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Human resource development

Concepts of human resource development:

Human resourse development is on organized learning experience aimed at matching

the organizational need for human resource with the individual need for career growth and

development.

Definition:

According to Prof. T. V. Rao the best known Indian human resource development

expert:HRD is a process in which th employees of an organization are continually helped in

a planned way.

Characteristics of HRD:

y Human resource development is a planned and systematic approach to thedevelopment of people.

y Human resource development is a continuous processy Human resource development is an interdisciplinary concepty Human resource development has both micro and macro aspects.y Human resource development is a process not merely a set of mechanisms and

techniques.

Difference between personnel function and HRD:

Point ofDistinction Personnel function Human Resource

development

Status It is an independent sub

functions

It is an integrated system

consisting of interdependentof sub-systems.

Orientation It is a reactive function It is pro active

Aims It seeks to improve the

efficiency of people and

administration

It focuses on autonomus

work, job challenges and

creativity for motivatingpeople

Responsibility It is considered to be theresponsibility of personnel

manager

It is the responsibility of allmanagers

Morale productivity

relationship

It considers improved

satisfaction and morale as thecause of improved

performance

It considers improved

performance as the cause ofimproved satisfaction andmorale

Incentives It focuses on salary economic

rewards, job simplificationand job specialization for

motivating people

It focuses on autonomus

work, job challenges andcreativity for motivating

people

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Objectives of HRD:

y The capabilities of each employees as an individualy The capabilities of each individual in relation to his/her present and expected

future roles.

y The dynamic relationship between each employee and supervisory The team spirit and functioning in every unit of the organizationy Collaboration among different units of the organizationy The overall health and self-renewing capabilities of the total organization

Need and significance of HRD:

y HRD improves the capabilities of people by making them better aware of theskills required for job performance

y HRD improves communication system in the organizationy HRD helps an organization in procuring the right people at the right time and

in making their effective use.

y Contributions of employees are valued and rewarded in a better wayy HRD provides an opportunity for continuous and all growth of employees

through succession planning and career planning

y HRD improves collaboration and team worky HRD improves problem solving and adaption skills of employees

HRD in Indian Industry:

HRD climate in Indian organizations. The survey revealed that the general climate

was not very conducive to HRD due to general indifference of employees to their own

development.

Essential Qualities of HRD:

y Essential qualitiesy Functional competenciesy Managerial competencies

Principles of HRD:

y Corporate policy on human resourcesy Commitment of top managementy

Sound planningy Conducive climatey Competent functionariesy Gradual approachy Sharing experiences

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Employee counseling:

Employee counseling can be helpful in strengthening superior subordinate

relationships. It improves communication and helps employees recognize their strengths and

weakness and potential.

Objective of Counseling:

y To understand himself better and to know his potential strength and weaknessy To gain an insight into dynamics of his behavior by providing feedbacky To have better understanding of the environment in which he functionsy To increase his personal and interpersonal effectiveness by assisting him in

analyzing his interpersonal competence

y To prepare alternate action plans for improving his behavior and performance.y To understand and solve personal problems through empathetic listening

Steps in Counseling process:

y Preparation stagey Intermediate stagey Helping stage

Requirements for Effective counseling:

y Individual desire to improvey Continuous dialoguey Mutual trusty Right attitude to subordinatesy Mutual effortsy Right focus

Employee Empowerment:

Concept of Empowerment:

Empowerment means allowing a person to run the show by himself. Empowered

employees become Self-directed and Self-controlled.

Definitions of Empowerment:

According to Nancy toy Empowerment is simply gaining the power to make your

voice heard, to contribute to plans and decisions that affect you, to use your expertise at work

to improve your performance and with it the performance of your whole organization.

Elements of Empowerment:

y Sense of personal control over ones immediate work situationy Self sufficiency or competencey Meaningfulnessy Impact

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Approaches to Empowerment:

y Helping employees achieve job masteryy Allowing more controly Providing successful role modelsy Using social reinforcement and persuasiony Giving emotional support

Importance of Empowerment:

y Knowledge workersy Cut throat knowledgey Speed and flexibilityy Globalizationy Human resource development

Employee empowerment at Bhilai steel plant:

The Bhilai steel plant is the torch bearer of the public sector company steel authorityof India ltd(SAIL). The basic premise of crop tested on four as (Awareness, Appreciation,

Actions and All).

