Chapter /0 CHANGES IN PERSONNEL STATUS OBJECTIVES: After this lesson, you should be able to: Define the terms: Transfer, Promotion, and Demotion ons behind employeAcw TO The Rationale of Personnel Movement The employee u; status. At the initial Moves up to prob; assigned. He moy stays longer with ization is called placement thay The proper movement of the employee in the OTE nat wight job. This Personnel Could be defined as the assignment of the right man to ti Tin the performance of ha Operative function is to maximize the employee's potential i ization but also for th, talents and abilities. This is not only for the benefit of the organi Personal growth and satisfaction of the employee concerned. nd to change his employme,, ee starts as temporary the, +. of the position where hy is motion and transfer, as j, pon entering the organization is cae stage of his employment, the empl0 ‘ationary upon meeting the requirem' i €s up into the ladder of permanency, P’ the organization. The company or any organization must have clear-cut policies ad nue Performing this operative functions, The policies and ae d protecting with the objectives of Putting the right person in the right job and pi Tt will dh . interest of the organization for maximum efficiency and productivity. 4 con anance with the development of an employees’ morale and job satisfaction that can generate better job performance. The company’s growth and expansion will create job openings for higher Positions and those already with the. company willhave chances of being considered for the vacant Positions as management Philosophy applies, that is rewarding deserving employees. These job openings are opportunitics fe the people in the organization if they have shown in their skills and abilities that they have acquired higher qualification for the vacant positions. Education, training and experience are the usual considerations for employee movement into the ladder of higher position. Promotion Promotion is the movement of an em in the organizational ladder invi usually carries with it higher p. better privileges and usually be Ployee from a low 2 er ley olving more duties a * level t nd responsibi ey ane Higher sta The pens ter working conditions oe ‘0 a higher level ities, Promotion @S the employee It is the aim of all em ployees to get be organizations or company. tter oppor They cannot remain stash Poruni ty When th any nN stagnant in we 1 they join anv unless they are fully satisfied with their work and in their place of assignmen improve themselves and prepare for new as. eir pay hen th, 7 bas if employee? ct their acquiredqualifications Will be Fward to new assignmern Tecognition by the management. The employees look fo realize these ambitions sit K®ePing with their qualifications, skills and abilities. kills. and open new avensor®,™Ployees show greater performance, acquire new going for the company. NS Where management will notice the good things they are Rationale for Employee Promotion 1. Recognitio, Reg "and Teward for good performance- Employees who perform Fewarded when opportunities for higher positions become available. It whe the company. 8 a motivating factor for employees to stay and be loyal to w preentive for employees to improve academically and professionally and to ee for new challenges in the job. Employees will always try rpc quite new knowledge or get advanced training and education in the hope ir improved qualifications will be given a chance by the management as opportunities become available. 3. Employees who are promoted usually know the job well rather than hire new employees outside the organization. Getting from the outside entails further training and orientation and this usually is the subject of demoralization among the ranks of employees who know the ins and outs of the work. 4. Boosts employee morale and develops greater loyalty to the organization. It is an important means of human relations within the organization as there is no better recognition of employees’ contribution than promotion. Factors to be Considered in Promotion Before any promotion is considered, the department head in consultation with the Human Resources Department must look into the qualification standards as specified in the job description of the vacant position. These standards point out the abilities and qualifications and other job requirements. The following should be considered as important factors in promotion: sider the seniority rule- All things being equal, the given the priority to be promoted. This will develop and-file employees who are also loyal and 1. The company must con: first to be hired must be fairness and morale among the rank- dedicated to their job. 2 Careful analysis of the qualifications of the individual has to be subjected to a series of tests, interviews and records check. When an individual is to be promoted, performance should not be the sole criterion, especially when Iealership position is to be filled up. The individual may be technically competent but his leadership qualities and human relations may be poor, hence honpeuld have difficulty in handling subordinates. Technical competence e human relation capabilities are two important factors that must be given weight in promotion. | toaneguaesevers Peto three years have to be ¢ seldom or rarely absent shes ployee must process, he last tw We pis job i ies an efor j 3, Attendance records and performance a nen examined, An employee who is dedica e qualiti from work, Diligence and dedication are 4 department heads thay ment. The t because of merit but 01 duet must be able to set r Promotion is a ticklish issue in personnel aod play favorites