Everything you need to know about promotion of employees in an organization. Promotion means advancement in terms of job designation, salary and benefits. The employee progresses to a better job with increased responsibility, more prestige and status.
It is basically a reward for efficiency promotion is conferment of additional benefits, usually is the form of higher pay, for an increase in responsibility or skill which is formalized by an increase in status or ranks which commands better wages, prestige and higher opportunities / challenges.
According to Prof. Khanka, promotion is vertical movement of an employee within the organization. In other words, promotion refers to the upward movement of an employee from one job to another higher one, with increase in salary, status and responsibilities.
Need for promotion arises because it serves the purpose of the organization as well as that of the individuals involved in the promotion. However, these purposes are served in different ways. Therefore, it is desirable to analyze how a promotion serves the needs of the organization and the individual.
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Learn about:- 1. Meaning of Promotion 2. Definition 3. Need 4. Objectives and Purpose 5. Principles 6. Significance7. Types 8. Basis 9. Role of Personnel Department 10. Methods 11. Programme and Its Procedure and 12. Practice in India.
Employee Promotion: Meaning, Definitions, Objectives, Principles, Significance, Types, Basis, Methods and Other Details
Contents:
- Meaning of Promotion
- Definition of Promotion
- Need for Promotion
- Objectives and Purpose of Promotion
- Principles of Promotion
- Significance of Promotion
- Types of Promotion
- Basis of Promotion
- Role of Personnel Department in Promotion
- Methods to Ascertain Promotion
- Promotion Programme and Policy
- Promotion Practice in India
Employee Promotion – Meaning
Promotion mean advancement in terms of job designation, salary and benefits. The employee progresses to a better job with increased responsibility, more prestige and status.
It is basically a reward for efficiency promotion is conferment of additional benefits, usually is the form of higher pay, for an increase in responsibility or skill which is formalized by an increase in status or ranks which commands better wages, prestige and higher opportunities / challenges.
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Promotion and promotion from within are two different words and means, that promotion may incorporate provisions for recruitment from the outside, to man promotional vacancies, but Promotion from within policy strictly provides for, internal recruitment of personnel.
Promotion involves the following ingredients:
(i) Improves job, status and prestige.
(ii) Gives more responsibility.
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(iii) Brings increase in pay and perks.
A promotion may also require more work, which goes along with general increases in responsibility. This work may be more complex or interesting, however, so most employees are happy to take it on. In recognition of the increased workload and status of the employee, most employers offer a pay raise with a promotion, and employees may become eligible for additional benefits.
In a ranked system like the military or a fire department, the promotion may be called an increase in rank or grade, and the employee’s pay will be adjusted according to a rigid scale.
Not all people view promotions as cause for celebrations. Some people, for example, prefer to remain lower in rank so that they can stay in the field in professions like policing. Others enjoy jobs with light responsibilities, despite the lower pay. In some cases, it is possible to reject such a promotion, although an employer may be puzzled. In others, a promotion is not an option.
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When positions fall vacant in an organization, they can be filled up by internal or external candidates. Many organizations prefer to fill up the vacancies by the external candidates through the selection procedure, in which the internal candidates may also apply for the post and may be tested and selected for a higher level job in the organizational hierarchy at par with external candidates. This process is called ‘selection’.
If the organization prefers to fill a vacancy only by the internal candidates, and assigns the higher level job to the selected employee from within the organization through promotion, such upward movement is termed as promotion.
Employee Promotion – Definitions Propounded by Various Authors and Management Thinkers Like: Scott and Clothier, Prof. Khanka, Paul Pigors and a Few Others
“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 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.”
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A promotion may be defined as “an upward advancement of an employee in an organisation to another job, which commands better pay / wages, better status / prestige and higher opportunities challenges and responsibility a better working environment, hours of work and facilities etc.”
A promotion may be defined as an upward advancement of an employee in an organisation to another job, which commands better pay/wages, better status/ prestige, and higher opportunities/challenges, responsibility, and authority, better working environment, hours of work and facilities, and a higher rank.
