FMI

Ownership Transfer and Management Succession: Positioning Your Organization for Long-Term Success

transfer of management

Here are 10 questions all E&C firms should be asking themselves as they either reinvent existing ownership transfer and management succession plans or develop brand-new ones.

Transferring ownership of an engineering and construction (E&C) firm to a new owner, another entity or a group of employees is a complicated process that requires thoughtful planning, preset goals and an exit strategy that’s focused on a win-win outcome for everyone involved. And while every transition may not go as smoothly as planned, having these pieces of the puzzle in place before making this monumental move can position the company and its new owners for long-term success.

Current owners and managers who ignore this advice could put their organizations in peril: About 75% of all businesses fail to survive past the first generation of owners. Those failure rates increase to 85% by the third generation and over 95% for the fourth generation (and beyond).1 Avoiding this fate requires dedication, attention to detail, some forward thinking (read: don’t wait until the last minute to develop a succession plan), and commitment on the part of key stakeholders.

Ownership transfer and management succession (OTMS) focuses on the primary steps that E&C companies should take when transitioning to new ownership. Always important, OTMS is taking center stage as industry leaders shake off the negative impacts of the COVID-19 pandemic and plan for brighter futures. For some, that will mean passing the torch to a new generation of leadership and/or ownership.

Survey Says

With the post-pandemic recovery already underway in the U.S., a period of uncertainty has altered the playing field for contractors, particularly those poised for a change in ownership before the pandemic, according to our latest research published in the “2021 FMI/CFMA Ownership Transfer and Management Succession Survey.”

In collecting data from CFMA members and FMI clients around ownership transfer and succession management trends, the two groups learned that pre- COVID, nearly 50% of all companies were either in the middle of an ownership transfer plan or expecting to launch one within the next two years. Those plans changed when COVID-19 emerged, forcing more than half (52%) of companies to consider either delaying or protracting their intended ownership transfers (Exhibit 1). This wasn’t surprising in light of the economic and operational impact of the pandemic; but it will have major ramifications for the key factors required to successfully exit a business: cash flow and profitability, talent development and management succession, and visibility into future performance.

How COVID-19 Impacted Succession Planning

In mid-2020 FMI and CFMA worked together to gather data and assess the financial risks in the new economy and learn about the biggest impacts of the pandemic on OTMS. Our researchers also looked at how COVID-19 impacted business valuations and the broader mergers and acquisitions (M&A) market, the increased interest in employee stock ownership plans (ESOPs), and the biggest gaps in E&C succession planning.

According to the survey, internal ownership transfers remain the predominant methodology in the construction industry, with over two-thirds of respondents saying that they intend to transfer equity to employees, family or both. Properly structured internal transfers can be a great source of liquidity for owners and continuity for the business, but they require up to 10 years longer to execute than an external sale. This is because internal sales often require new owners to buy equity over time; and if earnings are reduced or capital is needed to fund operations, the process can take even longer.

For the survey, 75% of all respondents indicated that COVID-19 had a negative impact on their company’s earnings. This economic impact primarily affects those hoping to sell in the next five years. Prior to the pandemic, 43% of all respondents intended to have sold 100% of their equity within the next five years. Now, just 29% expect they will have sold 100% of their equity within five years.

Now that the recent boom years are in the rearview mirror, owners who put off succession plans or didn’t take advantage of a stronger market to develop their talent pipeline are experiencing more of a crunch than those who anticipated transitions in the years ahead.

For example, a significant share of respondents (35%) plan to exit their businesses in less than five years while 52% plan to exit their businesses in less than seven years. Given the squeeze on earnings, conventional wisdom would suggest putting off plans longer and focusing on the business; however, there are other strategic options to consider.

Internal sales can progress in the current market, provided that the planning accounts for volatility over the next five to 10 years. Alternatively, owners can consider an employee stock ownership plan (ESOP) or an external sale, given a robust merger and acquisition (M&A) market in the construction industry (as discussed in the next section). However, these alternatives do not create a substitute for leadership development and management succession. For all companies, whether the owner is looking at an ownership transition in the near future or not, it’s never too late to invest heavily in developing the next generation of leadership.

Measuring the Impacts

Though M&A activity in 2020 did not stack up to the deals seen in 2018 and 2019, this was mostly due to the lost second quarter, when the economy was shut down and buyers and sellers focused on their own businesses. In the second half of 2020, M&A activity rebounded and was equal to that of the first half of 2019; this is proof of a strong recovery carrying through to 2021.

M&A activity in the construction industry is being driven by both increased supply of opportunities― given the large percentage of owners looking to exit their businesses―and increased buyer demand. Crucially, this buyer demand has resulted in valuations remaining very strong for quality assets, with strategic buyers looking to expand operations. Demand is also being driven by a substantial increase in private equity interest in the construction industry. Consequently, valuations for quality firms and buyer interest in the construction industry are causing many contractors to accelerate their personal timelines for an exit.

In assessing the increased interest in ESOPs as an exit alternative for E&C firms, FMI and CMFA found that while ESOPs still represent a small slice of ownership transfers, interest in them as an ownership transfer methodology has increased significantly over the past eight years. In 2013, 4% of companies were interested in ESOPs. By 2020, that number had risen to 10%.

The reasons for using an ESOP to position long-term success are compelling. Where an external sale may not be an option, for instance, ESOPs provide a lot of the same benefits. They also offer additional potential tax savings; the ability to leverage employee ownership as a tool for recruiting and retention; greater flexibility in deal structure and timing; and the ability to maintain autonomy of the business.

Also, companies with employee ownership structures have proven to be better for their employees and the bottom line, with 2.5 times the retirement savings and 5-12% higher incomes for employees by a factor of 2.5 against non-ESOP-owned peers. Other advantages include increased productivity, sales growth and resiliency during recessions for the company as a whole, according to the National Center for Employee Ownership.

These effects extend to periods of contraction, with ESOP companies 25% more likely to stay in business in the last recession and four times less likely to lay off employee-owners. Finally, ESOPs are also a tax friendly option for corporations and shareholders. Congress has incentivized the practice with an exemption from all federal taxes, and some state taxes, for 100% ESOP S corporations, and potential deferred or nullified capital gains taxes for shareholders on a company’s sale to an ESOP.

Forged in Fire

Leadership bench depth was a defining factor in organizations’ ability to pivot during the pandemic, with next-generation leaders being “forged in fire” as five-year plans were overhauled and implemented on the fly. In the midst of the volatility, a shortfall of qualified talent continued to impede the smooth transitioning of company ownership.

Unsurprisingly, the importance of leadership development was reflected in the midyear survey, which found that 82% of owners saw a direct impact of their successors’ readiness to their businesses’ future growth and profitability. In addition, 47% of companies believed that leadership development was more important than they did pre-pandemic—a finding similar to that of the post-2008 Global Financial Crisis.

Fast-forward to 2021, and we’re again looking at a long recovery and uncertainty stretching over the horizon; but the stress test of 2020 is behind us. Companies with solid balance sheets and a steady pipeline of talent will be well resourced to pursue ownership transitions that position them for the post-pandemic landscape. Those unprepared for the events of 2020 can likewise take a fresh look at the projected value of their company and at the opportunities and risks in selling.

10 Questions to Ask Yourself Right Now

Now is an ideal time to reevaluate transition plans, starting with a rigorous look at what will change forever, which market principles still hold, and how owners can adjust their plans. Start by asking yourself these 10 questions:

  • How have my transition goals shifted in the current market?
  • Who will lead the business moving forward?
  • Is our succession plan aligned with our vision as well as our strategic and operational goals?
  • How aligned are the current and next-generation owners and leaders in terms of ownership, growth and vision for the company?
  • What is most important to current owners―legacy and business continuity, control of the business and/or maximizing financial return?
  • Where are points of risk/overreliance on key leaders?
  • How are we preparing successors for future leadership roles?
  • How will the current disruptions (e.g., economic recession, COVID-19, etc.) impact our ownership transfer plan?
  • Do we have effective buy-sell agreements in place to protect the organization and all shareholders?
  • Have we built the business to provide multiple options for ownership transfer to ensure a path to liquidity for shareholders?

From the answers to these questions, you’ll be able to 1) determine your current status on the OTMS spectrum, 2) identify the gaps that need to be filled, and 3) develop an OTMS plan that truly meets your company’s needs while concurrently preparing it for long-term success.

Buyers Are on the Prowl

The good news for E&C companies that are dusting off the OTMS plans that may have been back-burnered in 2020 is that buyers are on the prowl, looking for opportunities to diversify, add specialization, and/or take advantage of gaps in market supply after a seismic shakeup. For E&C firms, successfully transferring ownership has always been coupled with the need to effectively manage succession planning. More so now than in the past, companies that invest in developing future leaders and building their businesses with multiple paths to owner liquidity will be successful in the years ahead. This article was adapted from “Ownership Transfer and Succession Management in Construction: Top Four Questions,” originally published in the March/ April issue of CFMA Building Profits.

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  • American Economic Review
  • January 2019

The Long-Term Effects of Management and Technology Transfers

  • Michela Giorcelli
  • Article Information

Additional Materials

  • Replication Package (15.24 MB)
  • Online Appendix (3.70 MB)
  • Author Disclosure Statement(s) (87.56 KB)

JEL Classification

  • O33 Technological Change: Choices and Consequences; Diffusion Processes

Transfer of Management Rights Tool Kit

transfer of management

1. Regulation of the transfer of management rights

2. consent to a transfer, 3. the application for consent, 4. legal and administrative costs of the consent, 5. relevant matters for consideration by the committee, 6. information required in support of the application, 7. the draft deed of assignment, 8. conditional approval, 9. refusing approval, 10. transfer fees, 11. settlement process, 12. conclusion.

Download the Full Toolkit

Management rights are typically a ‘package’ which comprises:

  • a manager’s unit;
  • rights to occupy common property (including an office and reception area); a management and letting agreement (which can be separate agreements or
  • combined in a single agreement); and
  • a by-law conferring exclusivity in relation to on-site letting.

The management and letting agreement(s) (“Agreement”) commonly has a term of 10 or 25 years, depending upon the Regulation Module which applies to the community titles scheme. It provides for the caretaking of the building and the conduct of a letting business within the building by the manager. It usually contains a clause entitling the manager to assign or transfer the Agreement and common property occupancy rights upon certain conditions. The Agreement commonly refers to this as an “assignment” whereas the community titles legislation refers to it as a “transfer”. Those 2 terms mean the same thing, a change of ownership from a Seller to a Buyer of the management rights.

There is no similar provision in the Agreement regulating voluntary transfer of the manager’s unit or the exclusivity by-law. The body corporate need not be involved because the unit can be transferred under normal property law rights and the by-law is attached to ownership of the unit.

In addition to the contractual entitlement, the applicable Regulation Module confers on the manager a statutory right to transfer the management rights. For present purposes we will assume that the Body Corporate and Community Management (Accommodation Module) Regulation 2008 (“Accommodation Module”) applies, but most of the regulation modules contain similar provisions to those in the Accommodation Module.2

It follows that the transfer (or assignment) of management rights is regulated by:

  • the relevant regulation module (in our case the Accommodation Module); and
  • the assignment clause in the Agreement

Both of those documents need to be examined to determine how a particular transfer process should proceed.

1This Tool Kit is suitable for use under all Regulation Modules, other than the Body Corporate and Community Management (Small Schemes Module) Regulation 2008 and the Body Corporate and Community Management (Specified Two-lot Schemes Module) Regulation 2011.

The exceptions being the Body Corporate and Community Management (Small Schemes Module) Regulation 2008 and the Body Corporate and community Management (Specified Two-lot Schemes Module) Regulation 2011.

The ‘headline’ provision in the Accommodation Module says that a person’s rights under an Agreement may be transferred only if the body corporate approves the transfer.3 Provided a general meeting of the body corporate has not reserved to itself the right to approve the transfer of management rights, the approval can be done by the committee.4 However, in some cases a transfer of management rights is accompanied by changes to the Agreement. In such cases, the transfer and change package would need to be approved by a general meeting.

The Agreement will usually contain a clause conferring on the manager the right to transfer or assign. This is additional to the statutory right to transfer. Where there is a conflict between such a clause and the provisions of the relevant regulation module, the provisions of the module will prevail.

  • Section 120(1) of the Accommodation Module.
  • See sections 42(1)(c) and 120(2) of the Accommodation Module.

The application for consent is usually made by the caretaker’s solicitor. It usually takes the form of a letter, accompanied by a draft Deed of Assignment (which is the transfer instrument) and supporting material, such as resumes and references for the proposed transferee. It is most likely that the Deed of Assignment will have been prepared by the solicitor acting for the proposed transferee. If the supporting material submitted is inadequate, the body corporate is entitled to ask for additional material to enable the application to be properly considered. The body corporate should act promptly in advising of any required additional supporting material.

The body corporate must decide whether to approve the proposed transfer within 30 days of it receiving the information reasonably necessary for it to decide the application.5 It is therefore important that the body corporate acts quickly and that it does not require any information that is not reasonably necessary for making its decision (see paragraph 6 below for further discussion).

Section 120(4) of the Accommodation Module.

Subject only to the transfer fee provisions (as to which see paragraph 10 below), the body corporate cannot require or receive a fee or other consideration for approving the transfer (other than reimbursement for expenses reasonably incurred in relation to the application for its approval).6 The expenses usually comprise legal costs and administrative charges from the body corporate manager.

If the body corporate decides not to approve the transfer, there is some doubt as to whether it can recover such expenses in the absence of a special arrangement. This is because of a possible defect in the wording of the regulations which was identified in a recent QCAT decision.7 In that decision it was held that “Section 120(6) envisages that certain costs incurred by a body corporate in approving a transfer can be placed upon another party, but it does not provide for the imposition of cost on another party simply in relation to considering an application.”8

In the absence of a clause in the Agreement which addresses this issue, it is important that the body corporate obtains from the caretaker (i.e. the transferor) a separate agreement to pay the reasonable legal and administrative costs of the application, irrespective of the result. The caretaker is not obliged to enter into such an agreement and if they refuse, there are 2 options available to the body corporate:

  • Proceed with the application and risk the possibility of the body corporate being liable for the costs and expenses if the application is not successful.
  • Adopt the position that the application can only proceed on the basis that the caretaker will be responsible for the reasonable legal and administrative expenses of the body corporate irrespective of the outcome of the application. The body corporate would need to maintain that position until an agreement to that effect is reached.

