjected to
merit requirements. Recently Indian organizations focus on designing and implementing a
formal promotion policy. Some organizations have promotion committee(final selection body) which
assigns weight age to various segments like seniority, written test, warningnotes, leave/ absenteeism records, disciplinary charges and so on.
Seniority in the grade/ category is considered in some company rather than
seniority in the company.
Seniority cum Merit
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Transfer is a change in job assignment which involves- Promotion or demotion or no change in responsibility and status
Either temporary or permanent depending upon the need
Transfer within the department, between departments and divisions
or between plants, within a company
Two main conditions for transfer: Individual driven transfer
Organization driven transfer
Transfer
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To acquire better working condition
To join friends/ families & its responsibilities
To avoid interpersonal conflicts To reduce commuting distance
To pursue educational opportunities
To accommodate dual career programs
If transfer is denied in individual requests, it may leads to attrition
Individual driven Transfer
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Need for temporary adjustments such as leave replacement or veryshort assignments
To make use of the competent employees
Transfer from one shift to another on the same type of work Job Rotation Transfer for training for later promotion
Sometimes employee in managerial cadre if transferred throughcompany is entitled to certain benefits such as increase in pay or
reimbursement of moving charges if geographical changes is
involved.
Organization driven Transfer
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The absence of a well formulated transfer policy will lead to uncertaintyamong employees( favouritism)
Elements of transfer policy:
Clear statement on conditions and circumstances under which an employee will be transferred
Transferability based on job or individual should be examined in terms of
JD between dept, division, plants and streams Should mention on what basis transfer is done (seniority / merit) Difference in pay scale / extra wages/ and prerequisites has to be
mentioned
Need for Transfer policy
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It is a downward assignment in the organizational hierarchy, to a lower level
jobs with less responsibility, pay and status leads to employee dissatisfaction
Occur due to ve implications on the employees career and morale
Factors for demotion Adverse business condition when the orgn go for lay off (First In Last Out)
Cases where promotion involves shifting the location (from a well established
domestic setup) Mismatching between new responsibilities and employee ability / willingness
Disciplinary measure against errant employees
Demotion
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Should be planned carefully
If demotion done due to economic situation, state labour department, trade
union, sometimes even government will be involved in final decision
Company policy should clearly warn about the infractions which could lead
to demotion
The supervisor should clearly and carefully communicate the company
situation to the employee when planned for demotion to avoid sudden
frustration
Creating a position for a person at the same pay and status but with the lower
job demands (white collared employees)
Demotion Policy
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Thank U