WACHEMO UNIVERSITY

BUSINESS AND ECONOMIS COLLAGE

DEPARTMENT OF PUBLIC ADMINISTRATION AND

DEVELOPMENTN MANAGMENT

ASSESSMENT OF PROMOTION, DEMOTION AND LATERAL TRANSFER PRACTICES:

INCASE OF NIGIST ELENI MOHAMMED MEMORIAL COMPRESIVE SPECIALIZED
HOSSPITAL

THE RESEARCH SUBMITTED TO THE DEPARTMENT OF PUBLIC ADMINISTRATION

AND DEVELOPMENTN MANAGMENT IN PARTIAL FULFILLMENT OF BACHELOR
DEGREE IN PUBLIC ADMINISTRATION AND DEVELOPMENTN MANAGMENT

NAME ID

ANWAR AHMED ......................................................1306690

ADVISOR: MRS. LAPPISO

HOSSANA, ETHIOPIA
FEB, 2023
Contents
Abstract........................................................................................................................................5
CHAPTER ONE: INTRODUCTION..........................................................................................6
1.1 Background of the study........................................................................................................6
1.2 Statement of the problem.......................................................................................................7
1.2.1 Research questions.....................................................................................................................7
1.3 Objective of the study............................................................................................................8
1.3.1 General objectives......................................................................................................................8
1.3.2Specific objectives.......................................................................................................................8
1.4 Significance of the study........................................................................................................8
1.5 Scope of the study..................................................................................................................8
1.6 Limitation of the study...........................................................................................................9
CHAPTER TWO: REVIEW OF RELATED LITERATURE........................................................9
2.1 Human Resources Movement................................................................................................9
2.2 Concept of promotion............................................................................................................9
2.2.1 Open and closed promotional system......................................................................................10
2.2.2 Promotional Guidelines............................................................................................................11
2.2.3 Purpose of promotion...............................................................................................................11
2.2.4 Promotion policy.......................................................................................................................11
2.2.5 Benefits of effective promotion policy......................................................................................11
2.2.6 Seniority versus - merit/ Ability/...............................................................................................12
2.2.7 Difficulties in promotion...........................................................................................................12
2.3 Concept of transfer.............................................................................................................13
2.3.1 Type of transfer........................................................................................................................13
2.3.2 Purpose of transfer...................................................................................................................14
2.3.3 Reasons for employee transfers...............................................................................................14
1
 2.3.4 Systematic Transfer policy........................................................................................................15
2.3.4 Difficulties in transfer................................................................................................................15
2.4 Concept of demotion............................................................................................................15
2.4.1 Types of demotion....................................................................................................................16
2.4.2 Demotion policy........................................................................................................................16
2.4.3 Causes of demotion..................................................................................................................16
2.4.4 Problems caused by demotion..................................................................................................17
2.4.5 Making demotion more attractive............................................................................................18
CHAPTER THREE: RESEARCH DESIGN AND METHODOLOGY.......................................18
3.1 Description of The Study Area............................................................................................18
3.2 Research Design...................................................................................................................18
3.3 Sample size and sampling procedure...................................................................................19
2.4 Data collection method........................................................................................................20
3.5 Data analysis method...........................................................................................................20
CHAPTER FOUR: DATA ANALYSIS, PRESENTATION AND INTERPRETATION..........20
4.1 Introduction..........................................................................................................................20
4.2 Respondent’s demographic information..........................................................................20
4.3 Promotion, transfer and demotion........................................................................................22
4.3.1 Promotion practice ,policy and opportunity.............................................................................22
4.3.2 Transfer practice,policy and opportunity..................................................................................27
4.3.3 Demotion practice and policy...................................................................................................29
CHAPTER FIVE: CONCLUSION AND RECOMMENDATION..............................................31
4.2 Conclusions..........................................................................................................................31
4.2 Recommendation.................................................................................................................32
BIBLIOGRAPHY..........................................................................................................................33

2
Acknowledgment

Above all l would like to thanks and praise the almighty God for his help I doing this
paper.Then I would like to thanks my adviser mr lappiso.

For his valuable and genuine advice and constructive criticisms contributing to quality

Of this paper he has much credit through guiding and commenting me on on this paper.

I would also like to express my deepest gratitude for my parents.Especially for my

brother who helped me both finanically and morally encouragement throught out my
study in the university

3
Abstract

The purpose of the study is to assess the promotion, transfer and demotion practices Nigist eleni
mohammed memorial compresive specialized hosspital. Among 230 employees of the hospital 70
employees were participated in the study. Simple random sampling method is employed to reach
the target population. Questionnaires were used to collect data for the study.
Formally the data were analyzed quantitatively and qualitatively by using percentage and
presented tables. The finding of the study indicates that to ascertain promotion, demotion and
transfer polices practiced, identify the major objectives, to know present practice and to outline
and explain the bases of promotion, demotion and transfer. since as the main practices of the
hospital regarding on promotion, demotion and transfer. However, the objective of transfer do
not focus on the change of organization structure, basis of transfer opportunity is focused on
environmental condition and job experience only, Employees after Demoted from their work
develop many unwanted behavioral changes and it may become dangerous for their life
individual or social and Some of the employees don’t know about the current policy of
implementing demotion and its implementation does not satisfy needs and wants of the
employees were problems of promotion, transfer and demotion practices in the hospital.

