Introduction 

Organisations resort to another type of mobility of employees in order to place the right employee in the right job. This type of mobility which is restricted to movement of an employee from one job to another in the same level of organizational hierarchy is termed as ‘transfer.’

Meaning

Transfer is defined as “a lateral shift causing movement of individuals from one position to another usually without involving any marked change in duties, responsibilities, skills needed or compensation

Transfer is also defined as “...the moving of an employee from one job to another. It may involve a promotion, demotion or no change in job status other than moving from one job to another." However, transfer is viewed as change in assignment in which the employee moves from one job to another in the same level of hierarchy requiring similar skills involving approximately same level of responsibility, same status and the same level of pay. Thus, promotion is upward reassignment of a job, demotion is a downward job reassignment whereas transfer is a latter or horizontal job reassignment.

Purpose of Transfer

Organisations resort to transfers with a view to attain the following purposes:

• To meet the organizational requirements: Organisations may have to resort to transfer of employees due to changes in technology, change in volume of production, production schedule, product line, quality of products, change in the job pattern caused by change in organizational structure, fluctuations in the market conditions like demand fluctuations, introduction of new lines and/or dropping of existing lines. All these changes demand the shift in job assignments with a view to place the right man in the right job.

• To satisfy the employees' needs: Employees do need transfer in order to satisfy their desire to work under a friendly superior, in a department/region where opportunities for advancement are bright, in or near their native place or place of interest, doing a job where the work itself is challenging etc.

• To utilize employee's skill, knowledge etc. where they are more suitable or badly needed

• To improve employee's background by placing him in different jobs of various departments, units, regions etc. This develops the employee and enables him to accept any job without any hesitation

• To correct inter-personal conflicts

• To adjust the workforce of one section/plant in other section/plant during lay-off, closure or adverse business conditions or technological change

• To give relief to the employees who are overburdened or doing complicated or risky work for a long period

• To punish the employees who violate the disciplinary rules; To help the employees whose working hours or place of work is inconvenient to them

• To minimize fraud, bribe etc. which result due to permanent stay and contact of an employee with customers, dealers, suppliers etc.

Types of Transfers

Transfers can be classified into the following types:

Reasons for transfer

Transfers are basically of three categories, viz. employee-initiated transfer, company initiated transfer and public initiated transfers.

1. Employee initiated transfer

These transfers are also known as personal transfers. These transfers are primarily in the interest of the employee and according to his convenience and desire. Further, these transfers can be classified into temporary and permanent transfers.

a. Temporary Transfers

The reasons for employee initiated temporary transfers are:

• due to ill health or involvement of employees in accidents,

• due to family problems like taking care of old parents and

• due to other ad hoc problems like pursuing higher education

b. Permanent Transfers

There are several reasons for employee initiated permanent transfers. Employees prefer transfers:

• due to chronic ill health or permanent disablement caused by accident

• due to family problems like taking care of domestic affairs in his native place

• with a view to correct his wrong placement. Employee may not be interested with the work, working conditions or environment of his present job and hence may require a transfer

• in order to relieve himself from the monotony or boredom caused due to doing the same job for years together

• to avoid conflicts with his superiors. If most of the employees working under the same superior request for a transfer, the situation should be corrected by other means like developing that superior in inter-personal skills etc. rather than transferring the subordinates,

• with a view to search for challenging and creative jobs and

• with a view to search for a job with opportunities for advancement to a higher level job, opportunities for financial gains etc.

2. Company initiated transfers

Transfers are also at the initiative of the company. They can be classified into temporary and permanent.

a. Temporary Transfers

Reasons for the company initiated temporary transfers are:

• due to temporary absenteeism of employees,

• due to fluctuations in quality of production and thereby in work load, due to short vacations.

b. Permanent Transfers

Reasons for the company initiated permanent transfers are:

• change in the quality of production, lines of activity, technology, organizational structure as discussed earlier

• to improve the versatility of employees

• to improve the employee's job satisfaction

• to minimize bribe or corruption

3. Public initiated transfers

Public also initiate the transfers generally through the politicians/government for the following reasons:

• if an employee's behaviour in the society is against the social norms or if he indulges in any social evils.

• if the functioning of an employee is against the public interest.

The major drawback of public initiated transfers is the politicalisation of the issue. Some employees may be transferred frequently because of political victimization and company initiated transfers of some employees may be stopped due to political favoritism. This drawback is more severe in government departments and public sector units.

Benefits of Transfer

Transfers benefit both the employees and the organisation. Transfers reduce employees' monotony, boredom etc. and increase employees' job satisfaction. Further, they improve employees' skills, knowledge etc. They correct erroneous placement and interpersonal conflicts. Thus, they improve employees' morale. Further, they prepare the employee to meet organizational exigencies including fluctuations in business and organizational requirements. Thus, they enhance human resources contribution to organizational effectiveness.

Problems of Transfer

Despite these benefits, some problems are associated with transfers. They are:

•  adjustment problems to the employee to the new job, place, environment, superiors and colleagues

• transfers from one place to another cause much inconvenience and cost to the employee and his family members relating to housing, education of children etc.

• transfer from one place to another result in loss of man-days

• company initiated transfers result in reduction in employee contribution and

• discriminatory transfers affect employee morale, job satisfaction, commitment and contribution.

However, these problems can be minimized through formulating systematic transfer principles.

Transfer Principles

Organisations should clearly specify their policy regarding transfers. Otherwise, superiors may transfer their subordinates arbitrarily if they do not like them. It causes frustration among employees. Similarly, subordinates may also request for transfer even for issues. Most of the people may ask for transfer to riskless and easy jobs and places. As , an organisation may find it difficult to manage the transfer policy. Systematic transfer should contain the following items:

• Specification of circumstances under which an employee will be transferred in the case of company initiated transfer.

• Specification of a superior who is authorised and responsible to initiate a transfer

• Jobs from and to which transfers will be made based on the job specification, description and classification etc.

• The region or unit of the organisation within which transfers will be administered

• Reasons which will be considered for personal transfers, their order of priority etc.

• Reasons for mutual transfer of employees.

• Norms to decide priority when two or more employees request for transfer like priority of reason, seniority.

• Specification of basis for transfer like job analysis, merit and length of service.

• Specification of pay, allowances, benefits etc. that are to be allowed to the employee in the new job.

• Other facilities to be extended to the transferee like special leave during the period of transfer, special allowance for packaging luggage, transportation etc.

Generally, line managers administer the transfers and personnel managers assist the line managers in this respect.

References

P.Subba Rao, Essentials Of Human Resource Management And Industrial Relations, Himayala Publishing House, Edition 2014