Promotion is a bit different from upgrading, which is concerned with minor promotions, promotions within grade or horizontal promotions.
According to Prof. Khanka, promotion is vertical movement of an employee within the organization. In other words, promotion refers to the upward movement of an employee from one job to another higher one, with increase in salary, status and responsibilities.
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According to Paul Pigors and Charles A. Myers, Promotion is advancement of an employee to a better job-better in terms of greater responsibility, more prestige or status, greater skills and especially increased rate of pay or salary.
Arun Monappa and Mirza S. Saiyadain defined promotion as “the upward reassignment of an individual in an organisation’s hierarchy, accompanied by increased responsibilities, enhanced status and usually with increased income though not always so.
Thus, the important conditions of promotion are:
(i) Reassignment of higher level job to an employee than what he is presently performing,
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(ii) The employee will naturally be delegated with greater responsibility and authority than what he has had earlier.
(iii) Promotion normally accompanies higher pay. It means that in some cases, the employees perform higher level job and receive the salary related to the lower level job.
For example, if a University Professor is promoted to the next higher level of the faculty position, i.e. Dean of the Faculty, he will not receive any increase in salary. Such promotion is called dry promotions. Promotions may be temporary or permanent depending upon the organizational needs and employee performance.
Employee Promotion – Need: Organizational and Individual Needs
Need for promotion arises because it serves the purpose of the organization as well as that of the individuals involved in the promotion. However, these purposes are served in different ways. Therefore, it is desirable to analyze how a promotion serves the needs of the organization and the individual.
1. Organizational Needs:
The most important need of an organization in the context of the management of human resources is to retain its human talents over a long period of time. One of the best way for doing this is to promote those who are promotable, and this process is to be undertaken on regular basis.
No organization can rely on outside recruitment to fill all its requirements. It is true that certain jobs are similar in most of the organizations but most jobs require some sort of specialization which is organization-specific. Even the jobs which are not quite unique may require familiarity with the people, processes, policies, and most importantly, the special characteristics of the organization which are contained in its culture and values.
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Thus, the contents of a job may be similar in many organizations but its performance may differ from organization to organization. The promotional ladders are needed to funnel upward those who have the broad experience and requisite skills in the organization. Research findings suggest that those organizations which have excelled in their field rely more on the internal promotions to fill-up their higher-level positions.
2. Individual Needs:
Promotion is not only needed by the organization; it is equally needed by the individuals. Need hierarchy theory of motivation suggests that individuals attach very high importance to status and job responsibilities which they get out of the promotion. Numerous research studies have proved this fact.
Organizations provide several benefits to their employees in order to induce them for better performance. Out of these, promotions are highly desirable to individuals both for their intrinsic benefits as well as their symbolic connotations of success values.
Promotion serves the organizational and individual needs in the following manner:
1. Promotion is used as a reward for better work performance and organizationally- approved form of behaviour. People will work harder if they feel that this will lead to promotion. They will have little motivation if they feel that better jobs are reserved for outsiders.
2. Promotion provides need satisfaction to personnel which enhances their morale, productivity, and loyalty to the organization.
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3. Because of increased loyalty which is developed among personnel through promotion, the organization is able to retain its talented personnel which is the utmost need of any organization in this age of high competition for human talents.
4. Promotion provides avenues for continuous learning and developing of personnel as promotion depends on promotability which is a result of continuous learning and development. This process increases individual effectiveness and, consequently, organizational effectiveness.
There is a flip side of promotion too. In fact, many employees do not want to be promoted on the assumption that the promotion may affect them adversely.
This happens in the following situations:
1. Employees may feel that once they are promoted, they will lose more benefits which they enjoy in the form of overtime payment, statutory bonus, incentive bonus, etc. than what they may derive out of promotion.
2. For some employees, settling at a particular level of position is more satisfying than attempting for promotion which requires continuous standing on one’s toes.
