Promotion and Succession

MS.ASHITA CHADHA

Internal/External Mobility
The lateral or vertical movement(promotion,

transfer, demotion or separation) of an employee within an organization is called internal mobility.

Some employees leave the organization for reasons

such as better prospects, retirement, termination etc. Such movement is called external mobility.

Reasons for Internal Mobility

Improve organizational effectiveness Improve employee effectiveness Adjust to changing business operations Ensure discipline

Transfer
Definition: A transfer is horizontal or lateral

movement of an employee from one job, section,

department, shift, plant or position to another at the same or an other place where his salary, status and responsibility are the same.
A transfer is a change in job assignment at the same level

of hierarchy, requiring similar skills, involving similar

level of responsibility, same status and pay.

Purpose of Transfer
To meet the organizational requirements

To satisfy employee needs

To better utilize the skills of the employee To make the employee more versatile through job rotation To adjust the workforce To provide relief To reduce conflicts

PROMOTIONS

Definition: An upward advancement or movement of

an employee in an organization from current job to

another, which commands better pay, better status and prestige and higher opportunities and challenges, responsibility and authority, better working environment and facilities and a higher rank.

Promotion has an in-built motivational value, as it elevates the status and power of an employee within an organization.

Purpose of Promotion
To furnish an effective incentive for initiative, enterprise and ambition
2.

1.

To conserve proved skill, training and ability

3.
4. 5.

To reduce discontent and unrest

To attract suitable and competent workers To suggest logical training for advancement

Types of Promotions

Merit Based Promotions based on superior performance in the current job.

Advantages

Motivates to work hard, improve knowledge, skills and contribute to organizational efficiency

The employer focuses attention on talented people, recognize and reward their contributions

Inspires other employees to improve their standards of performance

Failures of the system to deliver the results

Not easy to measure merit-personal prejudices, biases etc Younger employees can get ahead of senior employees

leading to frustration and discontentment

Past performance may not guarantee good performance in

another job

Seniority Based Promotion

Promoting employees on the relative length of service in the

organization. Its a measure against favoritism, discrimination and

subjective judgement. Limitations The assumption the employee learns more with length of service is not

always true.
It de-motivates the competent employees.

Employees do not show interest in enhancing skills as there is no

promise of fast growth.

PROMOTION POLICY

It should be fair and impartial Promotion should be a planned activity It should provide equal opportunity for promotion in all categories of jobs, departments etc It should contain clear cut norms and criteria Appropriate authority for making final decision It should contain reinforcing future chances in minds of rejected candidates

Preferably selection for higher positions internally

Balance between seniority and merit Promotion policy should be transparent

Judging employees for promotion

Margin of performance-he managed to perform or has some

reserve left

Flexibility or versatility-has restricted field or can he perform on many jobs

Intelligence-how does he think for decision making

Motivation-what are his wants

Succession
Succession management is used to examine existing

managerial talent in light of future competencies and future

business needs and challenges.
Right talent should be available when needed with the

appropriate experience and development required for higher level jobs.

It focuses on creating a pool of candidates with high

leadership potential.

Succession Planning
It ensures that planned training and development of the

potential employees takes place.

Employees identified are nurtured, trained and developed

for future leadership roles.

Succession management activities:

Identifying the shortage of leadership skills and defining the requirements-

Executive competencies and skills for various levels are determined.

Identifying potential successors for critical positions- People with the

requisite talent move into senior leadership roles.

Coach and groom the selected employees- Enriching developmental

opportunities must be given to them such as handling important projects

Secure top managements commitment and support- Consistent support

and direction help in assessment, training, development and retention

programmes