Promotion

It is advancement of an employee to a better job. i.e

• Better in terms of responsibility

• More prestige or status greater skill

• Greater skill

• Increased rate of pay or salary.

It is a upward reassignment of a higher level job to an internal employee.

It is a vertical flow from

bottom to top in a organisation

chart, where the

• status,

• responsibility

• salary

increases.

But other than this promotion also includes or types of promotion

• Upgradation :- where only salary

increases.

• Dry promotion :- where an employee is promoted to higher position without any increment in salary.

Promotion policy

Policy is a guideline for any subject matter which is laid in advance to have a clear insight of the same.

So, Clear cut policy is essential for healthy relations. The management and employees should be clear about the criterian to be followed for promoting employees.

Elements of promotion policy

1. Policy statement :

From within the organisation

Will there be any preference if

competent persons are available in

the organisation.

2. Assessing performance: Basis should be indicated eg. Merit basis/ Seniority basis How the performance to be assessed eg. Confidential report. Employees should know in advance the criteria to be followed for assessing their performance.

SENIORITY BASIS:

It means promotion according to the length of the service.

• Objective• Simple and exact• Morale increses• Acceptable to union• Reduces labour turnover• Reward for loyality.

MERIT BASIS

Employees are evaluated in terms of quality or quantity of work.this basis ensures that only best employees are promoted.

• Measured through traits

Eg. Leadership,responsible etc.

• Certain test.

• Personal interview.

3. Promotion routes:

Routes which are to be Accts officer followed should

be clearly mentioned. Accoutant

Every employee should

be clearly mentioned Clerk

about the same.

4. Employee training

Provision for training

What kind of training programme should be applied.

5. Maintaining service records

Any promotion program can be successful if records of employees are properly maintained.

Such records are used for fair judgement at the time of considering him for promotion.

6. Communication

• Policy should be communicated to employees

• Policy for top position can be precise whereas for lower position it should be laid down in as much detail as possible and should also be clear to everybody.

Promotion plans / programs

Every organisation should have a formal and systematic promotion program. For this:-

Establishment of ladder of promotionCommunicated to employeesDead-end jobs must be clearly specified in

such ladders. ( clearly specified abt exp. )

Contd..

Promotion chart is to be prepared

Whenever a vacancy arises, employees must be informed of that vacancy so that interested persons can apply for that post within time allowed.

Promotion ladder

Chairman

GM

ASST GM

SR AREA MNGR

AREA MNGR

SR DIV MNGR

DIV MNGR

BRANCH MNGR

ASST.

Promotion chart

Chairman

MGRPROD

MGR FINMGR

HR

BRANCH MGR BRANCH MGR BRANCH MGR BRANCH MGRBRANCH MGR

Problems of promotion

Though promotion benefits the employees and the organisation, it creates certain problems like:-

Promotion disappoints some employees.

Some employees even refuse promotion

other problems

Disappointment of other employees

The employees those who are not promoted may feel disappointed.

Employees may develop negative attitude

Reduce their contributions to the organisation

Some employees may refuse promotion when:-

He is transferred with promotion to any unwanted place

He feels that he will be quite incompetent to carry out the job

Delegation of unwanted responsibilities.Trade union leaders feel that promotion

may damage their position.

Other problems:

Can spoil Industrial RelationsCould create Industrial disputesCould create a negative working

environment.