Promotion policy

Promotion policy
See also

Promotion policy- is a change in contract conditions to make them more attractive for an employee which means a higher position and salary. Promotion is an upward reassignment of an individual in an organization’s hierarchy, accompanied by increased responsibilities, and status for which can mean an increased income. The employee being promoted, the promotee’s duties and responsibilities usually increase and become different from those of there earlier job title. Promotion is an employee's reward for good performance or positive appraisal. Before a company promotes an employee to a particular position it ensures that the person is able to handle the added responsibilities by screening the employee with interviews and tests and giving them training or on-the-job experience. A promotion can involve advancement in terms of designation, salary and benefits[1].


Purposes of promotion in organization:

  • To utilize the employee skill, knowledge at the appropriate level in the organizational hierarchy resulting in organizational effectiveness and employee satisfaction which in turns increases productivity.
  • To develop individuals competitive spirit and skill set in workplace as an employee to acquire the skill, knowledge understanding of there new role etc, required by higher level jobs.
  • To develop a competency both internal to there new role, while enhance company’s goals.
  • To promote employee self-development and retention of staff to develop a culture of internal recruitment. Thus reduction in labour turnover.
  • To promote a feeling of content with the existing conditions of the company and a sense of belongingness.
  • To promote interest in training, development programmes and in team development areas.
  • To build loyalty and boost morale.
  • To reward committed and loyal employees.

Bases for promotion[edit]

Organizations develop a policy depending on the basis on which promotions are to be made[2]:

  • Merit: denotes an individual employee’s skill, knowledge, ability, efficiency and aptitude as measured from educational, training and past employment record. It helps employees to acquire new skill, knowledge.
  • Seniority: seniority is based on the length of service knowledge of an employee in an organization. It is relatively easy to measure the length of service and judge the seniority,the results could be perceived to encourage employee turnover and thus quails interest to develop among young people.
  • Seniority-cum-Merit: there is a need to strike a balance between merit and seniority. Hence a combination of both seniority and merit can be considered the basis for promotion satisfying the management for organizational effectiveness and employees and trade unions for respecting the length of service.

Every organization need to specify clearly its promotion policy based on its corporate policy and HR policy. The policy should contain clear defined norms and criteria for promoting an employee. The policy should be fair and impartial and should be applied uniformly across company for all employees without giving scope for, favoritisms etc. Promotion systems necessitate a twofold balance between the choice of the individual most suited to fulfill the job role and thus that contribute effectively to the organization’s mission, and individual’s aspirations for promotional opportunities, which need to be satisfied. Organizations have adopted a variety of promotion policies depending upon their culture, size, and business[3].



  1. Mamoria, C.B. and Ganker, S.V., (2008)
  2. Subha Rao.P., Rao, V.S.P, (1997)
  3. Mamoria, C.B. and Ganker, S.V., (2008)

Author: Alicja Ficek