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3. Some employees do not want promotion because promotion may involve transfer from one place to another place. For such employees, affiliation to a particular place is more important than the benefits associated with promotion and career building.
However, it does not mean that promotion is not a logical exercise; indeed, it is required much more than which have been suggested by the flip sides which are more of exceptions and not general.
Employee Promotion – Objectives and Purpose for which Organisations Promote their Employees
There are number of objectives for which organizations promote their employees:
(i) For the optimum utilization of the employees’ skill, knowledge at the appropriate level in the organizational hierarchy resulting in organizational effectiveness and employee satisfaction.
(ii) For the development of competitive spirit and inculcate the enthusiasm in the employees to acquire the skill, knowledge etc. needed for the higher level jobs.
(iii) To develop competent internal source of employees ready to take up jobs at higher levels in the changing environment.
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(iv) For the promotion of a feeling of content with the existing conditions of the company and a sense of belongingness to the company.
(v) To promote employee’s self-development and be ready for the promotion as and when their turn of promotion occurs.
(vi) To promote interest in training, development programmes and in team development areas.
(vii) To get rid of the problems created by the leaders of workers’ unions by promoting them in the officers’ levels where they are less effective in creating problems.
Purpose of Promotion:
A promotion is a vertical move in rank and responsibility.
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Promotions are usually given:
(a) To put the worker in a position where he will be of greater value to the company and where he may desire increased personal satisfaction and income from his work.
(b) To recognize and individual’s performance and reward him for his work so that he may have an incentive to forge ahead. Employees will have little motivation of better jobs are reserved for outsiders.
(c) To increase an employee’s organizational effectiveness.
(d) To build up morale, loyalty and a sense of belonging on the part of the employees.
(e) To promote job satisfaction among the employees and sure then an opportunity for unbroken continuous save.
(f) To create among employees a feeling of continual with their present conditions and encourages them to succeed in the company.
(g) To attract suitable and competent workers for the organisation.
Employee Promotion – Significance: Handles the New Job Efficiently, Motivates Higher Morale, Ensures More Efficiency, Cost in Training will be Less & Solves Personnel Problems
The important significance of promotion are as follows:
(1) Promotion Handles the New Job Efficiently:
People working in the organisation will have no problem in handling the new job because they are intimately connected with the organisation structure, production process, products and different problems.
(2) Promotion Motivates Higher Morale:
A sound policy of promotion will keep the morale of the employees high because they know that they will be offered senior positions as and when there are vacancies. In this way it motivates the employees.
(3) It Ensures More Efficiency:
It will ensure sincere efforts on the part of the employees. They will try to increase their efficiency in order to get the chance for higher position.
(4) Cost in Training will be Less:
The cost to train the workers of the organisation on the senior post will be much lesser.
(5) It Solves Personnel Problems Easily and Efficiently:
If the organisation has a sound promotion policy, several personnel problems are solved easily. It creates the sense of loyalty and confidence in the organisation resulting in faithful service, meritorious performance, outstanding ability on job, good attendance, accident avoidance, higher production and lower turnover.
Employee Promotion – Top 11 Principles: Must be Written, Promotion Vacancies be Specified, Basis of Promotion be Mentioned, Should be Based on Job Analysis & a Few Others
The promotion principles of any institution are a very important aspect of any organisation as it can be studied as under:
Principle # 1. It Must be 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.
Principle # 2. Promotion Vacancies be Specified:
The promotion policy should lay down what percentages 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.
Principle # 3. The Basis of Promotion be Mentioned:
The promotion policy should mention the basis of promotion. A sound policy must be based on both the considerations i.e., seniority and merit. It should emphasise the merit giving due weightage to seniority. Seniority should be the basis of promotion of two persons who are equal in merit.
Principle # 4. Promotion should be Based on Job Analysis:
In promotion the 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. Position 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.
Principle # 5. Suitable Training Programme should be Developed:
A suitable training programme should be developed to prepare employees for promotion. Such programme may include special on-the-job training, provisions of vestibule schools, night classes or vocational courses. Special training programmes to meet fully the job requirements due to fast scientific and technological changes are necessary to help employees to qualify themselves for better jobs.
