INTERNAL MOBILITY

• Movement of employees from one level to

another and from one job to another within

the company

• Types

• Promotion

• Transfer

• Demotion

PROMOTION

• Advancement of an employee to a better job

– in terms of greater responsibility, more prestige,

greater skills and increased rate of pay and salary”

Paul Pigors and Charles Myers

Main conditions of promotion are

– Reassignment of a higher level job to an employee

than what he is presently performing

– Delegation of greater responsibility and authority

– Higher pay

PROMOTION • Purpose

– Utilise employees skill, knowledge resulting in

organisational effectiveness and employee satisfaction

– Develop competitive spirit and inculcate the zeal in the employees to acquire the KSA

– Develop competent source of employees for higher level jobs

– Promote employees self development

– Reduce labour turnover

PROMOTION

• Purpose

– Promote a sense of contentment with the existing

conditions and a sense of belongingness

– Promote interest in training and development

programs

– Build loyalty and boost morale

– Reward committed and loyal employees

TYPES OF PROMOTION

• Vertical Promotion – employee moves to the next higher level in the organisational hierarchy with greater responsibility, authority, pay and status

• Upgradation – job is upgraded in the organisational hierarchy leading to greater responsibility, authority and pay

• Dry Promotion – employee is moved to the next higher level in organisational hierarchy with greater responsibility, authority and status but no increase in salary

BASES OF PROMOTION

Merit Seniority Merit cum

Seniority

Denotes an

employees skill,

knowledge,

ability, efficiency

and aptitude

measures from

educational,

training and

employment

record

Assumes a

positive co-

relation between

the length of

service in the

same job and the

amount of

knowledge, skills

acquired by an

employee

Combination of

both for satisfying

the management

and employees

and trade unions

BASES OF PROMOTION

Merit

Advantages Disadvantages

• Maximum utilisation of

human resource

• Motivation to competent

employees

• Reduces employee turnover

• Encouragement to acquire

new skills and knowledge

• Measurement of merit difficult

• Trade unions distrust

management‟s integrity in

judging merit

• Subjective techniques used

• Based on past achievement,

may not guarantee future

success

BASES OF PROMOTION

Seniority

Advantages Disadvantages

• Easy to measure

• Full support from trade unions

• Minimises scope for favoritism and

discrimination

• Certainty of promotion to every

employee

• Respect to senior employees

• Minimises scope for grievances and

conflicts regarding promotion

• Assumption that employees learn

more with the length of service not

valid

• Demotivates young and more

competent

• Kills zeal and interest to develop as

all are promoted

• Organisational effectiveness is

decreased

• Increase in employee turnover

BASES OF PROMOTION

Only merit considered for promotion

From most able, promote the senior

Minimum length of service required

before one can be considered for

promotion on merit

After excluding the truly incompetent,

promote the senior

Only seniority is considered for

promotion Incre

asin

g w

eig

ht

on

meri

t In

cre

asin

g w

eig

ht o

n S

en

iority

Merit cum Seniority

PROMOTION POLICY

• Sound Promotion Policy

– Uniform

– Consistent – applied uniformly to all employees

– Fair and impartial

– Systematic line of promotion channel

– Equal opportunities

– Clear-cut norms for judging the merit etc

– Appropriate authority should make the final decision

– Favoritism should be avoided

– Must contain promotional counseling, encouragement, guidance and follow-up

– Definite basis for promotion

PROMOTION

• Glass ceiling-It is an invisible barrier to promotion, based on sex or race

ASSIGNMENT

• What is promotion? What are its purposes? Compare merit as a basis of promotion with that of seniority?

• What is promotion policy? What are its contents?

TRANSFER • Lateral movement of an employee in the hierarchy of

position with the same pay and status

• Moving of an employee from one job to another. It may involve promotion, demotion or no change in the job status

• “A lateral shift causing movement of individuals from one position to another usually without involving any marked change in duties, responsibilities , skills needed or compensation” - Yoder and associates

• May be company or individual initiated

REASONS OF TRANSFER

• Meet orgnisational requirement

• Satisfy employee needs

• Increase employee productivity

• Make employees more versatile

• Adjust the workforce from one plant to another, lay offs and retrenchments

• Give relief to employees who are over burdened, engaged in complicated or risky work

• Correct inter-personal conflicts

• Adjust employees timings and workplace

• Penalising employees

• Minimise corruption and frauds due to permanent stay and contacts with customers, dealers and suppliers

• Maintenance of tenure system

PRINCIPLES OF TRANSFER

• Should be in writing and known to all employees

• Should clearly state types and circumstances of transfer

• Should mention basis or grounds of transfer

• Should indicate authority responsible for initiating and

implementing transfer

• Should specify units or areas over which transfer would

take place

• Should specify rate of pay to be given to transferee

• Transfers should not be made too frequently

• Should state whether training or retraining is required on

the new job

TYPES OF TRANSFER • On The Basis Of Purpose

– Production transfer -

• Transfers caused due to changes in production

• Transfer from one department to another due to

decrease/increase in labour requirements to prevent lay

– offs.

