CHANGES IN PERSONNEL

STATUS

Promotion

Transfer

Demotion

Separation

PROMOTION

Involves the reassignment of an employee to a

higher level job. This also refers to the upward or

vertical movement of employees in an organization

from lower level jobs to higher level jobs involving

increases in duties and responsibility, higher pay and

privileges.

Reasons for Employee Promotions• An effective way to keep good men in the firm

• As recognition of and reward for good

performance

• To boost employee morale and encourage the

employees to render to the company the best

service they are capable of

Basis or Criteria Used for Promotion1. Seniority – length of service

a. Straight seniority – the length of service of an employee is the sole basis for

determining who gets the promotion.

b. Qualified seniority – the more competent employee as compared to another

employee with longer service will be the one promoted.

2. Current and past performance

3. Assessment centers evaluate the qualified candidate for promotion,

w/c focus on the kinds of skills and abilities to effectively perform the

higher level jobs that the candidates seek.

4. Competency or merit determined by the ratings or evaluation received by the

employees.

Unofficial Promotion

Criteria Personal Characteristics

Nepotism – showing of favoritism or

patronage to relatives

Social Factors

Friendship

Promotion from WithinFilling up vacancies in upper level management positions by

promoting lower level managers.

A major advantage of this policy is its positive effect upon

employee motivation. Knowing that they have opportunity to

be promoted tends to motivate employee’s performance with

the company and to solidify their feelings of loyalty toward

the company.

Promotion from Within

Advantages DisadvantagesProvides greater motivation Creates a narrowing of thinking

for good performance and stale ideas

Provides greater promotion Creates political infighting

Opportunities for present

employees

DEMOTION

The reassignment of an employee to a lower job

involving fewer skills and responsibilities. The

movement of an employee to a less important job from

a higher level job in the organization which may not

involve a reduction in pay but a reduction in status

or privileges.

Basis or Criteria for Demotion1. Reorganizations, company merger or business contractions may result in fewer jobs, forcing some employees to accept lower positions.

2. Inability of the employees to perform their jobs according to acceptable standards.

3. As a form of disciplinary action or a way to handle disciplinary problems, also viewed as a routine form of punishment for wrongdoing.

4. The tool used to communicate to employees that they are beginning to be “liabilities” rather than assets to an organization.

TRANSFER

This is the reassignment of employee to a

job with similar pay, status, duties, and

responsibilities. It also involves horizontal

movement from one job to another.

Reasons for Transfer

Because personnel placement practices are not perfect, an employee-job mismatch may have resulted.

An employee becoming unsatisfied with his job for one or a variety of reasons

Organizations sometimes initiate transfers to further the development and advancement of the employee especially at management and staff.

Due to business expansion, retrenchment erroneous placement, the need to meet departmental requirement during peak season.

For personal enrichment/greater convenience and for more interesting jobs.

For employee to be better suited or adjusted to his job (remedial transfer)

2 Kinds of Transfer

Permanent – made to fill vacancies requiring the special skills or abilities of the employee being transferred.

Temporary – made due to the temporary absence of an employee, e.g,in case of sick, leave, vacation leave, or shifts in the work load during peak periods.

LAYOFF

The separation of an employee initiated

by the employer due to business reverses,

the introduction of labor saving devices, or

the reduction in the demand for particular

skills. Management as temporary measures

during periods of business recession,

industrial depression or seasonal

fluctuation resorts to it.

RESIGNATION

This is when employees voluntarily

decide to end their employment with an

organization.

CAUSES OF RESIGNATION

• Dissatisfaction about wages and

working conditions .

• Misunderstandings with supervisors or

fellow workers .

• Inconvenient work hours are among the

chief reasons for employee resignation.

RETIREMENT

This is when employees having satisfied certain

conditions under existing laws and/or provisions

of the collective bargaining agreements or upon

reaching the age of 60 are separated from

employment with entitlement to retirement

benefits. This is given either in a lump sum

amount or in a form of a monthly pension for life.

TERMINATION/DISCHARGE OR

DISMISSAL

The practice of putting an end to the employer-

employee relations initiated by the employer with

prejudice to the worker. A discharge is due to some fault

of the employee such as inability to meet the company’s

standards of performance, incompetence, violation of

company rules, insubordination, etc.