Speaking of promotion, we can identify two distinct types of promotions, which may be called real and nominal promotion. A real promotion results in a person being assigned substantially higher levels of responsibilities in the hierarchical structure of the company. A nominal promotion results in changes elevating the person to a higher level of employment grade that determines the persons pay and other benefit, is not accompanied by any significant increase in responsibilities.
Companies may use many different processes and criteria for promotion of staff of the company, and generally these are different for these two types of promotions. Therefore we will discuss them separately.
Criteria For Real Promotions.
Real promotions are given based on existence of vacant posts to which a person is promoted, and on the assessment of ability of individual employee to handle the enhanced responsibilities. The vacancies for promotion are created in several ways including promotion or transfer of persons at higher posts, expansion in operations of company, and people at higher posts retiring or resigning from the company. The assessment of ability of candidate for promotion is determined by his current performance, as well as level of capability as demonstrated i current position. In addition, consideration may also be given to aptitude of the person judged by other means.
Criteria for Nominal Promotions
Nominal promotions are more like reward to employees for their current performance and for continued loyalty to company. Therefor main criteria for nominal promotions are record of performance in the job and length of service in the current grade. In addition, the job market also influences this decision substantially. When the demand for people performing a particular type of jobs is high, may become difficult to retain existing employees at their current level of remuneration and designation. In such cases nominal promotion are give to retain the employees in the company.
Criteria for promoting primarily personnel are the same as the selection criteria: education, seniority, job previously held and qualities, knowledge, skills and abilities. Depending on how are used the criteria for promotion in today businesses they are manifesting three main trends.
1.Promotion based on age and seniority in service. Such a trend generalize the role of experience, considering that the passing years automatically determine amplification of employees’ potential.
This approach is typical of small firms,where conservative trends are very strong. In general, in recent years , there was a decrease in the number of companies that give absolute priority to age and seniority, because of non-stimulating character, directly generated tensions, especially among youth.
2. Promotion based on the results, trend with the largest spread.
The strength of this trend is the use of verifiable criteria for promotion,non attacking, based on last measurable results,a crucial element for avoiding the appearance of conflicting situations.
Also, promoting the results is staff stimulating towards a higher level of tasks assigned, which has important positive implications for attaining the current objectives.
3. Promotion based on the potential of staff is a tendency that manifests itself management of personnel in modern companies.
In other words, are promoted as a priority those employees, taking into account current levels of training, their responsiveness to change, their capacity of effort, the training base, the resilience, the sense of forecast, present actual or latent potential which to allow them to response to the complex requirements of some top posts.