Evaluating the Effect of Employee Transfer on Organisational Productivity

Evaluating the Effect of Employee Transfer on Organisational Productivity

Chapter One of Evaluating the Effect of Employee Transfer on Organisational Productivity

INTRODUCTION

BACKGROUND OF THE STUDY

A transfer refers to lateral movement of employees within the same grade, from one job to another. According to Flippo “a transfer is a change in the job (accompanied by a change in the place of the job) of an employee without a change in responsibilities or remuneration”.

Transfer differs from promotion in the sense that the latter involves a change of job involving increase in salary, authority, status and responsibility, while all these remain unchanged /stagnant in the case of former. Also, transfers are frequent and regular whereas promotions are infrequent, if not irregular.

Transfer may be initiated either by the company or the employee. In practice, the company may transfer the employee to the place where he/she can prove more useful and effective. Similarly, employee may initiate transfer to a location where he/she is likely to enjoy greater satisfaction.

Transfer could be permanent, temporary or ad hoc to meet emergencies. Usually, permanent transfers are made due to changes in work load or death, retirement, resignation, etc. of some employee. As regards temporary transfer, it arises mainly due to ill health, absenteeism, etc. of some employee.

Transfer decisions may be perceived as negative or positive depending upon an individual’s personal preferences, needs and aspirations. For example, an organisation may consider transfer from Guwahati regional office to Delhi-head office as positive and reward because it will enable the employee to broaden his/her knowledge and work experience. On the contrary, the employee may look down upon it as it breaks ties with his people and community in Guwahati.

Sometimes, transfers are used as an instrument for victimizing the employees by management. Realizing it, provisions are made by constituting labour courts to set aside transfer orders proved as management strategy to victimize employees. In order to make transfers useful for employee and the company, some organisations have clear agreements with trade unions for the transfer of unionized staff especially on promotions.

There are some public sector organizations like Minerals and Metals Trading Corporation (MMTC) who have entered into agreements, with employees for creating two cadres of officers, namely. Local Officers and All India Officers wherein promotions to and within the former are less accelerated than in the latter, but do not entail transfer.

STATEMENT OF THE PROBLEM

An understanding of employee transfers which involvesa lateral movement of employees within the same grade, from one job to another.  And According to Flippo “a change in the job (accompanied by a change in the place of the job) of an employee without a change in responsibilities or remuneration”is  expected to evolve benefits both to the employees and the organization. At the organizational level the management expect a change in the level of activities and output but it  is often observed that most employee transfers do not exact the desired result  on the organization. This is as a result  of many factors ranging from improper or poorly implemented policy on employee transfers to poor employee assessment many employees do not often appreciate transfers does resulting to poor morale and performance.

Therefore the problem confronting this research is to evaluate the effect of employee transfer on organizational productivity with a case study of first Bank plc

RESEARCH QUESTIONS

1  What is the nature of employee transfers?

1. What is the nature of organizational productivity?
2. What is the effect of employee transfers on organizational productivity?
3. What is the effect of employee transfers on the organizational productivity of first bank?