Demotion is the downward movement of an employee to a lower position and salary, typically due to incompetence or serious mistake. It should only be used rarely and under exceptional circumstances. Demotion can negatively impact employee morale, as it is seen as a punishment. To mitigate this, companies should establish clear demotion policies and communicate them to employees. Any demotion should involve a fair investigation. In contrast, treating employees fairly, recognizing good work, and providing training and benefits can boost morale.

1. Demotion & Employee Morale
Prepared by:
Mr. Orlando A. Pistan, MAEd
Psychology Instructor

2. What is Demotion?
Demotion is the
opposite of promotion.
It is a downward
movement of employees
in the organizational
hierarchy with lower
status and lower salary.

3. Nature of Demotion
Demotion is the punishment
for incompetence or mistake
of serious nature on the
part of the employee.
It is a serious type of penalty
and should be given rarely
and only under exceptional
circumstances.

4. Conditions for Demotion
1. When the organization reduces activities, officer
occupying certain posts are demoted.
2. Errors in the promotions already made are
corrected through demotions.
3. It may be necessary to use demotions as a tool
of disciplinary action against erring employees.

5. Demotion Policy
1. A clear and reasonable list of rules should be
framed, violation of which would subject an
employee to demotion.
2. Information about demotion should be clearly
communicated to employees.
3. There should be a competent investigation of any
alleged violation.
4. Once violations are proved, there should be a
consistent application of the penalty.

6. What is Employee Morale?
Employee morale, in
human resources, is
defined as the job
satisfaction, outlook, and
feelings of well-being
an employee has within a
workplace setting. Proven
to have a direct effect on
productivity, it is one of the
corner stones of business.

7. How to boost Employee
Morale?
1. Treat employees
fairly
2. Respect employees
3. Recognize their
good work
4. Provide training
5. Provide benefits
and compensation

8. What causes Low Employee
Morale?
1. Dislike of superiors
2. Vague job duties
3. Unappreciated merits
4. Unfair treatment
5. Lack of benefits and
incentives
https://www.thebalance.com/you-can-boost-employee-
morale-1918107

9. Demotion & Employee Morale
Thank you for
paying attention.