transfer promotion and reward policy
DESCRIPTION
Transfer Promotion AND reward policy HRTRANSCRIPT
TransferTransfer is defined as “a lateral shift causing
movement of individuals from one position to another usually without involving any marked change in duties, responsibility, skills needed or compensation”
Transfer is change in assignment in which the employee moves from one job to another in the same level of hierarchy requiring similar skill involving approximately same level of responsibility, same status and same level of pay.
Reasons for TransferTo meet organizational requirementsTo satisfy employee’s needTo resolve interpersonal conflictsTo improve employee backgroundDisciplinary decisionsTo minimize fraud/bribe.
Benefit of transferTransfers benefit both the employees and the
organization. Transfer reduce employee’s monotony, boredom
etc. Increase employees job satisfaction.Improves employee’s skills, knowledge etc. Correct erroneous placement and interpersonal
conflicts. Enhance human resource contribution to
organizational effectiveness.
Problems of transferAdjustment problem to the employee.Reduction in employee contribution Affects employees’ morale, job satisfaction,
commitment and contribution.Loss of man-days.
SeparationSeparation is a decision that the individual and
the organization should part.
The separation between employer and employee can be due to any of the following two:Resignation - Employee decides to leave the
organization.Termination - Employer decides to break the
contract of employment.Retrenchment/Layoff
ResignationEmployee leaves his job and employment with his
employer to pursue better opportunities; a better position at a better compensation package
An employee resigns for:Better compensation and benefitsHigher position / levelChallenging roleFor foreign or international assignmentsTo move from an unknown or lowly branded
company to a highly branded and reputed company
TerminationIn termination, an employer uses his right to
terminate the contract of an employment. There can be many reasons for an employer to terminate the contract of employment but some of the common reasons are:IndisciplineMisconductInsubordinationTheft and etc
Retrenchment/LayoffRetrenchment is something akin to
downsizing.Lay off is a temporary suspension of the
contract of employment.Layoffs are made for lack of work.Layoffs are not to be used as a means of
removing employees from the payroll for other reasons, such as unsatisfactory work or misconduct, which are reasons for release or discharge.
PromotionPromotion is advancement of an employee to a
better job- better in terms of greater responsibility, more prestige or status, greater skills and especially increased rate of pay or salary.”
The main conditions of promotion 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 accompanies higher pay.
Purpose of PromotionTo utilize the employee’s skills, knowledge at the
appropriate level in the organizational hierarchy resulting in organizational effectiveness and employee satisfaction.
To develop competent spirit and inculcate the zeal in the employees to acquire the skills, knowledge etc. required by higher level jobs.
To develop competent internal source of employees ready to take up jobs at higher level in the changing environment.
To promote a feeling of content with the existing conditions of the company and a sense of belongingness.
To build loyalty and to boost morale.To reward committed and loyal employees.
Basis to Promotion: SenioritySeniority refers to relative length of service in
the same job and in the same organization.The logic behind considering the seniority 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 in an organization.
Easy to measure and judge the seniorityNo scope for favoritism, discrimination thus
reduces conflicts
Basis to Promotion: MeritMerit is taken to denote an individual employee’s
skills, knowledge, ability, efficiency and aptitude as measured from educational, training and past employment record.
Better utilization of resourcesMotivation to competent employeesEncourages employees to acquire new
skills/knowledge
Types of PromotionHorizontal Promotion:-This type of promotion
involves an increase in responsibilities, and a change in designation. But the employee concerned does not transgress the job classification.
Vertical Promotion:- This type of promotion results in greater responsibility, prestige and pay, together with a change in the nature of the job.
Dry Promotions:- The person is promoted to just next level in heirarchy.Designations are different but no change in responsibilities.
Benefit of promotionPromotion places the employees in a position where an
employee’s skills and knowledge can be better utilized.It creates and increases the interest of the 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 higher qualifications, in training and in self development with a view to meet the requirement of promotion
Promotion improves employee morale and job satisfaction.
Ultimately it improves organizational health.
DemotionDemotion is the reassignment of a lower
level job to an employee with delegation of responsibility and authority required to perform that lower level job and normally with lower level pay. Organizations use demotion less frequently as it affects employee career prospects and morale
Need for demotions• Unsuitability of the employee to higher level jobs:• Adverse business conditions: • New technology and new methods of operation
demand new and higher level skills. • Employees are demoted on disciplinary grounds.
This is one of the extreme steps and as such organizations rarely use this measure.
Reward Policy A reward policy is a carefully drafted document
by an organization which states procedures, policies, rules and standards associated with allocation of benefits and compensation to employees.
Reward Policy Advantage
Employee motivation Better employee retention Better work performance Creates a zeal in employees for
recognition Disadvantages
Workers may sacrifice quality for quantity. Workers tend to overwork and undermine
their health.
Reward Policy
Types of rewards.Non-monetary IncentivesMonetary Incentives
Group Incentive plansIndividual Incentive PlansFactory / Plant wide Incentive Plans
Non-monetary IncentivesNecessary to satisfy the social and egoistic
needs of workersEach person has its individual psychological
framework and responds to different appeals in different manner.
Some commonly used Non-monetary Incentives are:-Praise and creditSecurity of tenureParticipationImportant and interesting task.
Skill-based rewards.Incentives given to people for acquiring and
developing job-relevant skills.Advantages.
Employee cross-training.Fewer supervisors needed.
Profit-sharing rewards.Reward employees based on entire
organization’s performance.Often fund employee retirement plans.
Monetary Incentives
Lump-sum pay increases. Individuals get to receive a pay increase in one or more
allowances that increases their base salary. Lump-sum payments — which differ from lump-sum
increases — are one-time bonus payments that do not increase the base salary.
Gain-sharing plans. Workers share the enhanced earnings resulting from
productivity gains. Advantages.
Increased worker motivation. Greater sense of personal responsibility. Encourages participation and teamwork.
Fringe incentives:These incentives are indirect incentives such
as providing accomodation ,car or servants.
Usually given to keep a good employee foccussed and loyal to the company.
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