An employee life-cycle includes entry, internal movement, and exit from an organization. Internal transfers offer an opportunity for personal and career development, but they have become more difficult to manage because of spousal and family concerns.

Thus, career-transition programs for spouses are often provided. In making promotion decisions, firms have to (1) decide to promote based on seniority or competence,

(2) decide how to measure competence,

(3) choose between a formal or informal promotion system, and (4) determine the direction of the movement. LO.1