Page 25 - DMGT548_GLOBAL_HRM

Global HRM

Notes Transfer of an employee can be done in other department of the same plant or office or to the
same department of plant or office located in other region/city.

1.4.1 Reason/Objectives for Transfer

The reasons for employee transfer are as follows:

 Transfer can be done on the request of employee due to personal reason like family
problem or health problem.

 Due to HR policy which states that one employee can work in department or place for
specific time period.
 Transfers are common in the organizations where the work load varies timely.

 If an employee is not able to do the work or job assigned effectively he can be transferred
to the other job where he can use his skills properly according to his interest and abilities.
 Departmental vacancies can be filled with transfer of employees from overstaffed
department.

 Employees can be transferred to the position or department with the higher priority
workload.

1.4.2 Types of Transfer

The types of transfers are as follows:

 Production Transfer: When the transfers are being made for filling the position in such
departments having lack of staff, from the departments having surplus manpower it is
called production transfer. It prevents the layoffs form the organization. Also it is good to
adjust existing staff rather than to hire the new one.

 Remedial Transfer: Remedial transfer refers to rectification of wrong selection or placement
of employees. If the employee can adjust himself in the given job he can be transferred to
the job where he can use his skills and abilities accordingly.

 Versatility Transfer: Such transfers are done to increase the versatility in the employees so
that he can work different kind of jobs. This is done by transferring employee to different
jobs closely related in same department or process line.. This is used as a training device.
It helps employee to develop him and he is equipped for the high responsibility jobs as he
is having knowledge of the whole process.
 Shift Transfer: In many multi-shifts jobs such as Call centres employees are transferred
from one shift to another due to their personal reasons like health problem or evening
college for higher studies or any family problems.
 Lateral Transfer: An employee is transferred to another area or department with the same
title, or the same salary range, if the title is different. No immediate salary action is to be
taken. The base salary of the transferred employee will be reviewed during the normal
common review process.
 Voluntary Transfer: When an employee voluntarily elects to apply for a position and is
selected for the job which has a lower salary range than their current position. When an
employee actively volunteers to accept an open position in a lower salary range because
of a position elimination or Departmental reorganization. The employee's base salary
should be established within 10% of the new job's salary range, not to exceed the salary
range maximum of the new position.

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