Seniority should not be the basis of employee compensation Employees should be promoted and given raises solely on the basis of their performance and merit That is a better way to encourage high productivity Discuss the extent to which you agree or disagr

The statement is quite fair and pragmatic for implementation. World is of competition today. If one aspires for any position then it should be proportionate to the aptitude of the person. Inappropriate responsibilities will hinder the progress of oneself as well as productivity. Benefits of performance based compensation are manifold.

Productivity depends on the contribution of employees which can be increased by proper strategy for appraisal according to performance. Its need not to be always true that experience makes better understanding. Capability to understand and improve quality further varies on personal level. Few brilliant minds can start contributing highly in less time and it would be discouraging for them if someone is given preference over them on the basis of seniority only.

Above stated approach will introduce competition as well which encourage employees to perform better than other and be ahead in race. To ensure the same they will enhance the strengths and overall effect will be upgradation of the association.

Appreciation for achievement definitely encourages continuing the same and trying to perform even better. There are so many global awards for the sake of same thing, i.e. Oscar for excellence in film industry, literary awards, and beauty pungent awards. This approach provides objective and inclination to perform better and being acknowledged.

To portray the advantages of the presented strategy, let’s assume there are two firms ‘A’ and ‘B’. Firm A adopts appraisal policy according to performance and merit while B gives preference to seniority. Employees in firm A who are present there for long time here but unable to get compensation according to their year of service due to comparatively low performance would like to move to B. While employees of B having less experience but ability for better accomplishment, will make a move to A where they get recognition accordingly. It can be clearly inferred from this example that employees with better aptitude will switch to A and contribute to its growth qualitatively. In contrast firm B will be comprise of senior employees with inferior capabilities and led to sinking of it.
Thus it is clear that talent should be supported and appreciated to make it alive and nourish it further more for the benefits of both productivity of employee and firm.