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The importance and potential of job rotation

Paper Type: Free Essay Subject: Business
Wordcount: 4098 words Published: 1st Jan 2015

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Job rotation is the surest way of keeping the employee away complaint and daily routine. It is difficult for an employee to sustain his interest in the given job. Humans have the tendency that they want to earn profit from job rotation like learning and experience in different jobs in a specified period. In an organization, Job rotation has importance because it effects the performance of employees and also effects the profit of a company or organization. By job rotation employees developed himself a lot & learn that how the task will complete or what is the parameter is required for the different jobs.

A well planned job rotation programmed in an organization has immense potential of positive impact on job satisfaction, engagement of people and finally on retention of people. Few of the outcomes of job rotation with respect to the individual are:

Job enrichment

Overall development

Intrinsic motivation to perform caused by newer challenges

Career development

Leadership development

Aligning competencies with organizational requirements

Lower attrition rates

Performance improvement driven by unique view points of new people

Organizational interest – employee commitment, attrition rates, specific business issues etc.

Eligibility of the employees – qualification, prior experience, aptitude, competence etc.

nature – mandatory or voluntary


Basis of selection etc.

In the absence of aspects brought out above, there is every possibility that the seriousness with which the job rotation scheme is implemented in the company may get diluted and become a cause of sagging employee motivation.

Job rotations at different levels of management

For job rotations at a slightly higher level, it is absolutely necessary that the business problems in various areas are identified. This calls for the active involvement of top management. Select most suitable people to be shifted from their current jobs to tackle the challenges at hand by considering individual attributes already described above. This will not only provide an insight for the future leaders in various aspects of the business but also will enhance their confidence levels as they solve these critical problems for the organization.

Job rotation at junior and middle level executives may be pivoted around their strengths and attributes and the future roles expected of them. Focus must be on exposure in all related areas of his domain of expertise, so that as they grow to higher rungs of the management, they have an overall experience of their domain.

Job rotations for workers must include aspects related to work environment, also along with other individual attributes already explained, so that it adds to his satisfaction derived from balanced distribution of work load, working conditions and learning opportunities.

Done this way job rotation gets aligned with career development, leadership development and employee satisfaction which would finally result in higher levels of intrinsic motivation among the employees and hence may contribute in retaining talent

Benefits of job rotation programs for learning, Motivation and Performance

I) Business benefits and impacts

1. Business results – effective systems improve business results especially in the areas of sales, product improvement and customer service.

2. Increased productivity – because highly skilled innovators and top performers are placed in “the right job,” the productivity and effectiveness of these individuals will be multiplied driving and increase in the effectiveness of the overall workforce.

3. Better business cycle “fit” – in larger organizations, some parts of the business are in different lifecycle stages (i.e. seed, start-up, established, expansion, decline, and exit). Proactive and targeted movement better ensures that an individual is placed in a business cycle where their skills and interests are a better fit.

4. Increased innovation and idea generation – moving individuals into new situations provides them with an opportunity to “view things as an outsider” and to propose new approaches that insiders might not see.

5. Best practice sharing – as more individuals rotate between business units, the likelihood that best practices will be shared rapidly increases. Increased internal movement can result in the cross fertilization of ideas between previously isolated business units.

6. Increased agility and flexibility – having the capability of moving talent from areas of low return to areas of high-return increases organizational agility and the ability of management to shift resources as needs change.

7. Better understanding and cooperation – by rotating individuals between disparate business units, individuals from both units can learn to better understand and appreciate the perspective of others. Increased movement helps to break down hierarchical silos and information and talent hoarding. For example, purchasing professionals can better understand the problems faced by the individuals that have to operate under purchasing guidelines if they occasionally rotated into those business units.

8. Improved contacts and relationships – increasing internal movement allows individuals to build their contacts and to strengthen their relationship with individuals outside of the direct team.

II) People-management related and HR related impacts

11. More talent is available – because individuals are proactively selected and moved faster, there are more and better qualified individuals available to managers with sudden or new strategic needs, than when individuals self select themselves for movement.

12. Improved employer brand image – in a tight economy, everyone is likely to be heavily focused on job security. If you provide and publicize your focus on inside hiring preferences, it will bolster the firm’s external brand image of offering long time employment security and a good place to work because you focus on the needs of your current employees. The increased security that you offer may also increase the retention rate of your current employees. Excellent internal movement programs are frequently praised by employees and the business press. If you have an excellent program, it will help you build your external image as an employer of choice and a “best place to work”.

