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43-479: In some military command structures , the length of time someone has held a particular rank is called "seniority in grade" and determines whether that person is senior to another person of the same rank . For instance, a captain who was promoted five years ago can give orders to a captain who was promoted three years ago. Seniority in United States politics , when used out of context, is informally defined as

86-437: A First Officer to the rank of a Captain . Engine drivers with many railways also have a seniority list, but it is focused on work scheduling. Younger engine drivers often serve as back-up personnel and must help out on a very short notice – for example when a colleague calls in sick or has a delay. Command structure A command hierarchy is a group of people who carry out orders based on others' authority within

129-452: A factor of production is generally defined as the change in output resulting from a unit or infinitesimal change in the quantity of that factor used, holding all other input usages in the production process constant. The marginal product of labor is then the change in output ( Y ) per unit change in labor ( L ). In discrete terms the marginal product of labor is: In continuous terms, the MP L

172-594: A certain time-span of employment to have a guaranteed position in a company, they will not grow professionally once they have reached their mark. During the late 20th century in the United States, the federal government stopped emphasizing seniority as the primary basis for pay raises for its workforce. The Reagan administration replaced a seniority-based system for pay increases for its white collar government workers. The new system included performance appraisal . In personnel economics , some researchers take

215-493: A command hierarchy tend to be similar: However, people of such compatible views often have similar systemic biases because they are from the same culture. Such problems as groupthink or willingness to accept one standard of evidence internal to the group, but require drastically higher evidence from outside, are common. In part to address these problems, much modern management science has focused on reducing reliance on command hierarchy especially for information flow , since

258-486: A duty or order and appeals for relief directly to an officer above his immediate commander in the chain of command is likely to be disciplined for not respecting the chain of command. Similarly, an officer is usually expected to give orders only to his or her direct subordinate(s), even if only to pass an order down to another service member lower in the chain of command than said subordinate. The concept of chain of command also implies that higher rank alone does not entitle

301-474: A field that does not reinforce their efforts with employment. Secondly, the security of tenure often encourages mediocrity. Employees with the knowledge that their spot in the workplace is secured will naturally become less likely to improve their working ethics as they may no longer view improvement as a necessity. Lastly, a system rewarding individuals for their hiring date does not encourage professional growth. If individuals are aware they only have to reach

344-495: A higher-ranking service member to give commands to anyone of lower rank. For example, an officer of unit "A" does not directly command lower-ranking members of unit "B", and is generally expected to approach an officer of unit "B" if he requires action by members of that unit. The chain of command means that individual members take orders from only one superior and only give orders to a defined group of people immediately below them. If an officer of unit "A" does give orders directly to

387-440: A lower-ranked member of unit "B", it would be considered highly unusual (i.e., a faux pas, or extraordinary circumstances, such as a lack of time or inability to confer with the officer in command of unit "B") as officer "A" would be seen as subverting the authority of the officer of unit "B". Depending on the situation or the standard procedure of the military organization, the lower-ranked member being ordered may choose to carry out

430-443: A paramilitary command or power structure. In sociology , command hierarchy is seen as the most visible element of a "power network." In this model, social capital is viewed as being mobilized in response to orders that move through the hierarchy leading to the phrase "command and control". Regardless of the degree of control or results achieved, and regardless of how the hierarchy is justified and rationalized, certain aspects of

473-411: A senior employee whose job position is being eliminated to displace a junior worker from their job. The junior employee thus losing the job might then "bump" another, even more junior, person. Bumping rights usually come with restrictions, like requirement of a minimum period of employment before bumping is possible, allowing only moves to positions previously held, or limiting the departments or jobs where

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516-579: Is above the AP L the AP L will increase. Eventually the MP L reaches it maximum value at the point of diminishing returns. Beyond this point MP L will decrease. However, at the point of diminishing returns the MP L is still above the AP L and AP L will continue to increase until MP L equals AP L . When MP L is below AP L , AP L will decrease. Graphically, the AP L curve can be derived from

559-462: Is retaining institutional knowledge, erudite employees, and an opportunity for mentorship of new hires. It is important to make sure employees are here to stay. Though the principle of seniority does an effective job of protecting long-term employees, in some scenarios, it can fail to address several critical factors. Firstly, spots secured by seniority casts aside some of the most appealing perspectives. Individuals will become less driven to enter

602-401: Is shaped like an inverted “u”. At low production levels the AP L tends to increase as additional labor is added. The primary reason for the increase is specialization and division of labor. At the point the AP L reaches its maximum value AP L equals the MP L . Beyond this point the AP L falls. During the early stages of production MP L is greater than AP L . When the MP L

645-420: Is that the variable input is being changed while all other factors of production are being held constant. Under such circumstances diminishing marginal returns are inevitable at some level of production. Diminishing marginal returns differs from diminishing returns. Diminishing marginal returns means that the marginal product of the variable input is falling. Diminishing returns occur when the marginal product of

