By Zet Bruceton L. Pasion
Master’s in Business Administration
Abstract
This paper examines the
ethical tensions between the two promotion systems, showing the organization's
equity, justice, and moral theory. In a theoretical discussion, this study
highlights that neither approach is ethically reliable. Instead, it advocates
for a transparent, balanced, and context-sensitive promotion system that
considers both seniority-based and performance-based factors while upholding
inclusivity and fairness in the workplace.
Keywords
Promotions, Double-edged
sword, Senior-based promotion, Performance-based promotion, Ethical
Predicament, Workplace, Promotion System, Employees
Introduction
In this world,
organizations play a crucial role in helping people find employment and acquire
new skills. Within these organizations, a process known as promotion exists,
where select employees receive additional support and opportunities to advance
in rank. Promotion means selecting the most qualified person, and it needs
everyone involved to agree. The primary factors that determine whether someone gets promoted are their performance in their current job and their potential for success in a more senior position. Promotion is crucial because it
affects employee motivation, the company's operational efficiency, and its
prospects. The two most common ways to promote people are by seniority and by
performance. These methods reveal different values that organizations
prioritize, such as experience, loyalty, results, and productivity. Using
either technique can lead to unfair situations and disagreements, which can
cause problems for both the employees and the company.
The seniority-based promotion occurs when an organization
promotes an employee based on their seniority and the length of time they've
been working in the organization. This promotion system provides
predictability, helps retain employees, and prevents favoritism. In addition,
the advantage of using this method is that it allows employees to feel their
loyalty to the organization has been recognized and rewarded. However, this
system can demotivate high-performing younger employees and result in promotions
based on time served rather than actual impact or competence.
Performance-based promotions occur when a company awards
raises or promotions to employees who have demonstrated exceptional
performance, such as producing a high volume, possessing strong skills, working
efficiently, and excelling individually. This system can have some problems,
such as creating unhealthy competition, leading to biased evaluations, and
making employees who contribute in less measurable but still essential ways
feel left out.
These two different methods of promoting people create a
significant ethical dilemma: how can companies determine which approach is more
effective in terms of efficiency, fairness, and justice? Should people be
promoted just because they have worked at the company for a long time? Or
should people be encouraged because they work harder and help the company do
better? Both systems have their issues. The seniority system might keep someone
in a higher position even if they aren't performing well, while the performance
system could favor someone who is liked by managers, even if they aren't the
best at their job.
Pros and Cons of Seniority-Based Promotions
Promotions based on
seniority occur when a company awards employees salary increases or new
positions in recognition of their length of service. Using this promotion
system has its pros and cons. Promotions depend on the duration of employment
with the company; the procedure is straightforward. Workers can anticipate
their career trajectory, thereby enhancing their sense of security and
self-worth. Choices are determined by the duration of service in the company,
rather than by personal relationships or power. This also fosters loyalty, as
it demonstrates the company's values of long-term dedication, causing employees
to feel more secure about their future. An additional advantage is that it
decreases bias and partiality. It relies on specific criteria such as years of
service, which enhances the fairness of the process.
Despite
this, there are also drawbacks to using this kind of promotion system, one of
which is compromising equal opportunity. This will be based solely on
seniority, that do not account for individual performance, skills, or
potential, resulting in highly ambitious and competent employees becoming
frustrated if they are overlooked. Another con is that it can discourage
younger or newer employees, who may feel that their chances of advancement are
limited regardless of their skills. This will lead to higher turnover among
talented individuals who seek faster career growth and are unwilling to wait
for opportunities tied to time rather than merit.
Pros and Cons of Performance-Based Promotions
Performance-based
promotions occur when a company rewards an employee for excelling in their role
and demonstrating exceptional abilities. One benefit of this system is that it
motivates employees to work harder. When people understand that doing a good job
can lead to benefits such as a better job title or increased responsibility,
they tend to focus on improving their skills and working more efficiently. This
type of system fosters a positive work environment where hard work and talent
are recognized, ultimately making the entire team more productive.
Additionally, using performance-based promotions can help companies attract and
retain top talent, ensuring that high-potential employees have the opportunity
to take on more significant roles and make a greater impact.
However,
there are also downsides to this system. One significant issue is that it may
overlook essential qualities that are more difficult to measure, such as
leadership potential, intelligence, and teamwork skills. An employee who
performs well may not possess the skills needed to lead a team or manage a
department. Additionally, if someone tries too hard to outperform others, it
can create unhealthy competition, undermine teamwork, and even lead to unfair
or unethical behavior in the pursuit of success. Another risk is that
performance evaluations might be biased or inconsistent. If the process isn't
fair, it can make employees feel discouraged or frustrated instead of inspired.
Ethical Conflicts in Practice
In organizations, people
often disagree about whether someone should be promoted based on the length of
their tenure or their job performance. Both methods of determining promotions
may seem fair, but they can raise ethical concerns that impact individuals,
teams, and the organization's overall culture. These disagreements raise
questions about fairness, morality, and the value of experience, all of which
are essential for maintaining a healthy work environment. A significant issue
is that some groups may feel mistreated depending on which system is used. In a
seniority-based system, high-performing staff, especially younger or newly
hired employees, might be overlooked because their work hasn't been recognized
yet, even if they are making valuable contributions. This raises important
ethical questions about whether experience should be valued more highly than
actual performance. On the other hand, a performance-based system may overlook
experienced employees who possess extensive knowledge and skills. This highlights
an ethical challenge in striking a balance between recognizing past
achievements and driving future success.
Another
ethical issue that comes up is the conflict between different generations.
People of various ages may have other ideas about what fair advancement looks
like. Younger workers often join the company with a focus on results and expect
quick promotions if they perform well. On the other hand, older employees might
see promotions as a reward for their long time with the company and their
loyalty. These differing views can create feelings of resentment. Younger
employees might resist new ideas, while older employees might feel that the
younger generation doesn't value their experience. The company needs to handle
these differences carefully, ensuring that it shows respect, includes everyone,
and treats all generations fairly.
Another
important ethical issue is the lack of transparency in promotions. Employees
often don't know exactly what factors determine who gets promoted—whether it's
based on seniority or performance. In an ethical workplace, people rely on
procedural justice, which means they believe the process is fair and
transparent. However, when the promotion system is unclear, employees may
perceive unfair practices such as favoritism, manipulation, or politics within
the company.
Legal and Policy Considerations
In the Philippines,
promotion decisions are highly regulated by organizations due to jurisdictional
considerations, employment law, and organizational policies that govern and
must be handled to ensure fairness, non-discrimination, and transparency.
According to Article 135 of the Labor Code, employers are prohibited from
discriminating based on gender. Additionally, under Republic Act No. 10911, the
Anti-Age Discrimination in Employment Act, it is expressly forbidden to deny
promotions based on age, thereby ensuring equal opportunities regardless of
age. This principle showcases that promotions must be free from discrimination
and bias.
Conclusion
In organizations, promotion policies are more than just
routine decisions—they show the company's values and ethical standards. The
debate between seniority-based and performance-based promotions isn't about
picking one over the other, but about understanding the risks and limits of
each system. To address this ethical issue effectively, companies should adopt
a balanced and well-considered approach. A key suggestion that can
significantly benefit an organization and reduce ethical issues at work is to implement
a hybrid promotion system. This combines both seniority-based and
performance-based methods, recognizing the loyalty of long-time employees and
the achievements of high performers. This approach can help build a fairer and
more inclusive culture, while also avoiding the ethical risks that come from
relying on just one method
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