What is Demotion

            Demotion is the opposite of promotion. It is a downward movement from one job level to another preceding it, leading to a reduction in rank,status, pay and responsibility. Demotions become necessary when: A promote is not able to meet the demands of the new job; Adverse business conditions lead to downsizing of the organization which can then decide to layoff some and downgrade other jobs; Demoting an employee is not an easy matter and calls for tact and diplomacy. Perhaps it is easy to dismiss than to demote. In both the cases, the person’s interests and pride will be hurt, but in the latter case, since the person still continues his association with the organization he may avenge by hurting the interests of the organization.