Kindly let us know regarding the demotion of an employee. Management feels the need to demote an employee currently serving as a Manager. Please clarify my doubts on the following points:
1. His present designation is Manager. Can we demote him to Deputy Manager?
2. Can we reduce his current emoluments?
3. Is it possible to recover the perks that were paid during his existing designation?
4. Is a show cause notice required for his poor performance before demotion?
5. Can he be demoted based on his current performance?
6. Are there any other suggestions for appropriate steps?
With Regards,
Rakesh Dubey
From India, Raipur
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11. His present designation is Manager. Can we demote him to Deputy Manager?
2. Can we reduce his current emoluments?
3. Is it possible to recover the perks that were paid during his existing designation?
4. Is a show cause notice required for his poor performance before demotion?
5. Can he be demoted based on his current performance?
6. Are there any other suggestions for appropriate steps?
With Regards,
Rakesh Dubey
From India, Raipur
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Dear Rakesh,
Replies to your questions are as below:
1. His present designation is Manager, can we demote him as Dy. Manager?
Reply: - Yes.
2. Can we reduce his present emoluments?
Reply: - Yes, but do not reduce the basic salary as it will impact the PF contribution. Secondly, the basic salary should be equal to the minimum wages.
3. Can we recover the perks that were paid during his existing designation?
Reply: - No. You cannot have a demotion with retrospective effect.
4. Before demotion, is a show cause notice required for his poor performance?
Reply: - More than a show cause notice, you may conduct a domestic enquiry. In the enquiry, if the under-performance is proved, then you may award him punishment as "demotion."
5. Based on his present performance, can we demote him?
Reply: - This reply relates to Reply to Q 4. Performance Appraisal (PA) is done for a specific performance cycle. This cycle could be three or six months or a year. On completion of PA for a specific cycle, if it emerges that the performance was not up to the mark, then the employee may be given a warning letter. If in the subsequent performance cycle the performance does not improve, then you may conduct a domestic enquiry and award a suitable punishment. If you want to give demotion as a punishment, please check whether you are demoting a manager after just one PA cycle!
6. Any other suggestions for appropriate steps?
Reply: - On the grounds of performance, you are considering demoting an employee. However, you need to investigate the causes of the under-performance. Did you define the measures of performance well in advance? Were these measures measurable? If yes, did you communicate these at the beginning of the performance cycle? How much time did the Manager spend on secondary duties that were not measured? Did he face any resistance from subordinates? Was he reporting to multiple authorities? Were the targets unreasonable? Was there a resource crunch? Did he spend an unreasonable amount of time attending 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 organizations, this method is considered a smart way to force resignation from an unwanted person!
Last comments: When employers believe that an employee is receiving more salary than they deserve, they may resort to demotion. However, you need to consider whether the demoted employee gains sympathy from fellow employees. If other employees view it as an injustice to the demoted employee, it could degrade your organization's culture. Under these circumstances, the cost of degrading the organization's culture could be too high compared to the savings from reducing the salary due to demotion.
Thanks,
Dinesh Divekar
From India, Bangalore
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Replies to your questions are as below:
1. His present designation is Manager, can we demote him as Dy. Manager?
Reply: - Yes.
2. Can we reduce his present emoluments?
Reply: - Yes, but do not reduce the basic salary as it will impact the PF contribution. Secondly, the basic salary should be equal to the minimum wages.
3. Can we recover the perks that were paid during his existing designation?
Reply: - No. You cannot have a demotion with retrospective effect.
4. Before demotion, is a show cause notice required for his poor performance?
Reply: - More than a show cause notice, you may conduct a domestic enquiry. In the enquiry, if the under-performance is proved, then you may award him punishment as "demotion."
5. Based on his present performance, can we demote him?
Reply: - This reply relates to Reply to Q 4. Performance Appraisal (PA) is done for a specific performance cycle. This cycle could be three or six months or a year. On completion of PA for a specific cycle, if it emerges that the performance was not up to the mark, then the employee may be given a warning letter. If in the subsequent performance cycle the performance does not improve, then you may conduct a domestic enquiry and award a suitable punishment. If you want to give demotion as a punishment, please check whether you are demoting a manager after just one PA cycle!
6. Any other suggestions for appropriate steps?
Reply: - On the grounds of performance, you are considering demoting an employee. However, you need to investigate the causes of the under-performance. Did you define the measures of performance well in advance? Were these measures measurable? If yes, did you communicate these at the beginning of the performance cycle? How much time did the Manager spend on secondary duties that were not measured? Did he face any resistance from subordinates? Was he reporting to multiple authorities? Were the targets unreasonable? Was there a resource crunch? Did he spend an unreasonable amount of time attending 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 organizations, this method is considered a smart way to force resignation from an unwanted person!
