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 95%
External recruitment
External recruitment 100%
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
Employee categoryEE NEE SU WK
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
Employee categoryEE NEE SU WK
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
Employee categoryEE NEE SU WK
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
Employee categoryEE NEE SU WK
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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