CASE STUDY - Tenure Promotion

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HUMAN RESOURCES MANAGEMENT

CASE STUDY: TENURE PROMOTION


Presenter:
Curioso, Cristle
Garrido, Trisha Leen
Santiago, Aya Inah Mari
Rivera, Roel Noynay
Ruadera, Jhon Arlan

PROF. DR. MARGIE D.G. DELA CRUZ


I.INTRODUCTION

Many employees are eager to get promoted for a variety of


reasons ranging from more money to increased
responsibilities. Companies usually use one of two methods for
determining who deserves a promotion, which are seniority-
based or performance-based promotions. You may know what
method your employer uses or you may not, but
understanding the differences between the two can be helpful
in finding out how to get promoted in your workplace

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A seniority-based promotion is where management
promotes an employee because of their seniority within the
company compared to other candidates. Employees who
are promoted due to seniority have been at the company
longer than any other candidates, and may or may not have
any other qualifications for the promotion. There are
benefits to using this method, including that employees will
feel their loyalty to the company has been rewarded, but
there are also challenges. In companies that promote
employees based on seniority only, employees begin to
expect promotions at a certain point.

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A. INTERNAL ENVIRONMENT

1. STRENGTH
• Reduces appearance of favoritism by
rewarding employees for seniority. 2. WEAKNESS
• Reduces turnover as employees will
want to stay in order to get promoted. • Less motivation among employees to
• Lowers chances of backstabbing among excel, as it doesn't factor into
employees since performance and promotions.
favoritism play no role. • Increases resentment among motivated
• Having a clearly communicated metric or talented employees if mediocre
for promotions that everyone can meet is employees are promoted over them.
helpful to employees and managers. • Can cause challenges with recruiting, as
• Senior employees often have the training new employees will be promoted last.
and skills needed for promotions. • Hard work isn't being rewarded.
• Rewards loyal employees.
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B. INTERNAL
A. EXTERNALENVIRONMENT
ENVIRONMENT

1. OPPORTUNITIES
• Senior staff are valuable employees who become 2. THREATS
knowledge-leaders in the organization. They're
essentially a free training resource, passing their • This is the main criticism of seniority – that it
knowledge and experience on the next generation. The
values longevity over merit. If an under-
seniority system rewards these efforts.
• Job security. The seniority rule protects those who have
performing employee is promoted solely on the
achieved seniority from being laid off. This protects basis of seniority, then that company could end
older, more experienced workers who tend to have the up paying more for an employee who is not
toughest time finding a job in the labor market. achieving as much as a less-senior colleague.
• People recognize that if they remain with the company, • It hinders recruitment, as it can even signal
they gain access to better paychecks and promotion career disaster for ambitious junior employees
opportunities. For the company, this should result in who want to advance their careers as quickly as
lower staff turnover and all its associated replacement possible. These employees may see little point in
costs.
over-delivering at their jobs when it's loyalty, not
• Some workers want to know where the next pay rise
and promotion is coming from and, for them, the
talent that gets rewarded. As a result, they may
seniority system can be a godsend. Knowing that your choose to avoid jobs with seniority systems that
salary and benefits will rise with every year of tenure is might stifle their ambition.
reassuring for many who budget around this relative 6
predictability
III. STATEMENT OF THE PROBLEM

The seniority-based promotion rule will fuel


resentment and conflict between senior and
junior employees.
 

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IV. ALTERNATIVE COURSE OF ACTION

ACA: 1. Execute competent/merit-based promotion. Since efficiency and


talents are rewarded, it encourages employees to increase their knowledge
in maintaining a high level of productivity.
ACA 2: Address the potential conflict between Senior and Junior
employees. This way it helps in building a better work relationship of all the
employees and improve overall productivity. Furthermore, it will quickly
resolve any miscommunication and prevent the situation from getting worse.
ACA 3: Implement a merit pay system. Merit pay makes the employer to
recognize individual performance on a one-time basis. This can provide
motivation leading to increase productivity. Rewards those who may have
the most to offer the organization in the long run.
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V. CHOSEN ACTION

It is recommended to execute the ACA 1 because it


will encourage all employees regardless of length of
service in maintaining a high level of productivity
because the efficiency is recognized and rewarded
and it will lead to the better utilization of skills of the
employees, and also to the fuller utilization of the
human resources in the organization.
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VI. PLAN OF ACTION
AREAS FOR IMPROVEMENT ACTIVITIES TIMELINE POINT PERSON

Setting performance expectations for the Implementing Performance Management that Monthly HR
employee. evaluate and review each employee’s
performance as basis of promotion.

Monitoring the continuous measuring of Monthly coaching and performance review can Monthly HR Manager and Heads
performance and providing feedback on progress correct in case of suboptimal performance, rather
towards the goals. than finding this out at the end of the year when it
is too late.

Training and Development Create training and development activities to Quarterly Heads and HR
improve employee’s performance through
challenging assignments and other opportunities
for personal and professional growth.

Rating & rewarding: Rating performance is an inevitability to Quarterly and Annual HR to Oversee and All
determine the added value of employees to the leaders to
organization. This is usually done during the implement
employee’s quarterly or annual performance
appraisal performance.

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THANK YOU!!!

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