In spite of these merits, this system also suffers from certain limitations. They are:
1) It is relatively easy to measure the length of service and judge the seniority.
2) There would be full support of the trade unions to this system.
3) Every party trust the management’s action as there is no scope for favoritism and discrimination and judgment.
4) It gives a sense of certainty of getting promotion to every employee and of their turn of promotion.
5) Senior employees will have a sense of satisfaction to this system as the older employees are respected and their inefficiency cannot be pointed out.
6) It minimizes the scope for grievances and conflicts regarding promotion.
7) This system seems to reserve the purpose in the sense that employees may learn more with increase in the length of service.