Demotion

What is Demotion?
An employee is demoted when they switch to a position with less salary, authority, or prestige.
Since being demoted suggests that one lacks in performing at a higher rank, the majority of people view it as a punishment. On the other hand, promotion refers to an increase in authority or status.
Rarely do demotions result in favorable consequences for the person.
Reasons for a person to be demoted are majorly linked to the individual's lack of performance in the job, dearth of discipline or incompetence or unsuitable conduct, extreme absenteeism, etc.
Drop in the capacity of the labor force, modifications in technology, conditions of the market, changes in production processes, and adjustments to the product mix are all organizational reasons that might also result in demotion.

Demotion Case Study – Cristiano Ronaldo @FIFA World Cup

The victory of Portugal without their experienced lucky charm, according to Ian Wright of ITV, proves that the country can succeed without them.
Before Portugal's World Cup opener against Switzerland, Cristiano Ronaldo's move to the bench dominated the pregame news. Although later Goncalo Ramos, who scored three goals, was the player who received the most attention when Fernando Santos' team thrashed their opponents 6-1.

Demotion – Huawei demotes Employees over us of iPhone
Use of an iPhone to post a New Year's tweet, Huawei demotes two employees.
An internal statement from Chinese telecom giant Huawei revealed that two employees had been demoted for using an Apple iPhone to tweet a New Year's greeting on the organization's official Twitter account.
Before Huawei erased the original message and resent one that was labeled "sent via Twitter Media Studio," video producer Marques Brownlee uploaded a snapshot of the post for his three million followers on Twitter to see.
According to a message viewed by AFP and extensively circulated on China's Weibo, a platform resembling Twitter, one anonymous employee, and the director of digital marketing of Huawei were demoted.
They also had their salaries reduced by $730 or 5,000 yuan on monthly basis.
The digital marketing director received a freeze on the salary and a 12-month ban on promotions in addition to the pay reduction.
Despite the fact that Sapient, a third-party social media company, committed the error, the two were punished because the event had a "negative impact", and because of the mistake, the Huawei brand had to suffer.
The reason cited was "procedural in compliance and management oversight," according to the memo.

What is Demotion?
Demotion is just the opposite of promotion. Reducing an employee’s post, duties or salary is generally referred to as demotion.
Demotion is typically employed as a corrective action and is the first step before the dismissal of duties permanently. Demotion's effectiveness as a disciplinary measure is an arguable method for a variety of reasons.
Demotion is generally viewed as a long-term embarrassment as it also leads to loss of pay.
More importantly, an employee demoted from his job will always be unhappy, and his or her unhappiness may rub off on other employees, harming the positivity, effectiveness, and control of the workforce.

Different forms of Demotion
Voluntary Demotion
If a regular staff member has already attained permanent status in the requested class or the requested demotion is to a similar class within the identical job series.

Involuntary Demotion
Involuntary demotions are considered punitive actions and as such are governed by the rules and regulations governing disciplinary actions.
Demotion – Advantages for the Employer
Reduce salary costs

Employee compensation reduction is another financial gain of demotion. A demotion typically entails a lower-paying job for the person.
The business may benefit greatly from this. Sometimes a worker is demoted because the employer feels it overpaid him or her for the output they gave.

Reduced Legal Risks

Compared to termination, employee demotion may be less likely to result in legal action or other complaints.

Eliminating Redundant Departments and Roles
When a department is transitioned out and fewer high-level employees are needed, a corporation may need to restructure its organizational structure and make demotions.

Demotion – Advantages for the Employee

Skills Development for Employees

The growth of the individual through additional coaching and training is one of the more advantageous effects of employee demotions.
Employees at times take on responsibilities for which they are not prepared.

This video is on Demotion and it has the following sub-topics.

Timestamps
0:15 - What is Demotion?
1:01 - Demotion Case Study – Cristiano Ronaldo @FIFA World Cup
1:36 - Demotion – Huawei demotes Employees over us of iPhone
3:27 - Different forms of Demotion
3:53 - Demotion – Advantages for the Employer
6:02 - Demotion – Conclusion

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