Distinction between transfer and promotion

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What is the difference between transfer and promotion

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Promotion takes place when an employee moves to. a position higher than the one for merely occupied. Transfer is the movement of an employee from one job to another without involving any change in his status, duties and responsibilities and compensation. The distinction between promotion and transfer can be drawn on the following grounds.

(a) Nature — In case of promotion, new position carries higher pay, status and job conditions and compared with the old while in case of transfer, pay, status, responsibilities and job conditions are almost the same.

(b) Objects—Promotion aims at recruiting the right man on the job from the lower rank within the organisation while transfer aims at maintaining equilibrium between demand and supply of the employees by shifting the employees from one job to another or from one department to another.

© Policy—Promotion as a part of personnel programmes, helps the employees to increase their efficiency but transfer is used as a technique in training programmes