Option (2) carries the risk of liability if the sale falls through because of the delay and it is subsequently held that the body corporate’s requirement was unreasonable or otherwise illegal. On the latter point, the prohibition in section 120(6)(b) is against requiring or receiving a fee or other consideration “for approving the transfer”. Therefore, insisting on a fee for “considering the application for approval to transfer” is arguably permitted, provided it is reasonable.

  • Section 120(6)(b) of the Accommodation Module.
  • K&A Property Services Pty Ltd v Body corporate for Island Park Gardens CTS 20219 [2016]QCAT 308 (31 August 2016).
  • At paragraph [45].

In deciding an application, the body corporate can only consider matters that are specified in the Accommodation Module or the Agreement. The Accommodation Module says the body corporate may have regard to the following matters in deciding whether to approve a proposed transfer:

  • the character of the proposed transferee and related persons of the proposed transferee (such as the directors and shareholders of a corporate transferee or the person proposed as the on-site manager); 9
  • the financial standing of the proposed transferee;
  • the proposed terms of the transfer;
  • the competence, qualifications and experience of the proposed transferee and any related persons and the extent to which the proposed transferee and related persons has received or are likely to receive training; and
  • matters to which under the Agreement the body corporate may have regard.

It is not uncommon for Agreements to be silent on matters to be taken into account when deciding applications to transfer. In the case of each assignment, the Agreement must be analysed, and a final list prepared of matters which can be taken into account by the body corporate.

“Related persons” are defined in section 120(8) for the purpose of the section.

The information needed to support an application will be determined by:

  • the final list of matters that can be taken into account in determining the application;
  • the broader terms of the Agreement (particularly the duties the caretaker is required to undertake); and
  • the nature of the entity that is purchasing the management rights.

In relation to (c) above, if the entity is a trust with a corporate trustee, then the extent of the required information will be significantly greater than for a purchaser who is a natural person or a sole corporate purchaser.

In addition to obtaining such things as balance sheets, resumes, references, criminal record checks, licences, etc. it is good practice for the body corporate to require the proposed transferee to answer a comprehensive Questionnaire which seeks to elicit information relevant to the final list of matters that can be taken into account in determining the application. The Questionnaire may vary from matter to matter because the final list of matters may itself vary from matter to matter. Care therefore needs to be taken in relying on any “standard form” list of questions.

Unfortunately, some prospective purchasers sign purchase contracts thinking that they will be able to obtain a “top-up” of the term of the Agreement after they settle the purchase. Sometimes they are told this by the outgoing caretaker or the sales agent. It is therefore wise for a body corporate to seek information from the prospective purchaser of their expectations in this regard. Bugden Legal has a “Caution Statement” about top-ups which the proposed transferee is required to read and acknowledge as part of the transfer process. This has the potential to protect the body corporate if in the future it resolves to decline a “top-up” request. A copy of the Caution Statement appears in Form A.

The information process usually concludes with a personal interview of the proposed transferee and related parties by the full body corporate committee or its representative group. The interview is a vital part of the approval process and provides an opportunity for the committee to seek clarification of or further information about materials provided by the transferee as part of the approval process.

It is common practice for the draft Deed of Assignment (prepared by the transferee’s solicitor and submitted to the body corporate with the consent application by the transferor’s solicitor) to contain a number of warranties or releases on the part of the body corporate. Great care needs to be exercised in determining whether the body corporate should agree to those warranties. Sometimes, it is necessary for the historical basis of the management rights to be examined before the body corporate can decide with any confidence as to the appropriateness of such warranties.

There is nothing in the Accommodation Module which says the approval must not be conditional. Indeed, section 120(5) expressly allows for the approval to be given subject to a condition that the transferee enters into a Deed of Covenant with the body corporate to comply with the terms of the Agreement. While it might be argued that this is the only condition which may be applied, it is commonly accepted that the approval could be given subject to reasonable conditions, such as a requirement for the transferee to undertake training.

Caution will need to be exercised before adopting a conditional approval, because the scope for additional approvals will no doubt be limited by the Courts.

The Accommodation Module provides that the body corporate must not unreasonably withhold approval to the transfer.10 In practice, this means that there will be very limited circumstances in which a refusal to approve cannot be challenged. Furthermore, if the sale fails to proceed and the refusal is successfully challenged, the body corporate will most likely be held liable for damages for the loss of sale.

If approval is to be refused, a strategy needs to be carefully developed and implemented to ensure that due process is observed and all options to avoid the refusal are properly considered.

Section 120(6)(a) of the Accommodation Module.

In limited circumstances, a body corporate may be entitled to receive a “transfer fee” for approving a transfer of management rights. The legislative provisions in this regard are complex and subject to exceptions, but in general terms, the transfer fee is only payable if the transfer occurs within 2 years of the Agreement being entered into. If the transfer occurs within the first of those years, the transfer fee is 3% of the “fair market value of the transfer”. If the transfer occurs within the second of those years, the percentage is reduced to 2%.

It is normal practice for a solicitor representing the body corporate on a transfer of management rights to assess whether a transfer fee is likely to be payable. The claim is then made on the transferor, who may object to the claim in certain circumstances.

The settlement process is similar to a conventional settlement of a conveyance, although it usually involves 3 interdependent transactions:

  • the sale of the manager’s unit;
  • the sale and transfer of the Agreement; and
  • the financing of both those sales (usually involving a Bank).

It is important that the Deed of Assignment (signed by the body corporate) is not handed over until the actual settlement occurs and only then in exchange for payment of its legal costs and expenses and satisfaction of any other conditions of the approval. This can be achieved by the body corporate’s solicitor attending on the settlement or the deed being made available in advance of the settlement on appropriate “solicitor to solicitor” undertakings.

It is very clear from the above that the body corporate’s role in relation to the transfer of management rights is complex and needs to be undertaken with care and with the benefit of competent legal advice. It is fortunate that in most cases the cost of such assistance is fully recoverable from the transferor of the management rights (i.e. the outgoing caretaker).

FORM A – CAUTION STATEMENT

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Whole Farm > Transition & Estate Planning > Evaluating Your Estate Plan

Updated May, 2014 File C4-55

Farm transfer strategies.

Many families spend years accumulating wealth and are interested in keeping another generation on the farm. However, not all farms will or should be transferred to the next generation. Many farms are not large enough or the next generation may not be interested in being in agriculture. Some children may be interested in farming as a part-time occupation. Other families may look outside their own family for non-related parties to bring into the farming operation. Some families will retain ownership of the land, following the parents’ deaths, as an investment.

Building a Management Team

The first step towards a successful business transfer is to build a management team. Team is the key word. Over time, it needs to be a team decision. Early on many of the decisions may be made by the older party. Ultimately, the younger party may make most of the decisions. The older party should focus on improving the management skills of the younger party. The training should cover all parts of the business so they gain an understanding of how all components of the business fit together.

The next key phrase is open communication. Everyone needs to feel that their ideas and opinions are respected. All involved parties are encouraged to speak up. There also needs to be a strategy for dealing with conflict or differences of opinions as well as regular performance evaluations that highlight both strengths and weaknesses in the business and relationships.

The parties have to work together. They also may need to have other players on the team such as insurance agents, accountants, legal experts and others. Better record keeping may help facilitate better team work.

Transfer Strategies

To increase the ease of transferring, several critical issues should be addressed in the succession plan.

These critical issues are the:

  • transfer of labor
  • transfer of management
  • transfer of assets
  • identification and management of possible risks or barriers

These issues tie in with potential areas of conflict that should be addressed in the business plan. The first area of concern is “Hierarchy of Control.” Who will be in control of the decision making process? How will decisions be made? In a farm business, the older generation may not be willing to give up control. Often the first area the older generation is willing to give up is labor. The business plan should outline a timeline for the transfer of management as well. It should also address the topic of the transfer of assets and the process for doing that. Which assets first? What are the barriers and how might they be dealt with?

Another area is “Stability versus Growth.” If we are going to have more people living off of the current farm operation, is it large enough to provide the needed income? If it isn’t, how will this issue be addressed? If the operation is in a growth mode it may have reduced available cash for distributions for living expenses.

The “Business Life Cycle” for a typical business is an initial shortage of capital and profits matched with an abundance of labor. Over time the business builds up capital and management. Eventually the owners want to start taking capital out for retirement and reducing labor contributions. By bringing in new people we can restart the business cycle before it peaks and build upon the capital and management already in place.

Another area the transition plan should address is the issue of “Personal versus Business Goals.” This relates to the issue of where the capital gets allocated as well as individuals’ time and management. Small businesses often have goals besides maximizing profits. Do we shut the combine down to go to a son or grandson’s football game? Do we remodel the kitchen or do we put money into new farm equipment?

Another area to be addressed is the “Lack of Formality” that is often a part of ag businesses. Are we going to have a formal business structure such as a Limited Liability Company or are we going to be more informal? Do we develop an in-depth operating agreement that lays some of these things out?

Transfer of Labor and Fair Compensation

Often the younger party only brings labor to the ongoing business. However, along with this labor they bring new ideas and reason to continue and grow the business. They may also bring skill sets that are currently lacking in the business such that fair compensation is sometimes difficult to assess. There are surveys for general compensation information, and it is vital to pay today what each party deserves today. Statements like “someday this will all be yours” or “if you stick with me in the tough times I will take care of you someday” should be approached with caution. Look for ways to compensate people today; perhaps with an equity position in the business.

Usually, the older generation is looking to reduce the amount of labor they contribute. The business plan should give some indication for the time frame and the level of reduction of labor. It should also give some indication as to the labor requirements for the younger party.

Transfer of Management

The issue of who controls the management can be a barrier to successful transitioning. This can also be an issue for spouses or siblings depending on the business structure and how it has operated in the past. Young people bring new ideas to the business and often would like to try to implement them as quickly as possible. Often they require additional capital to implement.

The older party may have a different view of what retirement is compared to others. Retirement to some means slowing down, doing the things one likes to do, and taking off time when one likes. For others retirement means that one is not involved in any of the management or daily operations. Many farmers are somewhere in between. With today’s technology one is able to farm much longer than past generations and as life expectancies have increased some farmers have farmed into their 80s or even 90s.

If we are to be successful in transitioning the business there has to be a plan to transition management. By the third year the younger party should be involved in management in some form. It may be they are responsible for all of a small area or they are part of the decision making process for the total operation. In grain farming it may be easy to have the younger party farm his own piece of land that he rents from the older party. This will give him some experience in financing, buying inputs, machinery expenses and marketing.

The speed at which management is transferred and the level of which it is transferred is based on many factors. It must happen and the older party should actively push to make it happen.

Transfer of Assets

At some point the transfer of assets will need to occur. How fast and which assets are based on many of the things already discussed. The method for transferring will also be impacted by the type of business structure.

The control of machinery is often transferred by lease or by sale. Related parties may also involve gifts. In the very early stages the older party may trade the value of machinery for the value of labor. Or they may rent machinery to the younger party on a “per acre per trip” basis at a rate that covers repairs and depreciation.

Another method is the “buy and trade” where the older party sells a piece of equipment to the younger party and then the younger party trades it in on a new piece of equipment that the younger party owns. This allows for the sale of the equipment to be stretched out over time and the younger party to stretch out the time to purchase a line of equipment.

Another strategy is the “trade and buy back” where the older would like to buy more equipment but doesn’t want to lose use of a piece of equipment. For example, the older farmer wants to buy a new tractor, and also would like to sell the old tractor to the younger party. The older party trades in the tractor on the new one and then the younger party buys the old one back from the dealer.

Sometimes the older party will want to sell all of his equipment on contract. The problem with this is that all of the depreciation is recaptured in the year of sale and if sold to a related party the capital gains is taxable in the year of sale. You will also see the older party lease the equipment in five or seven equal payments with ownership being transferred to the younger party after they make the final payment. This would be a disguised sales contract subject to recapture as well.

Another method is to lease the equipment with the valuation adjusted each year and the payment based on a capitalization rate and the buyout based off of market value. Consult with your tax person before entering into any agreements.

The transfer of livestock can be at an inventory time such as the start of the fiscal year or when the inventory is lowest. It could involve the sale of the finishing livestock or just the breeding livestock or both. The older party might sell part or the entire breeding herd to the younger party.

If you sell part of the breeding herd and jointly own livestock you need to realize that you may now look like a partnership with the associated benefits and liabilities.

The sale of land to a younger party is usually very limited because of the capital requirements and the younger party can normally get higher returns from other types of assets. However, there are some beginning farmer programs to encourage and assist in purchasing land.

Leasing land is covered at the end of this publication and may be a more viable strategy. There may be beginning farmer tax credit programs to provide incentives to lease to beginning farmers.

Transfers by gifts or by will are covered in another publication.

Business Structures

There are two common models for setting up the new business to bring in another party. One is the “Super Firm”; the other is the “Separate but Share.” A variation of this is the “Spin Off” where they start out together as a super firm but spin off the new business at some point.

With the super firm the younger party usually starts off as an employee of the business. As time goes on he may invest his own capital in the firm and he becomes more involved in the management. Eventually he may take over management of the super firm and acquire some or all of the assets of the firm.

A variation of this is when at some point in time the younger party takes their capital out of the super firm and creates his own firm. This may come as the result of a conflict, but there are several other reasons to do this.

With the “separate but shared” approach the younger party starts his own firm. They may lease equipment or land from each other, share in the purchasing of equipment or inputs to attain economies of scale, jointly market grain and trade labor. Each operation stands on its own merits. They do not operate as a partnership. They operate as sole proprietors.

A partnership is when two or more persons share in ownership (not necessarily equally) in the operating of a business. Partnerships end at the retirement, sale or death of one of the partners which often limits the use for transitioning.

More common for “Super Firms” would be the use of C corporations, S Corporations or Limited Liability Companies. You will also find these used in combination with sole proprietors or in combination with each other. It is also more common to see Family Limited Partnerships being used for estate tax planning.

These entities have shares or units of ownership which can be sold, gifted or inherited or transferred as compensation for management provided.