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13. Allows for more entry level hiring – by filling most jobs internally through transfers or promotions you allow the firm to do to do almost all of its external hiring at the “entry level”. This is a good thing because entry-level jobs are cheaper to fill, have a larger candidate pool and give the firm more time to train and assess “unknown” external hires while they are in jobs where they can do less damage.

14. Higher retention rates – rapid movement minimizes frustration and burnout. People working in their “ideal job” are unlikely to find a superior opportunity outside the firm.

15. Leadership development – multiple on-the-job learning opportunities are likely to develop leaders faster and more effectively because the development assignments will include opportunities to lead more teams under a variety of circumstances.

16. More promotional opportunities — more rapid development and more internal movement creates a greater number of new opportunities for employees to get promoted and move up.

17. Increase motivation and excitement – not only is the individual more excited because they have a chance to grow but each permanent internal movement also provides an opportunity to “back fill” that position, further motivating others to strive for promotions and transfers.

18. Increased learning – as individuals move more frequently not only will they gain more knowledge but they will also develop mechanisms for learning faster when they enter future situations.

19. Increase technical skill development – moving between diverse projects provides an increased opportunity to develop current technical skills and to learn new skills.

23. Decreased time to productivity – your current employees already know the culture, the company jargon and they already have a range of contacts. As a result, internal transfers and promotions can begin the job sooner because they don’t need a great deal of orientation to get up to speed and they don’t need to give notice before they begin learning and helping out.

24. Lower “job failure” rate – because you’re hiring individuals that already know the culture and you know their skill set and performance better than external candidates, the job failure and termination rate is generally lower with internal transfers. External hiring costs are significantly higher than the cost of internal transfers.

25. Increase manager excitement – having different employees with their excitement and new ideas rotate in and out will serve to relieve boredom and help to excite your managers.

26. More diverse ideas — by having more diverse employees moving in and out of your department, the team will gain diverse ideas, as well as learning how to better understand the value of having a diverse workforce.

27. Decreased need for layoffs – having a large percentage of your workers that have a broad set of skills as a result of frequent movement means they are more capable of moving into new jobs or business units. This added capability and flexibility means that more workers can be transferred rather than laid-off from business units need to be reduced or shut down.

28. Individual employee benefits – individual employees will also receive benefits from faster internal movement including more opportunities for development and learning as well as a faster overall career movement because they are proactively placed in the “right” job.

29. Increase understanding between overhead in the line — the formerly isolated individuals that work in overhead functions will spend more time working in-line functions. As a result, there will likely be more cooperation and less bureaucracy emanating from overhead functions.

30. Improving managers – with the increased number of rotations, and the feedback emanating from rotatees, it will be increasingly difficult to remain a “hidden” bad manager anywhere in the organization. Having more workers join the team might force managers to develop procedure manuals and templates so that new hires can get up to speed more quickly.

31. A competitive advantage — intramovement programs are designed not in isolation, but instead to provide a competitive advantage over competitors. As a result, the initial design of the program and its periodic updates are designed to ensure that program is superior to what is offered at competitive.


After study the benefits & importance of job rotation we can see that it’s a important process to develop the organization culture & productivity of organization. It also helps for the development of employees in the organization or company. By this process employees learn about different jobs and improve the skills and knowledge about jobs. An organization can gain or profit after this program. Because this process developed the working skills and efficiency of the workers. So, job rotation is important for the all the organization.

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Best Practices for Bank Board Committees

Nov 2008, the article is written by David Baris, Community Banker, and Washington. Most bank boards of directors need board committees. Even during these challenging times, there still remain bank boards that do not have committees. Additionally, just having board committees in place doesn’t mean that they are functioning well or serving the best interests of the board. In the Guidebook to Effective Bank Board Committees, author Jack Milligan pointed to four critical elements for the successful operations of board committees that may also be considered best practices: 1. a clear, written charter outlining responsibilities, formats for reporting to the full board, composition, and rotation of membership, 2. clearly designated staff support from management, which minimizes confusion when requests are made for information and ensures that the board has the benefits of inside expertise, 3. assurance that all pertinent information is available in advance of committee meetings, and 4. adequate time to do the job.

