CHANGES IN PERSONNEL

STATUS

Promotion

Transfer

Demotion

Separation

4. Competency or merit determined by the ratings or

employees.

evaluations received by the

Unofficial Promotion Criteria

Employee Movement
Promotion

3. Assessment centers evaluate the qualified candidates for

promotion, w/c
focus on the kinds of skills and abilities to effectively perform the higher level jobs that the
candidates seek.

Personal Characteristics

Nepotism showing of favoritism or patronage to relatives

Social Factors

Friendship

=Upward

PROMOTION
Involves the reassignment of an employee to a higher level job. This also refers to the
upward or vertical movement of employees in an organization from lower level jobs to higher
level jobs involving increases in duties and responsibility, higher pay and privileges.
Reasons for Employee Promotions

Promotion from Within

Filling up vacancies in upper level management positions by promoting lower level
managers.

An effective way to keep good men in the firm

A major advantage of this policy is its positive effect upon employee motivation. Knowing that
they have opportunity to be promoted tends to motivate employees performance with the
company and to solidify their feelings of loyalty
toward the company.

As recognition of and reward for good performance

Promotion from Within

To boost employee morale and encourage the employees to render to the

company
the best service they are capable of

Basis or Criteria Used for Promotion

1.

Seniority length of service

a.

Straight seniority the length of service of an employee is the sole basis for
determining who gets the promotion.

b.

Qualified seniority the more competent employee as compared to another

employee with longer service will be the one promoted.

2. Current and past performance

Advantages
Provides greater motivation
for good performance
Provides greater promotion

Disadvantages
Creates a narrowing of thinking
and stale ideas
Creates political infighting

Opportunities for present

employees
DEMOTION
The reassignment of an employee to a lower job involving fewer skills and responsibilities.
The movement of an employee to a less important job from a higher level job in the
organization which may not involve a reduction in pay but a reduction in status or privileges.

Basis or Criteria for Demotion

1. Reorganizations, company merger or business contractions may result in fewer jobs,
forcing some employees to accept lower positions.
2. Inability of the employees to perform their jobs according to acceptable standards.
3. As a form of disciplinary action or a way to handle disciplinary problems, also viewed as a
routine form of punishment for wrongdoing.

Temporary made due to the temporary absence of an e

employee, e.g., in case of
sick, leave, vacation leave, or shifts in the work load during peak periods.
LAYOFF
The separation of an employee initiated by the employee due to business reverses, the
introduction of labor saving devices, or the reduction in the demand for particular skills.
Management as temporary measures during periods of business recession, industrial
depression or seasonal fluctuation resorts

4. The tool used to communicate to employees that they are beginning to be liabilities rather
than assets to an organization.
TRANSFER
This is the reassignment of employee to a job with similar pay, status, duties, and
responsibilities. It also involves horizontal movement from one job to another.
Reasons for Transfer

it to.
RESIGNATION
This is when employees voluntarily decide to end their employment with an organization.
CAUSES OF RESIGNATION
Dissatisfaction about wages and working conditions

Because personnel placement practices are not perfect, an employee-job

mismatch may have resulted.

Misunderstandings with supervisors or fellow workers

An employee becoming unsatisfied with his job for one or a variety of reasons

Inconvenient work hours are among the chief reasons employee resignation

Organizations sometimes initiate transfers to further the development and

advancement of the employee especially at management and staff.

RETIREMENT

Due to business expansion, retrenchment erroneous placement, the need to meet

departmental requirement during peak season.

For personal enrichment/greater convenience and for more interesting jobs.

For employee to be better suited or adjusted to his job (remedial transfer)

2 Kinds of Transfer
Permanent made to fill vacancies requiring the special skills or abilities of the employee
being transferred.

This is when employees having satisfied certain conditions under existing laws and/or
provisions of the collective bargaining agreements or upon reaching the age of 60 are
separated from employment with entitlement to retirement benefits. This is given either in a
lump sum amount or in a form of a monthly pension for life.
TERMINATION/DISCHARGE OR DISMISSAL
The practice of putting an end to the employer-employee relations initiated by the employer
with prejudice to the worker. A discharge is due to some fault of the employee such as
inability to meet the companys
standards of performance, incompetence, violation of company rules, insubordination,
etc.