often times insist on promotin ; ; bectuse of personal atechnent, The personnel deParetices A screening commit working guideline or promotion policy to avoid suc! a ees t0 avoid such practice, ‘must be organized to handle all promotions of eMPIOY"S need to be addressed Issues of seniority, performance and loyalty are question® 17 notion. Failure to with criteria that will be fair for all who have the potentia! address the issue will put the HRD in a bad light. Nive Employee Transfer ivalent rank or This may be defined as thé movement from one job to another Sa avalie gael position at the same pay class within the organization. The transfe! anes oa changes in duties and responsibilities and at times also involve incre eae employee transfer may be from one department to another or from 01 c another. Transfer may be also be initiated by the management to assign an employee from the mother company to a subsidiary as his services may be needed in the sister organization. For transfer of employee to be meaningful and understandable, it is important that a written policy be a part of the personnel manual properly disseminated and read by all concerned. The policy manual must state the following: The person who should initiate transfer. The authorized personnel who will approve the transfer. The reason why an employee has to be transferred, Pee ‘The status of the employee upon transfer. Kinds of Employee Transfer 1. Temporary Transfer - this isctone for the employee to substitute f ‘bsent employee or for an employee to learn other duties an er Preparation for promotion. Such transer is initiated by the pon tes recognition ofthe other skills and abilities of the employes qr en seement his potential contribution to the company. When the. coon (© Maximize according to management expectations he then becomes ene ate ent. 0 fill ‘a or department requiring the skills and castbtine: OF ein another unit transferred. In some cases permanent transfer ig acot,tn® ¢™ployee being ‘ the employee concemed due to slack in work activitne 9° 2¥O1d laying of permanent vacancy that need not be filled from oc ties. the unit or due to Plicant, '§ 2. Permanent transfer — this is made ti utside ap 162An employees’ transfer ma, fer is made. We be positive or negative depending on the purpose by unit and the purpose of the hen an employee is transferred from a work station or especially after some trainin perment is to train the employee for new job activities, is bound for a new posit ng, the transfer is a positive indication that the employee On oF promotion. An employee may also be transferred in a position he is expect, education, More fitted or adjusted to base on his capabilities and ed to be Negative or remedial tr present job caused by a poot ed transfer is made in the ho, assignment. ah fer is resorted to when an employee is not suited to his selection process or other factors in workplace. Remedial that the employee will change for the better in the new Another i reason for transfer is when tension arises between the employees’ Se Or other personnel. This creates personal frictions that distort or e productivity and efficiency of the unit or department. The personnel department must find out the real account of the problem when a supervisor requests for the transfer of a “problem employee” to another unit or section. Counseling may be necessary before any transfer and frequent resignation in one department may also be caused by poor supervision or knowledge of human relations among supervisors or managers. Supervisory and management training are some alternatives that may be instituted by HRD. Transfers are useful tools for some operational needs of the company due to the following: 1. Meet the company needs during peak seasons. An employee may be transferred as a necessity of operational demand. This is to avoid hiring additional personnel when other departments are not loaded with other activities. 2. Protect the health and safety of the employee. When an employee is exposed to hazards, the management may transfer the employee to a unit where he is. safer. 3. Meet expansion needs. The employee may be transferred where his services are needed and his skills meet the requirements of the job. 4, Correct an error in the hiring of the employee. Some employees are hired erroneously. Transfer may be made by management to correct the placement of the employee. Ths is done when the employee cannot be terminated anymore or so corrective action is made through transfer. Demotion the movement of an employee from his present job to a job Itis one of the most difficult personnel functions of d anxiety. Demotion is resorted to by management emotion is defined as of lower rating or ina lower grade. the HRD, as this creates tension an‘ under the following conditions:N Neo ee, ty ae ee budget. Th, ing manpower le * Slack business demand and operations reduci'B ring some employees company has to trim down current manpower a without reduction pay, and assigning loyal employees to a lower rank ev' 1s forthe position ay trability ofthe employee to meet the ob requirements hited. There ar fications that do no, € instances that the employee displays qualifica impress the pers, iring system d; ‘onnel department. This happens because the hiring system dig ot follow the : applicant happen, Procedural guidelines, In some EE een dation. The {Shave Some connections and the hiring is sa ay tia ls capably, employee has to be demoted to a position that really in the job. Technical changes Failure ofthe employee to meet technical changesin Deere and Tequire new skills like computer literacy or introductior the employee is not prepared