Principle # 6. It should be Based on Scientific Procedure:
A scientific procedure for evaluating employee performance should be followed to justify the promotion or super session. The assessment of the employee and his confidential report should be objective so that every employee has faith in the promotion policy and is induced for better performance of work to get promotion.
Principle # 7. Promotion should be Based on Recommendation by Immediate Boss:
It will be proper and better if the supervisor or the immediate boss should recommend the promotion. This is subject to approval by the immediate superior in the 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.
Principle # 8. It 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.
Principle # 9. For Promotion Vacancy Advance Notice be Given:
A vacancy or a would be vacancy should be notified to employees in advance so that interested employees may apply within a specified period.
Principle # 10. Promotion Need not be Forced:
It has been seen that all people within an organisation do not 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 they should be allowed to continue their present assignment.
Principle # 11. Promotion be made on Probation:
At first the promotion should be made on probation. If he works satisfactorily during the probation period, he should be made permanent.
Employee Promotion – 4 Main Types: Horizontal, Vertical, Dry and Open versus Closed Promotion
The various types of promotions are as under:
Type # 1. Horizontal Promotion:
In this type of promotion, the position of the employee concerned has been upgraded with some pay increase but the nature of his job remains the same. This is known as upgradation of an employee.
In universities and other academic institutions, the system of this type of promotion is in the form of lecturer-senior lecturer-selection grade lecturer, etc. there is an increase in responsibility and pay with some change in the designation as well.
However, there is no upgradation to a higher rant status and responsibility the job classification remains the same. For example, a lower-division clerk is promoted as higher-division clerk.
Type # 2. Vertical Promotion:
Most of the time, the term promotion, refers to vertical promotion. In vertical promotion, there is a change in the status, responsibilities, job classification and pay. To illustrate, the promotion of a marketing superintendent as marketing manager.
Sometimes, this type of promotion changes the nature of job completely, e.g., a functional head is promoted as chief executive of the organisation. The jobs involved at these two positions are completely different.
Type # 3. Dry Promotion:
An increase in responsibilities and status without any increase in pay or other financial benefits is termed as dry promotion. For example, a professor in a university becomes Head of the Department. It is just an elevation of the professor without any increase in monetary benefits.
Type # 4. Open Versus Closed Promotion:
An open promotion system is the system where it is willing to consider all individuals within its organisation as potential candidates and also announces internally such position openings.
On the other hand, where an organisation does not so announce vacancies or where the candidacy is restricted and is not open for all individuals within the organisation for the promotion openings, the company is said to have a closed promotion system. In general course a company has a combination of these two concepts.
Employee Promotion – 2 Most Important Basis: Seniority and Merit
In order to formulate promotion policy, it is important to determine acceptable basis for promotion decisions. Normally policies are based on either “seniority or “merit and ability and both have their own advantages and their advocates. Seniority refers to length of service.
Basis # 1. Seniority:
Seniority means length of recognized service in an organization. If it is adopted as a basis for promotion, promotion will be done as a matter of routine. Trade unions generally insist that years of service or seniority should be the main criteria for making promotions.
They prefer seniority because the system assures all employees that promotion will come automatically when it is due. So the system is simple to understand and operate. They assert that an employee who has stayed with an organization for number of years, needs appropriate consideration. This satisfies the employee’s aspirations for growth, builds morale and is conducive to better labour management relations.
However, although seniority rewards loyalty and long service, it in no way guarantees able management. Again, if employees get promotion automatically as a matter of course, new employees may not be motivated to improve their performance. Though its effects on morale may be favourable, in as much as employees are not passed over, its effects on motivation may be less acceptable.
Seniority is considered to contribute to the employee’s ability on the assumption that the longer a person does a job, the more he learns about it. However, this assumption also has the reverse effect that after a certain time span learning diminishes – a phenomenon referred to as – “trained incapacity”.
