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Promotion
• Promotion is upward movement of employees
• Promotion means an improvement in pay,
prestige, position and responsibilities of an
employee within an organization.
• A mere shifting of an employee to a different
job which has beet working hours, better
location and more pleasing working conditions
does not amount to promotions
PROMOTION:
Dry promotions :Dry promotions are those that are given in lieu of increase in
compensation.
• A sound promotion programme is that it must tell employees in advance what avenues
for advancement exist.
• There should be some definite system for the selection of employees who are to be
promoted from within the promotion zone.
• Finally all sanctions must be approved by the concerned line heads.
• A sound promotion policy must provide for suitable system of follow up and review.
Advantages of a well defined and documented Promotion scheme:
It provides an opportunity for the present staff to move into jobs that provide greater
personal satisfaction and prestige.
It serves as an orderly logical and prompt source of recruitment for management to fill
vacancies as they arise.
Promotion Policy
quits
Voluntary
retirements
Discharges
Separations
Layoffs
involuntary Retrenchments
VRS
Rightsizing
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Voluntary separations
• When employee decides to terminate his/her
relationship with the employer. Two types are
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Separation : VRS
• Began in the early 1980’s
• companies both in public and private sectors, have
been sending home surplus labour for good, not
strictly by retrenchment, but by the novel scheme
called the VRS,
• Also called the Golden Hand Shake Plan.
• Handsome compensations are paid to those who opt
to leave
• Like Hindustan Lever VRS consisted –
– A lump sum payment equal to 2.25 times in July 1992
salary multiplied by remaining years of service
(subsequently reduced to 15 years service)
– Pension equal to 70% of the July 1992 salary payable till
the age of 60 (the company’s retirement age)
– Prizes such as computers, trucks, houses, and so forth (99
in all) to be decided on the basis of a lucky draw.
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Separation : Rightsizing
• Rightsizing: means reducing the size of the
workforce or increasing it to maintain the
employee strength at the most desired level.
• Mostly it is downsizing only
• Triggered by –
– The company’s bottom line is threatened
– Technological advancements renders people
redundant, and
– Organizational restricting
– Economic and market pressures to cut cost
• It is quite painful for the employee and his family.
• Affects the morale of all the employees
Guidelines to manage downsizing