What is the definition of demotion in an organizational context?

Demotion refers to a permanent reduction in an employee's rank or position within an organization. This action typically occurs as a result of performance issues, organizational restructuring, or disciplinary measures. When an employee is demoted, they lose their previous status and the associated responsibilities that come with that rank. This may also lead to changes in their salary and job duties, aligning them with their new position within the organization.

In contrast, the other options describe situations not aligned with the concept of demotion. A temporary increase in rank would indicate a promotion or temporary assignment, while a decline in salary without a change in rank focuses only on financial aspects. An increase in job responsibilities usually implies an elevation or enhancement of an employee's role, which is contrary to the idea of a demotion. Therefore, the correct answer captures the essence of what demotion represents in an organizational context.