4
CHAPTER ONE: INTRODUCTION

1.1 Background of the study

Promotion, demotion and transfer are vital human resource practices and the movement of
human being in organization is important as recruitment and selection of people from outside and
calls for some careful planning and use of fair and systematic procedures (French, 2007).
Upward, lateral and downward mobility is available for the development purposes in the
company. In transfer the employee is assigned a job in different area of the company and
promotions are advancements in to positions with greater challenge, more responsibility, and
more authority than the employees previous job, and also demotion occurs when with involving
move to another position at the same level or lateral demotion and temporary cross functional
move because of poor performance (Raymond, etal, 2010).

To ensure that employees accept transfers, promotions and demotion as development

opportunities, companies can provide information about the content challenge and potential
benefits of the new job and location and information about how the job opportunity were affect
their income and other expense (Raymond, etal, 2010).

Promotion demotion and transfer play a major role the organization for the purpose of retaining
skilled and talented man power, to utilize effective knowledge and skill and to satisfy the needs
of the organization as may arise out of change in quality of work requirement and change in the
organizations.

Because Human being requires and utilize other resources by shaping them in a manner that
needed to perform successful management action up on organizations policy, objectives and
practices on promotion demotion and transfer.

A demotion is a movement from one position to another that has less pay or responsibility
attached to it. Demotions can be used for punishment, but most organizations refuse it as an
option, performing instead of suspend the employee or assess a financial penalty through the
feature of pay. The reason for this reluctance is that demotion staffs a position with an
5
embarrassed and often angry worker who is not likely to be productive or any better behave than
she/ he was in the former position (Assefa G., 2005).

1.2 Statement of the problem

Promotion demotion and transfer are vital Human resource practices. Those are very
indispensable part of achieving the organization goal and objectives.

An organization policy bearing on promotions and transfers is of a great importance to

employees at all levels which covers a change and calls for greater responsibilities and usually
involves higher pay and better terms and conditions of service and therefore a higher status
with respect to fill temporary vacancies ( Assefa G. 2005).

The promotion, demotion and transfer practices have great contribution for the organization to
up grading the skill, to cope up with boring redundancy work and to demote the workers those
who are not actively perform what the organization expect from them. Such practice helps the
organization to realize pre specified objectives, policy and practices effectively.

Even though the above listed parameters have a great contribution to the organization there
were also a problem in demoting or down warding employees and transferring them in the
organization. Due to outgoing and incoming employees the hospital faces schedule problems,
mismatch of purchasing materials and the organization incurred costs for recruitment and
selection of new employees and also demorality of employees at the work condition by looking
for the dismissed employees with respect to change in adaptation that makes the demand
concerning efficiency and need a lot of planning accessory. Nigist eleni mohammed memorial
compresive specialized hosspital has faced with employee turnover, fear of potential
constructive dismissal claims and operational fallout, refusal of employees to accept a transfer,
decreasing the number of new applicants and luck of trust on the part of the employee’s. So to
find the solution for the above problems, the researcher is interested to assess the policy,
objectives and practices of Nigist eleni mohammed memorial compresive specialized hosspital
regarding on promotion, demotion and transfer.

1.2.1 Research questions

 What are the major objectives of promotion, demotion and transfer in Nigist eleni
6
 mohammed memorial compresive specialized hosspital?
 What are the present practices of promotion, demotion and transfer in Nigist eleni
mohammed memorial compresive specialized hosspital?

 What are the policies of Nigist eleni mohammed memorial compresive specialized
hosspital regarding to promotion, demotion and transfer?
 What are the bases for promoting, demoting and transferring employees in the
hospital?

1.3 Objective of the study

1.3.1 General objectives

The general objective of the study is to assess the promotion, demotion and transfer practices in
Nigist eleni mohammed memorial compresive specialized hosspital.

1.3.2Specific objectives
1. To identify the objectives of promotion, demotion and transfer Nigist eleni
mohammed memorial compresive specialized hosspital.
2. To identify the present practice of promotion, demotion and transfer of Nigist eleni
mohammed memorial compresive specialized hosspital
3. To know the policies of the hospital towards promotion, demotion and transfer.
4. To outline and explain the bases of promotion demotion and transfer in Nigist eleni
mohammed memorial compresive specialized hosspital.

1.4 Significance of the study

The significance of this study for Nigist eleni mohammed memorial compresive specialized
hosspital was to take corrective action on the issue of promotion, demotion and transfer and the
study had a significance for policy makers on their task of formulating appropriate and right
polices in order to achieve the goals and objectives of the organization and finally the study is
help for other researcher who are interested to assess promotion, demotion and transfer practices.

1.5 Scope of the study

It is difficult to conduct this study in widely range because it consumes high cost, and also
difficult to get relatively accurate information regarding to the study. Due to this reason the
scope of the study is limited to assessment of promotion, demotion and transfer practices of
7
mekanselam general. The study were conducted within seven months from November to May.

1.6 Limitation of the study

The limitation of the study is financial problems, shortage of enough data, and shortage of time
and absence of the managers at the time of distribution of the questioners. With respect to some
respondents they are not always presented in the required time, some respondents has not given
appropriate information for the study and involuntary of the respondents to fill the questioners.
And also lack of related research papers worked in the study area

CHAPTER TWO: REVIEW OF RELATED LITERATURE

2.1 Human Resources Movement

The movement of human resources within the organization is important as the recruitment and
selection of people from outside and calls for the same careful planing and use of fair and
systematic procedures. Employee may be re assignment to new position at initiative of at the
organization to fill staff vacancies, to reduce labor costs, or to place workless in job that more
appropriate to their interest and abilities. Employee also seeks reassignment as their interest and
abilities develop through experience (wadell I, French, 2007).

