IDEAS home Printed from https://ideas.repec.org/p/hal/journl/hal-03232764.html
   My bibliography  Save this paper

Involuntary and voluntary demotion: employee reactions and outcomes

Author

Listed:
  • Sophie Hennekam

    (Audencia Recherche - Audencia Business School)

  • Subramaniam Ananthram

    (CBS - Curtin Business School - Curtin University)

Abstract

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.

Suggested Citation

  • Sophie Hennekam & Subramaniam Ananthram, 2020. "Involuntary and voluntary demotion: employee reactions and outcomes," Post-Print hal-03232764, HAL.
    • Handle: RePEc:hal:journl:hal-03232764
    DOI: 10.1080/1359432x.2020.1733980
    Note: View the original document on HAL open archive server: https://hal.science/hal-03232764
    as

    Download full text from publisher

    File URL: https://hal.science/hal-03232764/document
    Download Restriction: no
    File URL: https://libkey.io/10.1080/1359432x.2020.1733980?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Sophie Hennekam & Steve Mckenna & Julia Richardson & Subramaniam Ananthram, 2019. "Perceptions of Demotion Decisions: A Social Capital Perspective," Post-Print hal-03232774, HAL.
    2. Gielen, Anne C. & van Ours, Jan C., 2006. "Age-specific cyclical effects in job reallocation and labor mobility," Labour Economics, Elsevier, vol. 13(4), pages 493-504, August.
    3. Kevyn Yong & Nathan C. Pettit & Sandra E. Spataro, 2010. "Holding your place: Reactions to the prospect of status gains and losses," Post-Print hal-00528416, HAL.
    4. Kohl, John P. & Stephens, David B., 1990. "Is demotion a four-letter word?," Business Horizons, Elsevier, vol. 33(2), pages 74-76.
    5. Matthew Semadeni & Albert A. Cannella Jr. & Donald R. Fraser & D. Scott Lee, 2008. "Fight or flight: managing stigma in executive careers," Strategic Management Journal, Wiley Blackwell, vol. 29(5), pages 557-567, May.
    6. Lima, Francisco & Pereira, Pedro T., 2001. "Careers and Wage Growth within Large Firms," IZA Discussion Papers 336, Institute of Labor Economics (IZA).
    7. Ambrose, Maureen L. & Seabright, Mark A. & Schminke, Marshall, 2002. "Sabotage in the workplace: The role of organizational injustice," Organizational Behavior and Human Decision Processes, Elsevier, vol. 89(1), pages 947-965, September.
    8. Cable, Daniel M. & Judge, Timothy A., 1996. "Person-Organization Fit, Job Choice Decisions, and Organizational Entry," Organizational Behavior and Human Decision Processes, Elsevier, vol. 67(3), pages 294-311, September.
    9. Marleen Damman & Kène Henkens & Matthijs Kalmijn, 2013. "Late-Career Work Disengagement: The Role of Proximity to Retirement and Career Experiences," The Journals of Gerontology: Series B, The Gerontological Society of America, vol. 68(3), pages 455-463.
    10. Ederer, Florian & Patacconi, Andrea, 2010. "Interpersonal comparison, status and ambition in organizations," Journal of Economic Behavior & Organization, Elsevier, vol. 75(2), pages 348-363, August.
    11. Hennekam, Sophie & McKenna, Steve & Richardson, Julia & Ananthram, Subramaniam, 2019. "Perceptions of demotion decisions: A social capital perspective," European Management Journal, Elsevier, vol. 37(6), pages 730-741.
    12. Tsedal B. Neeley, 2013. "Language Matters: Status Loss and Achieved Status Distinctions in Global Organizations," Organization Science, INFORMS, vol. 24(2), pages 476-497, April.
    13. Carson, Paula Phillips & Carson, Kerry David, 2007. "Demystifying demotion: A look at the psychological and economic consequences on the demotee," Business Horizons, Elsevier, vol. 50(6), pages 455-466.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Oude Mulders, Jaap & Henkens, C.J.I.M. & van Dalen, Hendrik Peter, 2021. "Employees’ emotional, cognitive, and behavioral responses to increasing statutory retirement ages," Other publications TiSEM 4aab8515-50c9-4c23-bd2f-3, Tilburg University, School of Economics and Management.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. van Dalen, H.P. & Henkens, K., 2015. "Why Demotion of Older Workers is a No-Go Area for Managers," Other publications TiSEM cef69d5e-bcc2-4082-b9fa-0, Tilburg University, School of Economics and Management.
    2. Carson, Paula Phillips & Carson, Kerry David, 2007. "Demystifying demotion: A look at the psychological and economic consequences on the demotee," Business Horizons, Elsevier, vol. 50(6), pages 455-466.