688-446: Is the change in total revenue per unit change in the variable input assume labor. That is, MRP L = ∆ TR /∆ L . MRP L is the product of marginal revenue and the marginal product of labor or MRP L = MR × MP L . In the aftermath of the marginal revolution in economics, a number of economists including John Bates Clark and Thomas Nixon Carver sought to derive an ethical theory of income distribution based on

731-457: Is the first derivative of the production function : Graphically, the MP L is the slope of the production function. There is a factory which produces toys. When there are no workers in the factory, no toys are produced. When there is one worker in the factory, six toys are produced per hour. When there are two workers in the factory, eleven toys are produced per hour. There is a marginal product of labor of five when there are two workers in

774-524: Is the profit maximizing usage of the variable input? To maximize profits the firm should increase usage "up to the point where the input’s marginal revenue product equals its marginal costs". So, mathematically the profit maximizing rule is MRP L = MC L . The marginal profit per unit of labor equals the marginal revenue product of labor minus the marginal cost of labor or M π L = MRP L  −  MC L A firm maximizes profits where M π L = 0. The marginal revenue product

817-455: Is the reciprocal of the marginal product of labor (∆ Q /∆ L ). Therefore, marginal cost is simply the wage rate w divided by the marginal product of labor (the change in quantity of labor to effect a one unit change in output) = 1 / M P L . {\displaystyle =1/MP_{L}.} Therefore M C = w / M P L {\displaystyle MC=w/MP_{L}} Thus, if

860-435: Is viewed sometimes both positively and negatively. Many elected officials are viewed as retaining their position only because they have been there for many years, which can reflect voter stagnancy and the benefits of incumbency. On the other hand, long years of incumbency can also be seen as a sign of the person's ability to continue pleasing voters or the use of seniority to deliver benefits to constituents. In some countries

903-542: The Dean of the Diplomatic Corps receives special treatment. In unionised companies, employees with more seniority may enjoy more work privileges. Here are examples: Seniority also has an influence over bumping rights, which is a reassignment of jobs, possibly for many people at a time. Some traditionalist employers, common in smaller, single-operated business, take a "last in, first out" (LIFO) - notably in

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946-516: The amount of their labor input . This is known as the Labor theory of value . Marx characterizes the value of labor as a relationship between the person and things and how the perceived exchange of products is viewed socially. Alejandro Valle Baeza and Blanca Gloria Martínez González, Researchers compared productivity levels from countries that pay based on the marginal productivity and labor theory. The found that across countries, marginal productivity

989-402: The bumping can occur. Commercial aviation pilots working for a carrier have their privileges determined by their seniority or generally known as the "pilot seniority list." These privileges can be income level, routes flown, types of aircraft, work schedules and positions. Seniority is most important when deciding which pilots to upgrade to a larger, more complex aircraft type; or for upgrading

1032-658: The chain of command, but staff officers in specialist fields (such as medical, dental, legal, supply, and chaplain ) are not, except within their own specialty. For example, a medical officer in an infantry battalion would be responsible for the combat medics in that unit but would not be eligible to command the battalion or any of its subordinate units. The term is also used in a civilian management context describing comparable hierarchical structures of authority. Such structures are included in Fire Departments, Police Departments, and other organizations that have

1075-493: The cost of communications is now low, and the cost of management mistakes is higher. It is also easier to replace managers , so they have a personal interest in more distributed responsibility and perhaps more consensus decision making . Ubiquitous command and control posits for military organizations, a generalisation from hierarchies to networks that allows for the use of hierarchies when they are appropriate, and non-hierarchical networks when they are inappropriate. This includes

1118-425: The costs of the variable input, labor, or wL , where w is the wage rate and L is the amount of labor employed. Thus, VC = wL . Marginal cost (MC) is the change in total cost per unit change in output or ∆ C /∆ Q . In the short run, production can be varied only by changing the variable input. Thus only variable costs change as output increases: ∆ C = ∆ VC = ∆( wL ). Marginal cost is ∆( Lw )/∆ Q . Now, ∆ L /∆ Q

1161-411: The education sector - perspective, meaning those who have been there longest or who have tenure have the right to stay, whereas other employers take a "first in, first out" (FIFO) or "inverse seniority" viewpoint, which tends to emphasize a new or "fresh start" for the company. Seniority does have several positive factors to its name. Individuals may be drawn toward a specific field or occupation with

1204-405: The factory compared to one. When the marginal product of labor is increasing, this is called increasing marginal returns . However, as the number of workers increases, the marginal product of labor may not increase indefinitely. When not scaled properly, the marginal product of labor may go down when the number of employees goes up, creating a situation known as diminishing marginal returns . When

