Dinesh Divekar
Business Mentor, Consultant And Trainer
Vice President (hr&ir)
Working With Raymond's Ngo
+1 Other

Kindly Let us know regarding demotion of employee. Management feels to demote one employee who is working as Manager.
Please clear my doubt on the following point.
1. His present designation is Manager can we demote as Dy. Manager
2. Can reduce his present emoluments?
3. Can recover his perks which paid during existing designation.
4. Before demotion, show cause notice required for his poor performance.
5. On the basis of his present performance can demote him/her.
6. Any other suggestion for appropriate step.
With Regards
Rakesh Dubey
Dear Rakesh,
Relies to your questions are as below:
1. His present designation is Manager can we demote as Dy. Manager
Reply: - Yes
2. Can reduce his present emoluments?
Reply: - Yes, but do not reduce the basic salary as it will impact the PF contribution. Secondly, basic salary should be equal to the minimum wages.
3. Can recover his perks which paid during existing designation.
Reply: - No. You cannot have demotion with retrospective effect.
4. Before demotion, show cause notice required for his poor performance.
Reply: - More than show cause notice, you may conduct the domestic enquiry. In the enquiry, if the under-performance was proved then you may award him punishment as "demotion".
5. On the basis of his present performance can demote him/her.
Reply: - This reply relates Reply to Q 4. Performance Appraisal (PA) is done for a specific performance cycle. This cycle could be of three or six months or year. On completion of PA for specific cycle, if it emerges that the performance was not up to the mark then the employee may be given warning letter. If in the subsequent performance cycle also if the performance does not improve then you may conduct domestic enquiry and award suitable punishment. You wanted to give punishment as demotion. Please check whether you are demoting a manager after one PA cycle itself!
6. Any other suggestion for appropriate step.
Reply: - On the grounds of performance, you wanted to demote an employee. Nevertheless, you need to investigate the causes of the under-performance. Did you define the measures of performance well in advance? Were these measurable? If yes, then did you communicate these at the beginning of the performance cycle? Of the total work, how much time the Manager spent in secondary duties which were not measured? Did he face any resistance from the subordinates? Was he reporting to multiple authorities? Were the targets unreasonable? Was there any resource crunch? Did he spend unreasonable amount of time in attending the meetings? What was the past performance of the manager?
By the way, gentleman, is demotion a ploy to remove a manager?I ask this question because in some organisations this method is considered as smart method to get the resignation from the unwanted person!.
Last comments: - When employers think that the employee is getting more salary than he/she deserves,, they resort to the method of demotion. However, you need to find out whether the demoted employee acquires sympathy of the fellow employees. If other employees consider it as injustice to the demoted employee, it will degrade your organisation's culture. Under these circumstances, the cost of degradation of the organisation's culture could be too high than the savings that you will accrue because of the reduction of salary on account of demotion!
Dinesh Divekar
Dear Rakesh,
In managerial category,better to give adequate time to improve his /her performance instead of demotion. Otherwise settle his full & final after giving notice period or salary in lieu of notice period. Before reaching to conclusion check all points mentioned in above post because this lead to image of organisation also.
R K Singh
Sr General Manager (HR & Admn)
Hi Rakesh,
Firstly, be clear in your mind as to why you want to do this exercise.
If a Manager has proved inefficient for the tasks & responsibilities he was hired for, he should be warned a couple of times & if he still does not come up to the expectations, then sacked rather than demoted. Since he is in Managerial category, you can dispense with his services by giving required notice. Domestic enquiry may not be required in such cases. In fact, he should be given an option to resign as termination will have a blot on his future career.
However, if you seriously want to demote him ( for reasons best known to you ! ), you will have to follow the procedure as mentioned above by Mr Divesh. This , in the long run, is undesirable option as you will have a disgruntled employee amidst you full of negativity & venom against the organisation.
Anil Raina
Mob : 9810180148
Hi All,
Greetings !!
I have few doubts and queries which are as follows.
1- Can employer change my dipartment even if my performance is not poor.
1A- There is no any documentation made between me and the company and they change my designation with out letting me know.
2- Can employer make any changes to my designation without letting me know.
3- My focus was set and I wanted to work in quality section but I was forcefully moved to other section first they said they need my help for few weeks and now they do not send me back.(There is no Documentation)
4- Is resign the option left for me as I tried with all possible way they are ready to increase my salary but they demote me from my current role and I become Executive from Quality Executive.
I am frustrated I worked honestly and I given my 100% when they need me i always make sure that all the requirements and responsibilities get fulfilled. They dont want me to leave and discussing with me 3 hours in a day for same issue. I cant focus during this time unfortunately. Is there any way left for me to get on my previous position.
Awaiting for prompt reply guys.
Thank you,
In general employer has the right to change department /role from time to time based on Organizational requirement. Please refer your employment terms...somewhere it should have been mentioned. However employer should intimate such changes to the employee.
Perceive the change of department positively and utilize the same as a opportunity to learn new things. Your employer might thought of utilizing of your skills in other areas of the work also considering your performance in the quality section. Talk to your HR during the discussion and express your discomfort and keep resignation as a last measure.
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