Most supervisors or mangers are responsible for initiating employee reassignment. Because the
human resource department has an overall view of the organization staff in needs and goals,
the department is typically given the authority to coordinate and review plans for internal
staffing changes and to insure that decision comply with company policy in unionized
organization the labor contact spells the rules and procedures governing transfer, promotion
and demotion change to those employee cover by the contact (wadell I, French, 2007).

2.2 Concept of promotion

A promotion is a movement by a person into a position of higher pay and greater responsibility.
Promotion is reward, competence and ambition. They act as incentives to perform above the
average in one’s present job and to expand one’s abilities, aptitudes and knowledge through
additional training and development (Assefa G, 2005). It is the advancement of an employee
within the organization as to rank, salary, job activities and/or designation.

8
It can also carry increases in benefits prevent ages, and prestige, although in some cases the
promotion changes title alone. Promotion can be the result of good employee performance
priories promotion an organization must ascertain whether the employee to be promoted can
manage the increase in responsibilities that accompany the new position or title, additional
training may be necessary. A promotion may involve advancement in designation.

This means that the more senior position is demarked with a different title. An example would be
promotion from office manager to regional manager. In very hierarchical organizations, such as
the military, the change in rank alone is significant and brings with it new responsibilities. In the
nonprofit sector pay increases are modest. So the prestige of promotion is one of the main
benefits. In the private sector, promotion can comprise substantial salary increase, benefit
increase, stock options and various “perks,” such as the use of more appealing offices and car
parking options.

Generally speaking, there are more procedural safeguards against preferential treatment in the
public sector, whereas in the private sector service or managers enjoy broad discretion in their
promotional duties review of promotional decisions and mandates to document such decisions in
personal files protect against discrimination, bias, and preferential treatment. (From Wikipedia,
the free encyclopedia).There are some examples of a promotion like,HR assistant receives a
promotion to HR Generalis ,HR Generalist receives a promotion to a dual role of HR Generalist
and employees’ development coordinator, HR generalist is given a promotion to HR manager,
HR manager is given a promotion to manager of HR and administration, HR manager is
promoted to HR director, HR Director receives a promotion to HR vice president HR vice
president becomes vice president of Global Human resources or vice president of talent
acquisition, management and development.( http://www.authenticily consulting.com)

2.2.1 Open and closed promotional system

A company is said to have an open promotion system where it is willing to consider all
individual within its organization as potential candidate and also takes the trouble to announce
internally such position opening. Where an organization does not announce vacancies or where
the candidates is restricted and is not open for all individuals within the organization for the
promotion openings the company is said to be have a closed promotion system ( Pigros and

9
mayers, 1981).

2.2.2 Promotional Guidelines

While employee promotions positively affect engagement and motivation, very new organization
(16%) widely communicate their promotional polices for recruitment or employee retention,
according to a 2012 worlds at work survey report. The survey was fielded in August 2012 among
members of world at work; an association of HR/total rewards professionals’ at mostly large
North American companies. “Organization’s consistently under communicated promotional
guidelines and policies to the general employee population”.

2.2.3 Purpose of promotion

According to Assefa G. (2005)Promotion is usually given to put the worker in a position where
he will be of greater value to the organization or where he will be of increased personal
satisfaction income from his/her work and to remove a worker from his job as an alternative to
avoid the embarrassment of firing of demoting him although to recognize an individual’s
performance and reward him for his work so that may have an incentive to forehead and
employees will have little motivation if better jobs are reserved for outsiders, To build up
morale, loyalty and sense of belonging on the part of employees, To promote job satisfaction
among the employees and give them an opportunity for Unbroken, continuous service ,finally To
utilize effective knowledge and skill of employees.

2.2.4 Promotion policy

The promotion policy is to take merit in to consideration, sometimes length of service, education,
previous work history, etc., is factors which are given weigh while deciding on a promotion.
Although promotions are made on the basis of ability, hard work, course out line operation,
merit, honest and versatility, May informal influences are power full determinants (Assefa G.,
2005).

2.2.5 Benefits of effective promotion policy

Benefits of effective promotion policy is to provide incentive to work more effectively as it
given recognition to an employee who had done his job well and It develops employee loyalty by
assuming him promotion within the organization, if found fit, It increases job satisfaction of the
employee, It helps to attract efficient employees to the organization and increases the
effectiveness of the organization. (Davar, 1988, )
10
 2.2.6 Seniority versus - merit/ Ability/
Seniority refers to length of service in the organization or in its various plants or in its
departments or in a particular position. There is a great difference and the question of whether
promotions should be given on the basis of seniority or ability.

If a promotion is given to qualified individual with a view to creating an incentive for her/ him,
then it should be based on his/her ability. The most widely used basis of promotion combines
both ability and seniority. The best policy would be ensure that whenever there are two
employees equal seniority, ability or merit should be the deciding factor in promotion. Where,
however there are two employees of almost equal competence, seniority should be the decisive
factor such policy would satisfy the management, which prefers ability, and trade unions, which
prefer seniority. (Assefa G. 2005).

Promotion by seniority is preferred by trade unions and most employees because the system is
simple to understand operate and it recognizes the older members need for respect and also it
promotes discipline and morale in the organization for all are assured that promotion will come
when it is due.

On the other hand the system of promotion by merit brings reward for meritorious work, extra
competence, achievement and imitative and it encourage an employee to work hard so that he
may get an opportunity for advancement in the organization. And it leads to increased
productivity, for individual are satisfied that their merit and competence will be properly
appreciated and rewarded.

