Human Resource Mgmt

CONTAIN

1. MEANING, DEFINITION AND FEATURES OF PROMOTION

2. MERIT AS A BASIS OF PROMOTION

3. SENIOR AS A BASIS OF PROMOTION

4. SENIORITY-CUM-MERIT

5. PROMOTION POLICY

6. MEANING OF WAGE / COMPENSATION PAYMENT

7. IMPORTANCE OF WAGE PAYMENT TO EMPLOYEES EMPLOYER AND GOVERNMENT

8. FACTORS INFLUENCING / DETERMINING WAGE RATES

9. ESSENTAILS OF SOUND WAGE PLAN

10. COMPONANTS OF EMPLOYEE REMUNERATION

11. SYSTEM OF WAGE PAYMENT

12. INCENTIVE SYSTEM OF WAGE PAYMENT

13. FEATURES OF A GOOD INCENTIVES PLAN

14. A NOTE ON TAYLOR'S DIFFERENTIAL PIECE RATE PLAN / SYSTEM

15. PROFIT SHARING AS AGROUP INCENTIVE PLAN

16. POSITION OF PROFIT SHARING IN INDIA

PROMOTION

When there are vacancies in an organization, they can be filled up by the internal or external candidates. Though the organization prefers to fill up the vacancies by the external candidates through the selection procedure, the internal candidates may also apply for post and may be tested and selected for higher level job in the organizational hierarchy at par with external candidates. Is such upward movement of an employee a promotion? Or it is purely selection? It is purely a selection. If the organization prefers to fill a vacancy only by the internal candidates, it assigns that higher level job to the selected employee from within through promotion tests. Such upward movement can be said as promotion.

Definition:-

"Promotion is advancement of an employee to a better job- better in terms of grater responsibility, more prestige or status, greater skills and especially increased rate of pay or salary."

- Paul Pigors and Charles A. Myers.

"The upward reassignment of an individual in an organizational hierarchy, accompanied by increased responsibilities, enhanced status and usually with increased income though not always so."

- Arun Monappa and Mirza S. Saiyadain.

MERIT AS A BASIS OF PROMOTION:-

Merit is taken to denote an individual employee's skills, knowledge, ability, efficiency and aptitude as measured from educational, training and past employment record. The merits of merit system of promotion are:

1) The resources of higher order of an employee can be better utilized at a higher level. It result in maximum utilization of human resources in an organization

2) Competent employees are motivated to exert all their resources and contribute them to the organizational efficiency and effectiveness

3) It works as golden hand-cuffs regarding employee turnover,

4) Further it continuously encourages the employees to acquire new skill, knowledge etc. for all-round development.

Despite these advantages the merit systems suffer from some demerit. They are:

1) Measurement or judging of merit is highly difficult.

2) Many people, particularly trade union leaders, distrust the management's integrity in judging merit.

3) The techniques of merit measurement are subjective.

4) Merit denotes mostly the past achievement, efficiency but not the future success. Hence, the purpose of promotion may not be served if merit is taken as sole criteria for promotion.

SENIOR AS A BASIS OF PROMOTION

Seniority refers to relative length of service in the same job and in the same organization. The logic behind considering the seniority as a basis of promotion is that there is a positive correlation between the length of service in the same job and the amount of knowledge and the level of skill acquired by an employee in an organization. This system is also based on the custom that the first in should be given first chance in all benefit and privileges.

ADVANTAGES OF SENIORITY AS A BASIS OF PROMOTION ARE:

1) It is relatively easy to measure the length of service and judge the seniority.

2) There would be full support of the trade unions to this system.

3) Every party trust the management's action as there is no scope for favoritism and discrimination and judgment.

4) It gives a sense of certainty of getting promotion to every employee and of their turn of promotion.

5) Senior employees will have a sense of satisfaction to this system as the older employees are respected and their inefficiency cannot be pointed out.

6) It minimizes the scope for grievances and conflicts regarding promotion.

7) This system seems to reserve the purpose in the sense that employees may learn more with increase in the length of service.

IN SPITE OF THESE MERITS, THIS SYSTEM ALSO SUFFERS FROM CERTAIN LIMITATIONS. They are:

1) The assumption that the employees learn more relatively with length of service is not valid as this assumption has reverse effect. In other words employees learn up to a certain age and beyond that stage the learning ability of the cognitive process diminishes.

2) It denominates the young and more competent employees and results in employee turnover particularly among the dynamic force.

3) It kills the zeal and interest to develop as everybody will be promoted with or without improvement.

4) Organizational effectiveness may be diminishes through the deceleration of the human resource effectiveness as the human resource consists of mostly undynamic and old blood.

5) Judging the seniority though it seems to be in the theoretical sense. it is highly difficult in practice as the problems like job seniority, company seniority, zonal/regional seniority,