This aspect ensures that the organization maintains high performance and remains competitive in the market (Grip and Borghans, 2000, p.83).
Qualifications of an individual can signal generic skills and capacity of the person to learn. With the current level of globalization, business world has become so dynamic therefore, requiring an individual who is qualified to know what to do in case of any change in the market (Grip and Borghans, 2000).
Formal qualification does not signal job performance of an individual. Some people have been good performers in organizations without high valued credentials. Instead, they possessed the necessary experience to perform certain responsibilities. In addition, credentialism increases the rift between the poor and the rich. Mainly rich people are able to afford few prestigious institutions of higher learning (Plank, 2009, p.907). As a result, their children are able to secure high valued jobs not because they are good performers but because they gained the necessary credentials. According to Plank (2009) some of the individuals who possess high credentials are said to perform poorly in the field and technical sector. Instead, they are good in theoretical work.
Credentialism cannot be associated with ethnicity. This is because an individual who is most qualified is much likely to secure a job irrespective of his/her ethnic background. On the other hand, it can be associated with gender biasness especially in developing countries. In these countries, many women have not had an opportunity to get higher education due to various responsibilities that they have been given. On the other hand, credentialism has increased the level of meritocracy as recruitment panel concentrate on credentials rather than skills and experiences in the organization an aspect that has led to many graduates with highly valued credentials jobless both nationally and globally (Plank,