Transfer and Promotion

Internal Mobility is necessary to match the employee’s skill and requirements with the requirements of the job and those of the organization continuously.

Need for Internal Mobility :

–          Changes in job structure, job design, job grouping changes in technology, mechanization etc, resulting in encasement of job demand.

–          Expansion and diversification of production or operations

–          Adding different lines of auxiliary supportive activities

–          Taking up of geographical expansion and diversification

–           Introduction of creative and innovative ideas in all the areas of management resulting in increased job demands

–          Changes in employee skill, knowledge, abilities, aptitude, values etc.

–          Changing demands of trade unions regarding protecting the interests of their members.

–          Chancing government role in  human resource development

–          National economic and business trends and their impact on job design and demands.

–          Problem of maintenance of interpersonal relations and sound human relations

–          Social and religious conditions of the employees or the region.

Purposes of Internal Mobility

  1. To improve the effectiveness of the organization
  2. To maximize the employee efficiency
  3. To ensure discipline and
  4. To adopt organizational changes



According to Pigours and Myers, ‘Promotion is advancement of an employee to a better job – better in terms of greater responsibility, more prestige or status, greater skill and especially increased rate of pay or salary”.

Arun Monappa and Mirza S Saiyadain defined promotion as “the upward reassignment of an individual in an organization’s hierarchy, accompanied by increased responsibilities, enhanced status and usually with increased income though not always so”.

Conditions of promotions are:

  • Reassignment of higher level job to an employee than what he is presently performing
  • The employee will naturally be delegated with greater responsibility and authority than what he has had earlier. Promotion normally accompanied higher pay. It means in some cases, the employee perform higher level job and receive the salary related to the lower level job.
  • Promotion may be temporary or permanent depending upon the organizational needs and employee performance.

Types of Promotion:

  1. Vertical Promotion
  2. Up gradation
  3. Dry Promotion

Purposes of  Promotion:

  • To utilize the employee’s skill knowledge at the appropriate level in the organizational hierarchy
  • To develop competitive spirit and inculcate the zeal in the employees to acquire the skill, knowledge etc. required by higher level jobs.
  • To develop competent internal source of employees ready to take up jobs at higher levels in the changing environment.
  • To promote employees’ self development and make them await their turn of promotions. It reduces labour turnover.
  • To promote a feeling of contentment with the existing conditions of the company and a sense of belongingness.
  • To promote interest in training, development programmes and in team development areas.
  • To build loyalty and to boost morale.
  • To reward committed and loyal employees
  • To get rid of the problems created by the leaders of workers’ unions by promoting them to the officers’ levels where they are less effective in creating problems.
  • Promotion places the employees in a position where an employee’s skills and knowledge can be better utilized.
  • It creates and increases the interest of other employees in the company as they believe that they will also get their turn.
  • It creates among employees a feeling of content with the existing conditions of work and employment.
  • It increases interest in acquiring h9gher qualifications, in training and in self development with a view to meet the requirements of promotion.
  • It improves morale and job satisfaction
  • Ultimately it improves organizational health.

Benefits of Promotion

Promotion Principles:

  1. it should be consistent in the sense that policy should be applied uniformly to all employees irrespective of the background of the persons,
  2.  it should be fair and impartial.
  3. systematic line of promotion channel should be incorporated,
  4. it should provide equal opportunities for promotion in all categories of jobs, departments and regions of an organization,
  5. it should ensure open policy in the sense that every eligible employee should be considered for promotion rather than a closed system,
  6. it should contain clear cut norms and criteria for judging merit, length of service, potentiality etc.
  7. appropriate authority should be entrusted with the task of making a final decision, it should contain promotional counseling, encouragement, guidance and follow-up regarding promotional opportunities, job requirements and acquiring the required skills, knowledge etc.


Bases of Promotion:

  1.  Merit as a basis of Promotion:  skill, knowledge, ability, efficiency as aptitude as measured from educational, training and past employment record.


i.            The resourced of higher order of an employee can be better utilized at higher level It results in maximum utilization of human resources in an organization.

ii.            Competent employees are motivated to exert all their resources and contribute them to the organizational efficiency and effectiveness.

iii.             It works as golden hand-cuffs regarding employee turnover.

iv.            It continuously encourages the employees to acquire


  1. Measurement or judging of merit is highly difficult.
  2. Many people, particularly trade union leaders, distrust the management’s integrity in judging merit.
  3. The techniques of merit measurement are subjective.
  4. Merit denotes mostly the past achievements, efficiency but not the future success. Hence, the purpose of promotion may not be served if merit is taken as the sole criteria for promotion.
  1. Seniority as a Basis of Promotion: refers to relative length of service in the same job and in the same organization. The logic behind this as a basis of promotion is that there is a positive correlation between the length of service in the same job and the amount of knowledge and the level of skill acquired by an employee is an organization.
    1. It is relatively easy to measure the length of service and judge the seniority.
    2. There would be full support of the trade unions to this system.
    3. Every party trusts the management’s action as there is no scope for favouritism and discrimination and judgement.
    4. It gives a sense of certainty of getting promotion to every employee and of their turn of promotion.
    5. Senior employees will have a sense of satisfaction to this system as the older employees are respected and their inefficiency cannot be pointed out.
    6. It minimizes the scope for grievances and conflicts regarding promotion



