What is demotion in hrm?

Demotion in Human Resource Management (HRM) refers to the reassignment of an employee to a lower position or rank within the organization, often accompanied by a reduction in responsibilities, authority, and salary. This action can occur due to various reasons, such as poor performance, organizational restructuring, or changes in business needs. Demotion can impact employee morale and engagement, so it is typically handled with care and clear communication. Proper procedures and support are essential to help the employee transition smoothly into their new role.