Promotion policies in Human Resource Management (HRM):
1. Promotion Based on Merit
👉 Meaning:
Promotion is given to the employee who performs the best, works hard, and shows good results, regardless of how long they’ve been working.
✅ Advantages:
- Encourages hard work – Employees try to improve their performance.
- Promotes talented people – The best worker gets promoted.
- Improves company performance – Skilled people help the company grow.
- Motivates employees – People try to learn new things and do better.
❌ Disadvantages:
- Can be unfair – Boss may show favoritism.
- Upsets senior workers – Experienced employees may feel ignored.
- Less teamwork – People may focus only on their own work.
- Creates competition – May lead to jealousy and conflict.
2. Promotion Based on Seniority
👉 Meaning:
Promotion is given based on how long an employee has worked in the company, not on how well they perform.
✅ Advantages:
- Simple and fair – Based only on years of service.
- Loyalty is rewarded – Old employees feel secure and valued.
- Less conflict – Reduces favoritism and disputes.
- Boosts morale – Long-time workers feel respected.
❌ Disadvantages:
- Talent is ignored – Good performers may be left out.
- Frustrates young workers – They don’t get a chance to grow fast.
- Reduces efficiency – Unskilled people may get promoted.
- No motivation to improve – People may stop learning.
3. Promotion Based on Merit-Cum-Seniority
👉 Meaning:
Promotion is based on both performance and years of service. So, a person must be good at work and also have some experience.
✅ Advantages:
- Balanced system – Rewards both talent and loyalty.
- Fair to all – Seniors and juniors both have a chance.
- Better leadership – Promoted employees have skill and experience.
- Motivates everyone – Both old and new workers feel hopeful.
❌ Disadvantages:
- Hard to decide – No clear rule on how much importance to give to merit or seniority.
- May cause confusion – Employees might not understand the criteria.
- Need for good system – Requires honest and clear performance reviews.
- Possible complaints – Some may still feel unfairly treated.
Summary:
| Policy Type | Based On | Good For | Not Good For |
|---|---|---|---|
| Merit | Performance & skill | Talented & hard-working staff | Senior but average workers |
| Seniority | Years of service | Loyal and long-serving staff | Young and skilled workers |
| Merit-cum-Seniority | Mix of merit and seniority | Balanced promotion for all | May cause confusion if unclear |
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By Chandan Sha
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