Risks or Barriers

In transferring a business there are many areas where problems could occur. It could be as basic as communication. It could be an untimely disability or death. It could be a period of low or negative profits. Your transfer plan needs to identify as many of these as possible and develop possible strategies to deal with them. That might include insurance, buy-sell agreements, operating agreements, first right of refusal on offers to rent or sell. It could also involve the use of trusts to maintain control of assets after the death of a key person.

There are situations where transferring the farm business will not be feasible. Other options such as liquidation or leasing may then come into play.

Liquidation

Some farms will be liquidated during the current owners’ life. Parents may want to maintain or improve their standard of living and they may not have other resources. As people live longer, inflation and health care costs may result in the need to generate more income than the land might provide.

In this situation managing income taxes and investing the additional capital generated become the focus. Deductions for health care costs may offset some of the tax liability. Selling land on contract will allow you to stretch out capital gains taxes. Keep in mind that capital gains from contracts are treated as “income in respect of decedent,” for income tax purposes if you die before the contract is paid off. You also have to evaluate what future tax brackets you might be in, how long you might live, and the current as well as future estate tax laws.

In some situations, family members may want to buy the land. There are special tax rules for sales to family members. Review IRS Publication 537 “Installment Sales.” Sales below fair market value or sales with discounted interest rates may involve gift tax issues.

Keep in mind that there are special rules for the sale of your home. If you decide to sell off the acreage and move, you will find very favorable tax laws relating to the sale of the home.

Leasing Land

Much of the land is leased out when farmers retire if there isn’t a plan to continue the business. Sometimes this isn’t a total stoppage but more of a transition. It may include the selling of the livestock, a shift to some custom farming, or renting out a portion of owned land.

Generally, when you shift to a rental arrangement you are no longer subject to FICA taxes on the income if you do not meet the “material participation rules.” You can have a crop share lease and not be materially participating. In recent years there has been more of a trend toward cash rent leases. Some of these do involve a bonus or flex payment based on yield, price or more commonly both price and yield.

Retaining ownership until death allows the heirs to receive a “step up” in basis at the death of the owner, often eliminating a significant amount of capital gains tax.

For larger estates, qualifying for “special use valuation” may be a useful way to reduce federal estate taxes. To qualify you must look at the use of the land before retirement, after retirement and ten years after death.

IRS Publication 537 Installment Sales Material Participation Special Use Valuation

Ag Decision Maker - Iowa State University Extension and Outreach Transferring Business Ownership The Farm Business Transfer Process Dividing Business Income

Transferring and Estate Planning - University of Minnesota Extension

Iowa State University Extension and Outreach does not provide legal advice. Any information provided is intended to be educational and is not intended to substitute for legal advice from a competent professional retained by an individual or organization for that purpose. This material is based upon work supported by USDA/NIFA under Award Number 2010-49200-06200.

Kelvin Leibold, extension farm management specialist 641-648-4850, [email protected]

Kelvin Leibold

Farm management specialist 641-648-4850 view more from this author.

transfer of management

Maunakea Authority seeks exemption to open meetings law during management transfer

This July 14, 2019, file photo shows a telescope at the summit of Maunakea, Hawaiʻi's tallest mountain. (AP Photo/Caleb Jones, File)

Hawaiʻi lawmakers have advanced a bill that would allow the Maunakea Stewardship and Oversight Authority an exemption to the open meetings, also known as the Sunshine Law, during its transition period.

Critics of the measure say the exemption would erode public trust in the authority during a critical five-year transition period.

But supporters of the bill, including authority members, argue the body needs this flexibility to meet the deadline for transitioning mauna management away from the University of Hawaiʻi by 2027.

John Komeiji, Chair of the Maunakea Authority, said without an exemption, the all-volunteer board is limited to working in permitted interaction groups, or PIGs, which can be time consuming.

The Caltech Submillimeter Observatory on Maunakea

"We have one employee right now. So we have a working group. Our working authority members draft job descriptions, draft consultants’ agreements, have to hire an executive assistant, and the inability for us to meet and discuss matters individually, without committing to a vote is severely impacting our ability to move forward," he said.

"Let’s say we want to meet with our attorney. I gotta create a PIG that then has to go and report what they found one month later. We cannot ask any questions to clarify what that report is until the next meeting, so it takes us three months to do things."

House Bill 2692 was approved this week by the House Judiciary and Hawaiian Affairs Committee with Reps. Sonny Ganaden, Daniel Holt and Kanani Souza voting no.

The measure now awaits a floor vote in the House.

transfer of management

Transfer of management training from alternative perspectives

Affiliation.

  • 1 Department of Psychology, University of Waikato, New Zealand. [email protected]
  • PMID: 19186899
  • DOI: 10.1037/a0013006

One hundred seven management training evaluations were meta-analyzed to compare effect sizes for the transfer of managerial training derived from different rating sources (self, superior, peer, and subordinate) and broken down by both study- and training-related variables. For studies as a whole, and interpersonal management skills training studies in particular, transfer effects based on trainees' self-ratings, and to a lesser extent ratings from their superiors, were largest and most varied across studies. In contrast, transfer effects based on peer ratings, and particularly subordinate ratings, were substantially smaller and more homogeneous. This pattern was consistent across different sources of studies, features of evaluation design, and within a subset of 14 studies that each included all 4 rating sources. Across most rating sources, transfer of training was greatest for studies conducted in nonmilitary settings, when raters were likely to have known whether the manager being rated had attended training, when criteria were targeted to training content, when training content was derived from an analysis of tasks and skill requirements, and when training included opportunities for practice. (PsycINFO Database Record (c) 2009 APA, all rights reserved).

Publication types

  • Comparative Study
  • Meta-Analysis
  • Research Support, Non-U.S. Gov't
  • Administrative Personnel / education*
  • Employee Performance Appraisal / methods
  • Inservice Training*
  • Time Factors
  • Transfer, Psychology*

Business Transfer Agreement Template

Used 5,209 times

This sample Business Transfer Agreement Template is a legal document that must contain information on the parties involved as well as the terms and conditions of the agreement.

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Created by:

​ [Transferor.FirstName] [Transferor.LastName] ​ [Transferor.Company] ​

Prepared for:

​ [Transferee.FirstName] [Transferee.LastName]

​ [Transferee.Company] ​

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KNOW ALL MEN BY THESE PRESENTS:

This Business Transfer Agreement (“The Agreement”) is made and executed as of this [Document.CreatedDate] (“the Effective Date”) by and among/between:

Transferor(s):  [Transferor.LastName] , [Transferor.FirstName] , (Age) , of legal age, currently residing at [Transferor.StreetAddress] , [Transferor.City] , [Transferor.State] , [Transferor.PostalCode] , [Transferor.Country] (collectively “The Transferor”);

Transferee(s):  [Transferee.LastName] , [Transferee.FirstName] , (Age) , of legal age, currently residing at [Transferee.StreetAddress] , [Transferee.City] , [Transferee.State] , [Transferee.PostalCode] , [Transferee.Country] (collectively “The Transferee”);

The  Transferor  is the owner of the duly registered business that is set to be transferred to new ownership under this Agreement.

The  Transferee  is the party who will be receiving the title as the new owner or custody of the duly registered business under this Agreement.

WHEREAS, in consideration of the above recitals, the representations, warranties, covenants, and agreement stated in this Agreement and in good faith and valuable considerations, the receipt and accuracy of which are now acknowledged by both Parties.

WHEREAS, the Transferor is the duly registered and the beneficial owner of the  [Transferor.Company] , owns a premise and carries out business known as (business name) under (type of industry) industry located at ( business address: street name, city, state, postal code, country) established since (business start date) .

WHEREAS, the Transferor does hereby transfer, assign the business, and make over unto the Transferee.

WHEREAS, the Transferee is hereby present and accepting the business transfer and assignment.

The Transferor hereby declares all the assets, both tangible and intangible, that are intended for this Agreement.

Transferor's List of Assets

(Asset) | (Description) | (Acquisition Date) | (Current Value) | (Current Status)

LIABILITIES

I do hereby confirm to the following terms and conditions and undertake that:

The Transferee acknowledges the liabilities that come along with this Agreement, such as the amounts due and payable to the employees in respect of their employment with the new ownership and new management of the  [Transferor.Company]  after the successful business transfer shall be borne, discharged, and paid by the Transferee.

All other statutory dues and liabilities about the Company and all related accrued accounts after the period of transfer shall be discharged by the Transferee.

As the business transfer has successfully concluded, the Transferor explicitly authorizes the Transferee to collect, demand, enforce, recover, and receive the debts, and provide valid and binding receipts and discharges and in respect thereof, and this Agreement will serve as if the Transferee is the absolute owner thereof – to the whole and with the same effect as the Transferor.

The Transferor, before the new ownership, should be able to get the Transferee acquainted with all the matters related to the business, especially the current financial standing and its financial goals.

The Transferor will be presenting in detail all the liabilities of the business, especially financial liabilities, along with its relevant terms and conditions and all the names of the debtors, creditors, and investors. Those stakeholders have direct involvement with the business finances. The Transferee will be referred to the Head of the Finance Department to further discuss all the business books and other accounting-related matters.

ADMINISTRATION

The Transferor is required to submit the list of all employed personnel of the business from the top of the organizational chart, including all the in-house support the business has. The Transferee will be referred to the Head of the Human Resources Department to further discuss all the implementing rules and regulations about the business workforce.

The Transferee will be referred to the Administration Office to further discuss all the amenities available as well as its business privileges, should there be any.

RESTRAINT OF TRADE

The Transferee may not directly or indirectly engage, manage, own, be employed by, operate, participate, control, or be connected with the management and operation of another similar type of business anywhere in the United States for a period of 12 months. If the Transferee breach this section, the Transferor should be entitled to an injunction for the prevention of the Transferee violating this section.

CONFIDENTIALITY

The Transferee shall not, without written consent, share any part of information owned and related to the Company, especially those information that is not published publicly or not considered a public record. This information includes but is not limited to client data, company trade secrets, affiliates, third parties, financial status, investor's list, suppliers, and any other relative information that the employees knew and should have known, which are all confidential.

WHEREAS, this Agreement should be signed in counterpart.

NOW, THEREFORE, the Parties of this Agreement, the Transferor and the Transferee, acknowledge their part of this Agreement. The Parties will request a special meeting arrangement to properly document all the details required for the takeover of the Transferee. All necessary documents such as the contracts, constitution and by-laws of the organization, rules and regulations, memorandum, and bulletin exclusive for the use of the Company.

ACKNOWLEDGEMENT

State/Republic of (insert name)

County/City of (insert name)

SUBSCRIBED AND SWORN TO BEFORE ME, a NOTARY PUBLIC from (Country/City) , (State/Country) , [Document.CreatedDate] ; personally appeared bearing the government identification with details provided below, to wit;

(Name ID Type/Number Date/Place of Issuance)

(Transferee.ID) (details)

​ [Transferor.FirstName] [Transferor.LastName] ​

(Transferor.ID) (details)

Known to me and known to be the same persons who executed the foregoing instrument consisting of four (4) pages, including the page wherein this acknowledgment is written, and they acknowledged that the same is their own free and voluntary act and deed and that of the corporations represented.

IN WITNESS WHEREOF, I have hereunto set my hand and the notarial seal on the date and in the place herein above written.

Notary Public

Doc. No. (insert number) ;

Page No. (insert number) ;

Book No. (insert number) ;

Series of (insert number) ;

​ [Notary.FirstName] [Notary.LastName] ​

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Link to Delaware Technical Community College Homepage.

Business Administration Transfer to Operations Management

An opportunity to gain an associate degree from Delaware Tech and a bachelor's degree from University of Delaware.

Your Path to a Bachelor's Degree

Delaware Tech has established agreements with four-year colleges and universities that connect Delaware Tech associate degree programs with bachelor's degree programs to create smooth transfer opportunities for you. These Connected Degree programs enable you to complete your associate degree and then transfer to a four-year degree program as a junior.

The Connected Degree 2+2 Curriculumn

Delaware Tech's Business Administration Transfer (BAT) Program provides the foundational coursework necessary for successful transfer to nationally-ranked four-year colleges of business accredited by the Association to Advance Collegiate Schools of Business (AACSB) such as University of Delaware's Lerner College of Business. The BAT Program provides the high-level preparation in general education needed for upper-level coursework at these universities as well as the necessary foundation for a business education and transfer into one of these five programs: Accounting, Management, Operations Management, Sports Management or Marketing. University of Delaware's Bachelor of Science degree in Operations Management (OM) focuses on the process by which a firm produces a product or provides a service. OM majors are concerned with addressing questions such as, how much of a product should be produced? What is the most efficient way to produce that amount of product or that level of service? OM is all about the transformation of raw materials, labor and capital into final products and/or services. The OM major prepares students to be effective problem solvers by increasing their ability to analyze and interpret quantitative information that they then can use to make solid business decisions.

Value For You

By completing your associate degree at Delaware Tech, you'll receive excellent instruction in small classes at a campus close to home. Delaware Tech's affordable tuition can reduce the overall cost of your college education, making the completion of your bachelor's degree more manageable.

Making The Connection

Refer to the Connected Degree curriculum for the sequence of courses needed to complete this program. Call Delaware Tech and let us help you follow the path to your bachelor's degree.

Connected Degree Curriculum - Suggested Course Sequence

Business administration transfer (associate degree - delaware technical community college), first semester (fall), second semester (spring), third semester (fall), fourth semester (spring), operations management (bachelor's degree - university of delaware), fifth semester (fall), sixth semester (spring), seventh semester (fall), eighth semester (spring).

The Bachelor of Science program in Operations Management requires a minimum of 121 credits. Course sequencing may vary by semester. See your advisor.

