Purpose,principles,benefits and reasons for promotion and demotion in the companies

1. Human Resource Management
Powerpoint presentation on

2. PROMOTION
Meaning
Defination
Purposes of promotion
Principles of promotion
Benefits of promotion
DEMOTION
Introduction
Defination
Reasons for demotion
Principles of demotion

3. MEANING
Promotion means it is an upward movement of an employee
from current job to another that is high in
pay,responsibility,status and organisational level.
Defination
According to scott and spreigal, “a promotion is the
transfer of an employee to a job than pays more
money or that enjoys some preferred status.”

4.  To develop competative spirit ,to acquire
skill,knowledge etc in the employees
 To promote employee’s self development and
make them await their turn of promotions.It
reduces labour turnover.
 To promote the feeling of content with existing
conditions of the company and the sense of
belongingness.
 To promote interest in training and development
programs and in team development areas.
 To build loyalty and to boost morale.
 To reward committed and loyal employees.

5.  The promotion policy should be in writing and must be
understood by all the employees to avoid any suspicion
regarding promotion in the minds of the employees.
 The promotion policy should lay down what percentage
of vacancies in higher levels of hierarchy are to filled up
by promotion and are to be followed strictly.
 Promotion programs must be closely alligned to
training programs –which enables the employees to
improve themselves for promotions.
 A vacancy should be notified to the employees in
advance –so that the interested employees can apply
with in specific period.
 The promotion first has to be made a probationthat is if
he works satisfactorily during this probation period he
should me made permanent.

6.  Promotion places the employees ina position where
an employee’s skills and knowledge can be better
utilized.
 It creates among the employees the feeling of content
with the existing conditions of work and
employement.
 Creates an interest in acquiring higher qualifications ,
in training and self development the view to meet the
requirements of the promotions.
 Promotion improves employee’s job satisfaction and
morale.
 Ultimately it improves organisational health.

7.  INTRODUCTION
Demotion is just opposite to promotion. In
demotion the employee is shifted to a job lower
in status ,salary and responsibilities .
 DEFINATION
According to Dale yoder, “Demotion is a shift to
a position in which responsibilities are
decreased.Promotion is an increase in rank and
demotion is decrease in rank.”

8.  Inadequacy on the part of the employees in
terms of the performance,attitude and
capability.It happens when the employee finds in
difficult to meet job requirement standards .
 Demotion may result due to organisational staff
reductions.Due to adverse business conditions
,organisations may decide to lay off some
downgrade jobs.
 Demotions may be used as disciplinary tools
against errant employees.
 Because of the changes in technology,methods
and practices and because of employees ill
health or personal issues ,cannot do their job
properly.

9. Organisations should clearly specify the demotion
policy.Otherwise the superiors demote the employees
according to their whims and fancies.A systematic
demotion policy should contain the following terms:
 Specification of bases for demotion like length of
service ,merit or both.
 Specification of a superior who is authorised and
responsible to initiate a demotion.
 It should provide for open policy rather than a closed
policy.
 It should contain clear cut norms for judging merit and
length of service.
 Specification of nature of demotion ,that whether it is
permanent or temporary .

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