Demotion

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Demotion

  1. 1. Demotion <ul><li>The assignment of an employee to a job of lower rank with lower pay. It refers to downward movement of an employee in the organizational hierarchy with lower status and lower salary. </li></ul><ul><li>It should be used tactfully and only when it is absolutely necessary. </li></ul><ul><li>If uses imprudently can affects job satisfaction & morale of employees. </li></ul>
  2. 2. Factors of Demotion: <ul><li>Adverse conditions </li></ul><ul><li>Due to recession & other crises, an enterprise may have to combine departments & eliminate jobs </li></ul>
  3. 3. Factors of Demotion <ul><li>Incompetence </li></ul><ul><li>Some of the employees promoted on the basis of seniority & past performance may fail to met the requirements of higher level jobs. Thus, Demotions help to correct errors in promotion </li></ul>
  4. 4. Factors of Demotion <ul><li>Technological changes </li></ul><ul><li>On account of changes in technology & work methods, some employees may be unable to handle their jobs or adjust to new technology. These employees may have to be demoted </li></ul>
  5. 5. Factors of Demotion <ul><li>Disciplinary measures </li></ul><ul><li>It may be used as a tool of disciplinary action against erring employees . It should not be used as a penalty for poor attendance record, violation of rules of conduct b/c such action produces defensive behavior without any improvement in behavior or performance. </li></ul>
  6. 6. Demotion policy <ul><li>The circumstances under which employees can be demoted (reduction in operations, serious indiscipline etc.) should be clearly specified and made known to employees. </li></ul><ul><li>Any violation of established rules & regulations should be competently investigated. </li></ul><ul><li>Once violations are proved there should be consistent & equitable application of the policy. </li></ul>
  7. 7. Demotion policy <ul><li>The policy should be fair & impartial. </li></ul><ul><li>The lines of demotion should be specified. </li></ul><ul><li>In case of demotions caused by adverse economic conditions & technological changes, the basis for demotion (seniority or merit) should be specified </li></ul>
  8. 8. Demotion policy <ul><li>Nature of demotion (Permanent or Temporary) should be formulated. </li></ul><ul><li>A promotion should be made for appeal & review of every demotion. </li></ul><ul><li>It should be an open rather than a closed policy. </li></ul>

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