Promotion

Powerful Essays
Promotion based on seniority

Argurments against promotion based on seniority

Group 2

Tran Vo Anh Duy

Nguyen Huy Hoang

Nguyen Huy Hung

Phan Nguyen Khanh Ly

Lam Thi Phuong Minh

Le Thuy Uyen

Human Resource Management

MBC: 3.3

Prf: Dr. Lam Nguyen

Supporting arguments Before giving several disadvantages of using promotion based on seniority system, definition of seniority is considered. In his book, Zack (1989) stated, “The concept of seniority certainly means determination based on length of service” (p.226). Hence, promotion based on seniority is employer or manager promoting their employees by evaluating how long they work for company. 1. Almost companies in developing countries evaluate their employees by performance rather than seniority. It make an internal effort to encourage employees promote themselves. Baker, Jensen and Murphy (1988) stated that “merit-pay systems encourage employees to spend effort lobbying about both the specification and application of the system to measure and evaluate output.” (p. 597) Geet, Deshpande, & Mrs. Deshpande (2009) mentioned that in the global and technological era, it is very essential to look for new blood with new ideas and abilities to handle with up-to-date technology. 2. Another disadvantage of the seniority system is that they tend not to reward performance. The labor skill levels and abilities are different, while some employees provide the benefit of greater experience, this does not mean more possibilities. A less experienced staff possesses a flair for innovation and more creativity may be more likely to generate ideas that help the company move forward in the future and a seniority-based programs do not reward those who may have a lot to offer the organization in the long term. In the book How to become a Great Boss Fox (2002), Gibson stated: A seniority system tends to discourage



References: Baker, George P., Jensen, Michael C., and Murphy Kevin J.(1988). Compensation and Incentives: Practice vs. Theory. The Journal of Finance Volume 43, Issue 3, pages 593–616, July 1988. Edward, M. (2000), Balancing seniority with performance, retrieved June 20, 2013, from http://www.bizjournals.com/triangle/stories/2000/07/31/smallb2.html?page=all Dessler Josh, V. (23 Jul 2012), Seniority vs. Performance, retrieved June 20, 2013, from http://joshuavandgrift.me/seniority-vs-performance/ Jared, L Wrighton,S.(2005).Effective supervisory practices. Washington D.C.: Carl Vinson Institute of Government. Josh, V. (23 Jul 2012), Seniority vs. Performance, retrieved June 20, 2013, from http://joshuavandgrift.me/seniority-vs-performance/ Jared, L Phelan, S.E. & Lin, Z. (2011). Promotion Systems and Organization Performance: a Contingency Model. Computational and Mathematical Organization Theory, 7(3), 207-232

You May Also Find These Documents Helpful

  • Powerful Essays

    Mr. Zaboschuk

    • 2303 Words
    • 7 Pages

    Ferracone, R. A., & Borneman, J. P. (2001). Putting pay for performance back into incentive programs. Compensation & Benefits Management, 17(4), 29.…

    • 2303 Words
    • 7 Pages
    Powerful Essays
  • Best Essays

    Rwt 1

    • 3982 Words
    • 16 Pages

    Stillwell, L. (2002, December 16). Performance-based compensation increasingly popular. The business review, Retrieved from http://www.bizjournals.com…

    • 3982 Words
    • 16 Pages
    Best Essays
  • Good Essays

    As a result, firms often use compensation plans combined fixed salaries with one or more variables based on performance. Economists have been trying hard to work out effective plans. Nevertheless, there are also doubts on whether or not incentive compensation works. Alfie Kohn has offered analysis on reasons for the failure of incentive programs. He states that incentive rewards “have failed to offer a convincing argument for behavioral manipulation”. (Kohn,…

    • 310 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Pay for Performance

    • 1107 Words
    • 5 Pages

    Traditionally, all incentive plans are “pay-for-performance” plans. They pay all employees based on the employee’s performance (Dessler). Compensation is a primary motivator for employees. People look for jobs that not only suit their creativity and talents, but compensate them both in terms of salary and other benefits accordingly. Compensation is also one of the fastest changing fields in Human Resources, as companies continue to investigate various ways of rewarding employees for performance. It is very important for organizations to make sure that the incentive plans are well structured to need the needs of the employee and in return make the organization profitable. Giving incentive pay to employees that has not earned them destroys the motivation and moral of employees which leads to less productivity. Thanks to public outcry, shareholder outrage, and increased government scrutiny, companies are making some adjustments to their executive incentive programs. At the very least, it gives the appearance of linking pay to performance.…

    • 1107 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    Federman, D. (2004). Pay-for-Performance: From theory to Reality. Workspan, World at Work, 47(4), Scottsdale, AZ.…