As many as 791 workshops were conducted over 52 days CROP entaited detailed planning

which included:

y Constitution of a task force to prepare the core moduley Identifying resource persons from the work departmenty Training the facilitators for conducting one day workshopsy Formulating implementation strategies to cover all employees at the planty Conducting the workshops for all employees department and zone wise.y Allocating coordinators to provide training aids and collecting reportsy Identifying observers for monitoring the standard in each class roomy Monitoring and reviewing progress and reporting to the top managementy Documentation of reports departmentwise

Barriers to Empowerment:

y Incongruent organizational culturey Love for authorityy Fear of retribution by superiorsy Fear of a retribution by subordinatesy Dependency of subordinates

Making Empowerment Effective:

y Impacty Competencey Meaningfulness

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y ChoiceCompensation Job Evaluation

Concept of Job evaluation:

Job evaluation is an orderly and systematic technique of determining the relative

worth of the various jobs within the organization so as to develop an equitable wage andsalary structure

Definition:

The British institute management has defined job evaluation as the process of

analysis and assessment of jobs to ascertain reliably their relative worth using the assessment

as the basic for a balanced wage structure.

Objectives of job evaluation:

y To determine equitable wage differentials between different jobs in theorganization

y To eliminate wage in equitiesy To develop a consistent wage policyy To establish a rational basis for incentive and bonus schemey To provide a framework for periodic review and revision of wage ratesy To provide a basis for wage negotiations with trade unionsy To minimize wage discrimination on the basis of age, sex, caste, religion, etc.y To enable management to gauge and control the payroll costs

Process of job evaluation:

y Gaining acceptancey Constituting job evaluation committeey Selecting jobs to be evaluatedy Describing the jobsy Selecting the method of evaluationy Weighting job factorsy Assigning money valuesy Periodic review

Advantages of job evaluation:

y Job evaluation is a logical and objective technique of ranking jobs and therebyremoving wage equities

y It increases employee satisfaction on wage differentialsy It helps in fitting new jobs at their appropriate places in the existing wage

structure

y It provides a clear and objective basis for wage negotiations and collectivebargaining

y It simplifies wage administration by making wage rates more uniform

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y It facilitates job redesign by re-allocating the easy and difficult tasks equallyamong different jobs

y Job evaluation is realistic basis of wage fixation in these casesy Job evaluation invariably involves detailed analysis of a job

Limitations of job evaluation:

y Job evaluation is not fully objective and scientificy Job evaluation fails to consider several factor which influence the value of a

given job workers point of view

y It makes little provision for adjusting to prevailing wage rates and changingconditions

y Job evaluation is not well suited to determining the relative worth ofmanagerial skills

y Some methods of job evaluation are difficult to understandy Job evaluation is a time consuming and expensive process

Essentials for the success of job evaluation programme:

y The support of top management must be won for job evaluation programmey Operating managers should be conviced about the objectives, programmes and

techniques of job evaluation

y Clear and accurate job descriptions should be prepared and jobs should bestandardized before starting evaluation process

y All groups and grades of jobs should be covered in the programmey The techniques used should be simple to understand for employeesy The factors should be clearly definedy The acceptance and support of the trade unions should be obtainedy The job evaluation programme should not involve unreasonably high costs of

installation and administration

y In the evaluation progress, the knowledge, judgment and experience ofpersonnel department, like managers and outside experts should be pooled

together

y The focus should be on rating the job not the job holdery Job evaluation should be undertaken as an adjacent to collective bargainingy Job evaluation should not adversely affect the terms and conditions of existing

employees

Methods of job evaluation:

y Non quantitative methodsa. Ranking or job comparison

Job description Paired comparisons Ranking along a number line

b. Job classification or grading method

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y Quantitative methodsa. Point rating

Determine the job to be evaluated Select the factors Define the factors Determine the factors

Find point value of the job Assign money values

b. Factor comparison method Select and define the factors Select key jobs Rank key jobs by factors Decide rates for key jobs Apportion the wage rate Evaluate the remaining jobs

Wage and Salary Administration

Meaning:

One of the biggest factors affecting industrial relations is the salary or wage-the

compensation an employee receives for a fair days work.