2.2.7 Difficulties in promotion

Promotion the wrong employees is like quitting, smoking it is easy to do, a million times.
Promoting the right person at the right time take more diligence

Promotions is one thing that every employers, strives for and works hard to achieve, although
promotion is a dream for employees, it is no way a right of every employee.

It is the advancement of an employee’s rank or position in an organizational hierarchy system. It

may be an employee’s reward for good performance.

11
2.3 Concept of transfer
The word transfer comes from two Latin terms, Trans (over or across) and ferre (carry).
Educational experts and physiologists have defined transfer of learning in a number of similar
but subtly different ways” The degree to which a behavior will be repeated in a new situation
“and the broad, productive and supported use of acquired knowledge, skills, and motivations in a
new contexts and learning tasks.” And “the degree to which trainees effectively and continuously
apply what is learned in a training setting to a work setting.”

What is common to all definitions is a focus on the application of knowledge or skills acquired in
one setting to another context. (http://www.albany.edu/igsp/ pdf/ primer-leam%

Transfer is a “lateral shift causing movement of individuals from one position to another usually
without involving marked change in duties, responsibilities, skills needed or compensation”. And
it represents a horizontal or lateral move from our position to another that has similar pay and
responsibility levels, although there may be small differences between the jobs they are relatively
in consequential. Management uses transfers most often to fill temporary vacancies; sometimes
positions are created as a reward to allow a person to intern with or under study another, higher
job.

These “Assistant to” positions help the transferee study the higher job up close and under the
direct tutelage (instruction/ teaching/ of the person who occupies it. Such moves are common
when management is preparing to replace a person who is about to move up or out of the
organization.(Assefa G, 2005).

Transfers are also used to staff a new operation department, or division with a top – ranking,
experienced nucleus of competent leaders. These persons will staff the operation over time,
fleshing out the lower positions and in some cases, providing for their own replacements (Assefa
G, 2005).

2.3.1 Type of transfer

 Production transfer: - is made to meet the new need of the company when production is
dealing in a given department. Specially rush order comes through and work for has to
be temporarily increased.

12
  Remedial transfer – such transfer is made to recertify the wrong selection and
placement of personnel for instance the initial placement of an individual is facility or
he can not adjust on the job, his transfer to a more appropriate job is desirable.
 Shift transfer: This is common types of transfer of employees from one shift to another
on the same types of work. Workers generally dislike a second shift assignment as it
affects their participation in community life.
 Versatility transfer is benefit to both the employee and the company providing a verity
of job experience.
 Replacement transfer: from the view point of purpose replacement transfer are similar
to production transfer as they also try to avoid lay off (Davar, 1988).

2.3.2 Purpose of transfer

Transfer is generally built up a more satisfactory work team and to achieve the purposes, for
satisfying the needs of the organization as may arise out of change in quality of production,
fluctuation in work requirement and change in organizational structure and to increase the
veracity of the employee by shifting his or her from one job to another.

So, they have ample opportunities for gaining a varied and brooder experience of work such
kind of transfer make it possible for an employee to enjoy the facility of job enrichment and also
To adjust the work force of the organization, particularly when one is closely done for reasons
beyond the control of the employee with respect to replace a new employee by an employee
who has been on the organization for insufficiently long time the purpose to give some relief to
an old employee from the heavy pressure of work ,although, it help employees work awarding
to their connivance so for as timing are concerned for example, an employee is transferred from
night shift to mooring or from the first to the, 2 nd shift and, Transfers for employees transfer are
also done, Under which either difficult for trade union activities or administrative service and the
governments.

2.3.3 Reasons for employee transfers

To avoid favoritism and repetitive, to avoid gaining capacity of influencing and egocentrism, to
avoid monetary in the work of an employee and also to make an employee accountable to his
seat so as to not to find mistake by his successor transfer might be implemented. So as to avoid
excess dependency on particular employee, otherwise may affect the purpose of hierarchy and
13
lose control over subordinates to create transparency among the employees and their work and It
limits taking advantage and sole control over the seat or section or to avoid unnecessary
influence on others for their own advantage to make conversant of different seats work for
maintaining health relationship in between all the staff members to retain harmonious
environment to avoid unnecessary disputes.

2.3.4 Systematic Transfer policy

A systematic transfer policy must be incorporated basically, this should provide for clarifying the
types and circumstance under which transfer will done and It should be know who will be
responsible for imitating and approving the transfer and also It should prescribe whether the
transfer can be made only within a sub or also between a department, division and plants, with
indicate the basis for transfer and point out the rate of payment and also It should provide for
timely communication of transfer decision.(davar,1988)

2.3.4 Difficulties in transfer

 Specialist can only go from one such job to another specialists job

 Change of adaptation makes a demand concerning efficiency.

 It breaks the continuing of the organization work activities.

So there a lot of planning accessory if their a transfer the department heads should be
encourage that the true men trained sufficiently in advance to step in to other jobs when those
fall vacant. (http;/www.ask.com, April 2014)

2.4 Concept of demotion

A demotion is a movement from one position to another that has less pay or responsibility
attached to it. Demotions can be used for punishment, but most organizations refuse it as an
option, performing instead of suspend the employee or assess a financial penalty through the
feature of pay. The reason for this reluctance is that demotion staffs a position with an
embarrassed and often angry worker who is not likely to be productive or any better behave than
she/ he was in the former position (Assefa G., 2005).