*History/Cultural Support Electives: Choose 2 ENG 128 Black American Literature (3 credits)- fulfills multicultural component at UD HIS 111 U.S. History Pre-Civil War (3credits) HIS 112 U.S. History Post-Civil War (3credits) HIS 210 World History II (3 credits) SPA 136 Spanish Communication I (4 credits) SPA 137 Spanish Communication II (4 credits)

**Science Tech Support Electives: Choose 1 BIO 100 Medical Terminology ( 3 credits) BIO 110 Essentials: Anatomy Physiology (4 credits) BIO 140 General Biology (4 credits) CHEM 110 General Chemistry (4 credits) ENV 190 Intro to Environmental Science Tech (3credits) PHY 111 Conceptual Physics (4 credits)

*Creative Arts & Humanities, History & Cultural Change or Foreign Language ENGL 344 African American Literature I HIST 105 U.S. History to 1865 HIST 106 U.S. History since 1865 HIST 104 World History II SPAN 105 Spanish I Elementary SPAN 106 Spanish II Elementary/Intermediate

**Mathematics, Natural Sciences & Technology MMSC 200 The Language of Medicine BISC 106 Elementary Human Physiology BISC 104 Principles of Biology with Laboratory CHEM 101 General Chemistry CHEM 100 Chemistry and Human Environment SCEN 101 Physical Science

Students must complete a minimum of 121 credits for the B. S. in Operations Management. Course offerings by semester may vary. See your advisor.

For More Information Contact:

Delaware Tech Dover: (302) 857-1772 Georgetown: (302) 259-6665 Wilmington: (302) 573-5428

University of Delaware [email protected] Newark, Delaware: (302) 831-4369

The articulation agreement is subject to change based on Delaware Tech and senior institution curriculum changes. 03/2020 - 03/2025

What is Transfer?

transfer of management

Everything you need to know about transfer. Transfer means shifting of an employee from one job to another, one unit to another or one shift to another and may involve a new geographical location. Transfers may be initiated by the organisation or by the employees with the approval of the organisation.

Edwin B. Flippo defines, “Transfer is a change in job where the new job is substantially equal to the old in terms of pay, status and responsibilities.”

Learn about:- 1. Introduction to Job Transfer 2. Definitions of Job Transfer 3. Meaning 4. Concept 5. Objectives 6. Need 7. Policy of Transfer 8. Essentials 9. Purpose 10. Types 11. Causes 12. Advantages and Disadvantages.

What is Transfer: Introduction, Definitions, Meaning, Concept, Objectives, Need, Policy, Essentials, Reasons and a Few Others

  • Introduction to Transfer
  • Definitions of Transfer
  • Meaning of Transfer
  • Concept of Transfer
  • Objectives of Transfer
  • Need of Transfer
  • Policy of Transfer
  • Essentials of Transfer
  • Purpose of Transfer
  • Types of Transfer
  • Reasons of Transfer
  • Advantages and Disadvantages of Transfer

What is Transfer – Introduction

Transfer is a process placing employees in positions where they are likely to be more effective or where they are likely to get more job satisfaction this transfer is a process of employee’s adjustment with the work, time and place. In transfers there is change in responsibility, designation and pay, etc.

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For example, if the marketing manager finds the sales of north zone falling continuously, he may transfer some salesmen from other zones to north zone in order to improve the situation as those salesmen are considered to be more experienced and trained in promotion sales.

Sometimes, transfer may be made as disciplinary action also. In some organisations it is, a usual practice to transfer employees from one zone to another zone due to administrative reasons as in government services.

Transfer is “a lateral shift causing movement of individuals from one position to another usually without involving any marked change in duties, responsibilities and skills needed for compensation”, (Yoder and associates)

A transfer is a horizontal or lateral movement of an employee from one job, section, department, shift, plant or position to another at the same or another place where his salary. Status and responsibility are same. It generally does not involve a promotion, demotion or a change in job status other than movement from one job or place to another.

Transfer means shifting of an employee from one job to another, one unit to another or one shift to another and may involve a new geographical location. Transfers may be initiated by the organisation or by the employees with the approval of the organisation.

Transfers have a number of objectives, such as moving employees to positions with a higher priority in terms of goals, placing employees in positions more appropriate to their interests or abilities or filling department vacancies with employees from overstaffed department.

“A transfer involves the shifting of an employee from one job to another without any change of the level of responsibilities or compensation” —Dale Yoder

A transfer is a horizontal or lateral movement of an employee from one job to another. As a result of change in job, pay, status and job conditions of new position or job are almost the same as that of the old. In case of promotion, the new position has higher pay, status and job conditions as compared with the old.

A transfer may be associated with a higher pay, but it is counterbalanced by changes in other conditions. For instance, a person may be transferred to a hilly area and may be offered hill allowance.

What is Transfer – Definitions Suggested by Eminent Authors like Yoder and Associates and Edwin B. Flippo

A transfer may be defined as change in job within the organisation where the new job is substantially equal to the old in terms of pay, status and responsibilities. Transfers are possible from one department to the other or from one plant to the other. A transfer implies a lateral movement of an employee in the hierarchy of position with the similar salary or pay and status.

The scope of transferring may be in two categories company-initiated or employee-initiated. In first instance, a company may initiate a transfer to place employees in positions where they are likely to be more effective or where they are likely to get greater satisfaction or where they are able to meet the work schedules of the organisation.

In the second instance, employees may initiate transfers for several reasons. They may demand a change of bosses or of locations. They may try to obtain more allowances or specific working conditions which are affixed to a new position. They may want to join their friends and relatives or they may try to avoid interpersonal conflicts with their present colleagues.

Transfer is defined as under:

Yoder and Associates, defines ‘transfer’ as, “Transfer is a lateral shift causing movement of individuals from one position to another usually without involving any marked change in duties, responsibilities, skills needed or compensation.”

A transfer is a horizontal movement of an employee from one job, section, department, shift, plant or position to another at the ‘same or’ another place where his salary, status or responsibility are the same.

It generally does not involve a promotion or demotion or a change in job status other than movement from on job or place to another.

Transfer is defined as “a lateral shift causing movement of individuals from one position to another usually without involving any marked change in duties, responsibilities, skills needed or compensation.”

What is Transfer – Meaning

A transfer implies a lateral or horizontal movement of an employee in the hierarchy of positions with the same pay and status. Transfers may be either company initiated or employee-initiated. A company may initiate a transfer to place employees in positions where they are likely to be more effective or where they are likely to get greater satisfaction or where they are better able to meet the work schedules of the organizations.

Similarly, employees may initiate transfers for reasons like change of bosses or of location, or obtain more allowances or better working conditions attached to a new position. They may want to join their friends and relatives or avoid interpersonal conflicts with their present colleagues.

Organisations resort to another type of mobility of employees in order to place the right employee in the right job. This type of mobility which is restricted to movement of an employee from one job to another in the same level of organisational hierarchy is termed as ‘transfer.’

Transfer is also defined as “…the moving of an employee from one job to another. It may involve a promotion, demotion or no change in job status other than moving from one job to another.” However, transfer is viewed as change in assignment in which the employee moves from one job to another in the same level of hierarchy requiring similar skills involving approximately same level of responsibility, same status and the same level of pay. Thus, promotion is upward reassignment of a job; demotion is a downward job reassignment whereas transfer is a latter or horizontal job reassignment.

Yoder and associates have defined transfer as “a lateral shift causing movement of individuals from one position to another usually without involving any marked change in duties, responsibilities, skills needed or compensation.”

A transfer is a horizontal or lateral movement of an employee from one job, section, department, shift, plant or position to another at the same or another place where his salary, status and responsibility are the same. It generally does not involve a promotion, demotion or a change in job status other than movement from one job or place to another.

What is Transfer – Concept

A transfer may be defined as a change in job of an employee within the organisation where the new job is substantially equal to the old in term of pay, status and responsibilities.

Pigors & Meyers consider transfer as – “the movement of an employee from one job to another on the same occupational level and at about the same level of wage or salary.”

No appreciable change in task or responsibility is expected. According to Dale Yoder, “A transfer involves the shifting of an employee from one job to another without special reference to changing responsibilities or compensation.” Employees may be transferred either because of the needs of the business or at their own request.

Transfers are usually effected to build up a more satisfactory work team and to achieve the following purposes:

1. To increase the effectiveness of the organisation.

2. To increase versatility and competence of key positions.

3. To deal with fluctuations in work requirements.

4. To correct incompatibilities in employee relations.

5. To correct erroneous placement.

6. To relieve monotony.

7. To move an employee in the interests of health or age.

8. To provide creative opportunity.

9. To train employees for later advancement or promotion.

Every organisation should have a fair and impartial transfer policy which should be known to each employee. For successful transfer policies, it is necessary to have a proper job description and job analysis. Care should be taken to ensure that frequent or large scale transfers are avoided by laying down adequate selection and placement procedures for the purpose. Because every transfer involves some description and cost. This will ensure uniformity of treatment and avoid transfers for petty reasons.

A good transfer policy should:

1. Clarify the types of transfers and the conditions under which these will be made.

2. Locate the authority in some officer who may initiate and implement transfers.

3. Indicate whether transfers can be made only within a sub-unit or also between departments, divisions/plants.

4. Indicate the basis for transfer, i.e., whether it will be based on seniority or on skill and competence or any other factor.

5. Intimate the fact of transfer to the person concerned will in advance.

6. Communicate the name in writing to all concerned.

Proper administration of the transfer programme is highly useful not only in adjusting to varying situations, but also in placing individuals gainfully in different economic and personal situations.

What is Transfer – 9 Main Objectives

The following are some of the objectives of a transfer in a company:

1. To meet the exigencies of the company’s business.

2. To meet the request of an employee.

3. To correct incompatibilities of employee.

4. To suit the age and health of an employee.

5. To provide creative opportunities to deserving employees.

6. To train the employees for later advancement and promotion this involves actually job rotation.

7. To deal with fluctuation in work requirements or exigencies of work such as where there is slackness in the work in one department and more of work in another an employee from the first department is transferred for a temporary period as found necessary.

8. To correct erroneous placement.

9. To place the employee in another department where he would be more suitable.

What is Transfer – Need

The need for transfer generally arises due to the following reasons:

i. The employee has progressed as for as he/she can in his/her present job and is capable of han­dling a different job.

ii. Reduction in the volume of work in a department along with some other departments need for additional hand.

iii. The employee has little interest in his/her present job and seeks a change. He/she may or may not have had an interest in his/her job in the past. With the passage of time, an employee’s interest frequently changes.

iv. Some workers lack the experience that would prepare them for better positions. Transfer to vari­ous other jobs of the company might provide that experience.

People may be transferred either because of the needs of the organization or at their own request. Quite often, the management makes remedial transfers because an individual is not performing satisfactorily in his/her present assignment, and his/her qualifications are that, management feels, would be more suitable on a different job. Sometimes, the employees request a transfer because they do not like their present work situation or because they feel that opportunity for advancement is better in some other job/ department.

While analysing transfer requests and the actual transfer, a systematic classification is desirable.

The following has been found to be useful:

(1) Transfers in the Interest of the Organization:

(i) Temporary –

(a) Arising from temporary absenteeism

(b) Shifts in workload

(c) Vacations

(ii) Permanent –

(a) Shifts in workload

(b) Vacancies requiring the special skill or ability of the transferred employee

(2) Transfer for the Convenience of the Employee:

(a) Arising from ill health or accident

(b) Family situation

(c) To take care of private affairs

(ii) Permanent –

(b) Outside interests—to attend school or similar activities

(c) Family considerations, e.g., a man whose wife has died may have to be with his children, and may thus be unable to work in the second or third shift

(d) Because of transportation, and

(e) To learn particular skill.

What is Transfer – Policies

Transfer in big organisations is controlled by the department of Human Resource (HR). Normally an executive of HR Management will be in charge of such procedures to follow.

Transfer can take place on following occasions:

i. On completion of a tenure of an individual in a particular place.

ii. On medical grounds, which compels the employee for transfer.

iii. On compassionate grounds.

iv. On promotion higher vacancy to take the charge of new post.

v. On disciplinary grounds.

A good transfer policy need to be just and impartial. It should clarify the internal and external transfers specifically the differences between the two.

a) Internal transfer is carried out within the departments of a unit.

b) Suppose an organisation has branches at different places, the transfer to such places arc considered as external transfers.

c) Suppose an organisation is having office branch in Mumbai, Kolkata and so on, transfer from Kolkata to Mumbai is an external transfer.

d) Transfer of an individual, e.g., from a supervisor to an executive (on promotion) is necessary when here is no vacancy for a higher position is not existing where the individual is working presently.

e) The external transfer of an employee is subject to the provisions of TA (Travelling Allowance) and DA (Daily allowance). To provide TA to an employee is a mandatory requirement and providing DA is subject to local existing rules of organisation in this regard.

f) Whenever an employee is transferred, a copy of his transfer order need to be sent to the concerned office for information and necessary action.

What is Transfer – 10 Major Essentials: Written Form, Clarity, Rate of Pay, Intimation, Retention of Seniority, Not Frequent, Bases, Indication of the Authority and a Few Others

The essentials of good transfer policy are as under:

1. Written Form – It should be in writing and be made known to all the employees of the organisation.

2. Clarity – The policy should clearly state the types of transfers and the circumstances under which transfers will be made.

3. Rate of Pay – The policy should also specify the rate of pay which is to be given to the transferee.

4. Intimation – The policy ensures that fact of transfer would be intimated to the person concerned well in advance.

5. Retention of Seniority – It should be mentioned whether an employee will retain the seniority at his credit permanently or for a temporary period or lose it altogether.

6. Not Frequent – The policy ensures that transfers should not be made frequently and not for the sake of transfer only.

7. Bases – The policy should also mention the basis for or grounds of transfers.

8. Indication of the Authority – The policy should indicate the authority in some officer who will be responsible for initiating and implementing transfers.

9. Area – This policy should specify the units or areas over which transfer would take place, i.e., whether transfers can be made only within a sub-unit or also between departments, divisions and plants.

10. Requirement of Training – It should be prescribed in the policy whether the training or retraining is required on the new job.

What is Transfer – 8 Main Purposes

Transfers are made by the organisations for achieving the following purposes:

Purpose # 1. For Fulfilling the Organisational Requirements:

Transfers are required for filling the vacancies created in the organisation due to the following changes:

(i) Change in volume of production

(ii) Change in technology

(iii) Production schedule

(iv) Quality of product

(v) Product line

(vi) Job pattern

(vii) Fluctuations in market conditions

(viii) Reallocation or reduction in workforce

Purpose # 2. For Meeting Employees’ Requests:

Transfers are made in the organisations for meeting the requests made by the employees in order to satisfy their desire to work under a different superior, different department/region where prospects of growth are high or the place is near to their hometown.

