Promotion

Promotion poses a constant challenge to executives at all levels. It impels them to chalk out a well-thought-out programme by which the best and the most cpable individuals may find an opportunity to go up to the top. The procedure for promotion, starts right at the bottom from the shop floor and ends with the managing director of a company.

Promotion generally implies the vertical movement or change in assignment of a position of higher responsibility of an individual employee in the company. Dale Yoder defined promotion "as a movement to a position in which responsibilities and presumably, prestige are increased". According to W.D. Scott, R.C. Clothier and W.R. Spriegal "a promotion is the transfer of an employee to a job that pays more money or that enjoys some preferred status".

A Transfer in the words of Dale Yoder involves, "the shifting of an employee from one job to another without special reference to changing responsibilities or compensation". Thus, a horizontal movement of an employee in a company, not involving promotion or demotion is described as a 'transfer' which does not involve a material change in responsibility or compensation.

PROMOTION Definition

I. Scott and Clothier : "A promotion is the transfer of an employee to a job that pays more money or that enjoys some preferred status."'

2. Pigors and Mires : "A promotion is the advancement of an employee to a better job-beter in tenns of greater responsibilities, more prestige or status, greater skill and especially, increased rate of pay or salary."

3. Edwin B. Flippo : "A promotion involves a change from one job to another that is beter in terms of status and responsibility."

Basic Elements in Promotion

Thus, promotion includes are the following

I. Transfer of an employee to some higher job having more prestige, better status, more benefits and privileges;

2. Re-assignment of an employee to a position having increased responsibilities;

3. Higher job grade.

Thus, promotion places employee in a position which carries greater prestige and status, increased responsibilities as well higher earnings. When the salary of an employee is increased without corresponding change in job grade, it is upgrading and not promotion. If there is an increase in responsibility without an increase in pay it is called 'Dry Promotion'.

Significance of Promotion

I. It Handles the New Job. Insiders shall have no problem in handling the new job because they are intimately connected with the organisation structure, production prcess, products and different problems.

2. It produces Higher Morale. A sound policy of promotion will keep the morale of the employee high because they know that they will be offered senior positions as and when there are vacancies. It, in this way, motivates the employees.

3. It ensures more Efficiency. It will ensure sincere efforts on the part of employees. They will try to increase their efficiency in order to get the chance for higher position.

4. It trains at Less cost. The csot to train the insider on the senior post will be much lesser.

5. It solves personnel problems. If the organisation has a sound promotion policy, several personnel problems are solved. It creates the sense of loyalty and confindence in the oruanisatin resulting in faithful service, meritorious performance, outstanding ability on job, good attendance, accident avoidance, higher production and lower turnove r.

Principles of Promotion

I. Written. The promotion policy should be in writing. It must be understood by all employees to avoid any suspicion regarding line or promotion in the minds of employees.

2. Specify Vacancies. The promotion policy should lay down what percentage of vacancies in higher posts are to be filled up by promotion. It is better to incorporate a statement of management intention that higher paid and better jobs will be filled by promotion from within if possible rather than by hiring from outside.

3. Mention of Basis. The promotion should mention the basis of promotion. A sound policy be based on both the considerations, i.e., seniority and merit should emphasise the merit giving due weightage to seniority. Seniority should be the basis of promotion of two persons who are equal in merit.

4. Based on Job Analysis. Job analysis decides the position of

the jobs and their relationship to other positions. This should be done to provide clear recognition of the natural movement from one job to another. Positions may be adjusted and arranged, so that one position prepares workers for another. Natural course of advancement may be provided throughout the organisation, or within each division or department. Employees should be fully aware of the plan so that they may prepare themselves for higher positions.

5. Closely Allied to Training. Promotion programmes should be closely allied to training programme. This enables the employees to improve themselves for promotions.

6. Based on Scientific Procedure. A scientific procedure for evaluating employee performance should be followed. To justify the promotion or supersession this should be recorded period. The assessment of employee and his confidential report should be objective so that every employee has a faith in the promotion policy and thus induced for better performance of work to get promotion.

7. Based on Recommendation by Immediate Boss. The supervisor or the immediate boss should recommend the promotion. This is subject to approval by the immediate superior in the line organisation. Final decision in this respect may be taken by the top executive in the line with the advice and assistance of the personnel department in a staff capacity. This ensures that the policy will be consistently administered.

8. Contains Provision for Challenge. The promotion policy should contain provision for the challenge of a particular promotion by the employee or union within the limits of the promotion policy to ensure fairness in management decision.

9. Gives Advance Notification. A vacancy or a would be vacancy should be notified to employees in advance so that interested employees may apply within a specified period.

10. Made on Probation. At first the promotion should be made on probation. If he works satisfactory during probation period, Ile should be made permanent.

11. Not forced. Not all people within an organisation want promotion. Some feel that they will leave a congenial work group or they will not be able to handle the responsibilities of higher job or they may have certain other reasons. Promotion should not be forced on such reluctant employees and they should be allowed to continue their present assignment.