Within the continuum of disciplinary options available within most organizations, a

demotionfalls in a middle range of severity, minor violations of rules, or the first violation of a
14
rule will typically result in a verbal or written warning or a suspension without pay. At the other
extreme for severe violation so the rules, such as embezzlement or sabotage an employee will
typically be find and/or the company will file criminal or civil charges.

2.4.1 Types of demotion

The following are the most common types of demotion

 Apposition that is of lower rank and status in the same hierarchy. (E.g. from sales
manager to sales representative).
 A similar role to before but with lesser with lesser authority and responsibility and
perhaps a lighter workload (e.g. transfer to a smaller sales territory or management of
smaller or fewer customers/accounts, remuneration may or may not be reduced).
 Temporary demotions, either for asset period or until the employee’s performance
recovers.
 Temporary demotions made on the basis that status will later be restored (e.g. demotions
made to gain work experience and/or sidestep a career path bottleneck).
 For dual career couples, one partner may be promoted and relocated and other agrees to
accept a demotion in order to relocate as well.(http,//www.authentcity consulting.com)

2.4.2 Demotion policy

A fivefold policy in relation to demotion practice has been suggested with a clear and reasonable
list of rules should be framed violation of which would subject an employee to demotion, this
information should be clearly communicated to employee, there should be competent
investigation any alleged violation. If violations are discovered, there should be constant and
equitable application of the penalty preferable by the immediate supervisor and there should be
provision for review. In unionized case, this will be automatic via the grievance procedure, in
anon unionized case the employer will need to make other provisions for review (Assefa G,
2005)

2.4.3 Causes of demotion

Demotions may be caused by factors beyond an employee’s control and when departments free
combined and jobs eliminated employees are often required to accept lower level post until

15
normalcy is restored and in adequacy on the part of employees in terms of job performance ,
attitude and capability happen when an individual finds it difficult to meet job requirement
standards , following his/her promotion and when, because of change in technology, methods
and practice, old hands are undoable to adjust or when employee because of ill health or
personal reasons , cannot do their job properly. A demotion should never be made as a penalty
for a violation of the rules of conduct, poor attendance record, or in subordination; because
such action will net improve the performance of the individual only discipline and training can
set the things right (Assefa G,2005).

2.4.4 Problems caused by demotion

Apart from the legal issues that may arise, there are a number of potential problems that
demotion can cause if it is not handled appropriately.

The new job may suit the employee, creation a “round peg in square hole” situation sometimes,
expedient decisions are made and the employee is demoted to a job that happens to be available
but may be suitable and it may not fix whatever the previous problem was. You need to clearly
identify the underlying causes that led to the decision to demote. If poor performance was due to
skills/knowledge shortcomings that training cannot fix, a lower level job may be a job, As well
as the morale of the demoted employee, the morale of co-workers may also be affected (who’s
next?). The reasons for a demotion must be clear to both the affected employee and the co-
workers and you need to be consistent with how you handle poor performing employees.
Otherwise this will damage morale. Yet individual problems require individual solutions, and
demotion is not always the best solution. . You still have to find a competent person to fill the
employee’s previous position. If the employee’s new position is lower paid it may adversely
affect his/her financial position and security recommended practices are to provide the employee
with financial counseling if required, and possibly to either reduce pay gradually or freeze it until
it reaches the correct level for the job. Even where an employee voluntarily applies for a
demotion, the offer of financial counseling should still be made, to ensure he/she can cope with
loath a lower income. If the organizations culture is highly status- driven, demotions are likely to
be harder from players to cope with than if the culture supports learning and new experiences.
(http,//www.albany.edu)
16
2.4.5 Making demotion more attractive

Implementing demotions will be more successful if the organization couture culture is

supportive. In the sense that there is no stigma attached to demotion. This requires the
organization to have earned a reputation for looking after its employees, and also to plan the
demotion process carefully.(http,//www.albany.com)

CHAPTER THREE: RESEARCH DESIGN AND METHODOLOGY

3.1 Description of The Study Area

Nigist Eleni Mehammed memorial comprehensive hospital found in central regional state of
Ethiopia at hossana town which is found at 332 km far from Addis Ababa.

Nigist Eleni Mehammed memorial comprehensive hospital has many departments and wards like
Outpatient department (OPD), medical ward, gynecology and obstetrics ward, pediatrics ward
and surgical ward. It delivers diversified health services and clinics including the emergency
services, eye clinic, dental clinic, mother and child health (MCH), psychiatry clinic, laboratory,
X-ray, and follow up of chronic disease like TB and HIV AIDS. The Hospital possesses
outpatient, inpatient, emergency and ART pharmacies.

3.2 Research Design

The descriptive survey research method had been employed to study the problem. It is designed
to be used because the method can provide precise information concerning the current status of
Nigist eleni mohammed memorial compresive specialized hosspital. Besides; it helps to describe
in detail. Therefore in order to identify and analyze the existing conditions of the hospita ;
compare its existing conditions with the reviewed research findings of the past and to draw
general conclusions of the study the researcher are interested to use this research method of
study. And the researcher also used qualitative and quantitative method of analyzing the data
which are in terms of numbers and facts for generalizing and for summarizing the collected data
in terms of ideas with the information gain from semi-structured interview made with the
management committee and other employees within the hospital.