Purpose # 3. Proper Utilisation of Employees:

Sometimes, management feels that the capacities of employees can be better utilised at some other place or he is not performing satisfactorily or adequately at the present place, and he can perform better at the other place.

Purpose # 4. Making Employees more Versatile:

Transfers are made by the management for expanding the capabilities of the employees. They can be prepared for more important assignments for future through job rotation. Transfer of the employees to different jobs widens their knowledge and skills.

Purpose # 5. To Accommodate Family Related Issues:

Especially among women employees, family- related issues are the main reasons for transfer. On most occasions, after marriage, women like to join a job in the city of their husband. This fact necessitates the transfers or resignations.

Purpose # 6. To Maintain a Tenure System:

In government or administrative services, transfer is necessary to provide a wide variety of experiences to the employee. In such jobs, an employee holds the job for fixed tenure and after completing it he is transferred to another job. It also reduces the involvement of the employees in politicising informal groups.

Purpose # 7. To Penalise the Employees:

Employees indulging in undesirable activities may be transferred to remote places. It is a form of disciplinary action, which is mainly followed in the government offices. Employees who create problems at the workplace are transferred to other places.

Purpose # 8. To Reduce Conflicts and Incompatibility:

Employees are transferred for reducing conflicts and incompatibilities between employees. Sometimes an employee the finds it difficult to adjust with his colleagues in a particular section or department could be shifted to another place. It will reduce the conflicts in the organisation.

Purpose # 9. To Provide Relief to the Employees:

Transfers are made in the organisations for relieving the employees who are overburdened or doing risky work for a long period. This breaks the monopoly of the employee. The employee can also make a request for transfer, if the climate of a place is not suitable for him.

Purpose # 10. To Adjust the Workforce:

Workers or employees are transferred from the place where there is less work to the place of more work. This is the way of adjustment of employees in the organisation, so that they cannot be discharged from their duty if the work at their workplace is less.

What is Transfer – 3 Types: Employee Initiated, Company Initiated and Public Initiated Transfers

Transfers are basically of three categories, viz., employee-initiated transfer, company initiated transfer and public initiated transfers.

Type # 1. Employee Initiated Transfer:

These transfers are also known as personal transfers. These transfers are primarily in the interest of the employee and according to his convenience and desire. Further, these transfers can be classified into temporary and permanent transfers.

(a) Temporary Transfers:

The reasons for employee initiated temporary transfers are:

i. Due to ill health or involvement of employees in accidents,

ii. Due to family problems like taking care of old parents and

iii. Due to other ad hoc problems like pursuing higher education.

(b) Permanent Transfers:

There are several reasons for employee initiated permanent transfers.

Employees prefer transfers:

i. Due to chronic ill health or permanent disablement caused by accident,

ii. Due to family problems like taking care of domestic affairs in his native place,

iii. With a view to correct his wrong placement. Employee may not be interested with the work, working conditions or environment of his present job and hence may require a transfer,

iv. In order to relieve himself from the monotony or boredom caused due to doing the same job for years together,

v. To avoid conflicts with his superiors. If most of the employees working under the same superior request for a transfer, the situation should be corrected by other means like developing that superior in inter-personal skills etc. rather than transferring the subordinates,

vi. With a view to search for challenging and creative jobs and

vii. With a view to search for a job with opportunities for advancement to a higher level job, opportunities for financial gains etc.

Type # 2. Company Initiated Transfers :

Transfers are also at the initiative of the company. They can be classified into temporary and permanent.

Reasons for the company initiated temporary transfers are:

i. Due to temporary absenteeism of employees,

ii. Due to fluctuations in quality of production and thereby in work load,

iii. Due to short vacations.

Reasons for the company initiated permanent transfers are:

i. Change in the quality of production, lines of activity, technology, organisational structure.

ii. To improve the versatility of employees,

iii. To improve the employee’s job satisfaction,

iv. To minimise bribe or corruption.

Type # 3. Public Initiated Transfers :

Public also initiate the transfers generally through the politicians/government for the following reasons:

i. If an employee’s behaviour in the society is against the social norms or if he indulges in any social evils.

ii. If the functioning of an employee is against the public interest.

The major drawback of public initiated transfers is the politicalisation of the issue. Some employees may be transferred frequently because of political victimisation and company initiated transfers of some employees may be stopped due to political favouritism. This drawback is more severe in government departments and public sector units.

What is Transfer – 9 Reasons for Transfers in Modern Organisations

In modern organisations, transfers are made because of the following reasons:

1. Meeting Organisational Needs:

A company may transfer employees due to changes in volume of production, in technology, in production schedule, in product line in organisation structure, in market conditions, etc., filling in of the vacancies which may occur because of separations or because of the need for suitable adjustments in business operations. In short, the purpose of transfers is to stabilise employment in the organisation.

2. Meeting Employees’ Requests:

Transfers are also done at the request of the employees. Employee may need transfers in order to satisfy their desire to work under a different superior in a department/region where opportunities for advancement are bright, in or near their native place, doing a job where the work itself is challenging etc. Many employees seek transfer because of family related issues such as marriage or illness.

3. Better Utilisation of Employees:

An employee may be transferred because the management feels that he is not performing satisfactorily and adequately and when the management feels that he may be more useful or suitable elsewhere, where his capacities would be better utilised.

4. Developing All-Rounder:

The employees may be transferred to different jobs to widen their knowledge and skills. In some companies, transfers are made as a matter of policy after an employee has stayed on a job for a specified period. Such rotation from one job to another serves as a tool of developing versatile workers.

5. Manpower Adjustments:

The employees may be transferred from a plant where there is less work to a plant where there is more work. Thus, the employees who have been in service of an organisation are not thrown out of employment but adjusted elsewhere.

6. Avoidance of Conflicts:

Where employees find it difficult to get along with colleagues in a particular section or department, they could be shifted to another place to reduce conflicts.

7. Punishing the Employees:

Transfers may be made as a disciplinary measure. The employees indulging in undesirable activities may be transferred to remote, far flung areas or transferred on less important jobs.

8. Relief to the Employees:

Transfers may be made to give relief to employees who are overburdened or doing hazardous jobs for long periods. Transfer may also be made to break the monopoly of the employee. The climate to a place may be unsuitable for an employee’s health. He may request a transfer to another place, on health grounds.

9. Tenure System:

In senior administrative services of the Government and also in industries, the employees hold certain jobs for a fixed tenure. They are made to move from job to job with a view to acquire variety of experience and skills and also to ensure that they do not get involved in favouring certain employees, vendors or customers.

What is Transfer – Advantages and Disadvantages

Advantages:.

Main advantages of transfer are highlighted as under:

1. Increases Motivation – It increases motivation and productivity through avoidance of monotony.

2. Relations Improvement – It improves supervisor-employee relations.

3. Ensures Future Promotions – It develops the employees for future promotions.

4. Increases Productivity – It increases the productivity and effectiveness of the organisation overall.

5. Improvement – It improves the skills of the existing employees.

6. Provides Job Satisfaction – It provides greater job satisfaction to the existing employees.

7. Stabilisation – It helps to stabilise fluctuating work requirements.

8. Remedial – It remedies faulty placements.

Disadvantages:

Transfer process is criticised on the following grounds:

1. Adjustment Problems – Adjustment problems to the employee to the new job, place, environment, superior and colleagues.

2. Inconvenient – Transfers from one place to another is caused much of inconvenience and cost to the employee and his family members relating to housing, education to children, etc.

3. Loss of Time – Transfer from one place to another result in loss of many days.

4. Reduces Contribution of Employees – Company initiated transfers result in reduction in employee contribution.

5. An Adverse Effect – Discriminatory transfers affect employee morale, job satisfaction, commitment and contribution.

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Transfer in HRM

transfer of management

Transfer is a process of placing employees in positions where they are likely to be more effective or where they are to get more job satisfaction.

In transfers, there is no change in the responsibility, designation, status or salary. It is a process of employee’s adjustment with the work, time and place. Transfer may also be made as a disciplinary action.

According to Edwin Flippo, a transfer, “is a change in job where the new job is substantially equal to the old in terms of pay, status and responsibilities”.

Transfer is a movement of the employee from one job to another job or some other place without change in status, responsibilities and salary.

ADVERTISEMENTS:

Transfer means a change in job assignment. It refers to a horizontal or lateral movement of an employee from one job to another in the same organization without much change in his status or pay package.

Trans­fer causes a shift of individual from one job to another without there being any marked change in his responsibilities, skills and other bene­fits.

Transfers must be ordered based on certain company-specific principles or dogma. Transferring an employee without adhering to policies or norms may lead to deteriorated industrial relations. The man­agement might think of issuing transfer orders, treating each case on its own merit.

Even if management takes the right decisions, some employees may take exception to them. Thus, management must frame a transfer policy and follow the same.

Learn about:-

1. Meaning of Transfer in HRM 2. Definitions of Transfer in HRM 3. Objectives 4. Purpose 5. Reasons 6. Principles 7. Procedure 8. Types  9. Transfer Policy 10. Benefits 11. Problems

Transfer in HRM: Definitions, Objectives, Purpose, Principles, Types and Policy

Transfer in hrm – meaning.

Transfer means a change in job assignment. It refers to a horizontal or lateral movement of an employee from one job to another in the same organization without much change in his status or pay package. Trans­fer causes a shift of individual from one job to another without there being any marked change in his responsibilities, skills and other bene­fits.

Transfer is the movement of an employee from one job to another. “A transfer involves a change of job without any significant increase in responsibility or income, and a promotion involves a change in which a significant increase in responsibility or income occurs.”

However, this difference between promotion and transfer should be treated as a broadly conceived idea only. Sometimes, transfers may (and often do) involve some changes in responsibilities and duties.

Sometimes they may involve change in pay also. For example, in permanent personnel transfers, an employee normally receives the rate of pay on the job to which he is transferred.

In case of production transfers rate of the earlier job, or that of the new job whichever is higher, is paid. On temporary transfers, employees may continue receiving their usual rate.

Transfers are an important source for internal recruiting. Often the most suitable candidate for an existing opening may be someone already working in one or the other department of the working organisation. Transfer of such an employee to fill the job is preferred by managers of the organisation.

If a newly hired employee, assigned to a certain job at the initial stage of placement is left there in spite of his desire for a change, it may create resentment This resentment may be expressed in terms of reduced work, formal complaints or increased rate of labour-turnover. By transferring such an employee maladjustment problem can be solved.

Transfers may be initiated by the organization or employee. When the organization feels that an employee is required at another job in the same department or another, it transfers him/her there where they are likely to be more effective. But sometimes, employees demand it on account of their ill health, change in their work load, family issues etc. General public these days is empowered to initiate transfer if an employee’s behaviour has been proved to be objectionable, or against the public interest.

Changes in organization structure, technology and also changes in the knowledge, skill, aptitudes and values of employees need movement of employees from one job to another and from one place to another. This movement, of an employee from one job to another in the same organisation without any change in the nature of duty, responsibility and pay is called transfer.

Transfer may be permanent or temporary and it may be within the same department or across the department. Transfer takes place due to change in work load or death, retirement or resignation of employees.

Transfer   in HRM – Definition

Transfer is a process of placing employees in positions where they are likely to be more effective or where they are to get more job satisfaction. In transfers, there is no change in the responsibility, designation, status or salary. It is a process of employee’s adjustment with the work, time and place. Transfer may also be made as a disciplinary action. In Government service, employees are transferred due to administrative reasons. Transfer is a movement of the employee from one job to another job or some other place without change in status, responsibilities and salary.

It is the movement of an employee from one job to another without involving substantial change in his duties, responsibilities required skill, status and compensation.

In this definition the terms substantially equal means that the general nature of duties and responsibilities remain the same through these may be a change in pay. It is a horizontal shift of an employee from one place to another.

Yoder and Associates have defined transfer as, “a lateral shift causing movement of individuals from one position to another usually without involving any marked change in duties, responsibilities, skills needed or compensation”.

An important function of personnel management is to be help the all-around development of the employee of the enterprise. Transfer makes a great contribution in the all-around development of employees. Placement of an employee from one place to another, from one developed department to another, for one job to another, is called transfer. Transfer does not involve any change in the responsibility, salary, status or facilities of the employees.

Dale Yoder, “A transfer involves the shifting of an employee from any job to another without special reference to change responsibility or compensation”.

Transfer involves change of job assignment. It is simply shifting of an employee from one job to another job without any change in status and pay. In the words of Edwin. B. Flippo “transfer is a change in job where the new job is substantially the equal to the old in terms of pay, status and responsibilities.”

A transfer is a horizontal or lateral movement of an employee from one job, section, department, shift, plant or position to another at the same or another place where his salary, status and responsibility are the same. It generally does not involve a promotion, demotion or a change in job status other than movement from one job or place to another.

Transfer   in HRM – 8 Main Objectives

Transfer may be made to achieve the following objectives:

1. To meet or fulfill organizational needs – To fulfill organisational needs arising out of change in technology, volume of production, production schedule, quality of product etc., an employee may have to be transferred.

2. To satisfy employee needs – Sometimes employees themselves demand transfer due to their personal problems like ill health, family problem native attractiveness or non-co-operation from boss or fellow workers. To satisfy their needs employees may have to be transferred.

3. To adjust the workforce – Employees for excess or surplus in one department may have to be transferred to other department or section where there is shortage of workforce.

4. To reduce monotony and to make the employees versatile – If the employees have stayed on a job continuously for a longer duration, to reduce their monotony and to widen their knowledge and skill, employees are transferred.

5. For effective use of employees – If the management feels that the service of the able employee is to be used in different branches of the same organisation, then such employees will have to be transferred.

6. To punish Employees – If employees are found indulged in undesirable activities like fraud, bribery, duping etc., such employees are transferred to remote places as a disciplinary action.

7. To give the relief to the employees – Employees who are overburdened and doing complicated or risky work for long period are relieved from such work by transferring such employees to a place of their choice.

8. To improve employees background by placing them in different jobs of various departments and units.

Objectives of Transfer of Employees in a Company:

The following are some of the objectives of transfer of employees in a company:

1. To meet the exigencies of the company’s business.

2. To meet the request of an employee.

3. To correct incompatibilities of employee relations.

4. To suit the age and health of an employee.

5. To provide creative opportunities to deserving employees.

6. To train the employee for later advancement and promotion. This involves actually job rotation.

7. To deal with fluctuations in work requirements or exigencies at work, such as situations when there is slackness in the work in one department and an overload of work in another, an employee from the first department may be temporarily transferred to the other department as found necessary.

