Demotion of Employees:
Demotion is just opposite to promotion. In demotion, the employee is
shifted to a job lower in status, grade and responsibilities. “Demotion
refers to the lowering down of the status, salary and responsibilities of
an employee.”
Causes of Demotion:
There are several reasons for demoting a man from his present
position.
Some of these reasons are as follows:
1. Inadequacy on the part of the employees in terms of job
performance, attitude and capability. It happens when an employee
finds it difficult to meet job requirement standards, following his
promotion.
2. Demotion may result from organisational staff reductions. Due to
adverse business conditions, organisations may decide to lay off some
and downgrade some jobs.
3. Demotions may be used as disciplinary tools against errant
employees.
4. If there is a mistake in staffing i.e., a person is promoted wrongly.
5. When, because of a change in technology, methods and practices,
old hands are unable to adjust or when employees because of ill health
or personal reasons, cannot do their job properly.
Types of Demotion
1. Voluntary Demotion.
2. Involuntary Demotion.
Voluntary Demotion
A permanent employee may request a voluntary demotion to a vacant position
in a class with a lower salary rate, provided that the employee has previously
achieved permanent status in that class or, the request for demotion is to a
related class in the same job series as defined by the Personnel Commission.
Involuntary Demotion
An involuntary demotion is a disciplinary action and, as such, is subject to the
disciplinary procedures in these Rules and Regulations.
Advantages of demotion
Telling an employee that he is being demoted to a different job is rarely a
positive experience for a manager.
However, employee demotions are usually intended to benefit the company and
may be even the employee.
Good managers weigh the benefits of demoting employees against the possible
psychological effects on the worker and the organizational culture.
Frances Burks has pointed out the benefits of demotion, which are listed below:
▪ Common benefit employers seek with demotions is getting an employee to quit
as opposed to firing him. Some managers use this tactic to avoid the conflict of
telling someone he is fired.
▪ Another financial benefit of demoting employees is a reduction in salary.
Typically, a demotion means the employee works in a lower-paying position.
This can save the company a substantial amount. In some cases, a demotion
results because the company believes it is overpaying a worker for the
production he generates.
▪ Employee demotion may involve fewer risks of lawsuits or other grievances
than termination.
▪ One of the more positive benefits of employee demotions is the opportunity to
develop the employee through more training and coaching. Sometimes,
employees take a position, they are not adequately prepared to handle. A
demotion may prevent burnout or employment separation. If the employee is
demoted to a position he is most comfortable with, he can work toward
additional training to eventually grow into the position from which he was
demoted.
▪ A demotion could be the best option for keeping an employee who has potential
but needs more training and experience. Sometimes companies grow faster
than anticipated, and employees get pushed into roles that they don’t want or
aren’t ready to handle. An employee who has the potential to excel in the
company may respond more favorably to a demotion if he is provided with an
opportunity for additional job training. After all, the employee may realize he’s in
over his head and unfit for his current position.
▪ Sometimes a company’s structure change and demotions are necessary
because departments are phased out and fewer high-level positions are
needed. Such changes can be an opportunity for improvement for all involved
as people assume new responsibilities to take the company in a different
direction. Some people won’t view the changes or demotions as an opportunity
and they’ll quit. Yet the people who remain may be a more motivated bunch
who is excited about the company’s new direction.
One problem with demotion is that the demoted employee may become
de-motivated or worse, openly antagonistic toward those responsible for the
demotion decision.
Demotion Policy:
A
