DU SOL B.Com 3rd Year Human Resource Management Notes Chapter 12 Job Changes (Transfers, Promotions and Separations)
How can job change be introduced successfully ? What are the advantages of having a job change plan ?
Introduction Of A Job Change:
A worker’s job may change following his promotion, demotion, transfer or separation. The effect of a job should never be underestimated. Every job change affects the entire organisation. The whole organisation tends to be affected by change in any part of it. One promotion in a plant leads to a chain of 10 other promotions, some of them requiring moves to another city. Similarly, hundreds of employees may be affected by one lay-off. As a result of job change, employees are required to make new adjustments. Employees generally resist those changes which result in their dislocation by requiring new habit patterns or sacrifice on their part. But this tendency is offset by their desire for new experience and for the rewards that come with change.
It is the responsibility of management to handle change in such a way that the employee’s resistance is reduced to the least. Following three methods may be adopted by management to cause people to accept the changes:
- Alteration in the environmental forces affecting the employees – This includes better leadership, a change in the formal organisation and new pressures from the informal organisation.
- Alteration in the person’s perception of the forces affecting the employees – This is primarily achieved through improved communication.
- Alteration in the basic value system of the persons involved in the change – This includes laboratory training and psychological counselling methods.
Job Change Plans :
Job change plans are either informal or formal. Under the informal plan, which is more common on account of its simplicity, decision as to who should be transferred, promoted or separated, usually vary from person to * person and from time to time. Informal change plan is subject to whims and prejudices and no one knows what his status is likely to be in future. This produces a highly demoralising influence on all workers. A formal job change plan is, therefore, a must in all big organisations. A job change plan is a written document which includes the following elements :
- Extensive use of job descriptions for each job change
- Drawing of charts and diagrams for depicting the interconnections between jobs, terminal point and avenues of upward and lateral mobility.
- Framing of elaborate rules to govern each type of change.
- Dissemination of knowledge about rules to all members of the organisation.
- Application of these rules.
Following are the advantages of job-change plan:
- The employees can better plan their careers, set targets and develop aspirations. ‘
- The company can better work out its training and executive development programmes.
What are the purposes of job changes ?
Purposes Of Job Changes:
From the company’s point of view, job changes have following four useful-purposes: ‘
1. Job changes help in improving the organisation structure – Decisions to abolish superfluous positions on the organisation chart, to change job descriptions and to make clear-cut authority delegations generally require for their execution and number of job changes and position reassignments.
2. To maximise employee effectiveness – Through job changes, employees are assigned to positions where their capabilities may be used to the maximum.
3. Job changes help management in adjusting to changes in operations – Job changes are used in adjusting company operations to changing economic conditions. In periods of recession, when total manpower requirements of a company fall, lay offs help management to reduce its direct labour costs by adjusting the work force to the operating level. Transfers are also made in the process of economic adjustment to make best utilisation of the number of the workers left after lay offs.
4. Job changes function as tools of disciplinary action – Demotions and lay offs are sometimes Used to punish a worker for they cause him a loss of status and earnings.
What is meant by Transfer ? Distinguish between transfer and promotion.
Transfer is the movement of an employee from one job to another without involving any substantial change in his duties, responsibilities, required skill, status and compensation. A transfer implies a lateral movement of an employee in the hierarchy of positions with the same pay and status. According to Yoder, “Transfer is a lateral shift causing movement of individuals from one position to another usually without involving any marked change in duties, responsibilities, skill needed or compensation.
” Edwin B. Flippo defines ‘ ‘the transfer as a change in job where the new job is substantially the equal to the old in terms of pay, status and responsibilities. ” Thus, transfer is the horizontal dynamism of employees from one place of work to another. It generally does not involve a promotion, demotion or a change in job status other than movement from one job or place to another.
Transfer may be initiated either by the organisation or by the employee himself with the approval of the organisation. It places the employee in a position more suitable to his interest or abilities.
Distinction Between Transfer AND Promotion:
Promotion takes place when an employee moves to a position higher than the one formerely occupied. Transfer is the movement of an employee from one job to another without involving any change in his status, duties and responsibilities and compensation. The distinction between promotion and transfer can be drawn on the following grounds :
(a) Nature – In case of promotion, new position carries higher pay, status and job conditions as compared with the old while in case of transfer, pay, status, responsibilities and job conditions are almost the same there is a no change in occupational level and pay scale.
(b) Objects – Promotion aims at recruiting the right man on the job from the lower rank within the organisation while transfer aims at maintaining an equilibrium between demand and supply of the employees by shifting the employees from one job to another or from one department to another.
