Demotion, though not good for the incumbent or for the organization, but is practiced as an option for restructuring employees or for giving punishment to the employee.

A demotion is a downward transfer that involve with a cut in pay, status, privilege and opportunities. – Dr. Muhammad Mohiuddin.
Demotion occurs when an employee is moved from one job to another position that is lower in pay, responsibility, and /or organizational level.- William B. Werther and Keith Devis ( 1996: 263).

Thus, demotion is a practice to put an incumbent down to a lower position, status, salary and responsibilities due to address a special situation.

Objectives of demotion
1. Demotion is made to meet the need for organizational staff reduction because of sustaining in the competitive environment through merger or acquisition.

2. It is undertaken to execute a disciplinary action against a guilt employee.

3. It is done to make remedy of a previous mistake in staffing. If it is found that an incumbent has got inadequacy in terms of job performance, attitude and capability, the decision of placement shall be corrected by demoting that incumbent to a position where he/she will best-fit.

4. It is done to execute a mutually satisfactory arrangement that stem from an employee’s health problems or changing.

Problems of Demotion
1. Demotion is a shock to the affected employee and brings about the kinds of reaction associated with a career crisis.

2. The demoted employee will be a problem child in the organization.
So, it is better not to demote anybody on the ground of offence but to terminate him/her. It shall be made in consensus with the incumbent, not shall be imposed upon the person. It will be counterproductive.

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