TRANSFER Meaning, Definition, Reasons, Principles, Types, Benefits, Problems
Meaning of Transfer
A transfer is referred to as the movement of an employee from one location to another, or from one branch to another. Depending on the circumstances, transfers may be granted by the company or requested by the employees themselves is a very common policy that is followed by every company. Sometimes, the transfer takes place with no change in the pay scale or position and sometimes it may prove to be financially beneficial to the employee.
Definition of Transfer
According to Yoder and Associates, “Transfer is 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”.
According to Edwin B. Flippo, “Transfer is a change in job where the new job is substantially equal to the old in terms of pay, stats and responsibilities”.
Reasons for Transfer
Transfers are usually made to meet the interest of both the employee and the organisation. The reason for transfer varies depending on organizational needs, and manager or employee interest.
Transfers due to the following reasons:
1) To Fulfil Employee’s Requirements: Transfers may be made when an employee is unable to fit or adapt himself to the company’s working environment. If an employee is not comfortable with his superiors or fellow workers, or he is unable to see his future growth in a particular job or he is having some family problems, in such conditions, to meet the employee’s requirement transfer can be done from one place to another or from one department to another by the organisation.
2) To Meet Organisational Needs: An organisation has to go through several changes in the path of growth and achievement of its goal successfully. These changes may include work inconsistencies, changes in the structure of the organisation, changes in the economic status, changes in the quantity of production, etc. This demand either reduction or reallocation of the workforce. Thus, suitable adjustments are made to fulfil these requirements of the organisation by transferring appropriate candidates to the right place.
3) To Make Effective Utilisation of Employees’ Skills: Sometimes, employees are not able to perform satisfactorily and adequately in a particular job as their skills are not properly utilised. Therefore, the management transfers such employees to that job where their capabilities and skills can be utilised in a much better way.
4) To Enhance Employee Productivity: When an employee performs the same task for an extended period, both their productivity and level of excitement start to decline. Thus, to break this boredom and make the jobs more interesting, transfers are made.
5) To Increase Employees’ Versatility: Transferring an employee from one department to another or from one place to another help the employees face new challenges and gain new experiences. This increases the versatility of the employee as he receives enough opportunities to improve his diverse skills.
6) To Adjust the Employees and their Timing: Transfer takes place to adjust the employees into different departments particularly when there are certain changes in the organisation. Transfer can also be done at the convenience of the employee. Some people prefer morning shifts, some prefer evening and some prefer night shifts. For example, working women prefer to work evening shifts as they have to do their daily household work in the morning time.
7) To Maintain a Tenure System: Many organisations follow a tenure system. Especially, in government organisations employees are hired for a particular period on a particular post. Later these employees are transferred to other places or departments to acquire new knowledge and skills. For example, in banks, probationary officers are hired for 3 years and later they are transferred to other places for the next 3 years. Sometimes, transfers are also made so that employees do not get involved in politics against the organisation.
8) To Ensure Discipline in Employees: There are some officers or employees of the organisation who violate the rules and regulations and work for their benefit. Therefore to penalise, such employees are transferred to a distant branch or office where they do not get a chance to carry out their unlawful activities.
Principles of Transfer
The transfer is an integral part of the organisation. Sometimes transfer takes place as per the requirement of the organisation and sometimes because of the employees. At one point or other, transfers are made frequently in organisations. The most important thing that should be kept in mind is that the transfer policy should be impartial and must be known to the employees of the organisation. The one who is given the responsibility of transfers should be trustworthy, experienced and unbiased in decision-making The condition under which the transfers are to be approved should be prescribed. Proper placement and selection systems should be followed by the management of the organisation to avoid frequent or large-scale transfers.
Some principles that can make a transfer policy more sound and successful are as follows:
1) Transfer policy should be made very clear to all the employees. For that, a company can provide the policy in writing to the employees.
2) It must be mentioned in the policy what are the kinds of transfers, the grounds for transfer and the circumstances under which employees can be transferred from one job responsibility to another.
3) The name of the person who has been given the responsibility of initiating and implementing the transfer policy should be disclosed to the authority of the organisation.
4) Policy must specify the pay scale for the transferred employee and the areas in which the transfer can take place, i.e, whether the transfer will take place within the department or unit or branch or some other state.
