transfer promotion and reward policy

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Transfer Promotion AND reward policy HR

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Page 1: Transfer Promotion AND reward policy
Page 2: Transfer Promotion AND reward policy

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.

Page 3: Transfer Promotion AND reward policy

Reasons for TransferTo meet organizational requirementsTo satisfy employee’s needTo resolve interpersonal conflictsTo improve employee backgroundDisciplinary decisionsTo minimize fraud/bribe.

Page 4: Transfer Promotion AND reward policy

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.

Page 5: Transfer Promotion AND reward policy

Problems of transferAdjustment problem to the employee.Reduction in employee contribution Affects employees’ morale, job satisfaction,

commitment and contribution.Loss of man-days.

Page 6: Transfer Promotion AND reward policy

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

Page 7: Transfer Promotion AND reward policy

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

Page 8: Transfer Promotion AND reward policy

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

Page 9: Transfer Promotion AND reward policy

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.

Page 10: Transfer Promotion AND reward policy

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.

Page 11: Transfer Promotion AND reward policy

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.

Page 12: Transfer Promotion AND reward policy

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

Page 13: Transfer Promotion AND reward policy

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

Page 14: Transfer Promotion AND reward policy

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.

Page 15: Transfer Promotion AND reward policy

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.

Page 16: Transfer Promotion AND reward policy

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

Page 17: Transfer Promotion AND reward policy

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.

Page 18: Transfer Promotion AND reward policy

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.

Page 19: Transfer Promotion AND reward policy

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.

Page 20: Transfer Promotion AND reward policy

Reward Policy

Types of rewards.Non-monetary IncentivesMonetary Incentives

Group Incentive plansIndividual Incentive PlansFactory / Plant wide Incentive Plans

Page 21: Transfer Promotion AND reward policy

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.

Page 22: Transfer Promotion AND reward policy

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

Page 23: Transfer Promotion AND reward policy

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.

Page 24: Transfer Promotion AND reward policy

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.

Page 25: Transfer Promotion AND reward policy

Thank You