    3. Jennifer Carson Marr & Nathan Pettit & Stefan Thau, 2019. "After the Fall: How Perceived Self-Control Protects the Legitimacy of Higher-Ranking Employees After Status Loss," Organization Science, INFORMS, vol. 30(6), pages 1165-1188, November.
    4. Heli Wang & Ming Jia & Zhe Zhang, 2021. "Good Deeds Done in Silence: Stakeholder Management and Quiet Giving by Chinese Firms," Organization Science, INFORMS, vol. 32(3), pages 649-674, May.
    5. Alyson Byrne & Julian Barling, 2017. "When She Brings Home the Job Status: Wives’ Job Status, Status Leakage, and Marital Instability," Organization Science, INFORMS, vol. 28(2), pages 177-192, April.
    6. Jeroen Nieboer, 2022. "Positional enhancement in effort-based social comparisons," Discussion Papers 2022-02, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
    7. Pettit, Nathan C. & Doyle, Sarah P. & Kim, Hee Young & Hurwitz, Anat, 2022. "Rank extrapolation: Asymmetric forecasts of future rank after rank change," Organizational Behavior and Human Decision Processes, Elsevier, vol. 169(C).
    8. Pettit, Nathan C. & Doyle, Sarah P. & Lount, Robert B. & To, Christopher, 2016. "Cheating to get ahead or to avoid falling behind? The effect of potential negative versus positive status change on unethical behavior," Organizational Behavior and Human Decision Processes, Elsevier, vol. 137(C), pages 172-183.
    9. Liu, Zhiqiang & Yan, Miao & Fan, Youqing & Chen, Liling, 2021. "Ascribed or achieved? The role of birth order on innovative behaviour in the workplace," Journal of Business Research, Elsevier, vol. 134(C), pages 480-492.
    10. Hsu, Dan K. & Burmeister-Lamp, Katrin & Simmons, Sharon A. & Foo, Maw-Der & Hong, Michelle C. & Pipes, Jesse D., 2019. "“I know I can, but I don't fit”: Perceived fit, self-efficacy, and entrepreneurial intention," Journal of Business Venturing, Elsevier, vol. 34(2), pages 311-326.
    11. Mion, Giordano & Opromolla, Luca David, 2014. "Managers' mobility, trade performance, and wages," Journal of International Economics, Elsevier, vol. 94(1), pages 85-101.
    12. Olga Grünwald & Marleen Damman & Kène Henkens, 2022. "Does Retirement Change What Individuals Value in Life? Results From a 3-Year Panel Study [Productive aging. A conceptual framework]," The Journals of Gerontology: Series B, The Gerontological Society of America, vol. 77(9), pages 1699-1709.
    13. Boockmann, Bernhard & Fries, Jan & Göbel, Christian, 2018. "Specific measures for older employees and late career employment," The Journal of the Economics of Ageing, Elsevier, vol. 12(C), pages 159-174.
    14. Stea, Diego & Foss, Nicolai J. & Christensen, Peter Holdt, 2015. "Physical separation in the workplace: Separation cues, separation awareness, and employee motivation," European Management Journal, Elsevier, vol. 33(6), pages 462-471.
    15. Storm, Ilse & Uiters, Ellen & Busch, Mirjam C.M. & den Broeder, Lea & Schuit, Albertine J., 2015. "The relevance of work-related learning for vulnerable groups. Dutch case study of a Health Impact Assessment with equity focus," Health Policy, Elsevier, vol. 119(7), pages 915-924.
    16. Guosen Miao & Guoping Chen & Fan Wang & Anupam Kumar Das, 2023. "The Effect of Corporate Greenwashing on Employees’ Environmental Performance: Person–Organization Values Fit Perspective," Sustainability, MDPI, vol. 15(4), pages 1-19, February.
    17. Peltokorpi, Vesa, 2015. "Corporate Language Proficiency and Reverse Knowledge Transfer in Multinational Corporations: Interactive Effects of Communication Media Richness and Commitment to Headquarters," Journal of International Management, Elsevier, vol. 21(1), pages 49-62.
    18. Carless, Sally A., 2005. "The influence of fit perceptions, equal opportunity policies, and social support network on pre-entry police officer career commitment and intentions to remain," Journal of Criminal Justice, Elsevier, vol. 33(4), pages 341-352.
    19. App, Stefanie & Merk, Janina & Buettgen, Marion, 2012. "Employer Branding: Sustainable HRM as a Competitive Advantage in the Market for High-Quality Employees," management revue - Socio-Economic Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 23(3), pages 262-278.
    20. Cahuc, Pierre & Malherbet, Franck & Prat, Julien, 2019. "The Detrimental Effect of Job Protection on Employment: Evidence from France," IZA Discussion Papers 12384, Institute of Labor Economics (IZA).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:journl:hal-03232764. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.