• Transfer is carried out at the same occupational level i.e.

for similar type of work

– Replacement transfer -

• Due to initiation or replacement of a long standing

employee in the same job

• Also to prevent lay – offs

TYPES OF TRANSFER

• On The Basis Of Purpose

– Shift transfer -

• Transfer from one shift to another on the same type of work

• To balance the requirements of certain employees i.e. women

or specific reasons due to personal reasons

– Remedial transfer -

• To correct the wrong placements

• Due to inter-personal conflicts

– Versatility transfer -

• To increase the versatility of an employee

• To provide broader and wide perspective of the job

• Help the employee in job enrichment and job enlargement

• To help employee prepare for future promotions

TYPES OF TRANSFER

• On The Basis Of Unit

– Sectional transfer -

• Within the department from one section to another

• To train and prepare workers to handle operations of

different sections in department

– Departmental transfer -

• Transfer from one department to another

• Nature of work is same in both departments- routine jobs

– Inter Plant transfer - Transfer from one plant to another

SEPARATION

• Cessation of service agreement

• Types of separations

– Lay-offs

– Resignation

– Dismissal or discharge

– Retirement

– Retrenchment

– Turnover

– Voluntary Retirement Scheme

LAY-OFFS

• Temporary separation of employee from employer at

the instance of later without any prejudice to former

• According to Section 2 of Industrial Dispute Act, 1947,

„Lay-off is the failure, refusal or inability of an employer

to give employment to a worker whose name is

present on the rolls but who has not been

retrenchment‟

• Lay – off may be for a definite period on the expiry of

which employee will be recalled by the employer for

duty

LAY-OFFS

• Reasons

– Decline in sales

– Shortage of raw material

– Displacement caused by technology

– Delay in production

– Accumulation of goods in godown in large quantity

– Breakdown of machine

LAY-OFFS

• Factors Determining Lay-offs

– Must be made clear at the time of appointment and that all

efforts will be made to recall the employee back

– In case of long term lay-off or lay-off for an indefinite term,

sufficient notice to be served to the employee

– Efforts must be made to get the laid-off employee appointed

in other enterprises

– Reasons must be made clear to the employee being laid-off

LAY-OFFS

• Laws Relating to lay-offs - Provisions of the Act do

not apply to establishments

– In which less than 50 workmen on the average per working

day have been employed in the preceding one month

– Which is of seasonal character or in which work is performed

intermittently

LAY-OFFS • Right of Workmen Laid-off for Compensation

– On completion of one year of service, a workmen if laid off, is

entitled to compensation equal to 50% of basic wages and DA

payable to him had he not been laid –off

– If during any period of 12 months a worker is laid-off for more than

45 days, no compensation is to be paid in respect of any period of

lay-off after the expiry of first 45 days

– It is lawful for the employer to retrench the worker any time after

the expiry of 45 days

– If a worker is retrenched, then compensation paid to him for lay –

off in the preceding 12 months may be set off against the

compensation payable for retrenchment

LAY-OFFS

• Cases In Which Workmen Are Not Entitled For Lay-

Off Compensation

– If he refuses to accept any alternative employment in the same

establishment from which he has been laid-off or in any other

establishment belonging to same employer situated in the same

town, village or within a radius of five miles from his workplace

– If he does not present himself for work at the establishment at the

appointed time during normal working hours at least once a day

– If such lay-off is due to a strike or slowing down of production on

the part of workmen in another part of the establishment

JOB CHARACTERISTIC MODEL

• Given by J. Richard Hackman & Greg Oldham

• Five core dimensions required for JCM

– Skill Variety

– Task identity

– Task significance

– Autonomy

– Feedback

• Skill Variety - Degree to which job

requires a variety of different activities.

e.g. An operator in a garage does electric

rebuilds engines, does body work and also

interact with customers.

• Task Identity - Degree of which a job

requires completion of a whole and

identifiable peace of work.

e.g. A cabinet maker designs a piece of

furniture, selects wood, builds object and

finish it to perfection.

JOB CHARACTERISTIC MODEL

• Task Significance Degree to which job has a

substantial impact on the lives or work of other

people.

e.g. A nurse handling diverse needs of patients in a

hospital intensive care unit.

• Autonomy Degree to which a job provides

substantial freedom and discretion to individual in

scheduling the work and in determining the

procedure to be used in carrying it out.

e.g.: A sales person who schedules his work

according to his time and decide different sales

approach with different customer without

supervision.

JOB CHARACTERISTIC MODEL

• Feedback Degree to which work activities

required by a job results in the individual

obtaining direct and clear information about the

effectiveness of his/her performance.

e.g.: A factory worker who assembles iPod and

test them to see if they operate properly.

JOB CHARACTERISTIC MODEL

Core Job Critical Psychological Personal &

Dimension States Work Outcomes

Skill variety Experience

Task identity meaningfulness

Task significance of work

Autonomy Experience

responsibility for

outcome of the

work

Feedback Knowledge of the

actual results of

work activities,

Employee growth

need strength

High internal work

motivation, High

Quality

performance, High

Satisfaction with

the work , Low

absenteeism and

turnover

JOB ROTATION

• Periodic shifting of an employee from one task to

another

• When activity is no longer challenging worker is

rotated to another job

• Carried out usually at the same level and have

similar skill requirement.

JOB ENLARGEMENT

• Increasing the number and variety of task that

an individual performs.

• Difference between job rotation and job

enlargement is enlarging the scope of the job .

• e.g housingkeeping job in small hotel not only

includes cleaning of the bathrooms, making

beds and vacuuming but also replacing bulbs,

services and restocking bars.

JOB ENRICHMENT

• The vertical expansion of jobs which increases

the degree to which the worker controls the

planning, execution, and evaluation of the work.