DEMOTION DEFINITION: The assignment of an individual to a job of lower rank and pay usually involving lower level of difficulty and responsibility. FEATURES• The pride of the employee suffers.• Keeps the employees alert and alive to their responsibilities and duties.
TYPES OF DEMOTION DemotionInvoluntary Voluntary Expiration No Fault Managerial of Performance Trial Issue Employee Period
CAUSES Combination of departments and Elimination of jobs. Inadequacy and bad performance. Change in technology.
DEMOTION POLICY STEPS Frame a clear list of rules, violation of which will lead to employee demotion. Communicate the same to the employees . Thorough investigation of any violation. The discovered violation should follow an equitable application of penalty. There should be a proper review.
SEPARATION It means termination of service with the organisation for one or the other reason. Exited in structured and in an orderly manner. The employees are separated from the payroll of the company .
TYPES Resignation Discharge and dismissal Suspension and retrenchment Layoff
RESIGNATION Voluntary by the employee cause of: Physical disability Health Better opportunities elsewhere, etc. Involuntary / compulsory When an employee is asked to put his resignation in order to avoid termination against negligence of duty or some other charge.
DISCHARGE Permanent separation for violation of company’s rules or for inadequate performance .CAUSES Frequent causes Infrequent causes Other causes
DISMISSAL Removal on the ground of misconduct. Continuous absence from duty for more than five years
SUSPENSION Placing an employee in a temporary status without duties and pay. Further violation of rules could result in the removal.
RETRENCHMENT Permanent termination of an employee. Termination as a punishment given by way of retirement, disciplinary action, continued ill-health, closure of business does not constitute retrenchment. Entitled to both compensation and gratuity.
LAY-OFF Temporary / permanent removal of an employee for business reasons.CAUSES Breakdown of machinery Seasonal fluctuations in market Loss of sales Shortage of resources Production delays, etc.