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I agree with most of the respondents that , like many management questions there is no one answer to these questions.However in certain organisations for example in my organisation (a central PSU) such transfers created a peculiar situation.There was mass redeployment of staff/officers from one other departments like Finance/Personnel/Materials and Maintenance etc to Commercial department.The designations although were not changed.Hence we have a sales assistant, a stores &purchase supervisor and an Accounts assistant doing the same job sitting side by side ! This was done to avoid issues relating to inter-se seniority.
Well, basically it have some mutual benefit but usually it depends on the situations and various factors like if an employee resides too far from the branch he is working then a lot of time spent in traveling so in that case he can be transferred to the branch that is nearest to his home. OR suppose if company started a new branch then some trained people needed to start operation over there as well as train new people in that way it helps.
I wondered what happened to the blogger that raised the question, as (s)he has not answered my questions. So, I checked for previous posts; I was surprised to find that this was the first post, though the blogger has been CiteHr
member since August 2010.
I am all for answering queries when bloggers give full information of the scenario. General questions like this makes me wonder whether students are trying to find solutions to their assignment 'on-a-plate' If that's the case then by responding we only create a dependency culture.

Dear friend,

Lots of valuable inputs have already been effectively provided by our learned friends. Apart from the plus and minus of internal transfer of employees within the organization, I would like to state something from the employees' perspective.Though admittedly transfer is an incidence of service, is it whole-heartedly welcomed by all employees particularly in private sector? I am afraid that it is not.In my 32 years of State Govt service in Labour Department, I had the opportunity of serving in all the industrially concentrated cities of the State and my interaction with private sector employees, irrespective of the colour of their collars, shows that most of the people do not like transfer and want to stay put in the particular place of employment and even some of them prefer change of companies within that particular place to transfer out for obvious reasons.It is the prerogative of the management to decide who is to work where and when depending upon the exigencies of work and generally the Standing Orders and the letters of appointment empower the management to effect internal transfers. But I do believe that an individual employee's status and -personal hardships should not be simply brushed aside - would it be prudent to transfer a fitter working at chennai site to Gurgaon just because a branch site is there? So, transfer should not be a colourable exercise of power or victimisation. The benefits of transfer is generally manifold both to the employer and the employee depending upon the organization's size, multiplicity of locations, diverse employment ethnicity and the operational challenges faced and the employee's age and nature of job.

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