SEPARATION, DEMOTION,

PROMOTION, TRANSFER,
PL ACEMENT AND INDUCTION
EMPLOYEE SEPARATIONS

 Employee separations occur when employees

cease to be members of an organisation.

 The service agreement between the employee and

the employer comes to an end and the employee
decides to leave the organisation.
SEPARATIONS CAN TAKE SEVERAL FORMS

Resignation: A voluntary separation initiated by the

employee himself is called resignation. It is always better
to find why the employee has decided to quit the
organisation. Properly conducted exit interviews would
help throw light on factors behind the curtain .

Death: Some employees may die in service. Death caused

by occupational hazards, of course, would attract the
provisions of Workmens Compensation Act, 1923. The
normal separation of people from an organisation due to
resignation, retirement or death is known as attrition.
Retirement: Termination of service on reaching the age of
superannuation is called retirement.
Compulsory Retirement
Voluntary Retirement
To avoid problems, organisations normally plan
replacements to retiring employees beforehand.
• Lay off: A lay off entails the
separation of the employee from the
organisation temporarily for
economic or business reasons.
Employee get 50% excluding holidays
of his/her normal basic pay plus
dearness allowances
• Retrenchment: A permanent lay off
for reasons other than punishment
but not retirement or termination
owing to ill health is called
retrenchment. Legally speaking,
employers in India are required to
• Outplacement: Outplacement assistance includes Efforts
made by the employer to help a recently separated employee
find a job. Apart from training support to such employees,
some organisations offer assistance in the form of paid leave,
travel charges for attending interviews, search firm
expenses ,etc.

• Suspension: Suspension means prohibiting an employee from

attending work and performing normal duties assigned to
him. He/She receives Subsistence allowances

• Discharge and dismissal: The termination of the services of

an employee as a punitive measure for some misconduct is
called dismissal. Discharge also means termination of the
services of an employee but not necessarily as a punishment.
A discharge does not arise from a single irrational act( such
as alcoholism, willful violation of rules, insubordination,
carelessness, dishonesty, inefficiency, violent acts,
unauthorized absence for a long time
DEMOTION

Demotion is the downward movement of an employee in

the organisational hierarchy with lower status and pay.

 It is a downgrading process where the employee suffers

considerable emotional and financial loss in the form of
lower rank, power and status, lower pay and poor working
CAUSES OF DEMOTION
Employee unable to meet job requirements.
Organisation forced to demote employees because of
adverse business conditions.
Demotions happening to check errant employees
DEMOTION POLICY
A clear cut policy regarding demotions would help
employees adjust to complex organisational demands
admirably.
Punishable offences must be listed in advance. Better
to state the reasons before punishing an employee.
Any violation must be properly investigated and
followed by a consistent and equitable application of
the penalty. There should be enough room for review.
PROMOTION

Promotion refers to upward movement of an employee

from current job to another that is higher in pay,
responsibility and/or organisational level.

Purposes and Advantages of Promotion : Promotion has

powerful motivational value as it compels an employee
to utilise his/her talents fully, and remain loyal and
 BASES OF PROMOTION
Merit based promotions
Seniority based promotions
PROMOTION POLICY

To be fair, an organisation should institute a promotion

Policy that gives due weightage to both seniority and
merit.
 Promotion Opportunities must be thrown open to all
employees.
 The norms for promotion should be expressed in writing.
Detailed records must be maintained for this Purpose.
 A responsible official should be asked to take the final
decision regarding employee promotions.
TRANSFER

A transfer is a change in job assignment. It may involve

a promotion or demotion or no change at all in status
and responsibility.
PURPOSES OF TRANSFER

To meet the organizational requirements

 To satisfy the employee needs
 To utilize employees better
 To make the employee more versatile
 To adjust the workforce
 To provide relief
 To reduce conflicts
 To punish employees
 TYPES OF TRANSFER

Productio Replace
Rotation Shift Remedial Penal
n ment
Transfer Transfer Transfer Transfer
Transfer Transfer
BENEFITS OF
TRANSFERS
 Improve employee skills.
 Reduce monotony, boredom
 Remedy faulty placement decisions
 Prepare the employee for challenging assignments in future
 Stabilise changing work requirements in different
departments/locations
 Improve employee satisfaction and morale
 Improve employer-employee relations
PROBLEMS

To employees who otherwise do not want to move

Employees may or may not fit in the new location/department
Shifting of experienced hands may affect productivity
Discriminatory transfers may affect employee morale.
TRANSFER POLICY:
 Transfer policy: Organisations should clearly
specify their policy regarding transfers. Such
a policy would normally consist of the
following things
 Specify circumstances under which the
transfer has been effected
 Name the persons authorised to effect
transfers
 Mention the basis for the transfer
 Clarify the position regarding pay,
allowances, benefits etc
CONCEPT
Placement is the actual posting of an employee to a
specific job—with rank and responsibilities attached to
it. Most organisations put new recruits on probation for
a given period of time after which their services are
confirmed. Placement, however, should be made with
as little disruption to the employee and organisation as
possible.
Differential Placement :If an employee is not able to
cope with job he may be shifted to another job in
consultation with the line manager   
STEPS
1. Collect details about the employee
2. Constructor employee’s profile
3. Match between sub group profile and Individual
profile
4. Compare sub group profile to job family profile
5. Assign the individual to job family
6. Assign the individual to specific job further
counseling and assessment
 Advantages of Placement

Show good results on the job.

Get along with people easily.
Keep his/her spirits high, report
for duty regularly.
Avoid mistakes and accidents.
PROBLEMS OF
PLACEMENT
Employee expectation from the job
Expectation from the employers are more than the
employee ability and skills
Technical changes at times lead to problems
Changes result in a misfit between the employee and
the job
 INDUCTION OR
ORIENTATION

Induction or orientation is the process through which a new recruit

is introduced to the job and the organisation. Induction removes
fears from the mind of a newcomer, creates a good impression
about the organisation and acts as a valuable source of information
NEED TO CONDUCT
INDUCTION
To familiarize new employee to the
organization, people, departments,
work, teams, organization chart,
designation, hierarchies and company
Process and Policies.
Orient new employee to work
protocols, work environment, team
culture, how to behave in situations,
escalation modes, detailed process
familiarization.
OBJECTIVES OF INDUCTION

To reduce anxiety

To reduce Employee Turnover Cost

To save time for supervisors and co-workers

To develop realistic job expectation, positive

attitude and job satisfication
STEPS IN INDUCTION
 Welcome to the organisation
 Explain about the company and show all the
facilities
 Show the location where the new recruit will work.
 Give the company manual
 Offer details about various work groups
 Provide details about policies, rules, regulations,
benefits, etc
 Explain about opportunities and career prospects
 Clarify doubts
 Assign the new recruit to the supervisor
PROBLEMS
Supervisor who is entrusted with the job is not trained
or is too busy
Employee is thrown into action too soon
Employee’s mistakes can damage the company
Employee is overwhelmed with too much information
in a short time
Employee is overloaded with forms to complete