It is classified into two catagories:

y Base or primary compensation andy Supplementary compensation

Objectives of wage and salary administration:

y To establish a fair and equitable remunerationy To attract competent personnely To retain the present employeesy To improve productivityy To control costsy To establish job sequencesy To improve union management relationsy To improve public image of the company

Principles of wage and salary administration:

y Wage policy should be developed keeping in a view the interests of theemployer, the employees, the consumers and the community

y Wage policy should be stated clearly in writing to ensure uniform andconsistent application

y Compensation planning should be an integral part of financial planningy Wage and salary plans should be efficiency flexible or responsive to changes

in internal and external conditions of the organization

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y Workers should be associated in formulation and implementation of wagepolicy

y All wage and salary decisions should be checked against standards set inadvance in the wage policy

y Wage and salary plans should simplify and expedite administrative processy An adequate database and a proper organizational set up should be developed

for compensation determination and administrationy Wage policy and programme should be reviewed and revised periodically with

changing needs

Essentials of a sound wage and salary structure:

y Internal equityy External competitivenessy Built in incentivey Link with productivityy Maintain real wagesy Increments

Factors affecting wages:

y Demand for and supply of laboury Ability to payy Labour unionsy Cost of livingy Prevailing wage ratesy Job requirementsy

Productivityy State regulation

Methods of wage system:

y Time wage systemy Price wage systemy Balance or debt method

The process of wage determination:

y Job analysisy Job evaluationy Wage surveyy Developing wage structurey Wage administration rulesy Employee appraisal

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Compensation structure in India:

Pay structure in a company depends upon several factors e.g. wage settlements, labor

market situation, companys nature and size, etc.. Pay structure consists of certain grades,

scale and range or pay in each scale.

Pay structure in India generally consists of the following components:

y Basic wage/salaryy Dearness allowancey Bonus and other incentivesy Fringe benefits or prerequisites

Basic wage:

The basic wage provides the foundation of pay pocket. It is a price for services

rendered.

Minimum wage:

Minimum wage is that wage which is sufficient to cover the basic physical needs of a

worker and his family.

Need based wage

Fair wages:

A fair wage is something more than the minimum wage providing the basic

necessities of life.

Living wage:

The concept of living wage is dynamic related with the level of economic

development in a country. There should be progressive improvement in the wage with

improvements in the economic life of the nation.

State regulations of wages:

y The minimum wages act, 1948y The payment of wages act, 1936y The equal remuneration act, 1976y Section 529-A of the companies act, 1956y The industrial disputes act, 1947y Wage boardsy Pay commissions

Dearness allowance:

This allowance is given to protect the real wages of workers during inflation. Under

section 3 of the minimum wages act it is described as cost of living allowances.

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Methods used to calculate dearness allowance:

y Flat ratey Graduated scaley Index based D.Ay D.S. linked to index and pay scale

Bonus:

According to the bonus commission(1961), bonus is sharing by the workers in the

prosperity of the concern in which they are employed. In the case of low paid workers such

sharing in the prosperity augments their earnings and helps to bridge the gap between the

actual wage and the head based wage.

Provisions of payment of bonus act, 1965:

y Every employee in the specified establishments drawing a salary notexceeding Rs.2500 per month is entitled to bonus provided he has worked for

not less than 30 days in a year.y Bonus is to be calculated on a salary of Rs.1600 per month wherever the

actual salary exceeds this amount.

y Every employer is bound to pay a minimum bonus of 8.33% of the salary ofan employee or Rs.100 per year whichever is higher whether not he has any

allocable surplus in the accounting year.

y If in any accounting year the allocable surplus exceeds the amount ofminimum bonus payable to employee the employer shall pay a higher bonus

subject to a maximum of 20% of salary or wage.

y The surplus or deficit in the allocable surplus can be carried forward to be setoff or set on during the next four years.

y Where an employee has not worked for all working days in my accountingyear the minimum bonus of Rs.100 or 60 as the case may be shall be

proportionally reduced, if such bonus is higher than 8.33 of his salary.

y No minimum bonus is payable by a newly setup establishment in thecircumstances prescribed under see 16 of the act.

y The bonus is to be paid within 8 months from the close of the accounting year.y An employee dismissed from service for fraud and thefty An employer can deduct puja or other customary of interim bonus paid to the

employees from the bonus payable under this act.

y Employers and employees can enter into any argument or settlement forpayment of productivity linked or other type of bonus prescribed under the act.

National wage policy:

Wage policy is a sensitive and complex area of public because wages exercise a

significant influence on income distribution, prices and industrial relations.

