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CHANGES IN PERSONNEL

STATUS
Reported by:

Marie Kristine N. Labitad
Why Study Possible Changes in
Personnel Status
To know what are the possible changes in the status of an
employee and the causes of these changes in status from the time he
is hired until termination or retirement.
To understand the procedures in the transfer, promotion, demotion
or termination of an employee.
To understand the provisions of law regarding these changes in the
status of an employee.
Changes in Personnel Status
Kinds of Employees-
Employer

Managerial A person who directs or
manages an organization.
Supervisory A person who supervises
workers or the work done by others.
Rank and File - The non-executive and non-
managerial employee of the
company
Changes in Personnel Status
Types of Employees in Terms of
Tenure

Regular An employee who has been
appointed to
a position in a classified service after
completing the trial service period.
Casual An employee is employed when and
if
needed, and where there is no
particular
expectation of continuing employment.
Contractual - An employee who is hired to
work
for a specific period of time on an
hourly
basis or a contracted amount.

Changes in Personnel Status
Types of Employees in Terms of
Tenure

Probationary A new employee who, for a period of
time, is being tested to enable the
employer to ascertain the suitability of
the employee for its purposes.
Job Order Written instructions to perform a work
according to specified requirements,
within specified timeframe and cost
estimates.
Project-Based - An employee is one whose employment has
been fixed for a specific project or undertaking
the completion or termination of which has been
determined at the time of the engagement of the
employee or where the work or services to be
performed is seasonal in nature and the
employment
is for the duration of the season.
Changes in Personnel Status
Types of Employees in Terms of
Tenure

Fixed Contract which an employer recruits
an employee for a limited period of time. Such
contracts are possible only to perform a specific,
temporary task.
Changes in Personnel Status
PROMOTION


A promotion is the advancement of an employees
rank or position in an organizational hierarchy system.

Promotion is a movement of the employee from one
position to another of a higher level involving more difficult
duties and greater responsibilities and carrying higher pay,
higher status and/or offering better privileges. A promotion
need not always involve a pay raise but it may involve either
an improvement in the employees status in his chances for
advancement, or in greater job satisfaction, or better working
conditions.


Changes in Personnel Status
Purpose and Advantages of
Promotion


Recognize employees performance and commitment and
motivate him towards better performance
Develop competitive spirit among employees for acquiring
knowledge and skills for higher level jobs
Retain skilled and talented employees
Reduce discontent and unrest
To fill up jobs vacant position that is created due to retirement,
resignation or demise of an employee.
Utilize more effectively the knowledge and skills of employees
Attract suitable and competent employees.
Changes in Personnel Status
Types of Promotion


Up or Out Promotion
An employee either earns a promotion or seeks employment
elsewhere. Out promotion usually leads to termination of employee
and joining some other organization in a better position.

Dry Promotion
Promo is given in lieu of increase in salary.

Paper Promotion
It happens on seniority of employee in government sector having
different departments. Paper promotion is an employee promotion
given to the employee belonging to the parent department, but
indeed working in another department or transfer, on request of
employee or due to exigency of work. Paper promoted employee
draws salary pertaining to job in another department, but not
according to promotions job in the parent department.
Changes in Personnel Status
Promotion Program and Procedure


FORMULATION OF PROMOTION POLICY
IDENTIFICATION OF PROMOTION CHANNELS
PROMOTION APPRAISAL
CENTRALIZED RECORDS


Changes in Personnel Status
Formulation of Promotion Policy:


Each organization needs to maintain a balance between the internal
sources of personnel promotion and external sources by means of
recruitment. Hence, promotion must be based on consistent, fair
and clear cut policy.

Encouragement of promotion within the organization instead of
looking outside to fill vacancies in higher places.
An understanding that ability as well as seniority will be taken
into account in making promotions.
Drawing up an organization chart to make clear to all the ladder of
promotion.
Making the promotion system clear to all concerned who may
initiate and handle cases of promotion. Though department heads
may initiate promotion, the final approval must lie with the top
management, after the personnel dept has been asked to check
from its knowledge whether any repercussion is likely to result from
the proposed promotion.
Changes in Personnel Status
Formulation of Promotion Policy:


All promotions should be for a trial period to ascertain
whether the promoted person is found capable of handling
the job or not. Normally, during this trial period, he draws
the pay of the higher post, but it should be clearly
understood that if he does not make the grade he will be
reverted to his former post and former pay scale.

