Internal Mobility and Separation

• Promotion• Transfer • Demotion• Separations

The lateral or vertical movement of employees within the organization is called ‘internal

mobility’ .Some employee separate themselves from

organization for reasons like better prospectus, retirement, termination, etc. This

is called employee separation.

PromotionPromotion is vertical movement of an employee

within the organization. Refers to the upward movement of an employee from one job to

another higher one, with increase with salary, status and responsibilities.

Types of promotion

1. Horizontal Promotion. When and employee is shifted in the same category.

2. Vertical promotion. This is the kind of promotion when an employee is promoted from a lower to higher category. Generally, promotion means ‘vertical promotion’.

3. Dry Promotion. when promotion is made without increase in salary, it is called dry promotion.

Promotion Purpose1. To recognize an employees skill and knowledge and utilize it to improve

the organizational effectiveness.2. To reward and motivate employees to higher productivity 3. To develop competitive spirit and inculcate the zeal in the employees to

acquire skill knowledge etc.4. To promote employees satisfaction and boost their morale.5. To build loyalty among the employees toward organization.6. To promote good human relation7. To increase sense of belongingness.8. To retain skilled and talented people.9. To attract trained, competent and hard working people.10. To impress the other employees that opportunities are available to them

too if they also perform well

Promotion Policy1. It must provide equal opportunity for promotion policy as sound and

good policy.2. It must be applied uniformly to all employees irrespective of their

background.3. It must be fair and impartial.4. The basis of promotion must be clearly specified and made know to the

employees.5. It must be correlated with career planning .6. Appropriate authority must be entrusted with the task of making final

decision.7. Promotion must be made on trail basis.8. The policy must be good blending of promotions made from both inside

and out side.

Promotion can be made in various bases.

• Seniority i.e., length of service• Merit, i.e. performance• Educational and technical qualification• Potential for better performance• Career and succession plan• Vacancies based on organizational chart• Motivational strategies like job enlargement• Training

Transfer

A transfer refers to lateral movement of employee within the same grade, from one job to another.

Flippo, “a transfer is a change in the job accompanied by a change in the place of the job of an employee without a change in responsibilities or remuneration”

Transfer Policy Transfer involves cost as well.

1. Specify the circumstance under which transfer will be made.2. Specify the basis for transfer.3. Decide the authority which would handle transfer.4. Intimate the fact of transfer to the person concerned well in advance.5. Specify the job to which transfer will be made and duties and salary on

assumption of new jobs should also be clarified. 6. Clarify whether transfer is permanent or temporary.7. Indicate whether transfer can be made within a department or between

different department or between unit.8. Not to be made frequent and not for the shake of transfer only.

Need

1. To meet organizational needs.2. To satisfy employee need3. To better utilize employee4. To make the employee more versatile5. To adjust the work force6. To provide relief7. To punish employee

Types of Transfer

1. Production Transfer2. Remedial Transfer3. Replacement Transfer4. Versatility Transfer5. Shift Transfers6. Penalty Transfer

Demotion

Demotion is just the opposite of promotion. It is downward movement of an employee in the

organizational hierarchy with lower rank/status and pay.

According to D.S. Beach,“demotion is the assignment of an individual to

a job of lower rank and pay usually involving lower level of difficulty and responsibility”

Causes

1. Incompetence: when a promotee is found unable to meet the challenges posed by the new higher job, he may be demoted to jobs suitable to hi, to correct errors in promotion.

2. Adverse Business Conditions: at times, circumstance and condition like recession and other crisis may necessitate a business to combine departments and eliminate jobs.

3. Disciplinary Measures. Used as a disciplinary measure against erring employee. Its is a penalty imposed on employee for violation of company rules of conduct.

Demotion Policy 1. A clear and reasonable list of rules should br framed, violation of which

would subject and employee to demotion.2. This information should be clearly communicated to employees.3. There should be a competent investigation of any allege violation.4. Once violations are proved, there should be a consistent and equitable

application of the penalty, preferable by the immediate supervisor.5. There should be provision for review.

Separations

Separation is a situation when the service agreement of an employee with his/her

organization comes to an end and employee leave the organization.

• Retirement : – it’s a major cause of cause of separation of

employees from the organization. It can be define as the termination of service of an employee on reaching the age of superannuation.

1. Compulsory Retirement: This is the retirement when employee retire compulsorily from service on attaining the age of superannuation.

2. Voluntary Retirement: when organization give option to its employees to retire even before superannuation its called voluntary retirement. VRS (Voluntary Retirement Scheme) or Golden Hand Shake

• Resignation– Resignation is termination of service by an

employee by serving a notice called resignation on employer.

• Layoff – Layoff implies denial of employment to the

employees for reason beyond the control of employer.

• Retrenchment– Means permanent termination of an employee’s

services for economic reason. Retrenchment occurs on account of surplus staff, poor demand for products, general economic slow down etc.

• Dismissal– Is termination of services of an employee as a

punitive. This may occur either on account of unsatisfactory performance or misconduct.