Demotion Defintion

Term Definition
Reducing the rank or grading of an individual’s current status. Often, this means to reduce the person’s position to a lesser important position within the organization.

Extended Definition
Demotion guidelines are set forth through the human resource or management department. An employee may be demoted due to unsatisfactory work or a grossly inefficient job performance level. In some situations, personal conduct, deemed inappropriate or unacceptable, leads to demotion. Other times, a demotion may occur through no fault of an employee, but rather as a result of a company reorganization.

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What Happens in a Demotion?