8. To correct erroneous placement.

9. To place the employee in another department where he/she would be more suitable.

Transfer in HRM – Purpose

Transfers are generally effected to build up a more satisfactory work team and to achieve the following purposes:

(a) To Meet an Employee’s Own-request, when he feels uncomfortable on the job because of his dislike of his boss, or his fellow workers, or because better opportunities for his future advancement do not exist there, or because of family Circumstances which may compel him to change the place of his residence. Such transfers generally have their rot in faulty selection and erroneous placement, and are known as personal transfers. They enable employees to feel at home in the work of their choice.

(b) To Utilise Properly the Services of an Employee, when he is not performing satisfactorily and adequately and when the management feels that he may be more useful or suitable elsewhere, where his capacities would be better utilised. Such transfers are called remedial transfers. They act as a follow-up measure of the selection-and- placement procedure and help employees to adjust themselves to suitable jobs.

(c) To Satisfy Such Needs of an Organisation, as may arise out of change in the quantity of promotion, fluctuations in work requirements, and changes in the organisational structure; the introduction of new lines of promotion, the dropping of existing product lines, the reallocation of, or reduction in the work force due to a shortage or a surplus in same section so that lay-offs may be avoided; filling in of the vacancies which may occur because of separations or because of the need for suitable adjustments in business operations.

Such transfers are known as promotion transfers, flexibility transfers, or organisational transfers. The purpose of such transfers is to stabilise employment in an organisation. They are generally controlled centrally through and by the personnel department.

(d) To Increase the Versatility of the Employee, by shifting him from one job to another so that he may have ample opportunities for gaining a varied and broader experience of work. Such transfers are known as versatility transfers. They make it possible for an employee to enjoy the facility of job enrichment, which in turn gives to the management a more effective and experienced employee for a higher job.

(e) To Adjust the Work Force of One Plant with that of another, particularly when one is closed down for reasons beyond the control of the employer. Such transfers are known as plant transfers and are generally effected on humanitarian grounds to ensure that persons who have been long in service of an organisation are not thrown out of employment.

(f) To Penalise the Employee Transfers are Also Done, under which either a difficult trade union activist or intriguer or sea lawyer may be transferred to a remote branch or office where he cannot continue his activities. In Government organisations, this practice is widespread, and is also preferred by the employee to the grim alternative of disciplinary action.

(g) To Help Employees Work, according to their convenience so far as timings are concerned; for example, an employee is transferred from night shift to morning shift or from the first to the second shift (as in the case of women workers who may like to look after their children and do the necessary domestic work in the morning hours). Such transfers are known as shift transfers.

(h) Transfer for the Maintenance of a Tenure System, in senior administrative services of the Government and also in industries, or where there is a system of annual intake of management trainees such transfers are common. Here the employee holds a certain job for a fixed tenure but he is made to move from job to job with a view to enabling him to acquire a variety of experience and skills and also to ensure that he does not get involved in politicking informal groups.

(i) To Replace a New Employee by An Employee, who has been in the organisation for a sufficiently long time. Such transfers are known as replacement transfers, the purpose being to give some relief to an old employee from the heavy presser of work.

Transfers are generally made to acquire some purposes that are as follows:

1. To Increase Productivity of Employees:

Transfer may be made for the proper utilsation of the services of an employee when he is not performing satisfactorily and ample and when the management feels that he may be more beneficial or suitable elsewhere, where his capacities would be better utilised.

2. To Fulfil Employee’s Request:

Sometimes transfers is made to meet an employee’s own request, when he feels uncomfortable on the job because of his dislike of his boss or his fellow workers or because better opportunities for his future advancement do not exist there or because of family circumstances which may compel him to change the place of his residence.

3. To Meet Organisational Requirements:

Sometimes transfers are made to satisfy such needs of an organisation as may arise out of a change in the quantity of production, fluctuations in work requirements and changes in the organisational structure; the introduction of new lines of production, etc.

4. Maintenance of a Tenure System:

Transfer may be made for the maintenance of a tenure system. In senior administrative services of the government and also in industries or where there is a system of annual intake of management trainees such transfers are generally exist.

5. For Adjusting the Work Force:

Transfer may be made to adjust the workforce of one plant with that of another, particularly when one is closed down for reasons beyond the control of the employer.

6. For Penalising Employees:

Transfer may be made to penalise employee under which either a difficult trade union activist or sea lawyer may be transferred to a remote branch or office where he cannot continue his further activities.

7. For Adjusting the Employee’s Timing:

Transfer may be made at the requests of the employees to help work according to their convenience so far as timings are concerned, e.g., an employee is transferred from night shift to morning shift or from the first to the second shift (as in the case of women workers who may like to look after their children and do the necessary household work in the morning hours).

8. To Make Employee’s more Versatile:

Transfer may be made to increase the versatility of the employee, by shifting him from one job to another so that he may have sufficient chances for gaining a varied and broader experience of work.

Purposes of Transfer according to Mamoria and Gankar:

Transfers are generally purported to build up a more satisfactory work team and to achieve the following objectives.

According to Mamoria and Gankar, major purposes of transfer are:

1. To meet an employee’s initiative, when he feels uncomfortable on the job because of mal­adjustment with his fellow workers, or because better opportunities for his future ad­vancement do not exist there, or because of family circumstances which may force him to change the place of his residence. Such transfers generally are because of faulty selection and erroneous placement, and are known as personal transfers.

2. Transfers aim to satisfy such needs of an organization as may arise out of a change in the quality of production, fluctuations in work requirements, and changes in the organizational structure; the introduction of new lines of production, the dropping of existing product lines, the reallocation of, or reduction in the work force due to a shortage or a surplus in the same section so that lay-offs may be avoided; filling in of the vacancies which may occur because of separations or because of the need for suitable adjustments in business opera­tions. Such transfers are termed as organizational transfers, flexibility transfers or produc­tion transfers.

The purpose of such transfers is to stabilize employment in the organization and is generally controlled centrally through and by the personnel department.

3. To improve employee’s background by placing him in different jobs of various depart­ments, units, regions etc. This develops the employee and enables him to accept any job without any hesitation.

4. For proper utilization of the services of an employee when he is not performing well and the management feels that he may be more useful elsewhere. Such transfers are known as remedial transfers and act as a follow-up measure of the selection and placement procedure and help employees to adjust themselves to appropriate jobs.

5. Transfers help employees working according to their convenience so far as timings are concerned for example an employee is transferred from night shift to morning shift. Such transfers are known as shift transfers.

6. To adjust the workforce of one section/plant in other section/plant during lay-off, closure or adverse business conditions or due to technological change.

Transfer in HRM – Personal Transfer and Organisation Initiated Transfer

There is a well-structured transfer policy in organistions. Employee may be transferred either because of the needs of the organisation or at their own request. Quite often the management makes remedial transfer in case an individual is not performing satisfactorily on his/her present assignment and management feels that he/she will be more suitable on a different job considering his/her qualifications.

The transfers are generally affected for the following reasons:

A. Personal Transfer :

Personal Transfers are those which occur by desire of the employee and are primarily in his interest.

The reasons for such requests could be:

(1) To correct erroneous placement.

(2) To relieve the monotony of a job, acquire better working conditions and join friends/spouse.

(3) To avoid interpersonal conflicts.

(4) In consideration of the interests of age/health, education of children, housing difficulties or to join immobile dependents.

(5) The feeling that opportunity for advancement is better in another department.

(6) A search for creative opportunities.

B. Organisation Initiated Transfer:

The organisation may initiate transfers for the following reasons:

(1) The need for temporary adjustment for the convenience or benefit of the organisation or the employee, such as leave replacement or very short assignments.

(2) To meet emergencies or charges in operations or to deal with fluctuations in works requirements, necessitate either by volume of output or separation.

(3) To make use of the increasing versatility and competence of key employees.

Transfer in HRM – Some of the Important Principles of a Transfer in an Organisation

Transfers must be ordered based on certain company-specific principles or dogma. Transferring an employee without adhering to policies or norms may lead to deteriorated industrial relations. The man­agement might think of issuing transfer orders, treating each case on its own merit. Even if management takes the right decisions, some employees may take exception to them. Thus, management must frame a transfer policy and follow the same.

Some principles of a transfer are as follows:

a. In a usual phenomenon, a transfer causes some disturbance to the transferee. Hence, a minimum period between transfers and the frequency of transfer must be decided upon by the HR department and made known to all the employees. A company should develop its administrative manual to endorse the policies and objectives relating to administration.

b. Authorities of the manager who will handle transfer must be earmarked and responsibilities must be defined. In an organization, the authority to handle transfers should be centralized to ensure uniformity in practices.

c. Transfers on individual employees’ requests should be based on documented transfer system.

d. Transfer orders must clearly specify whether the transfer is of permanent or temporary nature.

e. Prior to transfer, the performance of an employee needs to be assessed. The assessment helps management to assign new tasks to the employee as per the job description.

f. While developing the transfer policy, the interest of the organization must always be remembered.

Transfer in HRM – Procedure Followed for Transfer in an Organisation

Transfers within the same section of the same department are decided by the foreman or plant manager, and they are effected without the use of any transfer order to the employee. He may be given oral instruction. The personnel manager must be inform such transfers.

Transfers from one department to another are decided by member consultation among the departments heads/plant manager when such transfers are of a permanent nature of long duration. Written orders signed by the personal manager are issued / informed to the employee.

Transfers from one place or unit to another place or unit involving a considerable change in working conditioner cost to the company have to be made in writing after giving due notice to the employee.

1. Intra-departmental transfers or transfers within the same section of the same department are decided by the foreman or plant manager, and these are effected without the issue of any transfer order to the employee. He may be given oral instructions. The personnel manager, however, must be informed of such transfers.

2. Interdepartmental transfers or transfers from one department to another are decided by mutual consultations among the departmental heads/plant managers when such transfers are of a permanent nature or of long duration. Written orders, signed by the personnel manager are issued to the employee.

Transfers from one place or unit to another place or unit, involving a considerable change in working conditions and cost to the company, have to be made in writing, after giving due notice to the employees. But, as far as possible, such transfers are generally discouraged.

Senior administrative officers of Government generally hold a post for a fixed tenure. This is done to ensure that they do not get involved in any favoritism vis-a-vis employees, vendors and cus­tomers.

Transfer in HRM – 5 Types of Transfer Proposed by Aswathappa

Aswathappa (2006) proposed the following five types of transfers:

Type # 1. Production Transfer:

Employees are posted in different departments, based on their interests and qualifications. This also depends on the work load that a department possesses. However, this load keeps fluctuating, and the demand for manpower keeps changing with time.

For departments with surplus manpower, lay-off is a solution. However, a better solution is the interdepartmental transfer to balance the manpower allocation. In simpler terms, production transfer refers to the transfers ordered to avoid such unavoidable lay-offs.

Type # 2. Replacement Transfer:

When an employee leaves a department for a particular reason, the department needs a replacement. In such scenarios, especially in demanding situations, a senior employee might have to function in place of the junior employee, till the time a replacement is found. Senior employees are required to work in place of junior employees even in situations of declining production. Thus, replacement transfer also helps in reducing the organizational need for lay-off; particularly for long-service employee.

Type # 3. Versatility Transfer:

Some organizations believe that the workforce needs to have multiple skills capable to perform multiple tasks. People can achieve multiple skills only by working in different departments. In learning organizations such as ordnance factories, banks, and many private companies, people get the scope of working in different departments and can learn different systems, procedures, and rules and regulations.

They gain the necessary skills to attend to the activities in the departments, and ultimately become versatile. People who pick up their tasks quickly emerge to become the company’s assets. During rush periods, they are able to contribute greatly to achieve business goals. Versatile transfer may comprise production transfer or replacement transfer.

Type # 4. Shift Transfer:

In order to enhance capacity utilization, industrial organizations, operate in multiple shifts—generally morning, evening, and night shifts. Some organizations allot employees to staggered shifts as well. Employees are engaged in all the shifts on a rotational basis. Requests of employees for transfers on a particularly shift are also entertained, considering the importance of ground of requests. However, conformance to law and administrative procedures are essential requirements to avoid employee unrest.

Type # 5. Remedial Transfer:

After induction, employees are placed in a department and jobs are assigned to him/ her, and their performance and behavioural dispositions are recorded. Some employees may emerge as good performers, while many others may emerge as underperformers. In course of time, an employee’s inclination to work is also observed. The objective of remedial transfer is therapeutic in nature, that is, to rectify the wrong placement.

In other words, remedial transfer is an act of transferring an employee to a more suitable job after they have failed to perform well in their present position. Poor performance could be attributed to reasons such as an employee being uncomfortable in his job as he may not possess good relations with his senior or suffer from ill health.

Transfer in HRM – Transfer Policy: Meaning, Features, Elements and Principles

A sound personnel policy requires that there is a clear policy regarding transfers. If there is arbitrariness in the policy, the superiors can mis­use the “transfer” of subordinates for their personal reasons. Similarly, subordinates can also misuse the policy by asking for transfers on trivial issues.

They may want transfers to jobs which are fairly easy e.g., a person working in a bank may ask for transfer to a remote place where his workload will be very less as compared to the job in a big metropoli­tan city. Organizations find it very difficult to find solutions to such problems. Hence, every organization should formulate a systematic transfer policy containing rules, regulations and circumstances where it will be allowed.

For successful transfer policies, it is a must to have a proper job description and job analysis. Care should be taken to ensure that frequent or large-scale transfers are avoided by laying down adequate selection and placement procedures for the purpose. Entire organisations should have a just and impartial transfer policy.

The policy should be known to each employee. The responsibility for effecting transfers is usually entrusted to an executive with a power to prescribe the conditions under which requests for transfers are to be approved.

Every organisation must frame a systematic and sound transfer policy. It must be clear and unambigu­ous.

Organizations should have a just and fair transfer policy which should be communicated to each employee. Otherwise superiors may transfer their subordinates arbitrarily if they happen to dislike them. This may cause frustration among employees.

