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How do you move someone from junior to the next level? For me if someone has a better performance he/she should move to the next level regardless of the time he/she has been a junior. Are seniors consider that because of their performance?

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Each company has its own guidelines. A junior could be for example someone who focuses too much in the particular case of a problem rather than looking at the big picture. In interviews, for example, if they present you with a problem to solve and you don't have any follow up questions, you appear as less senior in the eyes of the interviewer.

This is just one of the criteria used, there are more.

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