What is promotion and what are the bases of promotion?

What is promotion and what are the bases of promotion?

It is the rising movement of an employee from current job to another, i.e. higher pay scale, more responsibility and at higher organizational level. There may be DRY PROMOTION, in which an employee is promoted at higher level job without increase in pay. Promotion is a motivational tool for the employees.

Promotion may be on two bases:

• Merit based promotion: when the promotion takes place on the basis of an employee’s performance in the current job. It is done on the basis of his skills, knowledge and ability.

• Seniority based promotion: Here the employee who has given the long service in the organization gets promoted. There is no scope for favoritism.