Similarly, subordinates may also request for transfer even for petty reasons. Most of the employees may ask for transfer to risk-less and easy jobs and places. The responsibility for effecting transfers is usually entrusted to an executive with power to prescribe the conditions under which requests for transfer are to be approved.

For a transfer policy to succeed, it is necessary to have a proper job description and job analysis.

According to Prof. Subba Rao, a systematic transfer policy should contain the following features:

(i) Specification of circumstances under which an employee will be transferred in the case of company initiated transfer.

(ii) Specification of a superior who is authorized and responsible to initiate a transfer.

(iii) Jobs from and to which transfers will be made based on the job specification, description and classification etc.

(iv) The region or unit of the organization within which transfers will be administered.

(v) Reasons to be considered for personal transfers, their order of priority etc.

(vi) Reasons for mutual transfer of employees.

(vii) Norms to decide priority when two or more employees request for transfer like priority of reason, seniority.

(viii) Specification of basis for transfer like job analysis, merit and length of service.

(ix) Specification of pay, allowances, benefits etc. that are to be allowed to the employee in the new job.

(x) Other facilities to be extended to the transferee like special leave during the period of transfer, special allowance for packaging luggage, transportation etc.

Elements of a Sound Transfer Policy:

A sound transfer policy must be based on following elements:

1. In case of production and replacement transfers operations in different departments must be sufficiently similar.

2. Jobs to which transfers are contemplated should be clearly indicated with the help of job description and job analysis.

3. Responsibility for initiating and approving transfer decisions should be clearly defined and properly located. Such decisions may originate from the first-line supervisor subject to the review and approval of the foreman or the personnel department.

4. The area or unit within which transfers are to be made should be decided.

5. It should be made clear if the seniority to the credit of the employee prior to his transfer will remain to his credit even after transfer.

6. The rate of remuneration for the employee on the new job (to which he is transferred) must be decided.

7. The basis for transfers should be properly chosen. This problem is of particular importance when more than one employees request for transfer to the same job or same shift.

Principles of Transfer Policy :

Every organization should have a clear, unambiguous and sound transfer policy.

It must be based on the following principles:

(i) It should clearly indicate the types and circumstances under which a transfer will be made.

(ii) It should state the frequency of transfers and minimum time period between the transfers.

(iii) It should tell who will be responsible for initiating and approving the transfers.

(iv) It should indicate the criteria or the basis of transfer and follow it strictly.

(v) It should point out the effect of transfer on the pay and seniority of the transferred employee.

(vi) It should indicate whether this transfer is temporary or permanent.

(vii) It should make a provision for timely communicating the transfer decision.

(viii) It should specify the area of the organization over which the transfers can be made.

It is the responsibility of the management to formulate a fair and impartial transfer policy for the transfers of employees from the one positions or places to another positions or places and which should be known to the employees to avoid any ambiguity and arbitrary manner transfers.

The policy should contain the following information:

(a) Special circumstances where the company will allow transfer/ initiate it.

(b) Name of superiors who are empowered to initiate transfers.

(c) Reasons for mutual transfers.

(d) Region or unit of the organization within which transfer will be administered.

(e) Assurance given to employee about his seniority being kept intact and the benefits of the new job.

(f) The minimum time that an employee will have to be on the new job before he/she is again transferred.

(g) Norms to decide priority when more employees ask for transfer.

(h) Order of priority or reasons which will be considered for trans­fer.

(i) Type of training which will be imparted on transferred employee on new job.

(j) If transfer has to be made in a hostile area like, for defence per­sonnel, in a troubled border area, then details of special allow­ance, luggage packing allowance, transport allowance etc. should be clearly mentioned in the transfer policy.

A sound transfer policy must be clear on the following points:

(a) Circumstances under which transfers can be made.

(b) The area or unit over which transfer will take place.

(c) The basis of transfer, seniority or ability or both.

(d) Responsibility of initiating and approving the transfers.

(e) Type of training to be imparted on the new job.

(f) The pay to be received by the transferee on the new job.

(g) Assurance about keeping employee’s seniority intact.

Transfer in HRM – Benefits: To Both the Employees and the Organisation

Transfers benefit both the employees and the organisation. Transfers reduce employees’ monotony, boredom etc. and increase employees’ job satisfaction. Further, they improve employees’ skills, knowledge etc. They correct erroneous placement and inter­personal conflicts.

Thus, they improve employees’ morale. Further, they prepare the employee to meet organisational exigencies including fluctuations in business and organisational requirements. Thus, they enhance human resources contribution to organisational effectiveness.

Transfer does not imply any promotion or demotion of an employee, yet they are very often done in all organizations for the benefits that they have for organizations as well as employees –

(a) To meet the organizational needs – Organizations have to keep up with the changes in technology, changes in demand, changes in organizational structure, govern­ment policies etc. They transfer employees to adjust to these changes because these changes bring about changes in job assignments. It is important thus, to have right man in the right job.

(b) To meet employee needs – Transfers are also done at the request of employees. Employees request for transfer on account of better opportunities in some departments, or because of personal/family reasons. Organiza­tions, if feel that the transfer would not lead to any major imbal­ance, do allow such transfers. Sometimes, they encourage it because of reasons of employee’s adaptability in new set up.

(c) To make optimum use of employee’s talent – An employee’s transfer makes his talents and skills get used opti­mally on other jobs. Some jobs become monotonous for an employee after a while. To encourage him or motivate him not to leave the organization, he is asked to use his talents in some other department.

(d) To avoid conflicts – Some employees find it difficult to work with their colleagues in a particular department. They could be transferred to another department to reduce conflicts.

(e) To take punitive action against employees – Organizations have behavioural norms for all employees. If some employees refute them, they are transferred to less important jobs. It is a punitive measure taken up against an employee to maintain discipline in the organization.

Transfer in HRM – 5 Major Problems Associated with Transfer

Despite these benefits, some problems are associated with transfer.

i. Adjustment problems to the employee to the new job, place, environment, superiors and colleagues,

ii. Transfers from one place to another cause much inconvenience and cost to the employee and his family members relating to housing, education of children etc.,

iii. Transfer from one place to another result in loss of man-days,

iv. Company initiated transfers result in reduction in employee contribution, and

v. Discriminatory transfers affect employee morale, job satisfaction, commitment and contribution.

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Letter Announcing New Property Manager [Free Template]

woman opening letter

You’ve hired a new property manager and now you need to prepare your tenants.

A letter sent to tenants announcing a new property manager is a key part of helping to ensure a smooth transition to the new manager.

Keep reading to learn what to include in a new property management letter, and get a free copy of a letter announcing a new property manager.

Key takeaways

  • A letter announcing a new property manager is usually sent by the landlord or new property management company to the tenants.
  • The letter should be formal in tone and remind tenants of when the rent is due and how to report a needed repair.
  • Other items in a new property manager letter include contact information for the new management company, process for making rent payments online, and transfer of the tenant security deposit.

What to include in a new property management introduction letter

A letter sent to tenants introducing a new property manager will normally come from the property owner or the new management company. This letter is often presented after the sale of a rental property or if the owner decided to switch management companies.

As a rule of thumb, the new property management letter can be formal in tone, and explain any changes including how monthly rent payments are made and the contact information for maintenance requests. 

By sending an official letter, property owners and managers help reduce the risk of a tenant claiming they didn’t know how and where to pay the rent or report a needed repair. 

A concise letter announcing a new property manager should:

  • Introduce the new property management company, along with the physical and mailing address, phone numbers, and business website.
  • Provide contact information for the individual in charge of the property the tenant is renting, such as a phone number and email address.

man working on laptop

  • Remind the tenant of the monthly rental amount and payment date, methods for paying the rent (such as an online rent payment system), late fees, and notice process if rent is not paid after any grace period ends.
  • Describe the process for submitting maintenance requests, such as an online tenant portal used for asking for repairs 24/7 or a smartphone app used with the property management software .

Example of a new property manager letter

The new property management letter that follows was adapted from a blog post by RentPrep , a tenant screening services and rental background check company used by landlords and property managers. If you’re interested in downloading a customizable template, you can do so here . Take a look at what a property manager letter looks like:

CHANGE OF PROPERTY MANAGEMENT COMPANY NOTICE

PLEASE READ THIS LETTER COMPLETELY. ACTION FROM YOU IS REQUIRED.

Dear TENANT NAME,

Recently, the owner of the property you are renting has decided to change the property management to MANAGEMENT COMPANY NAME.  

At the direction of the property owner, MANAGEMENT COMPANY NAME will now be handling all aspects of the property you are renting and your lease, including rent collection, repairs and maintenance, enforcement of the terms and conditions of the lease enforcement, security deposit trust account, and all other details concerning the property and your tenancy.  

This letter is to inform you that this change is EFFECTIVE IMMEDIATELY, and explain the changes you should expect, as well as the actions you need to take to ensure your continued tenancy.

  • Please contact our office at (###) ###-#### immediately.  We need to obtain important information from you regarding your tenancy, such as outstanding maintenance issues.  
  • Beginning immediately, rent payments are to be made to our company. This includes your current rent and any rent you owe from previous months.
  • Your lease is still valid and enforced.  This includes late fees, utility payments, and other tenant requirements.  
  • Online rent payments. [ Include how to sign-up for service, whether or not paying rent online is required, and any processing fees charged for using a credit or debit card.]
  • Mailing a payment. [ Include name to make the rent check payable to, mailing address, and whether in-person payments are accepted at the main office. ]

We will make every effort to ensure that the transition from one property manager to another is as easy and trouble-free for you as possible.  If you have any questions or concerns, feel free to contact our main office at (###) ###-#### or by email at [email protected].

[If a specific individual from the new property management company is responsible for overseeing the property, contact information may be included here.]

COMPANY NAME

W here to find a new property manager letter

The above example of a letter announcing a new property manager can be downloaded in either a Word Doc or Google Docs format using the following links:

  • Word Doc version of Letter Announcing a New Property Manager
  • Google Docs version of Letter Announcing a New Property Manager

This free new property manager letter is fully editable and can be customized for a landlord, property owner, and by rental property type.

Other resources for finding examples of a letter announcing to a tenant that there is a new property manager include:

  • Stessa : New Property Manager Letter Template
  • RentPrep : New Property Manager Introduction Letter to Tenants
  • Rentec Direct : New Property Manager Introduction Letter For Your Renters
  • iPropertyMangement : Letter to Tenant Stating Property is Under New Management
  • LettersPro : Letter Introducing a New Property Manager

Final Thoughts

Sending a letter announcing a new property manager is only one of the many tasks that should be done to help ensure a smooth transition to the new property management company. 

Landlords should also make sure that a termination notice to the old company has been sent, leasing forms have been updated with the name of the new manager, vendors and government authorities have been notified, and a reasonable timeframe is allowed for receiving any funds owed to the new landlord by the old property manager (including the transfer of tenant security deposits).

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Management Change Announcement Letter: 4 Templates

A written or electronic letter delivered to all workers and curious stakeholders that explains an alteration in processes is known as a managerial announcement. Several huge corporations send this type of communication via internal mail. 

A corporation can distribute this notification to certain sections or all of its employees, as well as companies with whom it works. 🏢Announcing changes to the organization is a key component of interaction at work. This brief message might clarify any modifications that occur inside a company. 

Understanding how to draft and distribute a restructuring notice is an ability that will serve you well across your working life.

We will clarify a company-wide notice and why such a document is necessary, and then demonstrate how to draft one in this post. ✒️

Table of Contents

What to Write in a Management Change Announcement Letter

Some changes in organization declarations, such as a new hire, might help to build an accepting climate from the start.

It can also disseminate knowledge to ensure everybody on the team knows where they should report their job-related responsibilities. 

This notice would explain how staff should handle the latest shifts, indicating who they should reach out to, where they should go for inquiries, and any client relations modifications that may be required. 📜

  • Writing a short but crisp subject. This will make the reader aware of what the letter is about. 📏
  • Address the employee or the newly assigned team directly. 🧑‍💼
  • Mention the qualifications of the new employees that have impressed you to opt for a change in management. 🎓
  • Mention how this shift will be essential for the company. 📈

How to Write a Management Change Announcement Letter (Tips)

Here are some pointers to keep in mind while writing a management change announcement letter. ⤵️

Write a clear summary

Begin the press release by outlining the upcoming changes, outlining the rationale behind those as well as how these will affect the company and the staff. This will provide staff with an outline of the contents they can anticipate and will assist in establishing the framework for the presentation. 🖨️

Give a timeline

Provide staff with an accurate timetable for where the modifications will occur, as well as what efforts will be made to execute them. Workers will be able to get ready for alterations and carry out any required modifications as a result of this. 💣

Mention the concerns

Consider and answer any issues or queries that workers might raise in the statement. You’ll reduce stress and ambiguity while also promoting an atmosphere of consistency and concentration. 😟

Maintain transparency

It is critical to be transparent and truthful about the rationale for modifications and the effects they have on personnel. This fosters worker reliability and trustworthiness, as well as honest exchanges. 😄

Use lucid language

Use straightforward, simple English that is uncomplicated to grasp. Refrain from employing lingo or specialized phrases that staff members may find bewildering. 🔠

Mark the opportunities

If the modifications are likely to create new possibilities for staff members, including additional positions or initiatives, make that clear in the statement. Staff should feel excited and engaged as a result of this. 📊

Give the necessary resources

Make certain that staff have the assistance and tools they need to adjust to change. Training for staff members, mentorship, and psychological support may be included. Inform workers that their efforts are not isolated, as well as that the company is dedicated to assisting them as they are navigating transformation. 🏆

Give space for feedback

Keep your corporate statements participatory by using an online questionnaire tool and inviting colleagues to respond, ask queries, and offer confidential opinions. 🖋️

Template: 1

Management Change Announcement Letter

(Your name)

(Your address)

(Your contact information)

(Name of the Recipient)

(Address of the Recipient)

(Contact Information of the Recipient)

Sub: Letter to Announce Change of Management

Dear (Name of the Recipient),

We want to inform you all about the transfer of our company’s management (mention the company’s name and details). We are eagerly waiting to inform all of you that we have changed our management of (mention details) to Mr (mention the new manager’s name).

Therefore we decided on his decisions and choices in every decision regarding our company. This new management system will take effect from the day of (mention the date).