for the job. nee its an infraction o ' Demotion is resorted to when the employee commits an infra = company’s rule 's and regulations and the penalty for the offense is short of termination, Caution should be Observed in demoting an employee as it creates demoralization and it affects i vidual and group productivity, Train and develop individuals who lack the required ski lls for the job. Transfer may also be resorted in order to find the employee's right place in the company, Employee Separation and Termination The termination of employment relationship between the employee and employer is called separation, Such termination of relationship may be caused by resignation of the employee or the unilateral ‘ction of management. Resignation by the employee 's called voluntary separation. The latent action of management to terminate the relationship is called lay-off or discharge. Causes of Employee Resignation 1. Better job opportunities in other companies or outside the country. An employee, who is not given a chance to Stow in the org. Pasture outside the organization. In m ‘anization seeks greener Me tances, tempting offers in other countries open avenue for an employe © f0 try his luck in foreign countries. 3. An employee resigns due to misunderstandii a8 With his immediate superior Sunderstanding May stem from ies, OF co-employee in the department. This mi official work activit 4. A worker resigns from em personal relationships or' arn 5 Most womens wigs, per statins ¢ "8 resi © Chariyy ig, Hf from employment due to change in marital 4 withers! : 18’ tithe schedule is one of the reasons for resignation. nyoical arsed been) Ny tne are ser Mh conditions, farnit Ne Other i family relation, working, conditions and quality pees anid tn FeasCT 6 So 94 busin nd Make tery, a * S09 separation from employment, Others invest in of be cin ple Mane 7 Ing employed, Mey a8 entrepreneurs. These are for people who get tires dure i Procedure in Handling Separation of Employment When an employee res) company, the personnel d met before they are given, 608 from employment or retires from the service of the “Partment must see to it thatthe following requirements are Wit remaining benefits or salary Empl ind |popen tan ~ Make sure that the employee is cleared of all money salary peyable Creemsbilites before he is paid with whatever benefits of to ascertaln tha eearance must be signed by all responsible department heads propery that ll accountabilities such a8 tools, equipment and records ae ly turned over to the one taking over the position. Conduct Exit Interview - it is an attempt to find out the actual reason of all employees in resigning from the company. The information will serve as an input in manpower planning and as an aid in determining relevant company policies that affect employment. The exit interview has the following purpose: a. Determine the real cause of the employee's resignation. It will give the personnel department feedback on the employment condition, job satisfaction, human relations and other employment factors such as salary, benefits and other remuneration. The interview will also try to uncover ‘some spots in the management so that remedies could be made. It may also reveal organizational conflicts that affect productivity. b. Determine that all required papers related to his separation are properly accomplished such as those of Social Security System, PhilHealth, Pag-ibig, Fund and other government agencies. Create in the employee the impression of goodwill toward the company that in spite of the separation, the company is still interested in his personal welfare. 44. Create an impression to the employee that the company is stil interested + Cae qreer ashe isan asset employee. The employee may have potentials in hi arompany needs in ts operation and quitting employments made because he is not given the earliest opportunity for promotion. The reason because Meigher salary inthe other company and management cannot a the offer being given outside. ho is compulsorily retired, according to the law, after An employee, wy the best years of hislif, should be awarded a service eae mn Pareificate of recognition in an appropriate occasion. This meri sai Ree re eae :Le ry 47>r} > ation. This could be dor Will boost the morale of employees in the organiZat NT font ecial ¢ during the monday flag raising or on a spe ue Purpose as company's budget and policy Wa The HRD senior executive 4 or any senior m a Policies and Procedures must conduct the exit intervie information is ware » executives are a kept confidential and only responsible € Problems related to the separation instrumental in making This is to ascertain thay Of the ager who is Procedure in Handling Lay-off and Suspension of Relationship ; ant operations In time of business reversals, slowdown in operation, shut on pt asaplovecs The and other factors that would necessitate the termination or lay-o! 7 personnel department should observe careful procedures in handling the separation of employees. The lay-off may be permanent or temporary and is initiated by the management Without fault from the employee. Permanent lay-off refers to the total separation of employment relationship. Temporary lay-off may be for a certain period of time caused by lack of materials or orders that would require the services of the employee The following procedures should be observed: 1. Determine the total number of employees that will be affected by total Permanent lay-off and those of temporary lay-off, 2. Determine the total amount inv Agreement and the amount the pay of an employee. olved according to the law or Collective company will spend in