1247-471: The group. In a military context, the chain of command is the line of authority and responsibility along which orders are passed within a military unit and between different units. In simpler terms, the chain of command is the succession of leaders through which command is exercised and executed. Orders are transmitted down the chain of command, from a responsible superior, such as a commissioned officer , to lower-ranked subordinate(s) who either execute

1290-762: The idea that workers were morally entitled to receive a wage exactly equal to their marginal product. In the 20th century, marginal productivity ethics found few supporters among economists, being criticised not only by egalitarians but by economists associated with the Chicago school such as Frank Knight (in The Ethics of Competition ) and the Austrian School , such as Leland Yeager . However, marginal productivity ethics were defended by George Stigler . A Review of Economics and Economic Methodology argues against pay to their marginal product to pay equal to

1333-426: The knowledge that seniority is obtainable. If seniority were to be banished as a whole, many higher paid employees would be fired first just because they make more money than their peers. Seniority does an effective job in helping people, interested in staying at one organization, in working towards having a "marathon" career. One of the goals of a seniority system is employee retention , which ensures an organization

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1376-428: The law of diminishing marginal returns. The law states, "as units of one input are added (with all other inputs held constant) a point will be reached where the resulting additions to output will begin to decrease; that is marginal product will decline." The law of diminishing marginal returns applies regardless of whether the production function exhibits increasing, decreasing, or constant returns to scale. The key factor

1419-401: The marginal product of labor becomes negative, it is known as negative marginal returns . The marginal product of labor is directly related to costs of production . Costs are divided between fixed and variable costs . Fixed costs are costs that relate to the fixed input, capital , or rK , where r is the rental cost of capital and K is the quantity of capital. Variable costs (VC) are

1462-410: The marginal product of labor is rising, then marginal costs will be falling, and if the marginal product of labor is falling, marginal costs will be rising (assuming a constant wage rate). The average product of labor (APL) is the total product of labor divided by the number of units of labor employed, or Q/L . The average product of labor is a common measure of labor productivity. The AP L curve

1505-429: The notion of mission agreement , to support "edge in" as well as "top-down" flow of intent. Marginal revenue product of labor In economics, the marginal product of labor ( MP L ) is the change in output that results from employing an added unit of labor . It is a feature of the production function and depends on the amounts of physical capital and labor already in use. The marginal product of

1548-598: The number of years one member of a group has been a part of the group. As of March 2022, Hal Rogers is Dean of the United States House of Representatives , the most senior member of the House of Representatives , having represented Kentucky since 1981 (21 terms). However, "seniority" can also refer to political power attained by position within the United States Government. Seniority

1591-456: The order anyway, or advise that it has to be cleared with his or her own chain of command first, which in this example would be with officer "B". Refusal to carry out an order is almost always considered insubordination ; the only exception usually allowed is if the order itself is illegal (i.e., the person carrying out the order would be committing an illegal act). (See superior orders .) In addition, within combat units, line officers are in

1634-548: The order personally or transmit it down the chain as appropriate, until it is received by those expected to execute it. "Command is exercised by virtue of office and the special assignment of members of the Armed Forces holding military rank who are eligible to exercise command." In general, military personnel give orders only to those directly below them in the chain of command and receive orders only from those directly above them. A service member who has difficulty executing

1677-405: The point where MP L (which is the slope of the total product curve) equals the AP L (the slope of the secant). Beyond this point the slope of the secants become progressively smaller as AP L declines. The MP L curve intersects the AP L curve from above at the maximum point of the AP L curve. Thereafter, the MP L curve is below the AP L curve. The falling MP L is due to

1720-446: The total product curve by drawing secants from the origin that intersect (cut) the total product curve. The slope of the secant line equals the average product of labor, where the slope = dQ/dL. The slope of the curve at each intersection marks a point on the average product curve. The slope increases until the line reaches a point of tangency with the total product curve. This point marks the maximum average product of labor. It also marks

1763-414: The value of their production in later years. The continuous rising of the wage based on seniority at the firm ensures that shirking, which can lead to dismissal, becomes much more costly for employees due to the loss of the high wages they can expect when staying at a firm for a long time. Some collective agreements include so called bumping provision (also known as bumping rights . The bumping involves

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1806-404: The variable input is negative. That is when a unit increase in the variable input causes total product to fall. At the point that diminishing returns begin the MP L is zero. The general rule is that a firm maximizes profit by producing that quantity of output where marginal revenue equals marginal costs. The profit maximization issue can also be approached from the input side. That is, what

1849-417: The view that seniority pay is employed by firms as a solution to the problem of shirking. Since firms cannot always monitor the effort of their employees, they need to introduce an incentive for their employees to keep up the work. One way firms can accomplish this is through delayed compensation, in which employees are paid below the value of what they are producing in the first years at a firm, and paid above

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