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Demotion: Meaning Reasons Policies

Demotion refers to assigning an employee to a lower level job with reduced responsibilities and authority, and usually lower pay. Organizations may demote employees for reasons such as unsuitability for higher roles, adverse business conditions, or new skills requirements. Company policies on demotion should specify the circumstances under which it can occur, who can authorize it, applicable job levels, and considerations for determining merit and seniority. Policies aim to provide transparency around demotion procedures.

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Ambika Zalkikar
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101 views7 pages

Demotion: Meaning Reasons Policies

Demotion refers to assigning an employee to a lower level job with reduced responsibilities and authority, and usually lower pay. Organizations may demote employees for reasons such as unsuitability for higher roles, adverse business conditions, or new skills requirements. Company policies on demotion should specify the circumstances under which it can occur, who can authorize it, applicable job levels, and considerations for determining merit and seniority. Policies aim to provide transparency around demotion procedures.

Uploaded by

Ambika Zalkikar
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Demotion

Meaning

Reasons

Policies
meaning

 Demotion is the reassignment of a lower level job to an


employee with delegation of responsibilities and
authority required to perform that lower level job.

 It is the opposite of promotion.

 Normally with lower level pay.

 Organizations use demotions less frequently as it affects


the employee’s career prospects and morale.
Reasons

 Unsuitability of Employee to Higher Level Jobs.

 Adverse Business Condition

 New Technology and New Method of Operation


Demand, New and Higher Level Skills.

 Employees are Demoted on Disciplinary Grounds.


Policies
 Specification of circumstances under which an employee
will be demoted like reduction in operations,
indisciplinary cases.

 Specification of a superior who is authorized and


responsible to initiate a demotion.

 Jobs from and to which demotions will be made and


specifications of lines or ladders of demotion.
 Specification of basis for demotion like length of service,
merit or both.

 It should provide for an open policy rather than a closed


policy.

 It should contain clear cut norms for judging merit and


length of service.
 Specification of provisions regarding placing the
demoted employees in their original places if the normal
conditions are restored.

 Specification of nature of demotion, i.e. whether it is


permanent or temporary if it is as a disciplinary action.
It should also specify the guidelines for determining the
seniority of such demoted employees.

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