TRANSFERTRANSFERANDAND

DEMOTIONSDEMOTIONS

TRANSFERTRANSFERDefinitionDefinition

According to Dale Yorder,”A transfer According to Dale Yorder,”A transfer involves shifting of an employee from one job involves shifting of an employee from one job

to another without special reference to to another without special reference to change in responsibility or compensation”change in responsibility or compensation”

Transfer is viewed as change in assignment in which the employee moves from one job to another in the same level of hierarchy requiring similar skills involving approximately same level of responsibility, same status and the same level of pay.

PURPOSE OF TRANSFERPURPOSE OF TRANSFER• To meet the organizational requirements• To satisfy the employees’ needs• Better utilisation of employees • Making employees versatile• To correct inter-personal conflicts• Avoidance of overstaffing• Disciplinary action • To minimise fruad,bribe etc

TYPES OF TRANSFERTYPES OF TRANSFER• Production transferTransfer caused due to changes in

production• Replacement transferTransfer caused due to initiation or

replacement of a long standing employee in the same job.

• Versatility Transfer or rotation of Transfer

Transfer initiated to increase the versatility of employees

• Shift transferTransfer of an employee from one shift

to another shift

• Remedial transferTransfer initiated to correct the wrong

placements.• Penal transferTransfer initiated as a punishment for

indisciplinary action of employees

REASONS OF TRANSFERREASONS OF TRANSFERThree reasons for transfer• Employee initiated transfer• Company initiated transfer• Public initiated transfer

• Employee initiated transferIt is also known as personal transfer.

These transfers are primarily in the interest of an employee.

It is classified into temporary and permanent transfer.

• Reasons for temporary transferi. Due to ill healthii. Due to family problemsiii. Due to other adhoc problems

• Reasons for permanent transferi. Due to chronic ill healthii. Due to family problemsiii. With a view to correct his wrong placement.iv. In order to relieve from the monotony or

boredomv. To avoid conflicts with his superiors.vi. With a view to search for challenging and

creative jobsvii. search for a job with opportunities for

advancement.

• Company initiated transferTransfer due to the initiative of the companyIt is classified into temporary and permanent

transferReasons for temporary transferi. Due to temporary absenteeism of

employees.ii. Due to fluctuations in quality of

production and thereby in workload,iii. Due to short vacations.

Reasons for permanent transfer• Change in quality of production,

lines of activity, technology, organ isational structure etc

• To improve the versatility of employees

• To improve the employees’ job satisfaction

• To minimise bribe or corruption.

• Public initiated transferIt is generally through the

politicians/govt for the following reasons

• If an employees’ behaviour in the society is against the social norms or if he indulges in any social evils.

• If the functioning of an employee is against the public interest.

BENEFITS OF TRANSFERBENEFITS OF TRANSFER• It reduces employees monotony,

boredom etc• Increase employees job satisfaction• improve employees skill,knowledge

etc• Improve employees morale• Correct erroneous placement and

inter-personal conflicts

PROBLEMS OF TRANSFERPROBLEMS OF TRANSFER• Adjustment problems to the employee to the new

job, place, environment,superiors and colleagues• Transfer from one place to another cause much

inconvenience and cost to the employee and his family members relating to housing, education of children

• Transfer from one place to another result in loss of mandays,

• Company initiated transfer result in reduction in employee contribution

• Discriminatory transfers affect employee morale, job satisfaction,commitment and contribution

Transfer PolicyTransfer Policy• Every organisation should have its

own transfer policy. Such a policy should be just and impartial. Frequent transfer may be avoided. Transfer should be made only when a need arises.

Features of a good transfer Features of a good transfer policypolicy

i. Specification of circumstances under which an employee will be transferred in the case of company initiated transfer.

ii. Specification of a superior who is authorized and responsible to initiate a transfer

iii. Jobs from and to which transfer will be made based on the job specification, description and classification etc

iv. The region or unit of the organisation within which transfer will be administered.

v. Reasons which will be considered for personal transfers, their order of priority etc

vi. Reasons for mutual transfer of employeesvii. Specification of basis for transfer like job analysis, merit and length of

service.viii. Specification of pay, allowances, benefits etc that are to be allowed to

the employee in the new job.ix. Other facilities to be extended to the transferee like special leave

during the period of transfer, special allowance for packaging luggage, transportation etc

DEMOTIONSDEMOTIONS• Demotion is the reassignment of a

lower level job to an employee with delegation of responsiblities and authority required to perform that lower level job and normally with normal level pay.Organisations use demotions less frequently as affects the employee's career prospects and morale.

Reasons for demotionsReasons for demotionsi. Unsuitability of the employee to

higher level jobs.ii. Adverse business conditionsiii. Technological changeiv. Bad business conditionv. Incompetence

Demotion principlesDemotion principlesOrganizations should clearly specify the demotion

policy. A systematic demotion policy should contain following items.

i. Specification of circumstances under which an employee will be demoted.

ii. Specification of a superior who is authorized and responsible to initiate a demotion.

iii. The policy should be just and fair.iv. Specification of nature of demotionv. The lines of demotion should be specifically

mentioned.vi. Specification of basis for demotion like length of

service, merit or both.