For these and various other reasons Management generally prefers merit and ability as the basis for promotion while formulating promotion policy.
Basis # 2. Promotion by Merit:
It is strongly favoured since it enhances organizational efficiency, and maximizes utilization of talent, since only deserving employees are promoted after a thorough assessment of their abilities for a higher level job involving greater responsibilities and status. There is no doubt that promotion on the basis of merit encourages initiative and if the policy is consistent and fair, it would lead to efficiency and higher productivity.
However, such promotions do cause demoralization of a certain number of employees and generate conflicts in the organization. Using merit as the sole basis for promotion is subject to criticism because there is problem of bias in judging merit or ability. The devices used for judging ability such as performance appraisals and confidential reports are not above subjectivity.
As a compromise between labour and management preference of seniority as against merit as a promotion basis, middle road is suggested that both seniority and merit could be considered as the basic criteria for promotion.
Pigors and Myers’ observe- Promotions should be fairly and capably used by management to place on each job the most competent and productive workers available. Seniority should be considered, but only when the qualifications of two candidates for a better job are substantially equal.” Thus, “merit-cum-seniority” would constitute a compromise solution in practice.
Employee Promotion – Role of Personnel Department
While discussing the role of personnel department in promotion the following factors may be taken into consideration:
(1) To Give Advice:
The first and the most important role of the personnel department is to give advice. Promotion is line responsibility. The immediate boss proposes promotions which are 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 and Develop a Sound Promotion Policy:
In a staff capacity personnel department can assist the line authority in designing and developing a sound promotion policy to ensure better industrial relation in the organisation. It offers the personnel administrator an excellent opportunity to develop understanding and acceptance of management policy.
(3) To Provide Necessary 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 Various Tools of Promotion:
Job analysis, job description, job specification and performance appraisal are some of the tools which decide the line of promotion and the ability of the person. The quantity and the quality of performance should be measured periodically and should form a part of the personnel record.
(5) To Effect Communication to Workers:
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 will be expected of them on the higher rated jobs.
(6) To Solve and Settle Disputes:
If the management’s decision on promotion is disputed by the aggrieved employees or union representatives, the personnel manager should hold discussions with them within 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 useful if errors are admitted and adjustments 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 departure from sound policy pointed out.
(7) To Prepare and Establish Workforce:
One of the important role and 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 them opportunities to officiate on the higher positions. However, the persons who are not interested in promotion should not be forced to hold higher positions.
In the end, it can be said that the personnel department has an important role to play in promotions by assisting line 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.
Employee Promotion – What are the Methods Used for Promoting Employees: Promotional Examination, Efficiency Rating and Personal Judgement of the Head of the Department
The different methods of promotion are:
(1) Promotional Examination:
The first method of judging merit is examination. In many countries written examination is taken for promotion. It eliminates all kinds of favouritism and nepotism. It keeps the employees up-to-date about the new developments. It gives equal chance to everybody to aspire and compete for higher positions. In many countries departmental examinations are organised it is common in the banking services in India.
Promotional examinations are of three kinds:
(a) Open Competition:
Sometimes open competitions are held for the promotional post and any one whether in the service or not can compete for the post of promotion.
(b) Limited Competition:
The second type of examination is a limited examination for promotional posts among those who are already in the service. This is also known as “closed system” as opposed to the “open system” where everyone can compete.
(c) Pass Examination:
Every department organises many promotional tests every year. In these tests those individual who have passed the examination are qualified for promotion. Here a list of qualified candidates is prepared, and on the basis of these lists they are promoted. Under this system chances of favouritism and corruption are very less. However, this system of written examination cannot judge the personality of the candidate.
(2) Efficiency Rating:
It is the system under which efficiency of an employee is rated on the basis of his service records. A record of service of the employees is kept and his capability for the performance of the job is evaluated by his superiors on the basis of his service record. In the USA, there are three major types of efficiency rating which are production records, the graphics rating scale and the personality inventory.
