Changes in Personnel Status

CHANGES IN PERSONNEL STATUS

The proper movement of the employee in the organization is called placement that could

be defined as the assignment of the right man to the right job .

Promotion- is the movement of an employee from lower to higher level in the
organizational ladder.
Rationale for employee promotion

1. Recognition and reward for good performances.
2. Incentive for employees to improve academically and professionally and to prepare
themselves for new challenges in the job.
3. Employees who are promoted usually know the job well rather than hire new
employees outside the organization.
4. Boost employee morale and develops greater loyalty to the organization.
Important factors in promotion
1. The company must consider the seniority rule. All things being equal, the first to be
hired must be given the priority to be promoted.
2. Careful analysis of the qualifications of the individual has to be subjected to a series
of tests, interviews, and records check.
3. Attendance records and performance for the last two to three years have to be
examined.
Employee transfer- This may be defined as the movement from one job to another of
equivalent rank or position at the same pay class within the organizational. The policy
manual must state the following.
1. The person who should initiate transfer.
2. The authorized personnel who will approve the transfer
3. The reason why an employee has to be transferred.
4. The status of the employee
Employee Transfer- this may be defined as the movement from one job to another
of equivalent rank or position at the same pay class within the organization.
Kinds of employee transfer
1. Temporary transfer
2. Permanent transfer
Transfers are useful tools for some operational needs of the company due to the
following:
1. Meet the company need during peak seasons. An employee may be transferred as a
necessity of operational demand.
2. Protect the health and safety of the employee.
3. Meet expansion needs.
4. Correct an error in the hiring of the employee.
Demotion- defined as the movement of an employee from his present job to a job of
lower rating or in a lower grade.
Demotion is resorted to by management under the following conditions:

1. Slack business demand and operations reducing manpower budget
2. Inability of the employee to meet the job requirements for the position he was hired.
3. Failure of the employee to meet technical changes in the job.
4. Demotion is resorted to when the employee commits an infraction of the
company’s rules and regulations and the penalty for the offense is short of termination
Employee separation and termination- The termination of employment relationship
between the employee and the employer is called separation.
Causes of employee resignation:
1. Better job opportunities on other companies or outside the country.

2. An employee seeks higher wages and better working conditions.
3. An employee resigns due to misunderstanding with his immediate superior.
4. A worker resigns from employment due to the distance from work because of change
in residence.
5. Most women employees resign from employment due to change in marital status.
Procedure in handling separation of employment:
1. Employee clearance- make sure that the employee is cleared of all money and property
responsibilities before he is paid with whatever benefits.
2. Conduct exit interview- it is an attempt to find out the actual reason of all employees in resigning
from the company.
a. Determine the real cause of the employee’s resignation.
b. Determine that all required papers related to his separation are properly accomplished
such as those of social security system (SSS), philhealth, pagibig fund other government agencies.
c. 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.
d. Create an impression to the employee that the company is still interested in his career as he is
an asset employee.
e. An employee who is compulsory retired, according to the law, after serving the company the
best years of his life, should be awarded a service merit plaque or certificate of recognition in an
appropriate occasion.
Procedure in handling lay-off and suspension of relationship:
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 involved according to the law or collective agreement and
the amount the company will spend in paying the separation pay of a
employment.
3. 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 requirement at the option 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 to
keep the company afloat during critical times.
Handling Human Resources Turnover
Causes of employee turnover:
1. Poor supervisory practices.

2. Poor company policy of attracting potential and good employees.
3. Good opportunities in another country or another company.
4. Poor selection, hiring of employees, training and inadequate supervisors

Changes in Personnel Status

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CHANGES IN PERSONNEL STATUS

be defined as the assignment of the right man to the right job .

Rationale for employee promotion

Kinds of employee transfer

Demotion is resorted to by management under the following conditions:

Causes of employee resignation:

1. Better job opportunities on other companies or outside the country.

a. Determine the real cause of the employee’s resignation.

Causes of employee turnover:

1. Poor supervisory practices.

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