Editing Performance appraisal (section)

====The Last-In, First-Out (LIFO) Rule====
A common application of seniority is the Last-In, First-Out (LIFO) rule, which dictates that employees with the shortest tenure are laid off first during downsizing. This system provides stability for longer-serving employees and is considered fair in workforce reductions. However, critics argue that LIFO can hinder productivity by retaining employees based solely on tenure, regardless of their current performance or skills. For example, in technology-driven industries, newer employees may possess valuable skills or innovative approaches that senior workers might lack. As such, organizations sometimes face difficulties maintaining a competitive edge when LIFO rules limit their ability to retain high-performing but less-tenured staff. Nevertheless, the LIFO rule remains a vital aspect of many union agreements, particularly in traditional industries where seniority is highly valued.<ref name="Sampson 1990 Efficient union labour contracts">{{cite journal |last1=Sampson |first1=Anthony A. |title=Efficient union labour contracts under seniority employment rules |journal=Economics Letters |date=March 1990 |volume=32 |issue=3 |pages=299–305 |doi=10.1016/0165-1765(90)90116-I }}</ref><ref name="Fairweather 1952 Seniority Provisions">{{cite journal |last1=Fairweather |first1=Owen |title=Seniority Provisions in Labor Contracts Social and Economic Consequences |journal=DePaul Law Review |date=April 1952 |volume=1 |issue=2 |pages=191 |url=https://via.library.depaul.edu/law-review/vol1/iss2/2/ }}</ref>