Promotion

Topics: Employment, Seniority, Performance management Pages: 9 (2838 words) Published: July 22, 2013
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 the young and often establishes a nonproductive attitude. Seniority alone does not adequately forecast a person’s capabilities nor does it determine those best qualified for promotion (p.29). For example, a young worker is surrounded by more experienced colleagues can do just enough work to keep his job. Typically, a young worker put in more efforts to achieve recognition and higher status in a company. In addition, senior based system often relates to promote older employees who have been working for a long time in company. There are some difficulties in hiring old employees in today modern economic companies. . Firstly, it takes much money for hiring old workers for higher position than new employees because of their high salary expectation. Some employers don't expect to hire people who earned a high salary at a previous position. According to employment experts, workforce professionals, and focus group participants interviewed by Gao, “Employers may expect that an older worker who accepts a job paying significantly less than the worker had previously earned might continue to search for a higher-paying job and might leave the job if a better offer became available". Secondly, old employees ofen are out of date skills, such as lacking computer and other technology skills."Many older employed workers simply need help navigating today’s web-based job search landscape,”( Owens, 2013). 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. When applying new technology, it take longer time for the older employees to adapt the technology such as computer, internet, for instance in government organization in poor counties. Thirdly, if promoting old people, the manager must spend a lot of money on their health benefits. Gao said that "Some employers are reluctant to hire older workers because they expect providing...

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/
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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
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