Demystifying demotion: A look at the psychological and economic consequences on the demotee

Carson, Paula Phillips; Carson, Kerry D.

doi:10.1016/j.bushor.2007.05.003

Cited by 16 publications

(42 citation statements)

References 8 publications

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“…Some researchers interpret demotion in a broader context, including other forms of transitions (Stilwell et al, 1998, Sprague, 1984. Carson and Carson (2007) Furthermore, some studies are restricted to a particular case study, which makes it difficult to generalize (More, 1962, Baker, Gibbs and Holmstrom, 1994, Dohmen, Kriechel and Pfann, 2003.…”

Section: The Occurrence Of Demotion: a Literature Overviewmentioning

confidence: 99%

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The occurrence of demotions regarding job level, salary and job authority

Verheyen

Deschacht

Guerry

2016

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Purpose The purpose of this paper is to determine the occurrence of job level, salary and job authority demotions in the workplace through the analysis of Belgian Statistics on Income and Living Conditions (SILC)-data of 2007-2011. Design/methodology/approach Three hypotheses are tested: H1: there is a gender inequality in job authority demotions. H2: the level of education and the probability of being subject to a job level, salary or job authority demotion are negatively correlated. H3: age is negatively correlated with job level, salary or job authority demotion probabilities. The cross-sectional data of the SILC cover a specific time period with data on inter alia living conditions. The longitudinal data give information on inter alia income and non-monetary variables over a period of four years. The authors estimate multivariate regression models for binary demotion variables. These analyses allow the authors to estimate the odds of being demoted. The authors discuss the demotion rates, the bivariate correlations and the regression analysis. Findings The data analysis result in the fact that base salary demotions are not commonly applied as literature and the Belgian law on salary protection endorses. Fringe benefits demotions, as for instance the abolition of a company car or a bonus are, however, more frequent. There is a gender gap with regard to job authority demotion. Highly educated respondents are less confronted with job authority demotions. Age is negatively correlated with base salary/fringe benefits or job authority demotion probabilities, but not with job-level demotions. H1 is thus confirmed. H2 and H3 only partly confirmed. Research limitations/implications Several analyses were restricted because the EU-SILC did not question all dimensions of demotion in detail. Originality/value This study contributes to the scarce literature on demotion and to empirical studies on demotions regarding job level, salary and job authority.

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Section: The Occurrence Of Demotion: a Literature Overviewmentioning

confidence: 99%

“…Notwithstanding this utility, researchers indicate that the empirical research on demotion has received little attention (Carson and Carson, 2007, Hall and Isabella, 1985, Kohl and Stephens, 1990, More, 1962, Sargent, 2003.…”

Section: Introductionmentioning

confidence: 99%

The occurrence of demotions regarding job level, salary and job authority

Verheyen

Deschacht

Guerry

2016

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“…Demotion can be defined as a downward movement within an organization's hierarchy leading to an actual or perceived loss of authority and/or responsibility (Carson & Carson, 2007), either with or without a decrease in salary (Ng, Sorensen, Eby, & Feldman, 2007). We distinguish between voluntary demotion, where the downward movement is initiated by an individual and results in moving to a lower position that better suits his/her needs (Verheyen & Vermeir, 2011), and involuntary demotion, where the demotion is initiated by the organization (Carson & Carson, 2007;Ng et al, 2007). The focus of this article is on both voluntary and involuntary demotion.…”

Section: Introductionmentioning

confidence: 99%

Involuntary and voluntary demotion: employee reactions and outcomes

Hennekam

Ananthram

2020

European Journal of Work and Organizational Psychology

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Demotion has received little attention from scholars and practitioners alike. The purpose of this study was to assess empirically the reaction to, and outcomes of, both involuntary and voluntary demotion. Drawing on 49 semi-structured in-depth interviews with 28 involuntarily demoted workers and 21 voluntarily demoted workers, we develop a conceptual model using organizational justice theory and person-job fit of the reaction to and outcomes of demotion. We show that involuntarily demoted individuals might react by expressing turnover intentions and lower motivation and commitment, indicating that the demotee's reaction is related to perceptions of fairness. Voluntary demotion is related to a better work-life balance, greater satisfaction, less stress and burnout and is perceived to be a viable phased retirement option by older workers. In addition, the findings highlight the role of demotion-related stigma, status loss, identity threat, and age in the way employees react to the experience of demotion.

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“…Perhaps because of this lack of attention some wonder whether demotion is a four-letter word (Kohl and Stephens, 1990). Others (Carson and Carson, 2007) remark that "Demotion might well be considered management's 'dirty little secret'", the secret being that for decades pleas have been made to systematically examine the topic, but up until this day the empirical insights into questions when demotion will be applied or how it affects organizations or the employees affected by demotion remain unanswered. This paper presents the first empirical investigation on the question to what extent demotion of workers is considered by managers as a measure of personnel policy.…”

Section: Introductionmentioning

confidence: 99%

“…Van Dalen, Henkens and Schippers (2010) show that within most organizations it is common practice to let poorly performing older employees stay in place, whereas younger workers who perform badly are fired. A possible explanation for understanding the resistance to demotion is the tension which managers suspect to arise not only among the demotees, who primarily experience the stigma of failure (Carson and Carson, 2007), but also among the colleagues who receive the signal that implicit contractspromises of upward wage growth either by the principle of seniority and/or by a series of promotions -are not honored. And if the organization uses demotion regularly as an instrument of correcting the divergence between pay and performance, it may backfire on the organization.…”

Section: Introductionmentioning

confidence: 99%