Promotion
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
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