5) The policy must make sure to inform the concerned person in advance about the transfer so that he gets mentally prepared for the transfer.
6) Transfer policy should be fair and should not be conducted for the sake of personal benefit. Organisational benefits should be kept in mind rather than personal differences.
7) It should be prescribed in the policy whether or not the training or re-training is required by the employee in the new job.
Types of Transfer
Different types of transfer are as follows:
- Types of Transfer
- Based on Purpose
- Production Transfers
- Replacement Transfers
- Shift Transfers
- Remedial Transfers
- Versatility Transfers
- Based on Unit
- Sectional Transfers
- Departmental Transfers
- Inter-Plant Transfers
1) Based on Purpose: It includes the following:
i) Production Transfers: Production transfers are based on the changing requirement of the organisation. When the employees are moved from the place where they are available in excessive numbers to a place where there is demand for more employees, such a transfer is called production transfer. In this case, the organisation is the same, only the departments are changed to increase the productivity of the organisation.
ii) Replacement Transfers: Replacement means to substitute a new employee in place of an old employee who is working in the organisation for a long time. New employees are energetic and have new ideas. Replacement transfer helps in utilising the new knowledge and advanced skills of the fresh talent in the interest of the organisation. The purpose of these transfers is mainly to avoid lay-off.
iii) Shift Transfers: Shift transfers mean a transfer from one shift to another at the convenience of the employee as well as the organisation. It is a very common type of transfer. There are usually 3 shifts namely morning, evening and night. The position and job remain the same, only the timings are adjusted accordingly.
iv) Remedial Transfers: As the name indicates, remedial transfers are made to remedy the situation or faults that happened during the placement. When employees are not able to perform their duties effectively or they are unable to adjust themselves to the changing environment, employees are transferred to a more suitable place where their skills can be better utilised and their performance can become better.
v) Versatility Transfers: These transfers are made to make the employees more versatile. They are transferred to a different job so that they can get varied experience and skills. It also prepares the employee for future promotions along with greater job satisfaction.
2) Based on Unit: It includes the following:
i) Sectional Transfers: When the transfers are made to train the employees to handle the operations and working of different sections of the same department, such transfers are called sectional transfers.
ii) Departmental Transfers: Transfers made from one department to another department within the same organisation is called departmental transfer. In such transfers, the job responsibilities remain the same for the employee in the departments.
iii) Inter-Plant Transfers: If an organisation is having more than one branch or plant, inter-plant transfers can be made to fulfil the various changing needs of the organisation.
Benefits of Transfer
The benefits of the transfer are as follows
1) When an employee is transferred from one department to another or is given responsibilities of different Jobs, he can gain advanced knowledge and different skills that may prove to be beneficial for him.
2) Transferring staff members is one of the best ways to improvise social interaction in an organisation. It not only reduces the politics between the employees but also maintains healthy coordination between the employees of different departments
3) When the employees work with coordination and cooperation, it results in the smooth functioning of the organisation which further will result in raising organisational gains and improving organisational effectiveness.
4) The problem that the company faces due to faulty placements can be corrected by transferring suitable and efficient employees to the respective department. This stabilises the work fluctuations happening in the organisation.
5) Transfer helps the employees to overcome the tediousness of the same job they are performing for a long time. They are fully energised to take up new work and duties. They can acquire new skills which increase their chances of future promotion.
6) Transferred employees are motivated to learn new things as they receive new challenges and get an opportunity to express their ideas and show their potential.
Problems of Transfer
Several problems faced by the employees are related to transfer. Some of them are as follows:
1) One of the major problems faced by employees during a transfer is adaptability. When moved to a new job, an employee has to adjust himself to the place and environment. He even has to face criticism from senior persons and co-workers.
2) Transfers cause a lot of trouble not only to the employee but also to his family members. An employee may face the problem of housing, adjustment, education of children, etc. when transferred from one place to another.
3) There is a loss of time as well as money when employees are transferred from one place to another. Sometimes, employees are not happy with their transfer, so, they become careless and inefficient in their work.
4) When transfers are based on discrimination, it diminishes the morale of the employee leading to reduced job contentment, loyalty and devotion and he becomes less productive.