Planning for success

Jun 3, 1997 in this article Teresa J Dean, Patrick Dalton, Bankers News, Washington says that To make the best use of a consultant, John Kreitler of law firm Shipman & Goodwin offers ideas for a written contract, including: 1. Provide a clear description of the work with outcomes and responsibilities. 2. Have a clear schedule that will provide early warning signals of problems. 3. Establish procedures and criteria for what is an acceptable final product. The weekly rotation of jobs in the data processing and customer service sections has improved both morale and productivity at Marion State Bank.

Advanced Automated Bank System Goes Live in Norway

In March 1988, Fellesdata AS, an advanced, integrated, automatic banking system, went live in Norway. The NCR system includes a network of 16,000 terminals located at 850 savings bank locations. The bank customer benefits from lower service charges and more efficient service, while the banks benefit from better utilization of resources, more opportunities for job rotation, and an enhanced competitive edge. Services offered include: 1. payment of travel fares, 2. hotel and restaurant payments, 3. toll booth payments, 4. business terminals offering banking and other functions, 5. issuance of bank cards, and 6. network management. The banks will offer fully automated services, such as: 1. Minibanks installed at central points in the community, 2. payment of fuel and associated goods, 3. electronic funds transfer at the point of sale (EFTPOS) terminals for payment of goods and services, and 4. a synthetic voice system. With the system, bank employees can provide all services from one workstation. The system includes transaction handling of deposits and withdrawals, loans, and credits.

Stress Management Training in the Banking Profession

Mirabile, Richard J. said that Stress exists when the demands of a situation outweigh the available resources, thereby requiring adaptation or readjustment. A seminar was conducted to provide stress management training to a group of banking professionals in a medium-sized, Midwestern bank. The premise was to identify the primary sources of stress within the profession and to develop a set of strategies designed to deal with each stressor identified. A pre-session questionnaire asked respondents to list what they felt to be the primary obstacles to successful job performance. The stressors listed were placed in 4 groups depending upon their frequency. The most frequent stressor was customer demands/contact. The 2nd phase of the seminar involved addressing specific stressors by suggesting possible methods for effectively managing that stressor. Relaxation techniques were presented to participants to supplement the verbal content of the stress management concept.

Small Bank Computer Systems-The Practicalities of Control

Tarwater, Joan. In the small computer systems of many banks, traditional electronic data processing (EDP) controls are lacking because either there is no clear separation of duties or resources are limited. This necessitates more active involvement within the top levels of bank management in understanding the capabilities and limits of the data processing function. This involvement represents the best alternative to the formal, traditional controls that may be absent. The computer environments, the audit, the separation of duties represent 3 critical areas where alternative controls need to be developed. Security measures, such as no smoking in the computer room may be amended, for example, to allow smoking in certain areas of the room. Audit duties may be divided between the controller and his secretary and an annual external audit may be instituted. Alternative controls to separation of duties may include job rotation, or increased top-level management in the daily operations of the data processing function.

Rx for ”Worn-Out” Bank Managers

Deeney, Jack. American Bankers Association. ABA Banking Journal

Deeney, Jack. For companies with increasing numbers of middle- and senior-level managers who do not seem to care anymore, ”executive rehabilitation” should be considered. People are an organization’s most valuable resource. A large portion of worn-out managers are the result of ”technological bypass”. Middle- and senior-level managers do not automatically progress through the stages involved in implementing new technologies. They become overwhelmed and confused when they are left behind. Top management must be committed to the rejuvenation of its managers, who need to feel they are important and that they have an opportunity to grow and advance. The managerial personality needs both feedback and challenge. Programs should be directed toward the retention of key executives and the remotivation of marginal performers. The best methods for accomplishing these objectives include: 1. outside training, 2. importing outside experts, 3. apprenticeship with a senior-level manager, 4. restructuring responsibility, 5. job rotation, and 6. multi-level review

Floor discussion of “Labor Market Responses to a Change in Economic System,” by Flanagan

. The World HYPERLINK “http://proquest.umi.com/pqdweb?RQT=318&pmid=13775&TS=1272465813&clientId=129893&VInst=PROD&VName=PQD&VType=PQD”BankHYPERLINK “http://proquest.umi.com/pqdweb?RQT=318&pmid=13775&TS=1272465813&clientId=129893&VInst=PROD&VName=PQD&VType=PQD” Research Observer.