  1. The assumption that the employees learn more relatively with length of service is not valid.
  2. It demotivates the young and more competent employees and results in employee turnover particularly among the dynamic force.
  3. It kills the zeal and interest to develop as everybody will be promoted with or without improvement.
  4. Organizational effectiveness may be diminished through the declaration of the human resources effectiveness as the human resources consists of mostly undynamic and old blood.
  5. Judging seniority though it seems to be easy in the theoretical sense, it is highly difficult in practice.

Seniority-cum-Merit Promotion:

Ways in striking balance between seniority and merit

  1. Minimum length of service and merit
  2. Measurement of seniority and merit through a common factor
  3. Minimum merit and seniority

Problems with promotion:

Glass Ceiling- Glass ceiling is an invisible barrier to promotion based in race, community, tribe, nationality, gender etc.

Promotion disappoints come employees

Some employees refuse promotion


“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”

Transfer is defined as “… the moving of an employee from one job to another. It may involve a promotion, demotion or no change in job status other than moving from one job to another”.



Types of Transfer
1.To meet the organizational requirementsProduction Transfer
2To satisfy employees’ needsPersonal Transfer
3To utilize employee’s skill knowledge etc
4To improve employee’s background by placing him in different jobs of various departments, units etc.Remedial Transfer
5To correct inter-personal conflicts
6To adjust the workforce of one section/plant in other section/plant during lay-off, closure or adverse business conditions etc.
7To give relief to the employees who are overburdened or doing complicated or risky work for a long periodReplacement Transfer
8To punish the employees who violate the disciplinary rulesPenal Transfer
9To help the employees whose working hours or place of work is inconvenient to themShift Transfer
10.To minimize fraud, bribe etc which result due to permanent stay and conduct of an employee with customers, dealers, suppliers etc.
11To increase the versatility of employeesVersatile Transfer (Rotation transfer)
  1. Employee initiated Transfer (1) Temporary Transfer (2) Permanent Transfer
  2. Company initiated Transfer (1) Temporary transfer  (2) Permanent Transfer
  3. Public Initiated Transfer



  1. Unsuitability of the employee to higher level jobs
  2. Adverse business conditions
  3. New technology and new methods of operation
  4. On disciplinary actions

Demotion Principles:

  1. Specification of circumstances under which an employee will be demoted like reductions in operation, indisciplinary cases.
  2. Specification of supervisor who is authorized and responsible to initiate a demotion.
  3. Jobs from and to which demotions will be made and specifications of lines or ladders of demotion.
  4. Specification of basis for demotion like length of service, merit or both.
  5. It should provide for an open policy rather than a closed policy
  6. It should contain clear cut norms for judging merit and length of service
  7. Specification of provisions regarding placing the demoted employees in their original places if normal conditions are restored.
  8. Specification of nature of demotion, i.e., whether it is permanent or temporary of it is as disciplinary action. It should also specify the guidelines for determining the seniority of such demoted employees.




Labour bureau, defined the term ‘absenteeism’ as “the failure of a worker to report for work when he is scheduled to work”.

Labour Bureau defined “ absenteeism is the total man-shifts lost because of absence as a percentage of the total number  of  man-shifts scheduled to work”


  1. Authorised Absenteeism
  2. Unauthorised Absenteeism
  3. Willful Absenteeism
  4. Absenteeism caused by circumstances beyond one’s control


  • Maladjustment with the working conditions
  • Social and religious ceremonies
  • Unsatisfactory housing conditions at the work place
  • Industrial fatigue
  • Unhealthy working conditions
  • ‘poor welfare facilities
  • Alcoholism
  • Indebtedness
  • Maladjustment with job demands
  • Unsound personal policies
  • Inadequate leave facilities
  • Low level of wages.

Measures to Control :

  1. Right selection
  2. Humanistic approach in dealing personal problems
  3. Proactive approach in identifying and redressing employee grievances
  4. Providing hygienic working conditions
  5. Providing welfare measures and fringe benefits
  6. Providing high wages and allowances
  7. Providing leave facility based on needs
  8. Providing safety and health measures
  9. Providing cordial relations and industrial relations
  10. Educating the workers
  11. Counseling the workers about their career, income and expenditure, habits and culture
  12. Free- flow of information, exchanging of ideas, problems etc.
  13. Granting leave and financial assistance liberally in case of sickness
  14. Offering attendance bonus and inducements
  15. Providing extensive training, encouragement, special allowances in cash for technological advancement.

External mobility means shifting of employees into and out of an organization

Rate of change in the employees of an organization during a definite period.

Types of labour turnover:

  1. Accessions
  2. Separations
  • Voluntary quitting
  • Layoff or lack of work
  • Disciplinary lay-off
  • Retirement and death