Transfer And Demotion

TRANSFER AND DEMOTIONS

TRANSFER Definition According to Dale Yorder,”A transfer involves shifting of an employee from one job to another without special reference to change in responsibility or compensation”

Transfer is viewed as change in assignment in which the employee moves from one job to another in the same level of hierarchy requiring similar skills involving approximately same level of responsibility, same status and the same level of pay.

PURPOSE OF TRANSFER • • • • • • • •

To meet the organizational requirements To satisfy the employees’ needs Better utilisation of employees Making employees versatile To correct inter-personal conflicts Avoidance of overstaffing Disciplinary action To minimise fruad,bribe etc

TYPES OF TRANSFER • Production transfer Transfer caused due to changes in production • Replacement transfer Transfer caused due to initiation or replacement of a long standing employee in the same job.

• Versatility Transfer or rotation of Transfer Transfer initiated to increase the versatility of employees • Shift transfer Transfer of an employee from one shift to another shift

• Remedial transfer Transfer initiated to correct the wrong placements. • Penal transfer Transfer initiated as a punishment for indisciplinary action of employees

REASONS OF TRANSFER Three reasons for transfer • Employee initiated transfer • Company initiated transfer • Public initiated transfer

• Employee initiated transfer It is also known as personal transfer. These transfers are primarily in the interest of an employee. It is classified into temporary and permanent transfer.

• i. ii. iii.

Reasons for temporary transfer Due to ill health Due to family problems Due to other adhoc problems

• i. ii. iii. iv.

Reasons for permanent transfer Due to chronic ill health Due to family problems With a view to correct his wrong placement. In order to relieve from the monotony or boredom v. To avoid conflicts with his superiors. vi. With a view to search for challenging and creative jobs vii. search for a job with opportunities for advancement.

• Company initiated transfer Transfer due to the initiative of the company It is classified into temporary and permanent transfer Reasons for temporary transfer i. Due to temporary absenteeism of employees. ii. Due to fluctuations in quality of production and thereby in workload, iii. Due to short vacations.

Reasons for permanent transfer • Change in quality of production, lines of activity, technology, organ isational structure etc • To improve the versatility of employees • To improve the employees’ job satisfaction • To minimise bribe or corruption.

• Public initiated transfer It is generally through the politicians/govt for the following reasons • If an employees’ behaviour in the society is against the social norms or if he indulges in any social evils. • If the functioning of an employee is against the public interest.

BENEFITS OF TRANSFER • It reduces employees monotony, boredom etc • Increase employees job satisfaction • improve employees skill,knowledge etc • Improve employees morale • Correct erroneous placement and interpersonal conflicts

PROBLEMS OF TRANSFER • Adjustment problems to the employee to the new job, place, environment,superiors and colleagues • Transfer from one place to another cause much inconvenience and cost to the employee and his family members relating to housing, education of children • Transfer from one place to another result in loss of mandays, • Company initiated transfer result in reduction in employee contribution • Discriminatory transfers affect employee morale, job satisfaction,commitment and contribution

Transfer Policy • Every organisation should have its own transfer policy. Such a policy should be just and impartial. Frequent transfer may be avoided. Transfer should be made only when a need arises.

Features of a good transfer policy i. ii. iii. iv. v. vi. vii. viii. ix.

Specification of circumstances under which an employee will be transferred in the case of company initiated transfer. Specification of a superior who is authorized and responsible to initiate a transfer Jobs from and to which transfer will be made based on the job specification, description and classification etc The region or unit of the organisation within which transfer will be administered. Reasons which will be considered for personal transfers, their order of priority etc Reasons for mutual transfer of employees Specification of basis for transfer like job analysis, merit and length of service. Specification of pay, allowances, benefits etc that are to be allowed to the employee in the new job. Other facilities to be extended to the transferee like special leave during the period of transfer, special allowance for packaging luggage, transportation etc

DEMOTIONS • Demotion is the reassignment of a lower level job to an employee with delegation of responsiblities and authority required to perform that lower level job and normally with normal level pay.Organisations use demotions less frequently as affects the employee's career prospects and morale.

Reasons for demotions i. Unsuitability of the employee to higher level jobs. ii. Adverse business conditions iii. Technological change iv. Bad business condition v. Incompetence

Demotion principles Organizations should clearly specify the demotion policy. A systematic demotion policy should contain following items. i. Specification of circumstances under which an employee will be demoted. ii. Specification of a superior who is authorized and responsible to initiate a demotion. iii. The policy should be just and fair. iv. Specification of nature of demotion v. The lines of demotion should be specifically mentioned. vi. Specification of basis for demotion like length of service, merit or both.