(c) Policy – Promotion as a part of personnel programmes, helps the employees to increase their efficiency and a reward for merit, good performance and behaves and so on but transfer is used as a technique in training programmes.
(d) Managerial Decision. Promotion involves thoughtful managerial decision where management is to decide whether a particular position should be filled by promotion or external selection. Transfer on the other hand is a routine administrative matter.
(e) Criteria. Criteria for promotion may be merit in job, potential for assuming higher responsibilities, length of service or combination of all. Whereas criteria for transfer are correction in placement, a punishment for poor performance etc.
(f) Movement. Once promoted, a person is generally not reverted to his earlier post whereas transfer are reversible.
Describe the various kinds of transfer.
Kinds Of Transfer :
Transfers may be classified as under :
(A) On the Basis of Purpose
(i) Production Transfer – These are transfers from one department of an organisation (in which labour requirements are declining) to another department or departments (in which they are increasing). Such transfers are done to avoid lay off of efficient and trained employees by providing them with alternative positions in the same organisation.
(ii) Replacement Transfers – These are transfers of long service employees to similar jobs in other departments where they replace employees with shorter service. The object of these transfers is also to retain the efficient and trained employees as long as possible; but in this process some short service employees may be thrown out of employment.
(iii) Versatility Transfers – These are transfers of workers from one job to another to make them versatile. Besides resulting in greater satisfaction to the workers through job enrichment and enlargement. Such transfers also help management in creating a work force all rounders who can conveniently shifted to other jobs in time of necessity.
(iv) Curative or Remedial Transfers – These are transfers made to rectify some situation primarily concerned with employee on the job. For example, his initial placement may have been faulty or he may not get along with his superior or with other workers in the department or he may be getting too old to continue in his present job or the type of job or working conditions may not be well adapted to his present health or accident record etc.
(v) Shift Transfers – These are transfers of workers from one shift to v another on the same type of work; if the unit runs in shifts.
(vi) Precautionary Transfers – Such transfers are made as a precautionary measure to avoid the misuse of office or misappropriation of funds by the employees.
(vii) Personnel Transfers – These transfers are made primarily to
meet the personnel requests or needs of the employees. If a worker is not satisfied with his present assignment or he wants a change in job or place on some other personal grounds, he may be allowed to move from one job to another.
(B) On the Basis of Unit
(i) Sectional Transfers – These transfers are made within the department from one section to another. The main purpose of such transfers may be to train the workers and prepare them to handle the operations of the different sections of the department.
(ii) Departmental Transfers – These are the transfers from one department to another department within the plant. They are decided by mutual consultations among the departmental heads.
(iii) Inter-plant Transfers – If there are more than one plants under the control of same management transfers may be made- from one plant to , another on varied reasons. Such transfers are called inter-plant transfers.
Bring out clearly the salient features of a sound Transfer policy.
Features Of A Sound Transfer policy:
Transfers are not unmixed blessing from the management’s point of view due to employees’ objections and resistance to Transfers. Grievances and disputes arise and the transferee has to be induced afresh into new workteam. It is important therefore, that the company should formulate a policy to govern the administration of all types of employee transfers. Rather than deciding each case on its merit, management should have a policy to establish some uniformity of treatment. In formulating the transfer policy following principles should be followed:
- It should be in writing and be made known to all the employees of the organisation.
- The policy should clearly state the types of transfers and the circumstances under which transfers will be made.
- The policy should also mention the basis for or grounds of transfers.
- The policy should indicate the authority in some officer who will be responsible for initiating and implementing transfers.
- The policy should specify the units or areas over which transfer would take place i.e., whether transfers can be made only within a sub-unit or also between departments, divisions and plants.
- The policy should also specify the rate of pay to be given to the transferee.
- The policy should ensure that fact of transfer would be intimated to the person concerned well in advance.
- It should be mentioned whether an employee will retain the seniority at his credit permanently or for a temporary period or lose it altogether.
- It should be prescribed in the policy whether the training or retraining is required on the new job.
- The policy should ensure that transfers should not be made frequently and not for the sake of transfer only.
Explain the need and objectives of transfers.
Need And Objectives Of Transfer:
Transfers of employees in the organisations are generally made due to several reasons and to achieve the following objectives –
1. To meet Organisation Needs – An organisation may transfer its employees from one job position to another due to change in volume of production, in technology, in production schedule, in production line, in organisation structure etc. Experienced persons are transferred to new position or department when company expands its activities. All these changes require shift in job assignment.
