Lesson 84

BUSINESS ENGLISH!

Seniority System vs Merit System

Seniority system is synonymous with Japan’s employment system. However, with a few more steps, Japan wages move toward Merit system .

Having said that, let’s try to differentiate the two most common compensation system in many companies.

Merit System –is a kind of system pertaining an organization compensate and promotes employees based on their ability and performance, thus providing motivation leading to increased productivity.

 

Seniority System – this system entails employment preferences based on an employee’s length of employment at a given employer. The organization pays and promotes people based on the number of years they have been with the organization.

POINTS FOR DISCUSSION:

  • Workplace harmony
  • Motivation Boost

 

QUESTIONS:

  1. Which do you think is the better system?
  2. What are the advantages and disadvantages of each?

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