When an employee accepts a job, he does not expect to stay in the same job throughout his life. He looks forward to being shifted to another job which will give him greater satisfaction or higher remuneration. To realize this, the employee does his job well, tries to improve himself, and acquire3 the skills and experiences needed for higher jobs. When he is moved to a position of higher category, involving more complex duties and greater challenges and responsibilities, his movement is considered a promotion.
Definition Promotion is the movement of the employee from one position to another of a higher level involving more difficult duties and greater responsibilities and carrying higher pay, higher status and/or offering better privileges. A promotion need not always involve a pay raise but it may involve either an improvement in the employee’s status, in his chances for advancement, or in greater job satisfaction, or better working conditions. A promotion represents an employee’s upward movement in the organization ladder.
Reasons for Employee Promotions One of the best incentives for employees to give their maximum effort and loyalty to the firm is the recognition of and reward for good performance. There are of course a number of ways by which good performance may be rewarded. Among these are salary increases, special commendations, and promotions to higher positions. The promotion of deserving employees to higher positions as a reward for proven skill and ability is obviously an effective way to keep good men in the firm.
Policy on Promotion A company with a policy of promoting people from within the organization is utilizing an important rule in human relations – that of rewarding people for good work performance and loyalty. Such promotions boost employee morale and encourage the employees to render to the company the best service they are capable of. This policy can be carried out more effectively if the