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Demotion Policy—All demotions produces adverse effects on the status, interpersonal relations and sold esteem of demoted employees. But demotions which follow lay offs and corrections for wrong promotions are generally more acceptable to employees than those which are the result of punishment. Management can make its employees easily accept all demotions by formulating a demotion policy so that there may be no grievance on the part of the trade union. A policy on demotion should have the following elements:
(1) A clear and reasonable list of rules should be framed, violations of which would subject an employee to demotion.
(2) This information should be clearly communicated to employees.
(3) There should be competent authority to investigate any alleged violation.
(4) If violations are reported. There should be a consistent and equitable application of the penalty.
(5) There should be a provision for review.