(i) Production Records:
A Production Record is applicable in such types of works, which is repetitive in nature and involve little judgement.
(ii) The Graphics Rating Scale:
The graphic rating scale was one of the early forms of efficiency rating. The form included fifteen traits or qualities against each of which was placed a horizontal line along which were fixed subdivisions with appropriate adjectives under each, indicating the degree in which characteristic to be checked was possessed.
A check on each line ‘rated’ the employee on the corresponding trait For different type of work, different combinations of four or five traits were specified for use by the rating officer, the single sheet serving for a wide variety of occupations.
The resulting score expressed in a numerical figure carried out to two decimal places, was worked out by clerks and was subject to review by one or more supervisor. This system was employed in the US federal government for about a decade and then was abandoned in 1935.
(iii) The Personality Inventory System:
The personality inventory system seeks to get a record of service by different mentis. Mr. J.B. Probst, former chief examiner of the St. Paul Civil Service Bureau, invented and developed twenty trails of human being which is relevant to employment From among these qualities of personality the rating officer selects the particular items descriptive of the employee in question.
From ten to twenty-five such items are picked up without difficulty. A number of special forms have been devised for different types of employees, such as policeman, fireman, librarians and teachers, in addition to the basic form which is adaptable to a wide variety of employment.
The rating officer has to check the presence of these qualities in the employee but has no power to evaluate these traits qualitatively or quantitatively under the graphic scale system. There are three types of rating officers, the immediate supervisor, and the next two higher officers. After the form has been duly checked or marked by the three rating officers, it is ‘scored’ or valued.
The efficiency rating system is most useful for finding the most able and efficient person for promotion. It is a fair and reliable system of rewarding the most efficient person and eliminating those who are comparatively less competent
(3) Personal Judgement of the Head of the Department:
In the system merit is determined by the head of the department. The head of the department knows the qualities of an employee who has worked with him for many years. This method of promotion encourages dictatorial tendency. It is based on nepotism and favouritism.
Here only ‘yes men’ or ‘sycophants’ have good chances of promotion. Thus it was opposed by the employees. This system of promotion is mostly followed in private business and industry, but is not very common in the civil service.
In fee departmental promotion, we know that both on the basis of merits and seniority promotion are made. But both these methods have some advantages and disadvantages. Therefore, we suggest a mix of both the principles-seniority-cum-merit (length of service). It means seniority is fixed and then the meritorious person amongst those who possess the minimum experience is selected for promotion.
Employee Promotion – Programme and Policy
A promotion programme consists of the following basic elements:
Deciding the Policy:
The management must provide realistic opportunities which will encourage promising employees to take the risks involved in moving upward. It must not discourage valuable employees from seeking advancement by making service in an unpopular job a prerequisite for promotion.
It must provide for employees who do outstanding work but who are unwilling to take on new and additional responsibilities. It must provide alternatives for professionals who are reluctant to assume supervisory responsibilities.
“Organisations that have failed to reward excellence is service, or that have relied too heavily on personal relationships or length of service, suffer in terms of both efficiency and morale.”
Each organisation needs to strike a balance between the internal sources of personnel promotion and external source (through recruitment) on the one hand and between merit and ability as against length of service on the other.
“The organisation that fails to develop a satisfactory procedure is bound to pay a severe penalty in terms of administrative costs, misallocation of personnel, low morale, and ineffectual performance, among both non-managerial employees and their supervisors.”
Since promotions mean advancement for some, the promotional process itself must ensure that successful candidates are sufficiently acceptable to their subordinates and others so that leadership in, and effective administrative of organisational progress is unhindered and unhampered. A management should frame the policy on the basis of which promotions may be made.
A sound promotion policy must satisfy the following criteria:
(a) It should enjoy consistency, i.e., it will be applied irrespective of the persons concerned. Consistency demands that the policy should be so correlated to career planning that there should not be a sudden spurt of promotion in the organisation conferring premature benefits on a number of persons, followed by a long period of absence of promotion.
