Promotion involves moving an employee to a higher level job with increased pay, responsibility and status. It has benefits like developing employee skills, reducing turnover, and improving morale. Principles of promotion include having a written policy, notifying employees of vacancies, and using promotions aligned with training.
Demotion is the opposite of promotion, moving an employee to a lower level job with decreased responsibilities and pay. Reasons for demotion include poor performance, organizational restructuring, and discipline. Principles of demotion include specifying the demotion policy and process, and ensuring it is done in an open manner based on clear criteria.