Human resource

management
Understanding Key HR Processes
introduction
Introduction
• Human Resource Management (HRM) is a critical function that focuses on
effectively managing an organization's workforce. The HRM process
encompasses several key activities such as recruitment, training, performance
management, and employee development. These processes ensure that the
right talent is attracted, retained, and developed to meet organizational goals,
fostering a productive and positive work environment.
Importance of hr processes
Importance of hr processes
• Effective management of employee movements—such as promotions,
transfers, and exits—ensures organizational stability and productivity. It helps
in maintaining workforce balance, reduces turnover costs, boosts employee
morale, and aligns individual career growth with organizational goals. Proper
planning and communication in these transitions minimize disruptions,
retain talent, and foster a positive work culture.
promotion
Promotion
• Promotion refers to the upward movement of an employee within an
organization, resulting in increased responsibilities, higher status, and often,
better compensation. It serves as a key motivator, recognizing and
rewarding employees' skills, performance, and loyalty. Effective promotion
policies not only boost employee morale but also enhance productivity by
placing capable individuals in roles that align with their strengths. It fosters
a culture of growth and progression within the organization, which in turn
improves retention rates and attracts high-quality talen
Criteria of promotion
Criteria of promotion
• Promotion decisions are typically based on several key criteria. These
include an employee's performance and productivity, demonstrating the
ability to handle more responsibilities. Experience and tenure also play a
role, as well as leadership qualities and potential for growth. Educational
qualifications and specific skills required for the higher role are often
considered. Additionally, attitude, teamwork, and overall contribution to the
organization are evaluated to ensure that the candidate is fit for the new
position.
Types of promotion
Types of promotion
Horiz ontal Promotion: This occurs
when an employee is promoted to Vertical Promotion: In this type,
a new role at the same the employee moves to a higher
organizational level, usually with a rank or position, with increased
change in responsibilities but not responsibilities, authority, and pay.
in rank or pay.

Open vs. Closed Promotion: Open

Dry Promotion: A promotion that
promotions allow all eligib le
involves an increase in rank or
employees to apply for a position,
responsibilities without a
while closed promotions are
corresponding raise in pay or limited to a specific group, often
benefits.
decided in ternally by management.
Features of promotion
Features of promotion

CAREER ADVANCEMENT: PROMOTION ENABLES INCREASED PAY AND BENEFITS: MOST RECOGNITION AND REWARD: IT SERVES AS
EMPLOYEES TO PROGRESS IN THEIR CAREERS, PROMOTIONS COME WITH HIGHER SALARIES RECOGNITION FOR AN EMPLOYEE’S HARD
OFFERING NEW ROLES AND RESPONSIBILITIES. AND ENHANCED BENEFITS, MOTIVATING WORK, SKILLS, AND DEDICATION TO THE
EMPLOYEES. ORGANIZATION.

ENHANCED RESPONSIBILITIES: WITH IMPROVED JOB SATISFACTION: A WELL-

PROMOTION COMES GREATER AUTHORITY AND DESERVED PROMOTION BOOSTS MORALE AND
ACCOUNTABILITY IN THE NEW ROLE. LOYALTY, CONTRIBUTING TO JOB SATISFACTION
AND RETENTION
demotion
Demotion
• Demotion is the downward movement of an employee to a lower position,
often involving reduced responsibilities, authority, and compensation. It may
occur due to poor performance, disciplinary reasons, or organizational
restructuring. While it can negatively affect employee morale, if handled
with transparency and sensitivity, it can also provide an opportunity for the
individual to improve and realign their skills. In some cases, demotion is
used as an alternative to termination, giving employees a chance to correct
their shortcomings.
Reason for demotion
Reasons of demotion

POOR PERFORMANCE: FAILURE TO MEET JOB DISCIPLINARY ACTION: MISCONDUCT, ORGANIZATIONAL RESTRUCTURING: CHANGES
EXPECTATIONS OR CONSISTENTLY VIOLATION OF COMPANY POLICIES, OR LIKE MERGERS, DOWNSIZING, OR ROLE
UNDERPERFORMING CAN LEAD TO DEMOTION. UNETHICAL BEHAVIOR MAY RESULT IN ELIMINATIONS CAN FORCE DEMOTIONS.
DEMOTION.

