Business Essentials (12th Edition) (What's New in Intro to Business)
Business Essentials (12th Edition) (What's New in Intro to Business)
12th Edition
ISBN: 9780134728391
Author: Ronald J. Ebert, Ricky W. Griffin
Publisher: PEARSON
Question
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Chapter 10, Problem 10.1QR
Summary Introduction

To explain: The pros and cons of internal and external recruiting and the appropriate situation for both.

Expert Solution & Answer
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Explanation of Solution

Internal recruiting:

Advantages:

  • It builds morale and provides motivation to employees when peers see other peers get promoted.
  • The process of teaching the culture of the business is not required.

Disadvantages:

  • It may lead to new fewer ideas.
  • It will create a new opening in the firm that requires recruitment process.
  • It could create resentment among other employees because of the reason that other employees are being promoted.

External recruiting:

Advantages:

  • It brings new ideas and knowledge into the firm.
  • It increases workforce diversity.
  • It can give a new idea about the marketplace and the competition present.

Disadvantages:

  • It will lead to training costs.
  • Temporary efficiency loss.
  • Loss of morale.

Internal recruiting will be more suited to a situation where there is very much to learn from outside as the firm itself has tremendous knowledge of the business. External recruiting will be more suited in a situation when the company needs new ideas and direction to make a considerable impact changes to its fortunes.

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