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Group 2

 It is a type of punishment for serious mistakes or irregularities on the part of the employee. For example. Moreover. a manager may be demoted as supervisor. demotion carries adverse psychological effect on the employee. used as a method of last resort. Demotion is the antithesis of promotion wherein an employee is demoted to the post at a lower level. It is a lesser punishment as compared to dismissal.  Promotions are very common but demotions are rare & . “Demotion is lowering of status. salary & responsibilities of an employee”.

Thus. Demotions help to correct errors in promotion .Adverse conditions  Due to recession & other crises. Incompetence Some of the employees promoted on the basis of seniority & past performance may fail to met the requirements of higher level jobs. an enterprise may have to combine departments & eliminate jobs.

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 .

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

 Any violation of established rules & regulations  Once violations are proved there should be consistent & equitable application of the policy. should be competently investigated.) should be clearly specified and made known to employees. The circumstances under which employees can be demoted (reduction in operations. serious indiscipline etc. .

 The policy should be fair & impartial. the basis for demotion (seniority or merit) should be specified .  The lines of demotion should be specified.  In case of demotions caused by adverse economic conditions & technological changes.

.  A promotion should be made for appeal & review of every demotion. Nature of demotion (Permanent or Temporary) should be formulated.  It should be an open rather than a closed policy.

 The contractual relationship comes to an end. is a type of separation.  If a person retires. Separation is a step ahead of demotion. .  Involves cessation of services of personnel from an organization.

The employee is also paid compensation.  Retrenchment – sort of permanent separation by an employer with due notice as per statutory provisions. Layoff – temporary separation under specific circumstances. .

drunkenness. etc. Discharge or dismissal – permanent separation of an employee from the organization for violation of organizational rules (dishonesty. carelessness.). .  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.

 Even inadequate market demand leads to downsizing of production activities & corresponding separations of employees. voluntary retirement schemes & retrenchment. mostly separations take place due to lay-offs. .  Separations are common in case of loss-making ventures & sick industrial units. In India.

and products or services.  Typically. purpose. induction and orientation will convey three types of information:  General information about daily work routine  A review of the organization’s history. 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. operations. work rules. . and employee benefits. perhaps in a brochure of the organization’s policies. and how the employee’s job contributes to the organization’s needs  A detailed presentation.

effective induction and orientation are deliberately aimed at reducing this anxiety.  For these reasons.  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. Information about the job is given. introductions are made and questions are answered . Employees feel anxiety when they enter an organization.