paying the separation Determine the skills and job requirements that would still be Needed by the company in cut-size operation to maintain: viability and company sustainability 4. Determine those who can be trained for new jobs that will still be needed by the company in case of new operation require ; ment at the option of management 5. Determine all the potentials, skills, knowledge and lengths of services of employees before making the first-come-last-out Policy in the separation of an employee too keep the company afloat during critical times After determining all the problems related to the se discuss with top management the personnel programs tha recommendations based on the cost benefits ly alternative programs. The decision of top management alternative presented is properly crafted, then it will be a ‘Paration of the employee. t will be undertaken, Make Handling Human Resources Turnover Itis the intention of management to keep its loyal and good orke lke retirement plans, longevity pay, salary increases are indicant concem for employees to maintain their mutual relationships I Ts. The benefits is of the management r aeoo a a=” i ro keep employees until the pay is paid to.B00d workers whoatar yy ettement aie On the ther Far ~~ 0 stay loyal to serve the organization. Good employees are promoted because increases for them ein are assets to the company. Employees are given salary adjust to their economic needs. : : While managemey find greener piste Gan all these good intentions, some employees still want to country for mote economi fae the company. Other seeks employment outside the The lure of the green bu, nh enefits to support the growing, social needs of the family countries. Most of these cks bring to about four million Filipinos working in other sa theit Companies begs cmanPower resources are skilled workers and were leaders countrys’ economic Penal departure. While this labor turnover is good for the development of the ae they could be still considered as a loss to the industrial Labi ; ae is the term used to express the relationship between the flow of ig the company and the replacements made against an average number of workers at given period of time. The test of the soundness of any personnel program can be measured by the rate of personnel turnover. It is also a test of the good relationships between management and labor. The causes of employeé turnover may be due to the following 1. Poor Supervisory Practices. The supervisor plays 2 vital role in keeping and training the employee for productive endeavors. The good relationship between the worker and his immediate boss usually results in employee job satisfaction. Absence of such relationships causes employee turnover. 2. Poor Company Policy of Attracting Potential and Good Employees. Salary benefits and other personnel programs are inadequate to keep the employees. 3, Poor Working Conditions. Employees want to work in a healthful and safe environment. A friendly conduciveatmosphereisa good working environment 4, Good Opportunities in another Country or another Company. Adventurous employees seek greener pastures somewhere else, These are usually younger employees. 5. Poor Selection, Hiring of Employees, Training and Inadequate Supervision. Dromigsals are caused by the above factors. These could be avoided if the personnel policies and procedures are adequate enough to sustain the hiring and placement of the right person for the right job. could be positive and negative. Itis positive when the rate tumover sa 10 or 12 percent per year. The resignation and retirement of s( Id have the opportunity to hire younger nde rat ye because company woul ane older worker is pom ployes, When the rte of turover gas more han 15 f0 2 and more product once ar those leaving te company are the younges workers is nega the total peas the company Will pend rauch in hiring and taining a new is negat ; ’ enerate added operational costs due to rejects work force. This type Pe ‘of turnover will gt ‘ any workers need more training and development of work aa bade? cup oodvwll and patronage may be lost due to poor product quality systems. Cust : Turnover rate is within an averagig CASE STUDY 10 Permaja Trading and Builders Corporation Donato Martinez isa long time ‘employee of Permaja Trading and Pee peetaton GeBO) and was promoted se foreman in the construction department. F ea Ato rose from the Tanks as foreman, a Position usually given to a col oie Care al education graduate. Ato is a high school graduate but his 15 years wit th Pany has proven his Worth for his good performance and his loyalty to ; Ato’s personal life is not unknown to the management; however, ed it a net interfere much with his work in the company, it is not given much attent fon, Ato has been married for ten years but never had a child. His wife does not pay attention to him and this led him to drinking sprees after office hours. Family matters worsened as Ato drinking too much, he was absent from his work especially after weekends. The management called his attention to his absences and he was reprimanded and was given written warnings. For a time Ato would pay attention to the advice of the management and his Performance improved for the time being. His projects Were completed on time and Costs estimates were met ona target. Ato’s performance was still considered by the management as very satisfactory. It is the policy of the company not to let matter of Personal concern interfere with work efficiency or allow nature of his personal life affect the PTBC image in the community. In anew project in Cebu, Ato was made toh, in mall constructions as Note: Use Case Format