17
3.3 Sample size and sampling procedure
The data was collected from the administrative staff, as the head of human resource management
supportive process of N

igist eleni mohammed memorial compresive specialized hosspital report the total employees of
the hospital is 230, from those total population, the researcher has taken 70 individuals as sample
size.simple random sampling technique was used in order to increase the accuracy of the data
and each employee has equal chance to become the sample

2
Z . p.q. N
n= 2 2
e ( N−1 ) + Z . p .q

Where, N= Total population =230

Z= level of confidence. The value of Z=90%

e= margin of error 10%

Q= 1-P

P=0.5

q=0.5

2
(165) .0 .5 .0 .5 .230
n=
(0.1) ( 230−1 ) +(1.65)2 .0 .5 .0 .5
2

2.72 . 0.25 .230

n=
0.01∗229+2.72∗0.25

156.4
n=
2.29+ 0.68

156.4
n= ≅ 53
2.97

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 2.4 Data collection method
Both primary and secondary data had been used in the study. Primary data had been collected
using well designed questionnaire and interview as best instrument. Secondary data had collected
from the hospital manuals and documents of the hospital.

3.5 Data analysis method

Data analysis is a process of converting raw data into information which is useful for decision
making by users or researchers. Once data collected it is necessary to analyse the data in order to
gain useful information from data

In this study, After the data has been collected from both primary and secondary sources, the
data was processed and analyzed using both qualitative and quantitative data processing
techniques and data presenting would be descriptive data presentation by using tables,
percentages and ratio.

CHAPTER FOUR: DATA ANALYSIS, PRESENTATION AND INTERPRETATION

4.1 Introduction
This study was carried out on the assessment of promotion, demotion and transfer in case of
Nigist eleni mohammed memorial compresive specialized hosspital. The sources of the data
were both primary and secondary sources.

The study used simple random sampling and 53 representatives were selected out of 230
employees and 70 questionnaires were collected. To made data analysis and presentation,
respondents were given both ‘’yes’’ or ‘’no’’ closed ended questions and open ended questions.
Since the majority of the questions in the questionnaires’ are “yes’ or ‘no’ type, responses are
identified and percentages are computed to make visible the indicated responses to readers.

4.2 Respondent’s demographic information

Table 4.1.Biography of the respondents

No Item Respondents
No Percent

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1 Sex
Male 45 64%
Female 25 36%
Total 70 100%
2 Age
18-25 35 50%
26-33 23 33%
34-41 12 17%
42-49 - -
Above 49 - -
Total 70 100%
3 Education back ground
Certificate
Diploma 20 29%
Degree 40 57%
Master 10 14%
PHD -
Total 70 100%
4 Working experience
0-3 30 42%
3-6 25 36%
6-9 13 19%
Above 9 year 2 3%
Total 70 100%

Source: Own field survey, 2020

As shown in the above table, 64% were male respondents and most of the respondents were male
respondents when it compared to females, why because most of the employees in Nigist eleni
mohammed memorial compresive specialized hosspital were males. Regarding age 36% of the
respondents were range between 18-25 years and the other 50% of the respondents were the

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range between 26 -33 years and the rest 33 % of the respondents were range between 34-41 years
and the 17% of the respondents in the year 42-49 and above 49.The respondents answer in
education back ground and work experience, indicates that above half of the respondents 57%
are Degree holders, and 29% are Diploma holders, and the rest 14% of the respondents are
master holders. The respondents answer about work experience indicates that some of the Nigist
eleni mohammed memorial compresive specialized hosspital employees has 0-3 years’ work
experience which is 42%, and 36% of the employees in Nigist eleni mohammed memorial
compresive specialized hosspital has 6-9 years’ experience and the rest 19% and 3% has work
experience of 3-6 years above 9 years respectively. Therefore the response shows that most of
employees within the hospital have not been stay a long period of time.

4.3 Promotion, transfer and demotion

4.3.1 Promotion practice ,policy and opportunity

Table 4.2.Promotion opportunity and basis

No Item Respondents
No Percentage
5 Existence of promotion opportunity
Yes 50 71%
No 20 29%
Neutral - -
Total 70 100%
6 Basis of Transfer
Seniority 40 57%
Merit 15 21.5%
Invitation from the administration 15 21.5%
Total 70 100%
Source: Own field survey, 2020

Based on the table 4.2 information above half of the respondents 71% were get opportunity of
promotion and the rest 29% of the respondents did not get opportunity of promotion. This
implies that the majority of employees in Nigist eleni mohammed memorial compresive
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specialized hosspital have get of promotion and it creates motivation for employees and it might
help to achieve the objectives of the organization.

Answer for basis of promotion indicates that above half (57%) of the respondents get opportunity
based on seniority, 21.5% of the respondents ’are by merit and 21.5% of the respondents are
based on invitation from the administration. It implies that the promotion give for employees by
seniority has better effect in the organization for recognize the older members that needs for
respect and also it promotes discipline and morale in the organization for all assured that
promotion will come when it’s due.

Table 4.3. The effect of promotion on performance

No Item Respondents
Number %
7 Promotion helps to extend performance
Yes 50 71%
No -
Neutral 20 29%
Total 70 100%
Source: own field survey, 2020

From the Table 4.3. We can observe that 71%% of the respondents answer the opportunity
enables them to exert their best performance. The rest 29% of the respondents’ are neutral, there
is no respondents said no. it implies that almost all of the employees in the hospital employees
believed that the promotion opportunity they experienced helps to increases their performance.

