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sterl17
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Would someone be able to give me some feedback on ISSUE AWA?

by sterl17 Wed Oct 14, 2009 11:16 am

Seniority (years of service) should not be the basis of employee compensation. Employees should be promoted and given raises solely on the basis of their work performance and merit. That is a better way to encourage high productivity.

Discuss the extent to which you agree or disagree with the opinion stated above. Support your views with reasons and/or examples from your own experience, observations or reading.

The issue at hand is whether or not individuals should be rewarded based on years of service or performance and productivity. In order to encourage employees to perform at their best, they must be promoted and compensated based on how well they work, not on how long they have worked.
A sixty year old man, working at a company for 20 years is most like a very valuable member of his team. He should be compensated for his years of service to the firm. That being said, a 25 year old, who has been employed for a mere 2 years, but has introduced new ideas that have benefited the company financially, should not be denied advancements in salary simply because he has had a short tenure. This type of reward program will not foster new ideas and enhance worker productivity. It will merely encourage employees to perform at the status quo with limited benefit to these individuals and the company as a whole.
Upon graduating from college, bright, energetic and motivated undergrads seek out employment with organizations that will challenge them and reward them for what they bring to the table. If such an individual has the opportunity to work with a company that will reward her early on in her career based on meeting and/or exceeding company goals, she is more likley to take this position a job where she will only receive salary advancements and promotions based on her years of service. This will put a company at a disadvantage in comparison to its competitors who reward its employees for performance rather than seniority. More productive employees usually allows for product enhancements, which in turn leads to a competitive advantage in the market place.
To sum up, older, more seasoned employees are a valuable commodity to many employers and should be rewarded for their years of service. However, in order to encourage high productivity and creative thought, employers must base compensation and promotions on performance, without regard for years employed. This performance-based reward system will encourage employees to increase productivity and idea genertation. Not only will individuals reap the benefits, but the entire company as well with higher profits and overall productivity.
esledge
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Re: Would someone be able to give me some feedback on ISSUE AWA?

by esledge Tue Dec 01, 2009 1:28 pm

Good:
--You acknowledged the other point of view (Older employees are valuable. However, younger employees who contribute should also be rewarded.)
--You made it real by citing examples ("a sixty year old man" and "energetic and motivated undergrads")
--Organized: I spotted an intro, two body paragraphs, and a conclusion.

Suggestions:
--Did you have certain companies in mind when you were talking about those that would attract new talent by rewarding effort/results and those that tend to reward based on tenure? If you did, name them! The more you can attach names, dates, specific events, etc. to your examples, the better.
--Make your topic sentences easier to spot (i.e. use use signal phrases and state your topic in the first sentence of the paragraph). For example, I had to read your entire second body paragraph to determine whether the topic was "how companies attract new talent" or "how employees decide where to work" (i.e. what point of view). Beginning the paragraph with "A second benefit of rewarding performance is that it gives a company an advantage in attracting superior employees" would make the essay easier for the reader to follow.
--Do a final edit in the last couple minutes to cut unnecessary words and catch typos.
Emily Sledge
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zchampz
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Re: Would someone be able to give me some feedback on ISSUE AWA?

by zchampz Wed Jan 20, 2010 9:25 pm

My GMAT exam is on 23rd of this month. I would really appreciate if you could give your feedback.

The issue is whether the performance and merit based compensation is better or seniority based compensation is better to encourage the high productivity. In my view, the employee compensation should be based on the performance, not merely on the seniority of the employees to create the competitive work place and to achieve higher productivity.

First of all, the success of the firm depends on the productivity of its work force. By compensating highly performing employees irrespective of their years of service, the company not only can encourage its performing employees, but also it can be strategically well-positioned to achieve the success in long term. For example, the success of the Google is well attributed to its well compensated young workforce. Had the Google compensation is solely based on the employee seniority, it would not have attracted so much young talent.

Second, if the firm compensates the employees solely on seniority, then some of the senior employees may not be motivated to perform as they will be well compensated irrespective of their performance. This approach not only fails to create the competitive work place, but also do not encourage the employees who performs better. To create the competitive work place the employer should adopt the performance based employee compensation.

Finally, one may argue that if the company does not compensate for the seniority, the company may be at the risk of losing its senior most employees. Admittedly, the company shall try to retain its experienced and performing employees as employee retention is also one of the key factors for the success of the company. However, company can retain the highly performing employees with performance based compensation, also it may not serve the company if it continues to compensate the under performing experienced employees.

In conclusion, the company should adopt the performance and merit based compensation rather than seniority based compensation. With the performance based compensation, the firm not only encourages the highly performing employees but also will achieve higher productivity. In addition, company can also retain its valuable work force with performance and merit based compensation.
StaceyKoprince
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Re: Would someone be able to give me some feedback on ISSUE AWA?

by StaceyKoprince Tue Feb 09, 2010 6:22 pm

Hi, thanks for posting your essays! Just an FYI that instructors don't grade or give feedback on essays (see the forum guidelines for details). (Emily was very nice to post a response to the last student's essay.)

But I certainly hope other community members respond. Also, if you're in our class, you'll have an opportunity to get essays graded and get written feedback during the course (after class 6). Finally, you can get your essays graded by GMAC using the same software they'll use to grade your real essays - you'll get a score and some feedback (though they do charge a fee). Go to mba.com and look for GMAT Write.
Stacey Koprince
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Director, Content & Curriculum
ManhattanPrep
proximityinfotech1
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Re: Would someone be able to give me some feedback on ISSUE AWA?

by proximityinfotech1 Thu Jul 08, 2010 3:10 am

The issue at hand is whether or not individuals should be rewarded based on years of service or performance and productivity. In order to encourage employees to perform at their best, they must be promoted and compensated based on how well they work, not on how long they have worked.
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StaceyKoprince
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Re: Would someone be able to give me some feedback on ISSUE AWA?

by StaceyKoprince Thu Jul 29, 2010 11:57 am

thanks for your input!
Stacey Koprince
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