The personnel department of the organization must

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organization. The personnel department of the organization must develop an effective promotion policy. This should be in written, flexible subject to situations. In order to make the promotion policy successful, it is necessary that the employees’ assessment and confidential reporting system should be o bjective as far as possible so that every employee has faith in promotion policy and hence induced for better performance to get promotion. The promotion policy should consider merit, potential and seniority of the employees. The merit factor requires a good procedure for evaluating the performance of the employee. The performance of the each employee should be appraised periodically and should form the part of personal record. The following characteristics make a promotion policy as sound and good policy: 1. It must provide equal opportunities for promotion across the jobs, departments, and regions. 2. It must be applied uniformly to all employees irrespective of their background. 3. It must be fair and impartial. 4. The basis of promotion must be clearly specified and made known to the employees. 5. It must be correlated with career planning. Both quick (bunching) and delayed promotions must be avoided as these ultimately adversely affect the organisational effectiveness. 6. Appropriate authority must be entrusted with the task of making final decision.
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160 7. Promotion must be made on trial basis. The progress of the employee must be monitored. In case, the promoted employee does not make the required progress, provision must be there in the promotion policy to revert him/her to the former post. 8. The policy must be good blending of promotions made from both inside and outside the organisation. 17.3.6 Types of Promotion 1. Horizontal promotion When an employee is shifted in the same category, it is called ‘horizontal promotion’. A junior clerk promoted to senior clerk is such an example. It is important to note that such promotion may take place when an employee shifts within the same department, from one department to other or from one plant to another plant. 2. Vertical Promotion This is the kind of promotion when an employee is promoted from a lower category to lower category involving increase in salary, status, authority and responsibility. Generally, promotion means ‘vertical promotion’. 3. Dry Promotion When promotion is made without increase in salary, it is called ‘dry promotion’. For example, a lower level manager is promoted to senior level manager without increase in salary or pay. Such promotion is made either there is resource/fund crunch in the organisation or some employees hanker more for status or authority than money. Promotion can be made on various bases. Following are the major ones Seniority i.e., length of service Merit, i .e., performance Educational and technical qualification Potential for better performance Career and succession plan Vacancies based on organizational chart Motivational strategies like job enlargement.
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