Promotion | Meaning and Definition

What is Promotion?

When an employee is given a higher position or rank in an organisation, it is called Promotion.

A promotion comes with an increase in responsibilities.
An employee becomes a senior authority of the company.
When an employee is promoted, his or her salary also increases.

Definition

“A promotion is the elevation of an employee to a higher job role. It is accompanied by an increase in salary, greater responsibilities, and higher status. It is a form of recognition for an employee’s contributions and capabilities.”

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Types of Promotion

1. Vertical Promotion:

Role Advancement: Moving to a higher position within the same department or function.
Increased Authority: Gaining more decision-making power and leadership responsibilities.

2. Horizontal Promotion:

Role Change: Shifting to a different role at the same level but with different responsibilities or in a different department.
Skill Utilisation: Utilising an employee’s diverse skill set in a new capacity.

3. Dry Promotion:

Title Change: Receiving a new title without an increase in pay or significant change in responsibilities.

Benefits

The promotion has the following advantages:

Acknowledge an employee’s efforts and devotion, and encourage him or her to improve.
Encourage employees to compete for higher-level jobs by encouraging them to learn new things.
Maintain talented and skilled staff
Eliminate dissatisfaction and dissatisfaction.
To fill a job vacancy that arises as a result of an employee’s retirement, resignation, or death. The next experienced worker would be upgraded to the vacant post in this situation.
Engage employees’ knowledge and abilities more effectively.
Attract qualified and experienced individuals.

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Example of Promotion in Corporate Offices

Vertical: An employee moves from a Senior Analyst to a Manager position, with additional team leadership responsibilities and a higher salary.
Horizontal: A marketing specialist shifts to a product management role, leveraging their understanding of market needs in a different capacity.
Dry Promotion: An employee’s title changes from “Junior Developer” to “Developer” to reflect their growing experience, without an immediate salary increase.

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