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The aims of national wage policy:

y For optimum allocation of resources and full employmenty To secure optimum rate of economic progress with stabilityy To provide maximum economic security to all sections of the societyy To establish wage levels at the highest possible level, which the economic

conditions of the country permits.

y To ensure the wage earner a fair share of the increased prosperity resultingfrom economic development.

However, some norms have been laid down by the following:

y Committee on fair wages(1948)y National commission on labor(1969)y Chakra borty committee(1974)y Bhoothalingam study group(1978)

Executive compensation:

y The pay packet of executives consist of several components such as thefollowing

y Straight salaryy Bonus based on companys profits or commission as a percentage of profity Stock options involving issue of the companys shares at a capital price which

is lower than market value

y Fringe benefits or pre requisites such as free furnishing housing, servants,chauffer driven car, free telephone etc.

Factors of executive compensation:

y Complexity of the joby Capacity to payy Education and experiencey Performancey Economic environmenty Legislation

Incentive loans and profit sharing [Supplementary compensation]

Definition of wage incentive:

According to the national commission on labor, wage incentives are extra financial

motivation they are designed to stimulate human effort by rewarding the person, over and

above the time rated remuneration; for improvements in the present or targeted results.

Advantages of incentives plan:

y It helps to make improvements in work flow, work methods and man machinerelationship

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y Wage incentive plans provide an opportunity for hardworking and ambitiousworkers to earn more

y Employees are encouraged to become innovative.y Incentive plans help to improve discipline and industrial relationsy The costs of supervision are reduced as workers themselves are motivated to

work hard

y A spirit of mutual cooperation and team work is created among workersy Wage incentives are a sound technique of improving productivity

Limitations of incentive plans:

y In the absence of a celing on incentive earnings, some workers may overworkand thereby spoil their health.

y In order to maximize output, workers may sacrifice quality unless strict checkor inspection is maintained

y Once an incentive plan is introduced, management may face resistance whilerevising standards

y Strict vigilance becomes necessary to ensure that workers do not disregardsafety regulations

y Introduction and administration of incentive plans increase the cost and timeof clerical work

y Whenever production flow is disrupted due to the fault of management,workers insist on compensation.

y Jealousy and conflicts among workers may arise when some workers earnmore than others

Essentials of sound incentive plan:

y Proper climatey Workers participationy Scientific standardsy Guaranteed minimum wagey Simplicityy Equitabley Economicaly Flexibilityy Prompt paymenty

Adequate incentivey Ceilings on earningsy Reasonable standardsy Grievance machineryy Appraisal systemy Follow up

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Wage incentives in India:

In a country like India wage incentives are an important tool for motivating workers,

improving productivity and reducing costs per unit.

In India, the need for introducing wage incentive plans is greater due to the following

reasons:

y The average Indian worker is financially poory Wage incentives can help to improve productivityy Wage incentives may help to reduce workers resistance to mechanizationy Effective application of wage incentive plans is likely to have a beneficial

impact in the price level

y Wage incentives schemes can be applied to all sectors of the economy in thenational interest.

Types of wage incentive plan:

y Individual incentive plansa) Time based

Halsey plan Rowan plan Emerson plan Bedeaux plan

b) Out based Taylor plan Merrick plan Gant plan

yGroup incentive plans

a) Priest man planb) Scomlon plan

y Plant wide incentive plansProfit sharing:

Profit sharing is an arrangement by which employees receive in addition to wages, a

share fired in the profits of the enterprise

Features of profit sharing:

y The profit sharing agreement is voluntaryy The agreement is made at the unit level or the industry levely The proportion of profits to be distributed among the participants is computed

on the basis of some agreed formula

y The employees participating in the scheme must have some minimum years ofservice or other qualifications

y The payment is in addition to normal wages and allowances

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y The payment may be in the form of cash, companys shares or deposit inemployees provident fund account

y Workers share the profit only and do not contribute to the company lossy The payment is not based on individual merit or performance

Advantages of profit sharing:

y Profit sharing helps to improve productivity and to reduce costs becauseworkers have a strike in the profitability of the enterprise

y As a group incentive scheme, profit sharing creates a sense of responsibilityamong employees

y Profit sharing helps in building up a stable and contented work forcey Profit sharing promotes industrial peace and reducesy During periods of prosperity, workers may start considering the share in

profits as a permanent gain

y Unscrpulous employers may manipulate the accounts to avoid sharing withworkers

y It is time consuming and difficult to install and operate a successful profitsharing plan

Profit sharing in India:

Government of India had appointed in 1948 a committee to study the problem of

profit sharing in industry.