    • 1525 Words
    • 5 Pages
    Powerful Essays
  • Satisfactory Essays

    Companies today should mirror their compensation and benefit programs with their long- term business strategy and organizational culture. According to Casio (2010), “Pay systems are designed to attract, retain, and motivate employees” (p.421). The most important objective is fairness or to achieve internal, external, and individual equity; and maintain a balance in relationships between direct and indirect forms of compensation, and between the pay rates of supervisory and nonsupervisory employees. Employers must perform job analysis, develop job descriptions, evaluate the value of job/position in the organization, develop pay structure and pay levels to create competitive employee compensation and benefits (Cascio, 2010).…

    • 386 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    | Workers will only perform duties within their own job classification and are discouraged to perform at a level above and beyond the company’s expectations. Due to seniority rights, the company cannot allocate labour efficiently.…

    • 1525 Words
    • 7 Pages
    Powerful Essays
  • Good Essays

    References: Henderson, R. I. (1998). Compensation management: rewarding performance. ( 2nd Ed.). Reston Pub. Co.…

    • 516 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    Moreover, on the employees side, hiring the employees for the entire lives will not lead to their personal advancement. This policy is not only limit the company development, but also restrict the employees improvement and enthusiasm to improve themselves to gain better skills and knowledge, both professionally and personally. Therefore, these policy will limit the advancement of employee in the long-term, compared to competitive work environment in other companies, in which pushed employees to improve themselves for all the time.…

    • 373 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Basic Promotions

    • 572 Words
    • 3 Pages

    Consumer promotions and Trade promotions Both sales as well as marketing are allotted their respective budgets to carry out promotional activities. While marketing department uses its budget to run ATL and BTL activities, it also utilise it to run consumer promos targeted on a specific brand. Sales department on the other hand uses its budget to run trade promotions. Trade promotions may, and in fact should, vary from outlet to outlet within the same locality but consumer promotions tend to be homogeneous and would at least cover a region as big as a state. Consumer promotions are intended to reach the final customer. To ensure this happens there needs to be some change in packaging or it needs to be supported through ATL and BTL activities so that the consumers do get the promotion. Hence involvement of brand managers is a must over here. Trade promotions need to be designed differently for different channels (grocery, consumption centre, cosmetic store, chemist, bakery etc.). Almost all the companies are moving to a phase where they would have targeted trade promotions at the outlet level which would vary not just by the channel but also various factors like purchase history of the outlet, merchandising input provided by competition, etc. There a various types of promotions and the number are limited only by one’s own imagination. Each one serves a different purpose. One should try to view it from a product life cycle point of view.…

    • 572 Words
    • 3 Pages
    Good Essays
  • Better Essays

    The long study of human motivation has continuously shown that people will do that which they are rewarded for doing. Based on this concept, compensation has been recognized as the most meaningful professional reward for employees. Companies use compensation and benefits as a means of attracting and maintaining valuable employees. Organizations world-wide have further identified that financial incentives must be paired accordingly with the desired results in order to be the most effective. In recent estimates, a reflected 41% of payroll is comprised of employee benefits (M.U.S.E., n.d.). For this reason, it has become increasingly necessary to implement strategy in developing compensation and benefits packages that meet certain elements, such as being fair, being comparable to the pay of others, and providing satisfaction with the content of the work (M.U.S.E., n.d.).…

    • 1458 Words
    • 6 Pages
    Better Essays
  • Satisfactory Essays

    Work development is influenced by several factors such as experiences, incentives and work environment. Today, ageism is very common in workplace which implies treating employees in a different and unequal manner because of their age. Some companies nowadays effectively seek elderly employees for their experiences, while others believe that bring new blood is essential to the progress of work. This essay will discuss the benefits and drawbacks of employing both young and old workers.…

    • 481 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    In exchange for job performance and commitment, an employer offers rewards to employees. Adequate rewards and compensations potentially attract a quality work force, maintain the satisfaction of existing employees, keep quality employees from leaving, and motivate them in the workplace. According to research conducted by the Corporate Executive Board, the most important workplace attribute is compensation, (The Increasing Call for Work-Life Balance, 2009). Not only must wages be set high enough to motivate and attract good talent, they must also be equitable—that is, the wage must accurately reflect the value of the labor performed. Fair and equitable compensation is a crucial factor in the success of an organization. It is important because it is a tool that is used to recruit, maintain, and motivate their employees to contribute to the organization’s success.…

    • 1776 Words
    • 8 Pages
    Powerful Essays
  • Better Essays

    Five Year Career Plan

    • 2451 Words
    • 10 Pages

    According to Noe, Hollenbeck, Gerhart, and Wright (2004), if employees conclude that they are under rewarded, they are likely to make up the difference in one of three ways. They might put forth less effort, find a way to increase their outcomes, or withdraw by leaving the organization. (p. 355) Therefore, it is imperative that an organization is able to create a pay structure that allows…

    • 2451 Words
    • 10 Pages
    Better Essays