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Explain the importance of promotion. - Business Studies

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Question

Explain the importance of promotion.

Explain
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Solution

  1. Motivates Employees: Promotion acts as a strong incentive for employees to work hard and improve performance. It boosts morale and job satisfaction by recognizing effort and talent.
  2. Encourages Loyalty and Retention: When employees see opportunities for growth, they are more likely to stay with the organization. This helps reduce turnover and hiring costs.
  3. Improves Efficiency and Productivity: Promoted employees usually bring experience and proven skills to higher roles. They are more likely to be competent and committed, improving overall organizational output.
  4. Fulfills Career Aspirations: Employees view promotion as a step forward in their career path. It helps in meeting their personal and professional development goals.
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Chapter 11: Staff Promotion and Transfer - EXERCISES [Page 156]

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Goyal Brothers Prakashan Business Studies [English] Class 12 ISC
Chapter 11 Staff Promotion and Transfer
EXERCISES | Q III. 1. b | Page 156
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