Promotion

Upward or vertical movement of employees

Promotion results into more pay, prestige, responsibilities, and position with in organization

Purpose of Promotion

1)   Motivate employees

2)   Attract and retain talented people

3)   Recognize and reward efforts and efficiency

4)   Increase effectiveness and efficiency of employee

5)   Fill up higher posts form within the organization

6)   Build loyalty and morale

7)   To provide career development path

Principles of Promotions

1)   HRM must clearly established policy whether to promote from with in to fill higher vacant position or from recruitment of external candidate

2)   Basis of promotion (seniority or performance)

3)   Promotions against vacant positions or non vacant positions (time bound)

4)   Frequent promotions are not good practice

5)   Promotions decision must be made based on job analysis and performance appraisal

6)   Clear promotion policy and communication to employees

7)   Promotion based on competence must be advertised on notice board

 

Seniority based promotions

Merits

1)   Easy to administer

2)   Less subjectivity

3)   Labour unions are happy

4)   Experience is taken into account

5)   Subordinates feel relax

6)   Loyalty is rewarded

Demerits

1)   Competence is ignored

2)   Seniority issues

3)   Young and competent employees feel aggrieved and frustration

4)   Poor performer may get promoted

Performance based promotions

Merits

1)   Performance is rewarded

2)   Competent employees get motivated and retained

3)   Productivity increases

Demerits

1)   Senior employee get frustrated

2)   Favoritism and subjectivity

3)   Loyalty and service length are not considered

4)      Union leaders oppose and retaliate