2. To Satisfy Employee Needs – Sometimes transfers are affected on the request of employees. Employees may be interested in their transfer because of dislike of boss or fellow workers or due to lack of opportunities in a particular department for future development. Personal problems of the employee like ill-healthy family circumstances etc. may require transfer. For . example, transfer may be requested by an employee because he likes to be shifted to or near his native place. Sometimes, transfers are asked to avoid interpersonal conflicts.
3. To make Employee More Versatile. Employees are sometimes transferred from one job to another in the same or other department to widen their knowledge and skills. It serves as a method of training and reduce monotony.
4. As a matter of policy. In some companies, transfers are made as a matter of policy after an employee has served a particular position for a specified period.
5. To better utilise Employees. An employee is transferred to another job if management feels that his capabilities would be better utilised elsewhere. An employee might have been misplaced in the beginning may be transferred to some other place to correct the placement. An employee who is not perfoming well on a particular job may be more suitable in another job.
6. To adjust the work force. If there is changes in the volume of work in different sections or departments or plants, employees from over staffed section or plant may be transferred to understaffed department or plant.
7. To provide Relief. Transfer may take place to give relief to the employees who are over burdened or who are doing risky work for a long time.
8. To punish Employees. Sometimes employees are transferred to another job to punish them. Ifmanagement feels that an employee is indulging in undesirable or unsocial activities, he is transferred to some other job. It is the form of a disciplinary action. Thispractice is very common in government offices. In some companies transfers are made because long stay of an employee on one job may cause fraud, bribery, politicking etc. Problem employees are sometimes transferred to some other jobs.
Define promotion and describe its advantages.
“Promotion” is a term which covers a change and calls for greater responsibilities and usually involves higher pay and better terms and conditions of service and, therefore, a higher status or rank. A promotion takes place when an employee moves to a position higher than the one’formally occupied. According to Scott and Clotheir “A promotion is the transfer of an employee to a job which pays more money or one that carries some preferred status”.
According to Pigors and Myres “A promotion is the advancement of an employee to a better job – better in terms of greater responsibilities, more prestige or status, greater skill and especially increased rate of pay or salary. ” In short, a promotion may be defined as an upward movement of an employee in an organisation to another job, which commands better pay (wages) better status or prestige and higher opportunities and responsibilities, better working conditions, hours of work and facilities etc.
Promotion has following three elements :
- Transfer of an employee to some higher job having more prestige, better status more benefits and privileges.
- Re-assignment of an employee to a position having increased responsibilities.
- Higher job grade.
All the above three elements must be present in promotion i.e., posting the person to a higher job, increased responsibilities, and higher grade. According to Edwin B. Flippo, increase in pay or grade is not an important element of promotion. According to him, “Promotion involves a change from one job to another that is better in terms of status and responsibility.” Thus, promotion may be made to a. position which carries higher status and responsibility but does not carry a higher grade. Such a promotion may be called “Dry promotion”. But, where, salary of an employee is increased without corresponding increase in status and responsibility, it is not promotion, it is termed as ‘upgrading’.
Advantages Or Significance Of Promotion :
Promotion is one of the sources of recruitfnent. Promotions offer following advantages :
- Promotions provide an opportunity to the present employees to move into jobs that provide greater personnel satisfaction and prestige.
- Promotions offer opportunities to management to provide recognition and incentives to the better employees, to correct initial mistakes in appointments and to freeze inefficient personnel.
- Promotions generate within an organisation beneficial pressures on work performance and desired behaviour of all its members.
- Promotions serve as an orderly, logical and prompt source of recruitment for management to fill vacancies as they arise.
- Insiders shall have no problem in handling the new jobs because they are intimately connected with the organisation structure and different problems. Cost of training will be much lesser.
- A sound policy of promotion will keep the morale of the employees
high and will solve many personnel problems automatically such as absenteeism, discipline, accidents etc.
Which do you favour – direct recruitment or promotion from within – for job at junior managerial level ? Substantiate your answer.
Promotion VS. Direct Reemitment:
The important function of the human resource Department is the scientific recruitment and selection and repalcement of worker on the job to develop and maintain an efficient work force. Therefore, every employer should always keep in mind that the best possible man should be appointed on a job. If there is a vacancy in a higher post, it may be filled in by promotion from within the organisation or direct recruitment from outside. Now the human resource department has to decide which of the two should be adopted.
