Principles and practice of management revision question and answer

Principles and Practice of Management notes and Revision questions and answers

An organisation is recruiting additional staff and has decided to compare the benefits of appointing existing internal staff with that of appointing external candidates.

a) Define and describe the advantages of internal promotion
b) Define and discuss the advantages of external recruitment
c) Describe three factors that should be taken into account when deciding upon whether to use recruitment consultants.


Recruitment of staff, especially if large numbers are involved, may be time consuming and a drain on resources. Additionally, the expertise may not exist within the organisation, requiring the organisation to seek suitable candidates outside.

a) Internal promotion describes the situation where an organisation has an explicit policy to promote from within and where there is a clear and transparent career structure. This is typical of many management and administrative staff and of certain sectors of the economy such as the public services.

The advantages of internal promotion include:

I. it acts as a source of motivation and provides good general morale amongst employees
II. staff seeking promotion are known to the employer
III. inexpensive in terms of time and money
IV. training and induction costs are minimised
V. further training can be product and organisation specific
VI. the culture of the organisation is understood the individual
VII. illustrates the organisation’s commitment to encouraging the staff
VIII. the individual will already be familiar with the other members of the organisation

b) External recruitment describes the situation where the organisation decides to recruit someone from outside the organization to fill a staff vacancy.

The advantages of external recruitment include:
i. May be necessary if particular skills or expertise are not available within the organisation
ii. Is necessary to restore staffing levels o where an organisation urgently needs new employees
iii. Can bring new ideas and novel approaches to the organisations and to the specific task
iv. Provide experience and work methods from other employers

c) Any organisation which is considering the use of external recruitment consultants would make its decision upon the following:
i. The availability, level and appropriateness of expertise available within the organisation and its likely effectiveness
ii. The cost of using the consultants against the cost involved in using the organisation’s own staff, recognising the level of the vacancy or vacancies against the consultant’s fee
iii. The particular expertise of the consultants and the appropriate experience with any particular specialised aspect of the recruitment process
iv. The level of expertise required of potential employees and therefore the appropriate knowledge required of the consultants
v. The need for impartiality; this may be of particular importance with pubic sector appointments, organisations with particular needs of security or impartiality or where it is felt that an external, objective assessment is required.
vi. The time involved in the consultants needing to learn about the organisation, its requirements and the vacancy or vacancies
vii. If there is a ready supply of labour then consultants may be less useful, standard vacancies may be readily filled advertising or similar inexpensive means
viii. The views of internal staff as to the likely effect of using outside consultants
ix. What effect the use of consultants might have on the need to develop expertise within the organisation, the use of consultants will not assist with developing internal organisational expertise
x. The likelihood of existing staff to have misgivings about the presence of, or recommendations of, outside consultants which can lead to mistrust and rejection of any candidates recruited the consultants.

Principles and Practice of Management notes and Revision

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