TYPES OF PROMOTION

Promotion involves an increase in status, responsibilities and

salary. But in some cases, only the salary increases and the other elements
remains stagnant. Further in some other cases, only the status increases
without a corresponding increase in salary or responsibility. Therefore
promotion can be classified as follows on the basis of element which increase s
and which remains constant:
HORIZONTAL PROMOTION
It involves an increase in the responsibilities and salary and a
change in the designation. But employee concerned does not transgress the
job classification. For instance, a lower level employee is promoted to the
upper level.
VERTICAL PROMOTION
It results in greater responsibility, salary and prestige along with
the change in the nature of the job. A promotion is said to be vertical when a
shop floor worker is promoted as clerk.
DRY PROMOTION
These pro motions are provided to employees in lieu of increase in
remuneration. Designations are different but there is no change in the
responsibilities of the employee. The concerned employee is offered one or
two increments.
PRINCIPLES OF PROMOTION
1. Written policy
2. Proportion of vacancies
3. Basis of promotion
4. Job analysis
5. Alliance with training programme
6. Evaluation of employee performance
7. Number of promotion
8. Acceptance from labour union
9. Notification of vacancy
 BASES OF PROMOTION seniority as the basis for promotion
Seniority implies length of service in the organisation.

If seniority is taken as the base , the employee with the longest period of
service will be promoted.
MERIT AS A BASIS FOR PROMOTION
When merit is taken as the base it is ensured that
competence is the fundamental determinant of progress. The promotion is
made on merit and competence, which are determined on the basis of
performance appraisal.
IMPORTANCE OF PROMOTION
It encourages employees to achieve success in the organisation. It reduces
labour turnover as it promotes employees self- development and makes them
aware of the likely promotion to different positions in the future. It recognises
the employee performance, commitment/loyalty and motivates them for
better performance. It reduces the competitive spirit and zeal in the
employees to acquire the skills and knowledge, which are required for
performing the higher level jobs, .