Promotion is the advancement of an employee to a position of greater responsibility, usually with an increase in compensation. Upgrading is the increase in compensation of an employee in recognition of his effective handling of the position. Transfer of an employee from one position to another without raising his salary reflects a desire to use the employee talents to better advantage or perhaps to eliminate the position he formerly held. Transfer is a form of selection. Upgrading may be a form of merit increase or a benefit of seniority, either as a company policy or a union contract obligation.

Promotion is beneficial to morale, not only for the individual promoted, but also to the rest of the working force because it demonstrates that advancement in the ranks is possible. Promotion also serves to provide new executives to replace those lost through death, retirement, or separation from the company.

When the majority of executive replacements are made by promotion from the ranks, the company strengthens morale and gains the services (as an executive) of an individual trained and indoctrinated by the company. Despite these obvious advantages, executive positions are sometimes individuals not presently employed by the company or present employees not in line for promotion to the open position. The policy of infusing \”new blood\” is often justified by the need for new ideas, an opportunity to secure the services of a man whose worth has been proven in other connections, or the imperfect preparation of the next-in-line for promotion to the position.

No matter what justification may be offered for going outside the company, the effect on morale is usually bad, and the practice is a reflection of the failure of the company to train properly for replacements. In the case of necessary sweeping reorganization, going outside may be vitally necessary, but it should be done charily. Many times the \”world-beater\” from elsewhere does not deserve his reputation, or perhaps he cannot perform the same miracles in his new connection because of differing circumstances or failure to have the same type of support that he enjoyed in his previous connection. Certainly, his path will not be made easier by those who thought the position should have been filled from within the ranks. His failure to achieve satisfactory results not only costs the company in terms of direct results, but also weakens management personnel and policies in the eyes of the employees.

Promotion is easiest to effect in a growing organization where new job opportunities open up due to expansion. In a completely stabilized business, promotion may depend on \”waiting for the hearse.\” This is an unsatisfactory situation because it encourages ambitious younger individuals to leave the company and thus reduces the reserve of manpower available for promotion to the positions of those who pass on. Those who remain content with their situations may degenerate into routine clerks without imagination. Seniority and merit increments will ameliorate this situation but will not completely solve the problem.

In an effort to \”sell\” a position to a new applicant, quite frequently a recent graduate, a company may paint a glowing picture of advancement that is possible. If such promises are made without definite plans for promotion or if the promises are made to a larger number of candidates than could ever be advanced to executive positions, the resulting disillusionment is very damaging to morale.

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Category: Business
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