Promotion is defined as giving higher
position to the employee, which carries
high status more responsibilities and
higher status. Promotion means
advancement of employee in terms of pay
and status also improvement in working
Promotions are used to fill the positions
which are more important to fill rather than
the present position of employee. It can be
filled by external recruitment but employees
having eligibility and experience must be
appointed for their motivation. Also it will
decrease labour turn over as external
recruitment costs more. Also increase in
salary and status will increase job
When scale of pay is increased without
changing job it is called up-gradation
and promotion involves changes in job as
well as high salary.
When higher position is given without
change in salary it is known as Dry
All these, Promotion Up-Gradation and Dry
Promotion are used by management to
increase morale of employee and as giving
Advantages of promotion:
Present employees if promoted can handle the process products
and problems easily as they are already
connected to organization but new incumbent
may take some to adjust him or may not
adjust himself at all.
The cost of training the insiders for the higher position is
nearly nil hence no extra training cost.
Employees will give their best as they know that reward of
giving good performance is sure.
High morale of the employees is achieved.