Promotion and Demotion

PRESENTED BY:-
PRAVEEN KUMAR SINGH
RAJESH KUMAR SAH
 Promotion and Demotion
Advancement within an organization is
normally labeled as ‘promotion. It is an
upward movement of an employee from
current job to another that is higher in
pay , responsibility , status and
organization level. A mere shifting of an
employee to a different job which has
better working hours , better pleasant
working conditions does not imply
promotion. The new job will be
promotion only if entails increased
responsibilities an enhanced pay.
Definition

• According to Scott and Spreigal: “A

promotion is the transfer of an
employee to a job that pays more
money or that enjoys some preferred
status.
• Flippo: “A promotion involves a change
from one to another that is better in
terms of status and responsibility.
 Purpose of Promotion
• Promotion are generally given to achieve
the following purpose :
 To put the employee in a position where
he will be of greater value to the
company . This will imply , utilizing the
employee skills and knowledge at the
appropriate level in the organization
hierarchy resulting in organizational
effectiveness and employee satisfaction.
conti…

 To develop competitive spirit and zeal in the

employees to acquire the skill and knowledge
etc. required by higher level jobs.
 To develop internal source of employees ready
to take jobs at higher levels in the organization.
To promote employee self-development and
make them await their turn of promotions . It
reduce labour turnover .
Conti..

 To build up morale , loyalty and a

sense of belongingness on the part
of employees when it is brought
home to them that they would be
promoted if they deserve it.
 To promote employees interest in
training and development
programmes and in team
development areas.
Conti…

 To built loyalty among employees and

to boost their morale.
 To reward committed , loyal and
deserving employees.
 To create atmosphere 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 should be based on

the following principles:
 The promotion policy should be in writing
and must be understood by all employees to
avoid any suspicion regarding line of
promotion in the minds of employee’s.
 Promotion programs should be closely allied
to training programs ; which enables the
employees to improve themselves for
promotion.
 The promotion policy should lay down
what percentage of vacancies in
higher levels of hierarchy are to be
filled up by promotion and it should
be followed strictly .It is better
incorporate a statement of
management intention that higher
paid and better jobs will be filled by
promotion from within , if possible ,
rather than hiring from outside.
 The promotion policy should mention the
basis of promotion – seniority or merit . A
sound policy should be based on both the
consideration i.e. seniority and ability.
 Job analysis decides the position of the
jobs and their relationship to other
positions. This should be chartered to
provide clear recognition of the natural
movement from one job to another.
 A scientific procedure for evaluating
employee performance should be followed .
The assessment of the employee and
confidential repotting should be objectives so
that every employee has a faith in the
promotion policy and is motivated for better
performance of work to get promotion.
 The supervisor or the immediate boss should
recommend the promotion which is subject
to approved by his immediate superior in the
line organiatation.
 The promotion should contain a provision
for the challenge of a particular
promotion by the employee by the
employee or union within the limits of the
promotion policy to ensure fairness in
management decision.
 A vacancy should be notified to employee
in advance so that interested employee
may apply within a specified period. If
possible , the candidate should be
selected before job actually vacant.
 Bases of Promotion

The well bases of promotion are : (1)seniortiy and

(2)merit.
(1) Seniority means length of recognized
service in an organization , the senior most
person in the lower grade shall be promoted as
and when there is an opening in the higher
position. The logic behind considering the
seniority as basis of promotion is that there is
positive correlation between the length of job
and the amount of knowledge and the level of
skill acquired by an employee in the origination.
Advantages of seniority
• Easy to measure the length of
service
• Trade union generally emphasis on
seniority
• Security and certainty is also plus
point
• Minimize the scope of grievances
and conflicts
• Reducing labour turnover
Disadvantages of seniority
It is not necessary that
employees learn more with
length of service. The employee
may learn up to a certain age,
and learning capabilities may
diminish beyond a certain age.
Demotivates the young and
more competent employee
Kills the zeal and interest for self
development
(2) Merits

Merit means ability to work . It denotes an

individual employee’s skill, knowledge, ability ,
efficiency and aptitude as measured from
educational , training and past record . If the
merit is adopted as basis of promotion the
most person in the lower grade , no matter his
junior most in the company, shall be promoted.
It encourage all employee to improve their
efficiency.
 Advantage :-
The skill of an employee can be better
utilized at a higher level. It results in
maximum utilization human resources in an
organization.
Component employee are motivated to
exert all their energies and contribute to
organizational efficiency and effectiveness.
This system continuously encourage the
employee to acquire new skills , knowledge
etc. for all around development.
Disadvantages of Merit

• Measuring merit is not always easy.

• The techniques of merit measurement
are subjective
• Many employee , particularly , trade
unions distrust the management’s
integrity in judging merit.
 Demotion
Demotion is just opposite to promotion. In
demotion, the employee is shifted to a job lower in
status , grade and responsibilities . “Demotion
refers to the lowering down of status, salary and
responsibility of the employee.”
Dale Yoder," Demotion is the shift to a position in
which responsibilities are decreased. Promotion
is , in a sense, an increase in rank and demotion is
decrease in rank.”
 Cause of Demotion
Inadequacy on the part of the employees in
terms of job performance, attitude and
capability . It happens when an employee
finds it difficult to meet job requirement
standards, following his promotion.
Demotion may be used as disciplinary tools
against errant employees.
• Due to adverse business conditions
• If there is a mistake in staffing i.e.
a person is promoted wrongly.
• Change in technology, method
and practices
• Due to ill health or personal
reasons
 Demotion Policy
Demotion is very harmful for the
employees morale. It is an extremely
pain for action, impairing relationships
between people permanently. While,
effecting demotions, a manager should
be extremely careful not to place himself
on wrong side of the fence. It is ,
therefore, very necessary to formulate a
demotion policy so that there may be no
grievance on the part of the trade unions.
Yoder,Heneman and Stone have
suggested a five fold policy in this
regard:
• A clear list of rules along with punishable
offences be made available to all the
employees.
• Any violation be investigated thoroughly
b a competent authority.
• In case of violations, it is better to state
the reasons for taking such a punitive
step clearly and elaborately.
• Once violations are proved, there
should be a consistent and
equitable application of the
penalty.
• There should be enough room for
the review.
THANK YOU