Internal mobility & separations

INTERNAL MOBILITY &

SEPARATIONS

U.KALPANADEVI II- MBA

MICHAEL INSTITUTE OF

MANAGEMENT

Employees move with in an organisation, laterally or

vertically for a variety of reasons.

To ensure the effectiveness of the employees in

the organisation.

To satisfy both employee & organisational needs.

To provide for career & succession planning.

To effect changes in jobs & organisational

structure.

To ensure discipline and make organisational

rewards contingent on employee performance.

OPromotion

ODemotion Vertical

movement

OTransfer of employees

OSeparation (better prospects,

retirement, termination etc…,)

PROMOTION

• Upward movement of employees from one job to another

higher one

• With increase in salary, status, responsibilities

• May be temporary or permanent

• In-build motivational value

• Removes feelings of stagnation and frustation

• Good promotional policy to fill the vacancies in a higher

job.

PURPOSES/OBJECTIVES

To recognize an employees skill and knowledge

To reward and motivate employees to higher productivity

To promote employees satisfaction

To build loyalty among the employees

To promote good Human relations.

To retain skilled and talented people

To attract trained, competent and hard working people.

TYPES OF PROMOTION

• Horizontal Promotion

• Vertical Promotion

• Dry Promotion

Promotion can be made on various bases:

Seniority

Merit

Educational and Technical qualification

Potential for better performance

Career and succession plan

Vacancies based on organisational charts

Training

Motivational strategies like Job enlargement

• Lateral movement of employees within the

same grade.

“ a transfer is a change in the job of an

employees without a change in

responsibilities or remuneration”

- Edwin Flippo

• To meet organisational needs

• To satisfy employee needs

• To better utilize employee

• To make the employee more Versatile

• To adjust the workforce

• To provide relief

• To punish employee

• Production Transfer

• Remedial Transfer

• Replacement Transfer

• Versatility Transfer

• Shift Transfer

• Penalty Transfer

• Specify the circumstances under which

transfers will be made.

• Specify the basis for transfer.

• Intimate the fact of transfer to the person

concered well in advance.

• Clarify whether transfer is permanent or

temporary.

• Not to be made frequently.

Advantages:

• Improve employee skills• Reduce monotony and boredom• Remedy faulty placement decisions• Prepare the employee for challenging

assignments in future• Stabilize changing work requirements in

different departments• Improve employee satisfaction and morale• Improve employer-employee relations

Disadvantages:

• Inconvenient to employees whootherwise don’t want to move

• Employees may or may not fit in thenew location/department

• Shifting of experienced hands mayaffect productivity

• Discriminatory transfers may affectemployee morale

• It is just opposite of promotion.

• It is the downward movement of an

employee in the organisational hierarchy

with lower rank/status and pay.

“the assignment of an individual to a

job of lower rank and pay usually involving

lower level of difficulty and responsibility”

- D.S.Beach.

Causes

• Incompetence- inability to meet the challenges posed by the new higher job

• Adverse Business Conditions-Circumstances and conditions like recession and other crisis

• Disciplinary measures- Disciplinary action against erring employees

Effects of Demotion

Status, Pride, Career and income of the

employee

Causes feel of insecurity in employees mind

Can create positive impact on employee’s morale

and career planning

It can generate disciplinary care in other

employees

Meaning

• It is situation when the service agreement of employees with his organization comes to an end and employee leaves the organization.

• It is a decision that the individual and organization part from each other.

Forms of Separation

Retirement-

- Compulsory

- Voluntary (golden handshake)

Resignation

Layoffs

Retrenchments

Dismissal

Employee Separation

Copyright © 2002 South-Western. All rights reserved.00–19

Reasons for employee separations:

Pressures on firms to remain competitive and efficient

Decline in employee commitment to individual

employers

The importance of managing separations:

Transitions of employees out of the firm go smoothly.

Continuing operations of the firm are not disrupted.

Important professional relationships are not damaged.

Types of separations

Reductions-in-force, turnover, and retirements

Reductions-in-Force (RIFs)


Causes of reductions:

Restructuring as a result of mergers and acquisitions

Attempts to make the organization more cost competitive

Adjustments to declining business environment conditions

Reasons for reductions:

Inefficiency in operations

Lack of adaptability in the marketplace

A weakened competitive position in the industry

Methods for dealing with reductions:

Continuance pay and outplacement programs

Reductions-in-Force (RIFs)


Worker Adjustment Retraining and Notification Act

(WARN) of 1989:

Requires employers with more than 100 employees

to provide affected employees with a minimum of

sixty days written notice of any facility closings or

large-scale layoffs of 50 or more employees.

WARN does no apply to governmental agencies.

Exceptions to WARN:

“unforeseeable circumstance”

natural disaster

“temporary facility”

Workforce Management Strategies


EXHIBIT 13-1: STRATEGIES FOR MANAGING EMPLOYEE SURPLUSES AND AVOIDING LAYOFFS

Turnover


Involuntary turnover

Employees who are asked to leave the organization

for cause (e.g., poor performance) or due to

circumstances that cause a reduction-in-force.

Voluntary turnover

Employees who leave an organization on their own

initiative.

“Beneficial” turnover

When low performing employees depart and/or

when new higher performing employees are

promoted or hired as replacements.

Retirement


Age Discrimination Act of 1967 Prohibits an employer from setting a mandatory

retirement age except in certain occupations such as airline pilots.

Retirement Creates advancement opportunities for younger

employees and reduces payroll costs.

Can cause a loss of vital accumulated historical knowledge of the organization, its industry and the marketplace.

Employers can offer part-time and consulting work to older workers to ease the transition to retirement.

Recruiting & HR

Internal mobility & separations