Labor co partnership:

Co partnership is an extension of profit sharing. It is a system wherein employees are

made partners of the enterprise and are allowed to participate in the management and control

of the undertaking.

Advantages of co partnership:

y Co partnership helps to improve the status of employees. They becomepartners or share holders of the company.

y Employees get opportunity to participate in the management of enterprisey There is improved in labor management relations because their interests are

interlinked

y The employees become more loyal and committed to the enterprise becausetheir future is linked with the companys future

Limitations of co partnership:

y Employees in general do not like the idea of co partnershipy Trade unions oppose to attempt to make employees as shareholdersy Worker prefer bonus in cash rather than in the form of sharesy It is very risky for a worker to invest his saving in one companyy Workers get very limited voting power

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Fringe benefits:

These days, employees are paid several benefits in addition to wages, salaries,

allowances and bonus. These benefits and services are called fringe benefits, because these

are offered by the employer as a fringe.

Features of fringe benefits:

y Fringe benefits are a supplement to regular wages or salariesy These benefits are paid to workers not for any specific job or performance but

to stimulate their interest in the work

y Fringe benefits involve a labor cost for the employer and are not mean directlyto improve efficiency

y Fringe benefit refer to items for which a direct monetary value to theemployee can be ascertained

y Fringe benefits add to the workers standard of living or welfarey These benefits may be statutory or voluntary

Objectives of fringe benefits:

y To recruit and retain the best employeesy To protect employees against certain hazardsy To improve motivation and morale of workers by satisfying some unsatisfied

needs.

y To improve work environment and industrial relationsy To ensure health, safety and welfare of employeesy To develop a sense of belonging and loyalty among workersy To meet statutory requirementsy To satisfy the demand of trade unionsy To improve the public image of enterprise

Types of fringe benefits:

y Payment without worky Health and safety benefitsy Retirement benefitsy Subsided housing, transport, lunch, free dress, etc.,y Medical, legal, child care, counseling, educational, recreational facilitiesy Consumer cooperative stores, interest free loans, holiday, homes, etc.

Appraisal and Job Changes

Performance appraisal

Concept of performance appraisal:

Performance evaluation or performance appraisal is the process of assessing the

performance and progress of an employee or of a group of employees on a given job and his

potential for future development.

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Definition:

According to Flippo, performance appraisal is the systematic, periodic and an

impartial rating of an employees excellence in matters pertaining to his present jobs and his

potential for a betterment job.

Characteristics of performance appraisal:

y It is the systematic examination of an employees strengths and weaknessy Performance appraisal is a scientific or objective studyy It is an ongoing or continuous processy The main purpose of performance appraisal is to secure information necessary

for making objective.

Objectives of performance appraisal:

y To provide feedback to employeesy To provide a valid database for personnel decisionsy To diagnose the strength and weakness of individualy To provide coaching, counseling, career planning and motivation to

subordinate

y To develop positive superior-subordinate relationsy To facilitate research in personnel managementy To test the effectiveness of recruitment, selection, placement and induction

programmes.

Uses of performance appraisal:

y Performance appraisal serves as the basis of suitable personnel policiesy It helps to judge the effectiveness of recruitment and orientation systems of the

organization.

y It also identifies individuals with high potential who can be groomd up forhigher positions

y It serves to stimulate and guide employees development.y It promotes a positive work environment which contributes to productivityy It also enables a manager to understand his strength and weaknessy Employee grievances can be employed

The process of performance appraisal:

y Establishing performance standardsy Communicating the standardsy Measuring performancey Comparing the actual with the standardsy Discussing the appraisaly Taking corrective actions

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Problems in performance appraisal:

y Errors in rating Halo effect Stereotyping Central tendency Constant terror Personal bias Spill over effect

y Lock of reliabilityy Incompetencey Negative approachy Multiple objectivesy Resistancey Lack of knowledge

Essentials of an effective performance appraisal systems:

y Mutual trusty Clear objectivesy Standardizationy Trainingy Job relatednessy Documentationy Feedback and participationy Individual differencesy Post appraisal interviewy Review and appeal