In a discussion of Flanagan’s article, Labor Market Responses to a Change in Economic System, the question was raised as to why unemployment is so high in Central and Eastern Europe and so much lower in the countries of the former Soviet Union, where wages seem to have taken the brunt of adjustment. According to Richard Layard, wage flexibility exists in countries of the former Soviet Union because the workers’ position relative to management is weak, which has lead to more job rotation than in other countries. Layard mentioned a wage subsidy for downsizing, that is, to limit cyclical employment. Based on US experience with subsidies targeted to particular groups of workers, Flanagan was not convinced that paying the subsidy to the employer gets around the problem, because for some problems the employers choose not to use the subsidy. Flanagan realizes that it was an item of faith in the active labor market community that targeting increases efficiency, but there is at least some evidence from US targeted wage subsidy programs that targeting may facilitate adverse signaling.

The trader: The bulls charge into cyclical stocks, tech shares rally smartly and utilities go begging

Bary, Andrew. Barron’s. New York,

The panic that sent the Dow Jones Industrial Average plunging 171 points a week ago Friday lifted by the following Monday morning, enabling the stock market to regain at least the appearance of its old health. Nearly all the Dow’s gains came Monday when the average surged 110 points, its 3rd-largest point rise ever. That rapid recovery only reinforced the view among many investors that selloffs are no longer the dreaded events of old but are to be welcomed as a buying opportunity in a great bull market. Out of portfolios went drug companies and makers of household products, along with banks and utilities, and in their place came a host of cyclical industries, including chemicals, aluminum, autos, retailers and technology. DuPont rose 5 1/8 to 81 1/4, while Caterpillar advanced 4 3/4 to 72, and Sears Roebuck added 4 1/4 to 50 1/8. IBM gained 5 5/8 to 119 7/8. The Dow’s biggest looser was Merck, down 2 1/4 to 62 1/8.

Training employees of a public Iranian bank on emotional intelligence competencies

Mina Dadehbeigi, Melika Shirmohammadi. Journal of European Industrial Training.

– The purpose of this paper is to examine the possibility of developing emotional intelligence (EI) as conceptualized in Boyatzis et al.’s competency model. Design/methodology/approach – Designing a context-based EI training program, the study utilized a sample of 68 fully-employed members of five branches of a public bank in Iran; each branch underwent an eight-week (each session 120 minutes) EI training program. Pre- and post-tests were conducted to assess EI development using emotional competence inventory (ECI-2), a 360-degree measurement tool. Findings – Only one EI cluster out of four improved significantly and only some of the specific dimensions showed this significant improvement, while others did not have a clear change and even some self assessments deteriorated. Research limitations/implications – Lack of a control group, small sample size, and short training program are the main limitations of this study. Practical implications – Detailed explanation of the method could be a guide for service organizations that wish to improve EI. Originality/value – Because of the lack of empirical studies in this field of research, the paper reports the results of a pre-/post study on EI training and development and sets out to add to this narrow literature.

10. BUSINESS LINE: India: ‘M&As seem a reality among public sector banks’

Businessline. Chennai: Nov 19, 2000

After a successful three-year stint at the helm of the Punjab and Sind Bank (PSB), which turned around sustainably, Mr. Surinder Singh Kohli took over as Chairman and Managing Director (CMD) of the Punjab National Bank (PNB) in April. A mechanical engineer from the Benares Hindu University, Mr. Kohli is also Chairman of the Indian Banks’ Association (IBA) and the acting Chairman and Managing Director of the Small Industries Development Bank of India (SIDBI). In a candid interview with Business Line, Mr. Kohli discussed the various issues affecting the banking industry. VRS is not the only method to improve productivity. It is one measure to right-size banks and may increase productivity. Besides the VRS, it is necessary to augment HRD activities, including job rotation, changes in the performance appraisal system and provide incentives that would improve the motivation of bank employees. In the PNB, the VRS is open from November 1-30, and action on the VRS requests will be taken thereafter. Overall, more emphasis has to be placed on training. We have 10 training centres, a Regional Staff College at Panchukula and an apex college at Delhi. Two more regional training centres are coming up at Thane in Mumbai, and in Lucknow, Uttar Pradesh. They will bolster the bank’s existing training capacity. The annual expenditure on training is about Rs 10 crore. Measures such as performance appraisals, career- path and succession planning and the introduction of non-monetary incentives to the staff are being initiated to augment HRD activities.









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