A demotion is a compulsory reduction in an

employee Employment is a relationship between two party (law), parties Regulation, regulating the provision of paid Labour (human activity), labour services. Usually based on a employment contract, contract, one party, the employer, which might be a cor ...

's rank or job title within the

organizational An organization or organisation (English in the Commonwealth of Nations, Commonwealth English; American and British English spelling differences#-ise, -ize (-isation, -ization), see spelling differences) is an legal entity, entity—such as ...

hierarchy of a company, public service department, or other body. A demotion may also lead to the loss of other privileges associated with a more senior rank and/or a reduction in salary or benefits. An employee may be demoted for violating the rules of the organization by a behavior such as excessive lateness,

misconduct Misconduct is wrongful, improper, or unlawful conduct motivated by premeditated or intentional purpose or by obstinate indifference to the consequences of one's acts. It is an act which is forbidden or a failure to do that which is required. Misc ...

, or

negligence Negligence ( Lat. ''negligentia'') is a failure to exercise appropriate care expected to be exercised in similar circumstances. Within the scope of tort law, negligence pertains to harm caused by the violation of a duty of care through a neg ...

. In some cases, an employee may be demoted as an alternative to being laid off, if the employee has poor

job performance Job performance assesses whether a person performs a job well. Job performance, studied academically as part of industrial and organizational psychology, also forms a part of human resources management. Performance is an important criterion for o ...

or if the company is facing a

financial crisis A financial crisis is any of a broad variety of situations in which some financial assets suddenly lose a large part of their nominal value. In the 19th and early 20th centuries, many financial crises were associated with Bank run#Systemic banki ...

. A move to a position at the same rank or level elsewhere in the organization is called a lateral move or deployment. A voluntary move to a lower level is also a deployment as it is not a compulsory reduction in level. Demotion is often misinterpreted simply as the opposite of a promotion. However, it is only one means of undergoing a reduction in work level.

Types

Within the continuum of disciplinary options available within most organizations, a demotion falls in the middle range of severity. Minor violations of rules, or the first violation of a rule will typically result in a verbal or written warning or a suspension without pay. At the other extreme, for severe violations of the rules, such as

embezzlement Embezzlement (from Anglo-Norman, from Old French ''besillier'' ("to torment, etc."), of unknown origin) is a type of financial crime, usually involving theft of money from a business or employer. It often involves a trusted individual taking ...

or sabotage, an employee will typically be fired and/or the company will file criminal or civil charges. In

sport Sport is a physical activity or game, often Competition, competitive and organization, organized, that maintains or improves physical ability and skills. Sport may provide enjoyment to participants and entertainment to spectators. The numbe ...

s leagues, when teams are transferred between divisions, the worst-ranked teams in the higher division are

relegated Promotion and relegation is used by sports leagues as a process where teams can move up and down among divisions in a league system, based on their performance over a season. Leagues that use promotion and relegation systems are sometimes call ...

(or demoted) to the lower division.

Other uses

The word ''demotion'' is not restricted to the world of employment; it can be used in a number of areas.

References

Industrial and organizational psychology {{Org-stub

Types

Other uses

See also

References