Methods of performance appraisal:

y Traditional method Confidential method Free form or essay method Straight ranking method Paired comparisons method Paired distribution method Forced distribution method Graphic rating scales Checklist method Critical incident method Group appraisal method Field review method

y Modern methods Assessment centre Human resource accounting Behaviorally anchored rating scales

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Appraisal through MBOMBO process:

y Set organization goalsy Defining performance targetsy Performance reviewsy Feedback

Advantages of goal setting approach:

y Ends-means chainy Role clarityy Objective appraisaly Motivation and commitmenty Management and developmenty Coordination

Limitations ofMBO:

y Difficulty in goal settingy Problem of participationy Lack of understandingy Time consuming and expensivey Inflexibility

Appraisal of managers:

y Performance in accomplishing goalsy Performance as managers

Appraisal interview:

A sound appraisal system should include the post-appraisal interview. In this

interview feedback on performance is provided to the employee.

The objectives of appraisal interview:

y To let the employee know where does he standy To help the employee do a better job by clarifying what is expected of himy

To provide an opportunity to comment upon his appraisaly To strengthen superior-subordinate working relationshipsy To exchange valuable information for career planning

Types of appraisal interview:

y Tell and sell interviewy Tell and listen interviewy Problem solving interview

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Guidelines will help to make the appraisal interview effective:

y Give the employees a few days notice of the interview that he can give thoughtto his job performance and development plans.

y Establish a rapport by adopting a friendly and helpful tune at the outsety Listen to the employees problem and feelings with empathy and genuine

concern

y Adopt a participative problem solving approachy Answer the employees question and doubts patientlyy Discuss and finalize action plans to improve performance in futurey End the discussions with a positive and helpful note

Appraisal of potential:

Appraising potential is different from assessing performance. Potential refers to the

abilities present but not currently utilized. It is the latent capacity to discharged higher

responsibilities in future roles.

The potential of employees can judged by:

y Reviewing present performancey Analyzing personality traitsy Relooking at past experiencey Considering age and qualificationsy Explaining unused knowledge and skills of an employee

Job Changes-Transfers, Promotions and Seperations

Job changes:

Mobility and flexibility in the workforce are necessary to cope with the changing

requirements of an organization. Job changes provide necessary flexibility.

The reasons of job changing:

y Changes in organization structure involving job redesign, job regrouping etc.y Changes in technology resulting in rise in job demandsy Changes in the jurisdiction of some departments requisting relocation of

employees

y Fluctuations in volume of work due to expansion, diversification, recession,etc.

y Introduction of new products and process and stoppage of existing productsand possess

y Changes in knowledge, skills, aptitude and values of employeesy Changing demands of trade unions, to protect the right of their membersy Problem of maintaining interpersonal relationsy Changing government role in HRMy Social and cultural changes in the region

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Purposes of job changes:

y To improve organizational effectivenessy To maximize employee efficiencyy To cope with changes in operationsy To ensure discipline

Transfer: Definition:

It has been defined as a lateral shift causing movement of individuals from due

position to another usually without involving any marked changed in duties, responsibilities,

skills needed or compensation.

Need and purposes of transfers:

y To meet organization needsy To satisfy employee needsy To better utilize employeesy To make the employee more versatiley To adjust the work forcey To provide reliefy To punish employees

Types of transfers:

y Production transfery Replacement transfery Versatility transfery Remedial transfery Shift transfer

Transfer policy:

Every organization should have a just and impartial policy concerning transfer policy.

Such a policy will help to avoid an adhoc and arbitrary approach to transfer.

A good transfer policy should satisfy the following requirements:

y Transfer policy should clearly specify the types of transfers and thecircumstances under which transfers will made.

y It should prescribe the basis for transfersy It should indicate ht executives responsible for initiating and approving

transfers

y It should tell whether the transfers can be made only within a departmenty It should specify the effect of transfer on the seniorityy It should be put in writingy It should be communicated and explained t the employeesy The transfer should be as far as possible be made in consultation with the

employee

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y Reasons which will be considered for personal transfersy Facilities to be extended to the transferred employee should be described

Concept of promotion:

Promotion refers to advancement of an employee to a higher post carrying greater

responsibilities higher status and better salary promotion may be temporary or permanene.

Purposes and advantages of promotion:

y To recognize an employees performance and commitmenty To boost the morale and sense of belonging of employeesy To develop a skills required by higher level jobs