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Difference Between Transfer and Promotion

Internal mobility within the company includes both transfers and promotions. Businesses use this process to maintain its efficacy.


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Test your knowledge about topics related to business

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Over-capitalization results from __________.

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A Company is called an artificial person because _________.

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Who takes no active part in Business?

4 / 10

Which country's currency is called the Baht?

5 / 10

The management of the company is entrusted to __________.

6 / 10

Small scale firms are ____________ flexible in their functioning.

7 / 10

Who is not entitled to the share of profits?

8 / 10

Planning and control are _________ functions of an office.

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Whose liability is limited to the extent of value of business assets and his private assets?

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Importing goods for the purpose of re-export is termed as ___________.

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The transfer is a job activity that involves moving employees’ roles, responsibilities, and employment status to different contexts.

Upward mobility on the organizational ladder is referred to as promotion. It entails transferring an employee from one designation to another.

Transfer vs Promotion

The difference between transfer and promotion is that transfer is just the transfer from one place where you are working to another place when the position and pay are the same, admin reasons, organizational reorganization, promotions, or demotions may also be to blame for the transfer. It can also be either temporary or permanent.

Promotion is different from a transfer is the movement of one employee to a higher position where the position and pay are different than on a transfer.

Raising staff morale and fostering a supportive work environment, preserves the organization’s effectiveness.

Promotion is fair because it is all the merit of an employee for the hard work that was done.

Comparison Table

Parameters of Comparison              Transfer                Promotion
MeaningThis means shifting one employee from one job to anotherThis means shifting an employee to a higher job position.
Movement of EmployeeIt causes horizontal movement of an employeeIt causes the vertical movement of an employee
NeedsGrowth and Progress  Security, safety, and responsibility
EffectChange in duties and working conditions but not in status and salaryChange in authority, responsibilities, status, and salary.
BenefitIt fills the deficiency of one department.Increases motivation and satisfaction of the employee.

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What is Transfer?

A transfer is a process of an employee’s horizontal movement in which their work is changed without any changes to their compensation or their duties.

This type of internal mobility involves moving a person from one position to another, typically at a different site, division, or unit.

In some cases, it also involves a promotion, a demotion, or even a stay-the-course approach to duties and positions.

Sometimes the transfer might be requested by an employee itself from management. The employee requests his or her preferences and benefits in this request.

Some reasons that the employee wants to do a transfer are because they see the working hours flexibility, the location of work is near to their home and sometimes it can happen because they have greater satisfaction.

Organizations may decide to make a transfer if they feel it will help their operations run more efficiently.

When there is a surplus of employees in one department of the organization and a scarcity of workers in another department due to excessive demand, the transfer is also impacted. The employees are consequently moved from one department to another.

A transfer is also required when there is a clash between two workers. 

What is Promotion?

Promotion is the upward movement or promotion of a worker within an organization to another position that comes with more authority, more responsibilities, better benefits, and higher status and prestige.

In actuality, elevated status, increased obligations, and more. The primary attributes of promotion are pay.

Employees who are not promoted while working for the company for a long time have a long-held desire to do so, and if it doesn’t happen, it may cause unhappiness and disillusionment with the company as a whole.

There may be a need to promote someone for a variety of reasons, but for promotions to be genuine, a process must be in place to direct them.

While some are hired from outside, others are prepared through succession planning.

Promotion can occur from the good job that the employee did, from his or her hard work.

Promotion can be a seniority-based promotion where this is based on the employee’s present continuous employment and the employee’s relative length of service in the organization.

Merit-based promotion relies on how well an individual performs at work.

And merit cum seniority-based promotion is a promotion where in many organizations it serves as the basis for advancement.

Main Differences Between Transfer and Promotion

  1. Changes to responsibility, classification, income, or status do not follow a transfer. In contrast, promotion entails an increase in rank, authority, and pay.
  2. Moving up the organizational ladder is what is meant by promotion for an employee. In this case, the individual must assume control of a position with more duties and responsibilities or one that calls for greater skill sets.
  3. The transfer procedure, on the other hand, involves moving individuals to the divisions or units where they are most likely to perform better.
  4. The transfer entails the employee moving horizontally, that is, from one department, area, plant, or branch to another, in a contrast, a promotion includes the employee moving vertically, from a lower position of job to a higher position.
  5. While the promotion is a deliberate managerial choice, the transfer is a normal administrative process.
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