ROLE OF PERSONNEL DEPARTMENT IN PROMOTION

1. To give Advice. Promotion is line responsibility. The immediate

boss proposes promotions which is subject to approval by his immediate superior in the line organisation. The final decision is taken by the top executive with the advice and assistance of the personnel department. It serves as a check on the fairness of promotion. It ensures that the policy is consistently administered.

2. To decide Promotion Policy. In a staff capacity personnel department can assist the line authority in designing and developing a sound promotion policy to ensrue better industrial relation in the organisation. It offers the personnel administrator or excellent opportunity to develop understanding and acceptance of management policy.

3. To provide Records. The personnel department provides the line executive necessary records available with the department which may form the basis of promotion policy.

4. To provide Tools. Job analysis, job description, job specification and performance appraisal are some of the tools which decide the lines of promotion and the ability of the person. The quantity and quality of performance should be measured periodically and should form a part of the personnel record.

5. To effect Communication. All relevant changes in the organisation that affect the workers are communicated by personnel department to them even if the results for them are negative. Every employee expects to be informed about stages of promotion, how they can prepare themselves for advancement and what lvi I I be expected of them on the higher reated jobs.

6. To solve Disputes. If the management decision on promotion is disputed by the aggrieved employees or union representiatives, the personnel manager should hold idsucsisons with them whithin the limits of promotion policy. He should convey the feelings of the representatives or the aggrieved employees to the line executive who would review the decision in consultation with the personnel manager. The conference between the representatives, personnel manager and the executive may be faithful if errors arc admitted and adjustment made. If the decision on promotion appears to be fully justified after investigations reasons can be more thoroughly explained, records produced and the consequences of a dcaparture from sound policy pointed out.

7. To prepare Workforce. One of the functions of the personnel department is to prepare and develop efficient workforce in the company. New avenues for their development are recommended by the personnel department. Persons are encouraged to train themselves on the job shouldering the responsibilities of higher posts. This may be done by offering the opportunities to officiate on the higher positions. However,

the persons who are not interested in promotion should be not forced to hold higher positions.

To conclude the personnel department has an important role to play in promotions by assisting live executive in designing the promotion policy; communicating the promotion policy and the changes in the organisation holding talks with representatives of the employees in connection with the disputed cases; and developing promotion avenues in the organisation.

Types of Promotion

1. Multiple chain promotions. These provide for a systematic linking of each position to several others. These identify multi-promotional opportunities through clearly defined avenues of approach to and exit from each position in the organisation.

2. Up or out promotion. In it a person must either earn a promotion or seek employment elsewhere. Many universities and other organisations follow this practice. Such promotions often lead to termination of services.

3. Dry promotions. These are those which are given in lieu of increases in compensation, i.e., when all compensation is adjusted upward to keep pace with the cost of living we have dry promotions.

All promotions should be on a trial basis (from 6 months to one year) for if the promoted person is not found capable of handling his job, lit. may be reverted to his former post and former pay scale.

Benefits of Promotions

Modern business organisations derive numerous benefits from an effective promotion policy.

i) Promotions are a source of visible recognition of the individual's value to others.

(ii) They can be used as an inducement or incentive to better and effective work performance.

(iii) Promotions enhance employee sense of belongingness and loyalty to the organisation.

(iv) They increase job satisfaction of the employees as they provide opportunity to them for social acceptance and personal achievement.

(v) An appropriate promotion policy helps the organisation to attract efficient employees towards it even from outside sources.

Elements of Promotion Policy

1. Promotion Policy statement. It should consider whether vacancies are primarily to be filled up from within an organisation or by recruitment from outside. Usually, internal promotions are preferred over external recruitment and increase is given at the time of promotion, othenvise promotion is meaningless.

2. Plan of Jobs. It decises on what basis promotions are to be given: whether on performance appraisal, or on the basis of confidential records, or job and post-bid system. Usually promotions are decided on the basis of performance appraisals. "Job-post and bid system" i.e.. posting of job vacancies indicating job titles, duties, pay and qualifications on company notice boards, is also utilised.

3. Transfer routes. These indicate some type of formal and systematic promotion charmless Ladders giving paths of advancement, promotional charts. opportunity charts or/brume sheets clearly distinguish each job and by lines and arrows, connect various jobs: and show the lines/routes of advancement up to and away from • them. Stepping jobs should be clearly identified and recorded on paper. Dead-end jobs should be labelled and the path upward well marked.

4. Advancement through the provision of some training. This may be either on the job in professional/technical institutions. or through job rotation, multiple management. under-study and conferences.

5. Policy communication. The organisation should communicate its promotion policy in the form of manual or agreement signed with the union or a set of Standing Orders. To have a no communication of policy to the employees will only create suspicions and misgivings. However a precise formulation of such a policy may not be effective for higher level personnel.

6. Detailed personnel and service records. These are kept ready on the basis of which promotions may he made.