(b) It should be fair and impartial, i.e., the management should be able to remove all suspicion of arbitrariness, adhocism, improvisation to suit particular individuals, nepotism, etc.
(c) Promotion should be a planned activity, i.e., the management should make a correct assessment of the requirements or opportunities of promotion within the organisation so that there is no phenomenon of ‘bunching’ or no period of ‘promotional drought’, i.e., no overestimation or underestimation.
The promotion policy should involve six elements as follows:
1. Promotion Policy Statement, which should consider whether vacancies are primarily to be filled up from within an organisation or by recruitment from outside. Is any preferential treatment to be given to direct recruits?
Would it be sound to deny promotion to otherwise qualified personnel? Whether an increase in pay is to be given? If so, when and how much? Usually, internal promotions are preferred over external recruitment and increase is given at the time of promotion, otherwise promotion is meaningless.
2. Establish as Plan of Jobs, i.e., decide 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. Which positions are to be filled up?
Usually, promotions are decided on the basis of performance appraisals. “Job-post and bid system”, i.e., positing of job vacancies indicating job titles, duties, pay and qualifications on company notice boards, is also utilised.
3. Trace Transfer Routes, i.e., having some type of formal and systematic promotion channels. Ladders giving paths of advancement, promotional charts, opportunity charts or fortune 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. Prepare Employees for Advancement, through the Provision of Some Training, either on the job in professional/technical institutions, or through job rotation, multiple management, understudy and conferences.
5. Communicate the Policy, the organisation should communicate its promotion policy either in the form of a manual or in the agreement signed with the union or in the form of a set of Standing Orders. To have a policy and not to communicate it to the employees will only create suspicions and misgivings. However, for higher level personnel, a precise formulation of such a policy may not be effective.
6. Detailed Personnel and Service Records are Kept Ready on the basis of which promotions may be made.
The following indices are available for judging whether candidates are suitable for promotion:
The margin of performance on his present job, i.e., does he run it with ease and with margin to spare or is he barely able to manage his job?
Flexibility or versatility, i.e., has been successful on different types of jobs requiring different skills and different abilities, or does he seem to be only interested in a restricted field?
Intelligence, i.e., How does he think? How has he learnt on work he has carried out?
Equipment, i.e., How compatible are his education, literacy, expression and personality with the critical needs of the job?
Motivation, i.e., What are his wants? What is important for him? What are his goals, his objectives in work and life?
Employee Promotion – Practice in India
In India, in some companies, promotions are made on the basis of merit, potential and seniority. Internal Promotions are also granted, from the existing lower cadre on the basis of seniority and merit.
In public sector organisations, elaborate rules exist for regulating the seniority of employees in different service cadres. Promotions are made from this list. But often, due to political pressures, the rules are violated and a person standing much lower in the list is given priority over the senior-most men.
In the private sector enterprises, the promotions are generally not based upon any clear-cut rule. Efficiency is the main consideration, unless it is a family enterprise where relationship with the proprietors or patronage might play a part.
But even there only a limited number of posts would be filled upon the basis of relationship or by way of patronage. Even in such firms where employees are concerned, there is generally a well-defined promotion policy and nepotism is avoided, as far as possible, where the employees are well organised. The rule followed is- “Promote the best man available.”
While making promotions, the management must ensure that:
(a) Proper talents are first made available by a correct programme of recruitment;
(b) Employees are enabled to satisfy their own aspirations within the framework of the company’s own objectives and projects, and
(c) A programme of career planning, coupled with periodic assessment is followed in accordance with rules.
It is worth noting that in a developing economy like India, with rapid technological advances and need for training and education, it is not always possible to promote the older workers who can neither be adequately trained nor are willing to be exposed to new concepts, ideas and methods of work.
As for the higher level promotions, only in large organisation can a policy of promotions from within be practicable; but even there such promotions cannot be confined entirely to the existing personnel of the organisation, unless management development and career planning are an essential part of the company’s promotion policy.