Internal Mobility- Policy & Practise

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

Documents

Internal Mobility- Policy & Practise