Changes in Personnel Status
Promotion Channels



Promotion channels should be identified and recorded on
paper. This process is related with job analysis and career
planning of an organization.
Changes in Personnel Status
Promotion Appraisals

The promotion of an employee is entirely dependent upon
his/her performance appraisal outcome.
Centralised Records:



The education, experience, skills, abilities and evaluation of
all employees should be recorded and maintained in a
centralised manner by the department of the organization,
because basing on these attributes, promotion is given to an
employee.
Changes in Personnel Status
Centralised Records:



The education, experience, skills, abilities and evaluation of
all employees should be recorded and maintained in a
centralised manner by the department of the organization,
because basing on these attributes, promotion is given to an
employee.
Changes in Personnel Status
Bases of Promotion



Seniority as a basis: It implies relative length of service in
the same organization. The advantages of this are: relatively
easy to measure, simple to understand and operate, reduces
labour turnover and provides sense of satisfaction to senior
employees. It has also certain disadvantages: beyond a certain
age a person may not learn, performance and potential of an
employee is not recognized, it kills ambition and zeal to improve
performance.

Merit as a basis: Merit implies the knowledge, skills and
performance record of an employee. The advantages are:
motivates competent employees to work hard, helps to maintain
efficiency by recognizing talent and performance. It also
suffers from certain disadvantages like: difficulty in judging
merit, merit indicates past achievement, may not denote future
potential and old employees feel insecure.

Changes in Personnel Status
DEMOTION



A demotion is the compulsory lowering of an
employees job rank, job title, or status. An
organization can provide a demotion at the choice of
the organization or voluntarily, at the request of the
employee, sometimes called deployment.
Changes in Personnel Status
Reasons for Demotion



Reduction in business so that the number of positions at
certain levels must be reduced, or elimination of certain
functions requiring a reduction in manpower.

Failure of the employee either to qualify for work on the
occupational level to which he has been assigned or to meet
established job standards.

As a form of disciplinary or punitive action against an
employee found guilty of violation company policies or rules.

Inability of the employee to meet the requirements of the job
due to age, poor health, or physical disability.


Changes in Personnel Status
Process of Demotion



All demotions must be discussed with Human Resource
Dept. prior to communicating any information to employees.

If the demotion is at the employees request , a written letter
from the employee requesting the demotion action will be
required if the position wasnt posted.

When considering a demotion, the department must ensure
that there is a valid budget line and/or position that the employee
will be occupying.

All demotions must be approved by the respective approver.


Changes in Personnel Status
Demotion Policy



The circumstances under which employees can be demoted
(reduction in operations, serious indiscipline etc.) should be clearly
specified and made known to employees.

Any violation of established rules & regulations should be
competently investigated.

Once violations are proved there should be consistent & equitable
application of the policy.

The policy should be fair & impartial.

The lines of demotion should be specified.

In case of demotions caused by adverse economic conditions &
technological changes, the basis for demotion (seniority or merit)
should be specified.


Changes in Personnel Status
Demotion Policy



Nature of demotion (Permanent or Temporary) should be
formulated.

A promotion should be made for appeal & review of every
demotion.

It should be an open rather than a closed policy.

The policy should be fair & impartial.

The lines of demotion should be specified.

In case of demotions caused by adverse economic conditions &
technological changes, the basis for demotion (seniority or merit)
should be specified.


Changes in Personnel Status
TRANSFER



Transfer is defined as a lateral shift causing
movement of individuals from one position to another
usually without involving any kind marked change in
duties, responsibilities, skills needed or
compensation

Transfer is also defined as the moving of an
employee from one job to another. It may involve a
promotion, demotion or no change in job status other
than moving from one job to another

Changes in Personnel Status
Transfer - Reasons



Organizations resort to transfers with a view to attain the
following purposes:

To meet the organizational requirements
To satisfy employees needs
To utilize employees skill, knowledge etc. where they are
more suitable or badly needed
To correct inter-personal conflicts
To adjust the workforce of one section/plant in other
section/plant during different business conditions
To punish employees who violate the disciplinary rules
To help employees to relocate as per convenient
To minimize fraud etc. which result due to permanent stay
and contact

Changes in Personnel Status
JOB ROTATION



Definition: Job rotation involves an employee changing
positions within the same organization and eventually returning
to the original position.
Changes in Personnel Status
TYPES

Task Rotation usually takes place in jobs that involve a high
degree of physical demands on the body or a high degree of
repetitive tasks that can become extremely tedious. Employees
are periodically removed from these mentally stressful or
physically demanding tasks to a less demanding task for a while
to give them a break.
Position Rotation is the process of laterally moving an
employee to different positions, departments or geographic
locations for the purposes of professionally developing the
employee by exposing her to knew knowledge, skills and
perspectives.


Changes in Personnel Status
2 KINDS OF POSITION ROTATION

o Within-function Rotation is where an employee rotates
between jobs with similar levels of responsibility and in the
same functional or operational areas.
o Cross- functional Rotation usually involves a sequence of
positions, often in increasing level of job responsibilities.

