Promotion and Demotion

PRESENTED BY:- PRAVEEN KUMAR SINGH

RAJESH KUMAR SAH

Promotion and Demotion

Advancement within an organization is ordinarily labeled as ‘promotion. It is an upward movement of an employee from current job to another that is higher in

pay , responsibility , status and organization level. A mere shifting of an employee to a different job which has better working hours , better pleasant

working conditions does not imply promotion. The new job will be

promotion only if entails increased responsibilities an enhanced pay.

Definition

• According to Scott and Spreigal: “A promotion is the transfer an employee to a job that pays more money or that enjoys some preferred status.

• Flippo: “A promotion involves a change from one to another that is better in terms of status and responsibility.

Purpose of Promotion

• Promotion are generally given to achieve the following purpose :

To put the employee in a position where he will be of greater value to the company . This will imply , utilizing the employee skills and knowledge at the appropriate level in the organization hierarchy resulting in organizational effectiveness and employee satisfaction.

To develop competitive spirit and zeal in the employees to acquire the skill and knowledge etc. required by higher level jobs.

To develop internal source of employees ready to take jobs at higher levels in the organization . To promote employee self-development and make them await their turn of promotions . It reduce labour turnover .

To build up morale , loyalty and a sense of belongingness on the part of employees when it is brought home to them that they would be promoted if they deserve it.

To promote employees interest in training and development programmes and in team development areas.

To built loyalty among employees and to boost their morale.

To reward committed , loyal and deserving employees.

To create atmosphere among employees a feeling of contentment with their present working conditions and encourage them to succeed in the company.

Promotion Policy

A sound promotion policy should be based on the following principles:

The promotion policy should be in writing and must be understood by all employees to avoid any suspicion regarding line of promotion in the minds of employee’s.

Promotion programs should be closely allied to training programs ; which enables the employees to improve themselves for promotion.

The promotion policy should lay down what percentage of vacancies in higher levels of hierarchy are to be filled up by promotion and it should be followed strictly .It is better incorporate a statement of management intention that higher paid and better jobs will be filled by promotion from within , if possible , rather than hiring from outside.

The promotion policy should mention the basis of promotion – seniority or merit . A sound policy should be based on both the consideration i.e. seniority and ability.

Job analysis decides the position of the jobs and their relationship to other positions. This should be chartered to provide clear recognition of the natural movement from one job to another.

A scientific procedure for evaluating employee performance should be followed . The assessment of the employee and confidential repotting should be objectives so that every employee has a faith in the promotion policy and is motivated for better performance of work to get promotion.

The supervisor or the immediate boss should recommend the promotion which is subject to approved by his immediate superior in the line organiatation.

The promotion should contain a provision for the challenge of a particular promotion by the employee by the employee or union within the limits of the promotion policy to ensure fairness in management decision.

A vacancy should be notified to employee in advance so that interested employee may apply within a specified period. If possible , the candidate should be selected before job actually vacant.

Bases of Promotion

The well bases of promotion are : (1)seniortiy and (2)merit.

(1) Seniority means length of recognized service in an organization , the senior most person in the lower grade shall be promoted as and when there is an opening in the higher position. The logic behind considering the seniority as basis of promotion is that there is positive correlation between the length of job and the amount of knowledge and the level of skill acquired by an employee in the origination.

Advantages of seniority

• Easy to measure the length of service

• Trade union generally emphasis on seniority

• Security and certainty is also plus point

• Minimize the scope of grievances and conflicts

• Reducing labour turnover

Disadvantages of seniorityIt is not necessary that employees learn more with length of service. The employee may learn up to a certain age, and learning capabilities may diminish beyond a certain age.Demotivates the young and more competent employeeKills the zeal and interest for self development

(2) Merits

Merit means ability to work . It denotes an individual employee’s skill, knowledge, ability , efficiency and aptitude as measured from educational , training and past record . If the merit is adopted as basis of promotion the most person in the lower grade , no matter his junior most in the company, shall be promoted. It encourage all employee to improve their efficiency.

Advantage :-The skill of an employee can be better utilized at a higher level. It results in maximum utilization human resources in an organization. Component employee are motivated to exert all their energies and contribute to organizational efficiency and effectiveness. This system continuously encourage the employee to acquire new skills , knowledge etc. for all around development.

Disadvantages of Merit

• Measuring merit is not always easy.

• The techniques of merit measurement are subjective

• Many employee , particularly , trade unions distrust the management’s integrity in judging merit.

Demotion

Demotion is just opposite to promotion. In demotion, the employee is shifted to a job lower in status , grade and responsibilities . “Demotion refers to the lowering down of status, salary and responsibility of the employee.”

Dale Yoder," Demotion is the shift to a position in which responsibilities are decreased. Promotion is , in a sense, an increase in rank and demotion is decrease in rank.”

Cause of Demotion

Inadequacy on the part of the employees in terms of job performance, attitude and capability . It happens when an employee finds it difficult to meet job requirement standards, following his promotion.Demotion may be used as disciplinary tools against errant employees.

• Due to adverse business conditions• If there is a mistake in staffing i.e.

a person is promoted wrongly.• Change in technology, method

and practices• Due to ill health or personal

reasons

Demotion Policy

Demotion is very harmful for the employees morale. It is an extremely pain for action, impairing relationships between people permanently. While, effecting demotions, a manager should be extremely careful not to place himself on wrong side of the fence. It is , therefore, very necessary to formulate a demotion policy so that there may be no grievance on the part of the trade unions.

Yoder,Heneman and Stone have suggested a five fold policy in this regard:• A clear list of rules along with

punishable offences be made available to all the employees.

• Any violation be investigated thoroughly b a competent authority.

• In case of violations, it is better to state the reasons for taking such a punitive step clearly and elaborately.

• Once violations are proved, there should be a consistent and equitable application of the penalty.

• There should be enough room for the review.

THANK YOU