We want to inform you that there will be no changes in the policies or rules of our company. Feel free to work as in the previous days.

You have always been our trusted supporter and clients from the very beginning of our company. We wish for your help and support as always. If you have any problems, you can contact us at any time.

Hope you will be very happy and help us complete this process successfully.

Thank you very much, as always, for your support,

(Hand-written Signature)

(Notary or witness if required)

Download Template : ( pdf, docs, ODT, RTF, txt, HTML, Epub, Etc )

Template: 2

(Mention the name of the sender)

(Designation of the sender)

(Name of the company)

(Contact information of the sender)

We are really glad to inform you all about the transferring procedure of our company’s management (mention the company’s name and details). We are pleased to inform all of our workers that we have changed our management of (mention details) to Mr. (mention the name of the new manager) from (mention the details) from the day (mention details).

For this reason, we have decided to abide by his decisions and choices while discussing everything regarding our company as our new (mention details). This new management system will affect from the day of (mention the date).

We want to announce that there will be no changes regarding the policies or rules of our company. All of you are requested to work as the previous days under this new management.

You have always been our trusted members and strong supporters from the very beginning of our company.

We wish for your kind help and support as the previous days. If you have any problem or query regarding this matter, please get in touch with us at any time through (mention contact details).

Hope you will be very happy with this decision and help us to complete this process with ease.

Thank you very much for your help and support,

With regards,

Template: 3

I hope you are in your best health and working well. I am writing this letter to inform you that our company has gone through a promotions process this month. Therefore, we have a change of authority regarding the management of our department of (mention the details) and our new manager has been Mr. /Ms. (mention the name) from the day of (mention the details).

Our new (mention details) of (mention department) is a well-qualified candidate for this post as he/she has excellent skills and experience. Considering the history of our good relationship, we hope you will support us in this matter.

We want to add further with this that there will be no changes regarding our company’s policies or regulations. You are earnestly requested to work and support us like the previous days under this new management.

You have always been our trusted supporters and good friends from the very first day of our company.

We eagerly hope for your kind attention and support like in previous days. If you have to know any information or have any query regarding this matter, feel free to contact us at any time through (mention contact details) within office hours.

Hope you will be very happy and support us with this decision to complete this process successfully.

Thank you very much for your help and support in the previous days.

Template: 4

Subject: letter to inform regarding change of management

Respected Sir/Madam,

This letter is to inform you that our company has gone through an annual process of promotions. Therefore, the management department of our company has changed. From now onwards (mention authority name) will be Manage our department as the replacement. The previous management department members have been promoted to the next hierarchy at our office.

The selected candidate is well-qualified for the post and has excellent managerial skills. They have shown exceptional capabilities as responsible professionals and assistant managers here. Considering the history of our relationship and communication, we can confidently say that they will efficiently manage all the deals between your organization and our company.

If you have any further queries, do let us know. You can reach us at (mention phone number) or through an email (mention email address). 

[Sender Name]

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“Business, marketing, and blogging – these three words describe me the best. I am the founder of Burban Branding and Media, and a self-taught marketer with 10 years of experience. My passion lies in helping startups enhance their business through marketing, HR, leadership, and finance. I am on a mission to assist businesses in achieving their goals.”

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Murray State University and the Kentucky Community and Technical College System update transfer agreement for Cybersecurity and Network Management bachelor’s program

By Dani Ray | Feb 23, 2024

Dr. Michael Ramage

MURRAY, Ky. –  Murray State University and the Kentucky Community and Technical College System (KCTCS) have updated their transfer agreement to satisfy the requirements for the Associate in Applied Science (AAS) in Computer Information Technologies at KCTCS that leads to the Bachelor of Science in Cybersecurity and Network Management (CNM) at Murray State.

In 1997, Kentucky House Bill 1 created Programs of Distinction through the Kentucky Council on Postsecondary Education at public postsecondary institutions, including Murray State University’s cybersecurity program.

The transfer agreement between KCTCS and Murray State updates a strong partnership established more than 20 years ago. As a Program of Distinction, Murray State was directed by the legislature via the Kentucky Postsecondary Education Improvement Act of 1997 to ensure pathways into the program for students coming from Kentucky community colleges. This updated agreement continues Murray State’s commitment to that legislation.

At least 42 semester hours of the 120 hours required for a bachelor’s degree must be earned in courses at the 300-level or above. The baccalaureate degree candidate must have a cumulative GPA of at least 2.0 in all credits presented for graduation whether earned at Murray State or elsewhere, in all credits completed at Murray State and in the courses for each major, minor or area.

Since 2002, years three and four of the cybersecurity and network management program can be accomplished in person or completely online. Murray State Cyber Center Director Dr. Michael Ramage said that the program’s flexibility is ideal for both full-time transfer students and working adults.

“We have students who complete their AAS and transfer into the CNM program full-time, and we have students who finish their AAS, start a full-time job and work through the program as part-time online students,” said Ramage. “The beauty of our partnership with KCTCS is that the agreement and the CNM program are designed to support both scenarios.”

Christopher Royse, member of the Murray State Cyber National Advisory Board and dean of the business division and information technologies division at Southcentral Kentucky Community and Technical College in Bowling Green, Kentucky, said the agreement offers a seamless transfer from KCTCS that maximizes transfer credits and saves students time and money.

“This agreement creates more opportunities for students interested in earning advanced degrees in the growing field of cybersecurity,” said Royse. “This agreement supports the transition into a high-wage, high-demand bachelor’s program recognized as a program of excellence at the state and national levels.”

The Murray State program has rolling admissions. Students may enter the CNM program at either the August or January entry point. There may be limited offerings every summer term.

Students can complete the transfer application online at   murraystate.edu/apply .

Transfer requirements, scholarship information and other relevant transfer information can be found at   murraystate.edu/admissions/ transfer .

Learn more about Murray State’s CNM program at   murraystate.edu/cyber .

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COMMENTS

  1. Facilitating factors in the cross-cultural transfer of management practices: The case of a German multinational in Brazil

    Multinational companies (MNC) transfer management practices on a global scale, and it is commonly known that Western MNCs face challenges due to misunderstandings and misalignment of management practices in foreign subsidiaries ( Friesl & Silberzahn, 2017 ), especially in those located in emerging markets ( Cavusgil, Ghauri, & Liu, 2021Sánchez &...

  2. Ownership Transfer and Management Succession: Positioning Your

    Ownership transfer and management succession (OTMS) focuses on the primary steps that E&C companies should take when transitioning to new ownership. Always important, OTMS is taking center stage as industry leaders shake off the negative impacts of the COVID-19 pandemic and plan for brighter futures. For some, that will mean passing the torch ...

  3. (PDF) Facilitating factors in the cross-cultural transfer of management

    The transfer of management practices in multinational companies has been discussed as a central topic in international business. Research has mainly focused on the challenges associated with ...

  4. The Long-Term Effects of Management and Technology Transfers

    The Long-Term Effects of Management and Technology Transfers. This paper examines the long-run causal effects of management on firm performance. Under the Productivity Program (1952-1958), the US organized management-training trips for Italian managers to U.S. firms and granted technologically advanced machines to Italian companies. I exploit ...

  5. The Transfer of Western Management to China: Context, Content and

    A model of the transfer of management knowhow is developed which contains five closely-related stages: selection, adaptation, application, evaluation and integration. Factors which influence management transfer are identified as environmental, organizational, and cultural and behavioural; while cultural constraints are discussed in detail.

  6. The Global Transfer of Management Knowledge

    fer of Management Practices across Nations and MNC Subcultures"). In case 2, "The Shortcomings of a Standardized Global Knowledge Management System: The Case Study of Accenture," authors Paik and Choi reflect on the difficulties of knowl-edge transfer from Asia to the USA within the lead-ing consultancy. In case 3, "Applying Knowledge

  7. Transfers of LLC Ownership

    A limited liability company (LLC) is a common business structure that allows the owners to keep their personal assets protected from losses or incidents that occur in the business.. When an owner of an LLC—also called an LLC member—transfers some or all of their ownership stake to a new person or entity, they must typically follow certain guidelines laid out in the company's operating ...

  8. Transfer of management training from alternative perspectives

    One hundred seven management training evaluations were meta-analyzed to compare effect sizes for the transfer of managerial training derived from different rating sources (self, superior, peer, and subordinate) and broken down by both study- and training-related variables. For studies as a whole, and interpersonal management skills training studies in particular, transfer effects based on ...

  9. Preface: The Transfer of Management Knowledge to Peripheral Countries

    has published widely on the transfer of management knowledge in historical perspective and on the evolution and role of management consultants and management education. Lars Engwall is professor of management, Department of Business Studies, Uppsala University, Box 513, SE-751 20 Uppsala, Sweden (tel.: +46184711381; fax: +46184716810; e-mail:

  10. [PDF] Antecedents of training transfer of management training in the

    The purpose of this study was to establish the factors influencing training transfer of various management training programmes carried out in the public sector organizations in the Eastern and Southern African region. A descriptive research design was employed. A survey of 169 respondents was carried out using a questionnaire.

  11. Transfer of Management Rights Tool Kit

    Transfer of Management Rights Tool Kit. Download PDF. 1. Regulation of the transfer of management rights. Management rights are typically a 'package' which comprises: a manager's unit; rights to occupy common property (including an office and reception area); a management and letting agreement (which can be separate agreements or.

  12. Global Transfer of Management Practices across Nations and MNC Subcultures

    Successful transfer not only depends on values but also the competencies to use the practice.6 Human Resource Management points to the importance of matching values, competencies and systems to achieve good practices.7 In Norwegian Multi, the modified management practice emphasized col-laborative elements promising systematic fol-

  13. Farm Transfer Strategies

    Transfer Strategies. To increase the ease of transferring, several critical issues should be addressed in the succession plan. These critical issues are the: transfer of labor. transfer of management. transfer of assets. identification and management of possible risks or barriers. These issues tie in with potential areas of conflict that should ...

  14. Transfer of Management Sample Clauses

    Transfer of Management. The Buyer shall manage the Companies with effect from the Transfer Date. Sample 1

  15. Maunakea Authority seeks exemption to open meetings law during

    But supporters of the bill, including authority members, argue the body needs this flexibility to meet the deadline for transitioning mauna management away from the University of Hawaiʻi by 2027. John Komeiji, Chair of the Maunakea Authority, said without an exemption, the all-volunteer board is limited to working in permitted interaction ...

  16. Transfer of Training: A Meta-Analytic Review

    Transfer of management training from alternative perspectives . Journal of Applied Psychology, 94: 104-121. Google Scholar *Tews, M.J., & Tracey, J.B. 2008. An empirical examination of posttraining on-the-job supplements for enhancing the effectiveness of interpersonal skills training.

  17. Transfer of management training from alternative perspectives

    One hundred seven management training evaluations were meta-analyzed to compare effect sizes for the transfer of managerial training derived from different rating sources (self, superior, peer, and subordinate) and broken down by both study- and training-related variables.

  18. A Comprehensive Guide to Property Ownership Transfer

    The property management company should be provided with all relevant details regarding the transfer, including the new owner's information and any changes in contact or billing information. In some cases, the property management contract may include provisions for the assignment of the contract to the new owner.

  19. The Future Of Leadership: From Change Management To Team Dynamics

    The transition from conventional change management to a change mindset marks a pivot in how leaders approach the complexities of human and organizational behavior.

  20. Business Transfer Agreement Template

    This Business Transfer Agreement template is a legal document and should include details of both parties and their terms and conditions for this agreement. It may be possible to be represented by their personal and corporate lawyers to assist with the business transfer accordingly. This downloadable template will cover some of the necessary ...

  21. Business Administration Transfer to Operations Management

    The BAT Program provides the high-level preparation in general education needed for upper-level coursework at these universities as well as the necessary foundation for a business education and transfer into one of these five programs: Accounting, Management, Operations Management, Sports Management or Marketing.

  22. What Is Transfer Of Training? Definition And Examples

    Transfer of training can help management do formal performance assessments. Managers can apply accountability metrics to ensure workers understand their training and duties. Team leaders can provide information and share their expectations. For example, management can include newly taught safety training as a job requirement.

  23. What is Transfer?

    Transfer is a process placing employees in positions where they are likely to be more effective or where they are likely to get more job satisfaction this transfer is a process of employee's adjustment with the work, time and place. In transfers there is change in responsibility, designation and pay, etc. ADVERTISEMENTS:

  24. Transfer in HRM: Definitions, Objectives, Purpose, Types and Policy

    The man­agement might think of issuing transfer orders, treating each case on its own merit. Even if management takes the right decisions, some employees may take exception to them. Thus, management must frame a transfer policy and follow the same. ADVERTISEMENTS: Learn about:- 1. Meaning of Transfer in HRM 2. Definitions of Transfer in HRM 3.

  25. Letter Announcing New Property Manager [Free Template]

    A letter announcing a new property manager is usually sent by the landlord or new property management company to the tenants. The letter should be formal in tone and remind tenants of when the rent is due and how to report a needed repair.

  26. Transfer of Management Agreement Sample Clauses

    Termination of Management Agreement Evidence of the termination of any and all management agreements affecting the Property, effective as of the Closing Date, and duly executed by Seller and the property manager. Transfer of Agreement 9.1 Unless with the prior consent from the Pledgee, the Pledgor has no right to grant or transfer any of his ...

  27. Management Change Announcement Letter: 4 Templates

    July 3, 2023 by Rahul Panchal A written or electronic letter delivered to all workers and curious stakeholders that explains an alteration in processes is known as a managerial announcement. Several huge corporations send this type of communication via internal mail.

  28. Solid Waste Management

    Talbot County directs private businesses that collect trash to dispose of it at a solid waste transfer station located at the Midshore Regional Solid Waste Facility 7341 Barkers Landing Road, Easton, MD 21601 before being transferred to other facilities. ... trash collectors. If you encounter a firm not on the list above, please contact Talbot ...

  29. Murray State University and the Kentucky Community and Technical

    MURRAY, Ky. - Murray State University and the Kentucky Community and Technical College System (KCTCS) have updated their transfer agreement to satisfy the requirements for the Associate in Applied Science (AAS) in Computer Information Technologies at KCTCS that leads to the Bachelor of Science in Cybersecurity and Network Management (CNM) at Murray State.