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Chapter: Mechanical : Human Resource Management(HRM) : Performance Evaluation And Control Process

Definitions and Types of Promotion

A promotion is the transfer of an employee to a job which pays more money or one that carries some preferred status.



Definitions of Promotion


Some definitions given by authorities on the subject are listed below:


According to Scott and Clothier, ―A promotion is the transfer of an employee to a job which pays more money or one that carries some preferred status.‖


According to Prof Mamoria, ―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.‖


According to Arun Monappa and Saiyadain, ―Promotion is the upward reassignment of an individual in an organization‘shierarchy, accompanied by increased responsibilities, enhanced status, and usually with increased income, though not always so.‖


From the above definitions, we can say that promotion usually implies several things to the person concerned—higher status, both at work and in the community outside, more pay and fringe benefits, perhaps greater job security and a more senior position from which a person renders better service to his organization. Employees expect to be informed about ladders of promotion, how they can prepare themselves for advancement and what will be expected of them from the higher rated jobs.


Types of Promotion


The different types of promotions are:


(a) Limited Promotion

Limited promotion is also known as upgrading. It is the movement of an employee to a more responsible job within the same occupational unit and with a corresponding increase in pay. Thus, upgrading means an increase of pay on the same job or moving to a higher scale without changing the job.


(b) Dry Promotion


Dry promotion is a promotion as a result of which there is no increase in the employee‘spay. Dry promotions are those which are given in lieu of increases in compensation. It is usually made decorative by giving a new and longer title to the employee.


(c) Multiple Chain Promotion


Multiple chain promotion provide for a systematic linking of each position to several other positions. Such promotions identify multi-promotional opportunities through clearly defined avenues of approach to and exist from each position in the organization.


(d) Up and Out Promotion


Up and Out Promotion often leads to termination of services. In this type of promotion, a person must either earn a promotion or seek employment elsewhere.


Basis of Promotion


(a)    Promotion Based on Seniority


(b)    Promotion Based on Merit

(c) Merit cum seniority promotion


(d)   Promotion by Selection


(e)    Time Bound Promotion


(f)     Temporary Promotion


Demotion is a process by which the employee is downgraded and sent to a lower position from the one he is holding at present. When an employee is moved to a job with less responsibility, status or compensation he is said to be demoted. Demotion is the reverse of promotion. It is more a punishment for inefficiency or incompetence. According to D.S Beach, Demotion is ―the assignment of an individual to a job of lower rank and pay usually involving lower level of difficulty and responsibility‖.According to Arum Moapa and Saiyadain Demotion ―is a downward assignment in the organization‘shierarchy to a lower level job which has less responsibility, pay and status. Because of this hierarchical repositioning it has a negative connotation and may lead to employee dissatisfaction‖.Demotions, being a serious penalty, must be handled tactfully. The usefulness of demotion as a punitive measure is questioned on many grounds. A demoted employee will be disgruntled and his dissatisfaction may spread to co-workers which will adversely affect morale, productivity and discipline of the workforce.


Causes of Demotion


Demotion may be used as a disciplinary weapon.


Demotion may be resorted to when employees, because of ill health or personal reasons, cannot do their job properly.


If a company curtails some of its activities, employees are often required to accept lower-level position until normally is restored.


If an employee finds it difficult to meet job requirement standards, following his promotion he may be reverted to his old position.


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