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In line for promotion

Is it proper for a manager to demean and employee, that is in-line for a promotion, to test how he will react?

I would have to say no! You praise in public and discipline in private. You should never demean someone to get a reaction. There are assesment/promotional boards which can be utilized to gauge someones reaction.

Reprimanding, discipling, correcting all OK and necessary, but to purposefully demean an employee is unethical and could possibly be considered harassment.

no it is not, just to get a reaction

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