Table 4.4 ways of increasing performance

No Item Respondents
Number %
8 The Ways of performance increasing
BY Increase job satisfaction 22 31.5%
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 BY utilize effective knowledge 8 11%
BY Increase loyalty of employees
gain incentives and ambition 18 26%
Experience 22 31.5%
Other
Total 70 100%
Source: own field survey, 2020

As shows from the above table 31.5% of the respondents answered that promotion opportunity
could extend performance by the way of increase job satisfaction,3( 11%) respondents’ utilize
effective knowledge, 30% gain incentive and ambition and the rest 37.5% of the respondents
answered promotion opportunity help to extend performance because of getting more experience.
There for we conclude that employees of Nigist eleni mohammed memorial compresive
specialized hosspital may increase their performance especially for experience.

Table 4.5 management attention to employees’ promotion

No Item Respondents
Number %
9 How management of the college gives attention to
employee’s promotion?
Provides incentive to work more effectively 20 29%
Applying the policy of promotion effectively 15 21%
By using open and closed promotional system 35 50%
Total 70 100%
Source: own field survey, 2020

As shown from the above table above half 50% of the respondents’ said the hospital
management gives attention to employees promotion by using open and closed promotional

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system and 29% of the respondent, said provides incentive to work more effectively are another
means of hospital management to employees promotion, the rest 21% of the respondents were by
applying the policy of promotion effectively. From these the researcher conclude that the
hospital used open promotional system for considering an individuals within the organization as
potential candidate and takes the trouble to announce internally such position opening and using
closed promotional system where the candidates is restricted and not open for all individuals
within the organization for promotion openings.

Table 4.6 follow up and evaluation body.

No Item Respondents
10 Existence of responsible body for follow up and evaluation No %
Yes 40 57%
No 20 29%
Neutral 10 14%
Total 70 100%
Source: own field survey, 2020

In the table above 57% of the respondents answer show that there is a regular body responsible
for following and evaluation of employees promotion., the rest 29% answered no, that means
there is no responsible body for follow up evaluation of promotion in the college and the other
14% are neutrals . This implies the management of the organization is given relative better
attention for a promotion and the responsible bodies also give focus to evaluation and follow up.
This is the manifestation of the hospital put it good position regarding to follow up and
evaluation of promotion.

Table 4.7 the effect of follow up and evaluation on employees’ performance

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No Item Respondents
11 Follow up and evaluation affects the performance of No %
employees
Agree 33 47%
Disagree 30 43%
Strongly agree 7 10%
Strongly disagree
Total 70 100%
Source: own field survey 2020

In the above table 47%of the respondents agree that absent of responsible body for follow up and
evaluation of promotion affect the performance of employees and the rest 43% disagree about
follow up and evaluation of promotion does not affect the performance of employees and (10%)
are strongly agreed that absent of responsible body for follow up and evaluation of promotion
affects employee’s performance.

Table 4.8 complain and appeal of promotion policy

No Item Respondents
12 complain and appeal on current promotion polices No %
Yes 32 46%
No 28 40%
Neutral 10 14%
Total 70 100%
Source: own field survey – 2020

As the respondent answered for complaint and appeal question ,more than half of the respondent
(46%) do not complain and appeal on current promotion polices but the rest 40% are appeal on
the current promotion policy and 14% of the responders are neutral. this implies that the
promotion policy of the college is suitable for the majority of workers believed.

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Table 4.9.Reasons for complain and appeal on promotion policy.

No Item Respondents
13 Reason for not complaining and appeal No %
Because promotion is given to qualified employees 10 14%
Because the policy give promotion based Merit and seniority 30 43%
Because the current promotion policy is clear to all employees 30 43%
In generally increase employee’s performance
Total 70 100
%
Source: own field survey-2020

As shown from the above table 14% of the respondents answered they have not complain and
appeal on promotion policy because promotion is given to qualified employees and 43% of the
respondents’ replay that the reason for don’t complain on current promotion is that promotion is
given based on merit and seniority, the rest 43% replies that no complain on current promotion
policies because the policy is clear to all employees in the hospital.

4.3.2 Transfer practice,policy and opportunity

Table 4.10. Objectives of transfer

No Item Respondents

14 The objectives of transfer in the organization No %

To help employees increase their performance 20 29%
To satisfy employees transfer demand due to personal reason like 25 36%
family problems or health problem
To change the organization structure 10 14%
To fill temporary vacancies 5 7%
To adjust the work force of the organization 10 14%

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 Total 70 100%
Source-own field survey-2020

The table 4.10 respondents answer indicates that 29% answered the objective of transfer is to
help employee’s increase their performance, 36% of the respondents answered that to satisfy
employees transfer demand due to personal reasons like family problems or health problem ,
(14%) of respondents said that the objective of transfer is to change the organization structure
and 7% reply that the objective is to fill temporary vacancies, and the rest 14% of the
respondents answered that the objective is to adjust the work force of the organization. There for
the researcher conclude that Transfer is not mainly for structure change of the organization rather
it’s about filling the gap of the organization, increase performance and fulfilling the needs of the
employees.

Table 4.11 ways that current employees known about transfer practice

No Item Respondents
15 Transparent transfer practices
Yes 40 57%
No 15 21.5%
Neutral 15 21.5%
Total 70 100%
Source: - own field survey- 2020

From the above table above half or the majority of the respondents’57% answer shows there is a
way that the current employees know about the transfer and the rest 21.5% said the current
employees can not know about the transfer and 21.5% of respondents are neutral. Thus the
researcher believed that the hospital and the employees has strong relationship and loyal to each
other.

Table 4.12 Opportunity of transfer

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No Item Respondent
No %
16 Getting opportunity of transfer
Yes 40 57%
No 30 43%
Neutral -
Total 70 100%

Source own field survey, 2020

As shown from the above table above last 57% of the respondents answered yes, i.e. get the
opportunity of transfer in the hospital and the rest 43% replies that didn’t get opportunity of
transfer. This indicates that the hospital gives attention to employees transfer and tries to satisfy
the needs of the employees.