A sound personnel policy requires that the higher post should be filled in by promotion from within the organisation if the suitable person of required skill, ability and calibre is available otherwise there should be no hitch in recruiting a qualified person from outside. A right man should be appointed at the right job in all the cases whether from within or from outside.
However, the employer should always keep in mind that the higher post – should be as far as possible, filled in by promotion if the right man is available within the organisation. It will induce the existing staff to improve their efficiency. In the absence of such inducement, employees will be dissatisfied, demoralised and frustrated. Therefore, to avoid this dissatisfaction and frustration among the employees, promotion is a good technique. But, if the senior positions in the organisations are filled by promotion, it will have the following disadvantages –
- Person promoted to a senior post may not have required abilities, or skill and they are not fit for the existing higher job. Thus, it deters the entry of deserving candidates from outside.
In promotion, class between seniority and merit exists. The decision may lead to favouritism.
In order to initagate the hardship in filling up of vacancies through promotion, a sound promotion policy should be designed. It should decide a fair percentage of vacancies at higher positions to be filled up from within.
What are essentials of a good promoted policy ?
Essentials Of A Good Promotion Policy:
A sound promotion policy should be based on the following principles:
1. Uniformity – A promotion policy must provide ior a uniform distribution of promotional opportunities throughout the organisation. The ratio of internal promotions to external recruitment must be the same at various levels in all the departments otherwise morale of employees will be seriously impaired in the, department notorious for its low rate of promotions.
2. Consistency – A promotion policy should enjoy consistency i.e., it should be applied irrespective of the persons concerned. Policy should be correlated to career planning so that there should not be a sudden spurt of promotion conferring premature benefits on a number of persons followed by a long period of absence of promotion.
3. Fair and Impartial – Promotion policy should be fair and impartial i.e., management should be able to remove all suspicion of arbitrariness, adhocism to suit particular individuals, nepotism etc.
4. Planned Activity – Promotion should be a planned activity i.e., management should make a correct assessment of the requirements or opportunities of promotion Within the organisation so that there is a no underestimation or overestimation. For this, promotion charts may be prepared.
5. Definite Basis – There should be a definite criterion, for promotion. In the absence of a contract to the contrary, the employer has the right to establish any criteria for evaluation of promotability if they are reasonable, pertinent to the job and not applied in a discriminatory manner. The two criterion often used for making promotion decisions are merit and seniority. The management should combine these two bases judiciously.
6. Right to Appeal – The promotion policy must contain a clause giving a right to the employees or to their union to challenge the promotion already made within the limits of the promotion policy. It will ensure fairness as the part of management.
7. Sanction – All promotions should be finally sanctioned by the concerned line heads. The personnel department may only propose the name of potential candidates and send their history records to the department making the requisition to fill vacancies. In this way, the staff position of the personnel department does not intrude upon the authority of the department served. In addition, subordinates are impressed favourably by their line superior’s concern for their progress.
8. Follow up – A sound promotion policy should provide for a suitable system of follow up, counselling and review, say, month or two after the change, the personnel department should hold a brief interview with the promoted employee and his new superior to determine whether all is going on well. All promotions should be made for a trial period so that if the promoted employee is not found capable of handling the job he can be reverted to his former post and his former pay scale.
Contrast the advantages of seniority with those of merit in making decisions concerning promotion.
Discuss the basis of promotion.
“Seniority is the best policy of promotion.” Explain.
Basis Of Promotion – Merit VS. Seniority:
When the promotion policy is designed, another problem arises and that is what should be the criterion or basis for promotion seniority or merit. Let us examine the merits and demerits of each basis.
(A) Seniority Basis – Seniority refers to length of service in the company or in its various plants or in departments or in a particular position, if seniority is adopted as the basis of promotion the senior most person in the lower grade shall be promoted as and when there is any vacancy in the higher position. The promotion will be an automatic process i.e. a matter of course.
Seniority is decided by the organisation and every employee knows his place in the promotion list. The management should prepare a seniority list placing each and every person on the list showing his seniority in the organisation. This list should be circulated among the employee so that they may come to know their position in the seniority. Seniority is widely recognised as the basis of promotion in almost all types of organisations, particularly in organisations where trade unions generally emphasise on seniority rather than merit as the basis of promotion.
The merits of this basis are as under:
- Measurement with this criteria is straightforward, clear, simple and easily understandable.
- Seniority is in conformity with our culture in which seniority is respected. In all walks of life, seniority has wide acceptability among workers.
- It provides a feeling of security and assurance to employees. It reduces uncertainties and anxieties.
