Group 2

Demotion is the antithesis of promotion wherein an

employee is demoted to the post at a lower level. For example, a manager may be demoted as supervisor. Demotion is lowering of status, salary & responsibilities of an employee.

It is a type of punishment for serious mistakes or

irregularities on the part of the employee. It is a lesser punishment as compared to dismissal. used as a method of last resort. Moreover, demotion carries adverse psychological effect on the employee.

Promotions are very common but demotions are rare &

Adverse conditions
Due to recession & other crises, an enterprise may have

to combine departments & eliminate jobs.

Incompetence
Some of the employees promoted on the basis of seniority & past performance may fail to met the requirements of higher level jobs. Thus, Demotions help to correct errors in promotion

Technological changes
On account of changes in technology & work methods,

some employees may be unable to handle their jobs or adjust to new technology. These employees may have to be demoted

Disciplinary measures It may be used as a tool of disciplinary action against erring employees . It should not be used as a penalty for poor attendance record, violation of rules of conduct b/c such action produces defensive behavior without any improvement in behavior or performance.

 The circumstances under which employees can be

demoted (reduction in operations, serious indiscipline etc.) should be clearly specified and made known to employees. should be competently investigated.

Any violation of established rules & regulations

Once violations are proved there should be

consistent & equitable application of the policy.

 The policy should be fair & impartial.

The lines of demotion should be specified. In case of demotions caused by adverse economic

conditions & technological changes, the basis for demotion (seniority or merit) should be specified

 Nature of demotion (Permanent or Temporary) should

be formulated.
A promotion should be made for appeal & review of

every demotion.
It should be an open rather than a closed policy.

 Separation is a step ahead of demotion. Involves cessation of services of personnel from an

organization.
The contractual relationship comes to an end.

If a person retires, is a type of separation.

 Layoff temporary separation under specific

circumstances.
Retrenchment sort of permanent separation by

an employer with due notice as per statutory provisions. The employee is also paid compensation.

 Discharge or dismissal permanent separation

of an employee from the organization for violation of organizational rules (dishonesty, carelessness, drunkenness, etc.).
Voluntary retirement the employer offers

attractive package of compensation to those who are willing for separation on voluntary basis. Such retirement leads to permanent separation from the job.

 In India, mostly separations take place due to lay-offs,

voluntary retirement schemes & retrenchment.

Separations are common in case of loss-making

ventures & sick industrial units.

Even inadequate market demand leads to downsizing

of production activities & corresponding separations of employees.

 Induction and orientation are designed to provide a new

employee with information he or she needs in order to function comfortably and effectively in the organization.
Typically, induction and orientation will convey three

types of information:
General information about daily work routine A review of the organizations history, purpose, operations,

and products or services, and how the employees job contributes to the organizations needs A detailed presentation, perhaps in a brochure of the organizations policies, work rules, and employee benefits.

 Employees feel anxiety when they enter an

organization.
They worry about whether they are adequate enough

when compared to the experienced personnel or how the will perform on the job or even how well they will get along with the others.
For these reasons, effective induction and

orientation are deliberately aimed at reducing this anxiety. Information about the job is given, introductions are made and questions are answered