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Is the act of moving employees down the organizational hierarchy, reducing their responsibilities and status, and lowering their remuneration. Demotion might arise as a result of incompetence or negligence by the employee, and thereby constitutes a form of punishment. Alternatively, demotion might arise through no fault of the employee. For example, when an organization undertakes delayering, there are managers who must accept a lower-status position, with fewer responsibilities (even if they do not suffer a reduction in pay), or else leave the organization. Demotion is the opposite of promotion.

Subjects: Human Resource Management.

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