This document summarizes information about promotions and demotions in human resource management. It defines promotion as an upward movement to a higher-level job with more pay, responsibility and status. Demotion is defined as the opposite, a shift to a lower-level job. The document outlines the purposes of promotion such as developing skills and reducing turnover. It also discusses principles of promotion like having a clear written policy. Benefits of promotion include better utilization of employee skills and improved satisfaction and morale. Reasons for demotion include poor performance or reductions in staffing needs. Principles of demotion policy are also presented.