Demotion is defined as a downward movement of an employee in an organizations hierarchy, with lower status, pay, and responsibilities. It is a downgrading process where employees suffer from emotional and financial losses in terms of rank, power, status, pay, etc of an employee.
REASONS FOR DEMOTION
- Unable to successful performance of job
- Due to layoff of organization
- Indiscipline of an employee
- Irresponsibility of an employee
- Irregularity of an employee
- Carelessness of an employee.
TYPES OF DEMOTIONS
Management of the organization’s use demotions for variety of purposes, some of them are as follows,
01. Compulsory Demotions
Organizations use Compulsory Demotions due to indisciplinary or adverse business conditions of the organization.
02. Voluntary Demotions
This type of demotions happens when employee requests to lower his workload, the reason may be personal life balance or health problems.