REASSIGNMENT



Reassign is a combination of re-, meaning again, and assign,
which is from the Latin word assignare, meaning to mark out.
Today reassign is often used in work related discussions to
indicate a transfer.
Changes in Personnel Status
PURPOSE

To meet organizational needs over the short to medium-term
To cover a gap in coverage left by one or more vacant
position (s) or leave (s) of absence within a unit or department.
To provide the opportunity for professional development
and/or cross-training.
EMPLOYEE SEPARATION



Employee Separation is the termination of employment as a
result of resignation, lay of, or discharge.
Changes in Personnel Status
BENEFITS

Reduced labor costs
Replacement of poor performers
Increased innovation
Opportunity for greater diversity
TYPES EMPLOYEE
SEPARATION



Constructive Dismissal aka Constructive discharge, occurs when an
employee quits under duress and believes that they have no choice but
to leave their employer. Often they feel that they have been forced to
leave by an employer who has intentionally made their working
conditions very difficult.

Fired- when an employer servers ties with a worker due to poor
performance or violations of company policy. In some cases, an
employee can be fired without a reason or without warning.

Lay Off refers to a separation when the employer has let an employee
go because their services are no longer needed. Lay offs occur when
employer experience a reduced volume of business or funding, or when
a reorganization occurs which renders a job unnecessary.

Changes in Personnel Status
TYPES EMPLOYEE
SEPARATION



Resignation occurs when employee decides to leave a job of their
own accord.

Forced resignation means that an employer has offered an
employee an ultimatum- either resign or fired.

Termination for Cause when employee is terminated for
cause they are fired from their job for a specific reason.

Involuntary Termination takes place when an employer either
fires of layoffs an employee.

Voluntary Termination occurs when employee resigns or retires
of their own will.

Changes in Personnel Status
TYPES EMPLOYEE
SEPARATION



Termination without Prejudice means an employee has been
let go for reasons other than performance, behavior or attitude
on the job as in a layoff.

Termination with Prejudice indicates that an employee has
been fired due to inadequate performance, poor attitude or
ethical/legal transgressions. Employees terminated with
prejudice would be ineligible for rehire.


Changes in Personnel Status
TYPES EMPLOYEE
SEPARATION



Termination by Mutual Agreement covers situations where
both the employer and employee consent to a separation.
Mutual agreement does not necessarily mean that both parties
are happy with the arrangement. It just means that they have
formally agreed to stipulations for a separation.

Wrongful Termination happens when an employee is
discharged from employment for illegal reasons or if company
policy is violated when the employee is fired.


Changes in Personnel Status
TIPS AND PRACTICES TO AVOID
WRONGFUL TERMINATION LITIGATION


Define work expectations. If the time comes to terminate the
employee, it should not be a huge surprise. Documenting the
process is important especially documenting progressive
disciplinary measures.

Terminate thoughtfully. Even if the employee recognizes
that they may be terminated the actual event may still come as
a bit of a surprise. Keep in mind that its a form of rejection and
not all people take rejection the same way.

Consider Liability Insurance. While liability insurance
premiums can be expensive, they pale in comparison to the
expense of defending lawsuit. Defending a termination is always
an expensive downside for the employer. If the suit cannot be
avoided, it may make sense to consider negotiating a settlement
versus going to court.

Changes in Personnel Status
TIPS AND PRACTICES TO AVOID
WRONGFUL TERMINATION LITIGATION


Follow the law. Its not fun to be wrongfully accused and
even if you know you have done everything right, you will still
need to prove it. Be sure that your books are kept in order, and
also that you obey government guidelines. Even things that
seem simple, such as posting government required labor and
employment materials can be downfall to your defense.

Write the Book. Having an employee handbook with human
resources guidelines and policies can go along way to providing
a defense.

Train your Team. Be sure that your employees understand
how to communicate without the stigma of discrimination or
harassment. Knowing the responsibility of being an employer or
a manager and using effective and efficient communication
should be the subject of training your team.
Changes in Personnel Status
TYPES EMPLOYEE
SEPARATION



Retirement is a separation whereby an employee opts to cease
working once they have met the age and tenure stipulations laid
out by the employer or negotiated by the employer and a union.

Mandatory Retirement rules are limited to a few occupations
where workers are deemed a risk to the public or themselves as
they experience diminished capacities after a specified age.

Turnover is the rate at which an employer loses and gains
employees. Simple ways to describe it are how long employees
tend to stay or the rate of traffic through the revolving door.

Changes in Personnel Status
2 Main Categories of Turn Over



Voluntary Turn Over is when the employee quits. This can
be due to finding a better position at another company, a conflict
with a supervisor, or a personal reason such as staying home
with a family member.

Involuntary Turn Over is when an employee is laid off or
fired, generally due to reducing staff due to business turndown
or change in business focus, or due to an employee taking some
action that is cause for termination, such as theft.
Changes in Personnel Status


Changes in Personnel Status

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