- It reduces labour turnover. As employees become senior, their chances of promotion also increase. This prevents them from leaving the organisation.
- It reduces chances of favouritism or dispute regarding promotion.
However, the basis of seniority for promotion has following demerits:
- Emphasis on seniority leads to the promotion of inefficients also. Oldest is not the ablest.
- It discourages workers to work hard or put extra efforts because they know that it will bring them no results. It affects the morale of meritorious workers and they leave the organisation to find the better prospects outside.
- Under this system, management loses control over employees. The management can provide no incentives or punishment when employees are sure of promotion by seniority, they disrespect authorities.
- It may enhance the rate of labour turnover. It may drive the able and ambitious worker with little service, out of the firm.
- It makes no difference between efficient and inefficient employees.
(B) Merit or Performance – Merit means ability to work. If merit is adopted as the basis of promotion, the most able person in the lower grade, no matter he is juniormost in the company, shall be promoted. It encourages all employees to improve their efficiency. Merit may be determined by job- performance and by analysis of employee potential for development through written or oral examinations or personnel interviews or their records of performance. Thus, ability ignores the value of experience. Management personnel always insists on “merit” as the basis of promotion. Merit basis has following merits:
- Promotion on the basis of ability or merit encourages the efficient workers.
- This system gives total weightage to efficiency and awards no value to the length of service.
- Promotion on the basis of merit induces every worker to work hard.
- This basis is beneficial to both – organisation and employees.
It seems that the basis of merit is the best. But in practice, the merit basis creates many difficulties. The demerits of this basis are as follows:
- This awards no value to the length of service.
- This may be misused by the management. Practice of favouritism and nepotism are prevalent in this system.
- Merit means different things to different employers and employees. Some may treat obedience and flattery as merit while others may treat work performance and sincerity as merit.
- If there are some cases of favouritism in promotion, there will be conflicts and general dissatisfaction among the employees.
From the above discussion, it is clear that neither seniority nor merit can be sound criterion for promotion. In the interest of efficiency, justice and for satisfaction of employees, a compromise between seniority and merit should be worked out. Seniority should be given due weightage but fitness i.e., merit should not be forgotton. Promotion should, therefore, be given on the basis of merit-cum-seniority. This will afford the employees due recognition for their length of service while at the same time provide built-in-incentive for better performance. According to Paul Pigors and Charles Myers, “Seniority should be considered, but only when the qualification of two candidates for a better job are, for practical purposes, substantially equal. ”
Discuss the term ‘Demotion’ as used in Human Resource management.
Demotion is the opposite of promotion. Demotion is downward movement of an employee in the organisational hierarchy with lower pay, status or responsibilities. Dale Yoder defines “demotion as a shift to a position in which responsibilities are decreased. Promotion is in a sense, as, increase in rank and demotion is decrease in rank. ” According to Beach, Demotion is the assignment of an individual to a job of lower rank and pay’ usually involving lower level of difficulty and responsibility. ” In other words, demotion refers to the lowering down of the status, salary and responsibilities of an employee. ”
Causes Of Demotion
Following are the important causes of demotion:
- When there is a mistake in staffing i.e., a person is promoted wrongly or is not suited to the new job.
- If the employee is not performing well on the job, he ma ybe domoted to a lower job suited to his qualifications.
- Demotion is also used as a disciplinary measure, but very rarely.
- When some departments are combined and jobs eliminated employees are often required to accept lower position. ‘
- When because of a change in technology, methods and practices old hands are unable to adjust.
Demotion Policy :
All demotions produce adverse effects on the status, interpersonal relations and sole esteem of demoted employees. But demotions which follow lay offs and corrections for wrong promotions are generally more acceptable to employees than those which are the result of punishment. Management can make its employees easily accept all demotions by formulating a demotion policy so that there may be no grievance on the part of the trade union. A policy on demotion should have the following elements:
- A clear and reasonable list of rules should be framed, violations of which would subject an employee to demotion.
- This information should be clearly communicated to employees.
- There should be competent authority to investigate any alleged violation.
- If violations are reported. There should be a consistent and equitable. application of the penalty. t
- There should be a provision for review.
In formulating a demotion policy the top executive must take a constructive approach. He should be more practical rather than to be emotional or ideal. It is better not to award demotion in cases like absence from duty, indiscipline, violation of any rule etc. because it will convert the man into a disgruntled employee. Demotions should be used only a last resort. Demotions have a serious impact on employees. There are complaints, emotional turmoil, inefficiency or resignation. Hence, demotions should be made quite infrequently.