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EVALUATING THE EFFECT OF EMPLOYEE TRANSFER ON ORGANISATIONAL PRODUCTIVITY

CHAPTER ONE

INTRODUCTION

1.1   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.

1.2. 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

1.3. RESEARCH QUESTIONS

1  What is the nature of employee transfers?

1.4. OBJECTIVE OF THE STUDY

1. To determine the nature of employee transfers

2. To determine the nature of organizational productivity

3.  To determine the effect of employee transfers  on organizational productivity

4. To determine the effect of employee transfers on the organisational productivity of first Bank

1.5. SIGNIFICANCE OF THE STUDY

The study shall provide a detail appraisal of the nature of employee transfer and the effect of employee transfer on organizational productivity. It shall serve as a source of information to human resource managers, managers and organisations.

1.6. STATEMENT OF THE HYPOTHESIS

Ho:   Employee transfers is low in first Bank

Hi:    Employee transfer is high in first Bank

1.7. SCOPE OF THE STUDY

The study shall focus on the appraisal of the effect of employee transfers on organizationalproductivity with a case study of First Bank plc.

1.8. DEFINITION OF TERMS

EMPLOYEE TRANSFER DEFINED

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”.

Production Transfer:

Such transfers are made when labour requirements in one division or branch is declining. The surplus employees from such division are transferred to those divisions or branches where there is shortage of employees. Such transfers help avoid lay off and stabilize employment.

Remedial Transfer:

Such transfers are affected to correct the wrong selection and placement of employees. A wrongly placed employee is transferred to more suitable job. Such transfers protect the interest of the employee.

 Replacement Transfer:

Replacement transfers are similar to production transfers in their inherent, i.e. to avoid layoffs. Replacement transfers are affected when labour requirements are declining and are designed to replace a new employee by an employee who has been in the organisation for a sufficiently long time. The purpose of these transfers is to retain long service employees in the organisation and also give them some relief from the heavy pressure of work.

 Versatility Transfer:

These transfers are also known as ‘job rotation? In such transfers, employees are made move from one job to another to gain varied and broader experience of work. It benefits both the employee and organisation. It reduces boredom and monotony and gives job enrichment to the employee. Also, employees’ versatility can be utilized by the organisation as and when needed.

 Shift Transfers:

These transfers are affected in the organisations where work progresses for 24 hours or in shifts. Employees are transferred from one shift to another usually on the basis of mutual understanding and convenience.

 Penalty Transfer:

Management may use transfer as an instrument to penalize employees’ involved in undesirable activities in the organisation. Employee transfer from one’s place of convenience to a far-flung and remote area is considered as a penalty to the employee.

PRODUCTIVITY DEFINED

Productivity is defined as a given quantity of output relative to input expressed in a given  organizational objective as standards,qoutas

Quality, quantity etc

Productivity is an overall measure of the ability to produce a good or service. More specifically, productivity is the measure of how specified resources are managed to accomplish timely objectives as stated in terms of quantity and quality. Productivity may also be defined as an index that measures output (goods and services) relative to the input (labor, materials, energy, etc., used to produce the output). As such, it can be expressed as:

Hence, there are two major ways to increase productivity: increase the numerator (output) or decrease the denominator (input). Of course, a similar effect would be seen if both input and output increased, but output increased faster than input; or if input and output decreased, but input decreased faster than output.

Organizations have many options for use of this formula, labor productivity, machine productivity, capital productivity, energy productivity, and so on.

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