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Promotion: by Sonu Verma

This document discusses promotion and demotion within organizations. It defines promotion as an upward movement to a job with higher pay, responsibility and status. The purposes of promotion include developing employees, increasing motivation, and building loyalty. Principles of a promotion policy include having criteria in writing and specifying what percentage of higher-level vacancies are filled internally. Bases for promotion include seniority, merit, and a combination. Seniority considers length of service while merit evaluates skills, performance and potential. Demotion is a lowering of rank, status and pay, often used as a disciplinary action or if a mistake was made in a previous promotion.

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137 views22 pages

Promotion: by Sonu Verma

This document discusses promotion and demotion within organizations. It defines promotion as an upward movement to a job with higher pay, responsibility and status. The purposes of promotion include developing employees, increasing motivation, and building loyalty. Principles of a promotion policy include having criteria in writing and specifying what percentage of higher-level vacancies are filled internally. Bases for promotion include seniority, merit, and a combination. Seniority considers length of service while merit evaluates skills, performance and potential. Demotion is a lowering of rank, status and pay, often used as a disciplinary action or if a mistake was made in a previous promotion.

Uploaded by

aman kumar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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PROMOTION

By Sonu verma

Promotion
Meaning
Definition
Purposes of promotion
Promotion policy
Principles of promotion
Bases of promotion
Demotion
Causes of demotion

What is promotion.
Promotion means
advancement within an
organisation.
It is an upward
movement of an
employee from current
job to another that is
higher in pay,
responsibility, status and
organisational level.

The new job will be promotion only if


entails increased reposibilities and
enhanced pay.

The basic elements of promotion


Transfer of an employee to some
higher job having more prestige, better
Status, more benefits and privileges.
Reassignment of an employee to a
position having increased
responsibilities.
Higher job grade.

DEFINITION OF
PROMOTION
A promotion is the transfer of an employee to a job
that pays more money or that enjoys some preferred
status
According to Scott and Spreigal
A promotion involves a change from one job to
another that is better in term of status and
responsibility
According to Edwin B. Flippo

Purposes of promotion.
To put the employee in a position where he
will be of greater value to the company.
To develop competitive spirit and zeal in the
employees to acquire the skill and knowledge
etc. required by higher level jobs.
To promote employee self-development and
make them await their turn of promotions. It
reduce labour turnover

To develop internal source of employees ready


to take jobs at higher levels in the organisation.
Employees have little motivation if better job
are reserved for outsiders.
To promote employees interest in training and
development programmes and in term
development areas.

To built loyalty among employees and to


boost their morale.
To create among employees a feeling of
contentment with their present working
conditions and encourage them to succeed
in the company.

Promotion policy
A sound promotion policy reduces
the personnel problems regarding
promotions considerably and ensures
the employees fair chances of
advancement.

Principles of promotion
The promotion policy should be in writing.
The promotion policy should lay down what
percentage of vacancies in higher levels of
hierarchy are to be filled up by promotion.
The promotion policy should mention the basis
of promotion-seniority or merit.

Bases of promotion
Organisations adopt different bases of
promotion depending upon their nature,
size, management etc.
The well established bases of promotion
are :
1. Seniority bases
2. Merit bases
3. Seniority-cum-merit basis

Seniority as a basis of promotion


Seniority means length of recognised services in an
organisation.
If seniority as a bases of promotion, the senior
most person in a lower grade shell be promoted as
and when there is an opening in a higher position.
The logic behind considering the seniority as a
bases 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
organisation.

Advantages of seniority
It is relatively easy to measure the length of service
and to judge the seniority.
Trade unions generally emphasis on seniority rather
then merit as a basis of promotion.
The employees trust this method as there is no scope
for favouritism, discrimination and judgement.
Security and certainty is also a plus point in the use
of seniority.
Seniority basis of promotion helps in reducing
labour turnover.

Disadvantages of seniority
It is not necessary that employees learn more
with length of service.
It demotivates the young and more competent
employees results in greater labour turnover.
It kill the zeal and interest for self
development as everybody will be promoted
without showing any all round growth or
promise.

Merit as a basis of promotion


Merit means ability to work.
It denote an individual employees skill,
knowledge, ability, efficiency and aptitude as
measured from educational, training and past
employment record.
Management personnel generally prefer merit as
the basis of promotion. Merit may be determined
by job performance and by analysis of employee
potential for development through written or oral
examinations or personal interviews or other
record of performance.

Advantages of merit
The skill of an employee can be better utilised at a
higher level.
Competent employees are motivated to exert all
their energies and contribute to organisational
efficiency and effectiveness.
This system continuously encourages the employees
to acquire new skill, knowledge etc. for all round
development.

Disadvantages of merit
Measuring merit is not always easy.
Many employees, particularly, trade unions
distrust the managements integrity in judging
merit.
The purpose of promotion may not be served if
merit is taken as the sole criteria for
promotion.
The techniques of merit measurement are
subjective.

Seniority-cum-merit basis
Management mostly prefer merit as a basis of
promotion as they are interested in enriching
organisational effectiveness by enriching its
human resources.
Trade unions favour seniority as the sole basis of
promotion with a view to satisfy the interests of
majority of their members.
The combination of both seniority and merit may
be considered as a sound basis for promotion.

Demotion
Demotion refers to the lowering down of the status,
salary and responsibility of an employee.
Demotion is just opposite to promotion.
Demotion is a shift to a position in which
responsibilities are decreased. Promotion is, in a
sense, an increase in rank and demotion is decrease
in rank
According to Dale Yoder

Causes of demotion
Inadequacy on the part of the employees in term of
job performance attitude and capability.
Demotion may be used as disciplinary tools against
errant employees.
If there is mistake in staffing i.e. a person is
promoted wrongly.
When, because of a change in technology, method
and practices, old hands are unable to adjust or
when employees because of ill health or personal
reasons, cannot do their job properly.

Thank you

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