An Analysis of the Seniority Problem - Essay Example

Seniority in Companies can be positive or negative. This paper will discuss the positive and the negative of Seniority in companies non-unionized and unionized. How will Seniority affect the Company, Management, Co-Workers? The concept of seniority refers to an individual or a group who is in charge of or commands another individual or group. In companies seniority is often followed by additional privileges such as higher salary, more authority over subordinates, favorable work hours etc. “Seniority means precedence of position, especially precedence over others of the same rank by reason of a longer span of service.

It is a system often used by employers as a basis for granting job benefits” (US Legal, 2009). Seniority systems help in protecting the employees from indiscriminate termination, occasioned by whims, malice or prejudice of the employer. On the other hand, it also helps in creating a harmonious work environment, filled with co-operation and solidarity amongst the workers (Ezorsky, Nickel, 1987). Several companies are known to offer job bidding rights to their employees which facilitate them in availing several perquisites.

However these bidding rights are subject to certain restrictions imposed by the organizations, for instance, the employee claiming such a benefit must be employed in the company for a period of at least 12 months and / or worked in his capacity for a period of at least 6 months in his current job. Those who qualify are eligible to bid for additional benefits offered by the company such as promotion or transfer. According to Edwards (1993) “The right to seniority preference is closely linked to job – bidding rights”.

In some organizations seniority preference rather often tend to be the determining factor in for employment, promotion, or transfer, and where factors such as qualification, skill and work record are more or less equal, seniority is