4.3.3 Demotion practice and policy

Table 4.13 objectives of demotion

No Item Respondents
17 No %
The objectives of demotion
To improve the demands of the organization 20 29%
To improve the performance of an individual 15 21%
To penalize the employees that has poor attendance record 25 36%
Other 10 14%
Total 70 100%
Source: own field survey – 2020

As shown from the above table 29% of the respondent said that the objective of demotion is to
meet the demands of the organization, 21 % said to improve the performance of an individual
and the rest 36% of the respondents answered that the objective of demotion is to penalize the
employees that has poor attendance record and 14% are others.Therefore the researcher

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concludes that the hospital uses demotion mostly as penalty of employees that has not performed
well.

Table 4.14 employees’ demotion

No Item Respondents
No %

18 Is there any employee ever been demoted in your

hospital?
Yes 40 53%
No -
Neutral 30 47%
Total 70 100%

Source: own field survey-2020

The respondents answer shown that more than half of the respondents 53% answer “yes” for the
existence of demotion activity in the hospital. The remaining 47% of the respondents answer are
neutral. This implies that the hospital gives more attention for the existence of demotion activity.

Table 4.15.Reasons for demotion

No Item Respondents
No %
Reasons for demotion
19 Poor performance 50 71%
Misbehavior 20 29%
mismatch -
Total 70 100%
Source: own field survey-2020

For the reason of demotion above half 71% the respondent answered the reason for demotion of
employees are poor performance and the rest 29% said misbehavior. This implies the hospital
demotes employees when they are not doing his/ her work properly and they show with miss
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behavior that are not going with the line of the organization rule and regulation so , it is a real
penalty for them to overcome the problem of misbehaver and poor performance of employees.

CHAPTER FIVE: CONCLUSION AND RECOMMENDATION

Based on the data presented and analyzed above from the responses of the employees through
questionnaire conducted with the employees of the hospital, the following conclusion, and
recommendation are forwarded.

4.2 Conclusions
 Most of the employees of Nigist eleni mohammed memorial compresive specialized
hosspital are male, and well educated having first degree and above, with such
educational background. No one doubts that they are capable to understand and
implement the policies and procedures of the organization and accomplish their duties
and responsibilities efficiently.
 Nigist eleni mohammed memorial compresive specialized hosspital did not give
promotion to employees by seniority and merit based equally, this means that it mostly
give promotion by looking length of service rather than give incentives based on their
ability.
 Nigist eleni mohammed memorial compresive specialized hosspital has responsible body
for following and evaluation of employees’ promotion, this responsible body is necessary
for creating of close relationship with Employees and the management of the hospital.
 The management of the hospital gives more attention for using of open and closed
promotional system for promoting employees and it does not give better attention for
providing incentive to work more and not give attention for applying the policy of
promotion.
 The objective of transfer did not focus on the change of organization structure
 Some of the employees of Nigist eleni mohammed memorial compresive specialized
hosspital have got an opportunity of transfer and the basis of transfer opportunity is
focused on environmental condition and job experience only.
 The hospital has a transparent approach about the transfer practices and every member of
the organization has the opportunity to know about its practice.
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  Employees of Nigist eleni mohammed memorial compresive specialized hosspital after
Demoted from their work develop many unwanted behavioral changes and it may
become dangerous for their life individual or social.
 Some of the employees of Nigist eleni mohammed memorial compresive specialized
hosspital didn’t know about the current policy of implementing demotion and its
implementation does not satisfy needs and wants of the employees in the hospital.
 The demotion activity in the hospital indicates the focus of the hospital on avoiding miss
behavior and to penalize employees that has not performed well in his/her job activities.

4.2 Recommendation

As per the investigation the researcher have found out the root causes for the already existing
problems from the research carried out on the assessment of promotion, demotion and transfer
practices of Nigist eleni mohammed memorial compresive specialized hosspital. According to
the finding/investigation) assessment, the researcher had been forwarded the following
recommendations to avoid or mitigate these problems. Thus are:

 In the organization it is advisable to improve its promotion practices, even if seniority based
promotion is satisfied some of the employees. The management must take consideration on
other measurement, such as ability to do new work, present knowledge related with the new
work and interest of workers to the new position or a combination of thus factors.
 The researcher strongly recommend that the hospital should give relative better attention for
giving incentive that works well and should apply the policy of promotion correctly.
 It’s advisable to the hospital for to change the structure of the organization with respective to
fill gaps and to adjust the work force of the organization and it is useful to the hospital for
reducing the old techniques that are not necessary and replace the technique.
 The hospital gives transfer opportunity only for the basis of environmental condition and job
experience; therefore the management must take consideration on punishment basis of
transfer for avoiding excess dependency on particular employee.
 Though the management is a better position or reason visibility for follow up and evaluation
it should have to create a mechanism of giving full information and knowledge about were
doing and integrated things with the college.
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 Majority of the Nigist eleni mohammed memorial compresive specialized hosspital
Employees are not interested to appeal on the current human resource movement of
promotion so the hospital must create a clear path between management, supervisions and its
employees to enables them to express opinions and suggestions about promotion policy done
by the management.
 The hospital should to implement demotion in the right way and should satisfy the demand of
the employees..
 It is advisable to reduce employee’s demotion in the hospital by means of giving advice to
the demotees rather than demoting it fastly.

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