Last comments: When employers believe that an employee is receiving more salary than they deserve, they may resort to demotion. However, you need to consider whether the demoted employee gains sympathy from fellow employees. If other employees view it as an injustice to the demoted employee, it could degrade your organization's culture. Under these circumstances, the cost of degrading the organization's culture could be too high compared to the savings from reducing the salary due to demotion.
Thanks,
Dinesh Divekar
From India, Bangalore
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Dear Rakesh,
In the managerial category, it is better to give adequate time to improve his/her performance instead of demotion. Otherwise, settle his full and final after giving the notice period or salary in lieu of the notice period. Before reaching a conclusion, check all points mentioned in the above post because this leads to the image of the organization as well.
R K Singh
Senior General Manager (HR & Admin)
From India, undefined
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In the managerial category, it is better to give adequate time to improve his/her performance instead of demotion. Otherwise, settle his full and final after giving the notice period or salary in lieu of the notice period. Before reaching a conclusion, check all points mentioned in the above post because this leads to the image of the organization as well.
R K Singh
Senior General Manager (HR & Admin)
From India, undefined
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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 and responsibilities he was hired for, he should be warned a couple of times. If he still does not meet expectations, then he should be sacked rather than demoted. Since he is in the managerial category, you can terminate his services by giving the required notice. A domestic enquiry may not be necessary in such cases. In fact, he should be given the option to resign as termination will impact 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 an undesirable option as you will have a disgruntled employee among you, full of negativity and venom against the organization.
Regards, Anil Raina
Mob: 9810180148
From India, Delhi
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Firstly, be clear in your mind as to why you want to do this exercise. If a manager has proved inefficient for the tasks and responsibilities he was hired for, he should be warned a couple of times. If he still does not meet expectations, then he should be sacked rather than demoted. Since he is in the managerial category, you can terminate his services by giving the required notice. A domestic enquiry may not be necessary in such cases. In fact, he should be given the option to resign as termination will impact 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 an undesirable option as you will have a disgruntled employee among you, full of negativity and venom against the organization.
Regards, Anil Raina
Mob: 9810180148
From India, Delhi
Acknowledge(0)Amend(0)
Hi All,
Greetings!
I have a few doubts and queries which are as follows:
1. Can an employer change my department even if my performance is not poor?
1A. There is no documentation made between me and the company, and they changed my designation without letting me know.
2. Can an employer make any changes to my designation without informing me?
3. My focus was set, and I wanted to work in the quality section, but I was forcefully moved to another section. First, they said they needed my help for a few weeks, and now they do not send me back. (There is no documentation.)
4. Is resigning the only option left for me? I have tried every possible way, and though they are ready to increase my salary, they demoted me from my current role to Executive from Quality Executive.
I am frustrated. I worked honestly and gave my 100%. When they needed me, I always made sure that all the requirements and responsibilities were fulfilled. They don't want me to leave and discuss with me for 3 hours a day on the same issue. Unfortunately, I can't focus during this time. Is there any way left for me to get back to my previous position?
Awaiting a prompt reply, guys.
Thank you,
Harsh
From India, Ahmedabad
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Greetings!
I have a few doubts and queries which are as follows:
1. Can an employer change my department even if my performance is not poor?
1A. There is no documentation made between me and the company, and they changed my designation without letting me know.
2. Can an employer make any changes to my designation without informing me?
3. My focus was set, and I wanted to work in the quality section, but I was forcefully moved to another section. First, they said they needed my help for a few weeks, and now they do not send me back. (There is no documentation.)
4. Is resigning the only option left for me? I have tried every possible way, and though they are ready to increase my salary, they demoted me from my current role to Executive from Quality Executive.
I am frustrated. I worked honestly and gave my 100%. When they needed me, I always made sure that all the requirements and responsibilities were fulfilled. They don't want me to leave and discuss with me for 3 hours a day on the same issue. Unfortunately, I can't focus during this time. Is there any way left for me to get back to my previous position?
Awaiting a prompt reply, guys.
Thank you,
Harsh
From India, Ahmedabad
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Hi,
In general, an employer has the right to change the department/role from time to time based on organizational requirements. Please refer to your employment terms; somewhere it should have been mentioned. However, the employer should intimate such changes to the employee.
Perceive the change of department positively and utilize it as an opportunity to learn new things. Your employer might have thought of utilizing your skills in other areas of work, considering your performance in the quality section. Talk to your HR during the discussion and express your discomfort, keeping resignation as a last measure.
From India, Madras
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In general, an employer has the right to change the department/role from time to time based on organizational requirements. Please refer to your employment terms; somewhere it should have been mentioned. However, the employer should intimate such changes to the employee.
Perceive the change of department positively and utilize it as an opportunity to learn new things. Your employer might have thought of utilizing your skills in other areas of work, considering your performance in the quality section. Talk to your HR during the discussion and express your discomfort, keeping resignation as a last measure.
From India, Madras
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