SKILL MISMATCH: WHEN AN EMPLOYEE IS VOLUNTARY DEMOTION: EMPLOYEES MAY

PROMOTED BEYOND THEIR SKILLSET OR REQUEST A DEMOTION DUE TO PERSONAL
CAPACITY TO HANDLE THE RESPONSIBILITIES. REASONS, HEALTH ISSUES, OR WORK-LIFE
BALANCE.
Transfer
Transfer
• A transfer involves moving an employee from one job, department, or
location to another within the same organization, usually without a change
in rank or pay. Transfers are often made to address workforce needs,
improve skill development, or accommodate employee preferences. They
can be initiated by management for operational reasons or requested by
the employee for personal or professional growth. Transfers help balance
workforce distribution, enhance flexibility, and provide employees with
diverse experiences across different roles or regions.
Reason for transfer
Reason for transfer

ORGANIZATIONAL NEEDS: TRANSFERS MAY BE EMPLOYEE DEVELOPMENT: TO PROVIDE PERSONAL REQUESTS: EMPLOYEES MAY
MADE TO FILL VACANCIES OR ADDRESS EXPOSURE TO DIFFERENT ROLES AND IMPROVE REQUEST TRANSFERS FOR PERSONAL REASONS
STAFFING IMBALANCES ACROSS DEPARTMENTS SKILLS FOR CAREER GROWTH. LIKE FAMILY RELOCATION OR BETTER WORK-
OR LOCATIONS. LIFE BALANCE.

CONFLICT RESOLUTION: TRANSFERS CAN BE HEALTH REASONS: TRANSFERS MIGHT BE

USED TO RESOLVE CONFLICTS OR ISSUES MADE TO ACCOMMODATE AN EMPLOYEE'S
WITHIN A TEAM. HEALTH REQUIREMENTS OR REDUCE STRESS
Types of transfer
Tyes of transfer
• Lateral Transfer: This involves moving an employee to a different position at the same level,
without a change in pay or rank, often to broaden their skills.
• Promotional Transfer: A transfer that includes a promotion to a higher position, typically
accompanied by increased responsibilities and pay.
• Demotional Transfer: This type involves moving an employee to a lower position, often due to
performance issues or organizational restructuring.
• Temporary Transfer: A short-term assignment to another position or location, often for project
completion or to meet urgent business needs.
• Permanent Transfer: A long-term move to a different role or location, signifying a lasting change
in the employee's job function or work environment.
Separation of employee
Separation of employees
• Separation refers to the process through which an employee leaves an
organization, either voluntarily or involuntarily. This can occur due to
various reasons, including resignations, retirements, layoffs, or terminations.
The separation process involves several steps, such as exit interviews, final
settlements, and the transfer of knowledge or responsibilities. Properly
managing employee separation is crucial for maintaining workplace morale
and protecting the organization’s reputation. It allows for feedback on the
employee experience and can provide valuable insights for improving
retention strategies.
Voluntary separation
 • Voluntary separation occurs when employees choose to leave an organization on their
own accord, rather than being forced out. This decision can be influenced by various
personal or professional factors, and managing this process effectively is crucial for
maintaining positive relationships and organizational culture.
• Types of Voluntary Separation:

Voluntary • Resignation: An employee formally notifies the employer of their decision to leave the
organization, often to pursue other opportunities or personal interests.
• Retirement: Employees choose to retire from the workforce after reaching a certain age

separation
or after completing a specific tenure, often transitioning to a new phase of life.
• Mutual Agreement: In some cases, both the employer and employee may agree on a
separation arrangement, often to address issues like poor job fit or performance
concerns.
• Job Abandonment: When an employee fails to report to work without notice or
communication, leading to their automatic separation from the organization.
Involuntary separation
Involuntary separation
• Involuntary Separation of Employees
• Involuntary separatio n occurs when an employee is terminated or laid off by the organization against their will. This can result from various
factors such as performance issues, organizational restructuring, or economic downturns. Managing involuntary separation sensitively is
essential to maintain workplace morale and protect the organization's reputation.
• Types of Involuntary Separation:
• Termination: This occurs when an employee is dismissed due to poor performance, misconduct, or violation of company policies.
• Layoff: A temporary or permanent separation due to organizatio nal restructuring, downsizing, or financial constraints, often im pacting
multiple employees.
• Job Elimination: This involves removing a specific position or role within the organization, often due to changes in business strategy or
efficiency improvements.
• Retrenchment: A cost-cutting measure where employees are let go to reduce expenses, often in response to economic challenges or financial
difficultie s.
 Thanks
Smriti Mishra
b.com 2nd year 3rd semester