Question

Some organizations have long-standing practices of promoting from existing staff, as a consequence of which they rarely recruit outsiders to any senior position. Staff turnover is very low. Other organizations have frequent management and structural changes, and often recruit senior managers from outside the organization.

Requirement:

Explain the differences in control systems and approaches to management control that could be expected with these alternative practices.

Answer 1

Deciding on which is the best method of recruitment is a big task. Because depending on the type of company, which suits them would be selected.

In a company where more employee inter communication takes place, it would be better to go for external recruitment.

The differences would be as follows.

1. Advantages of internal recruitment,
   1. Cost cuts,
   2. Employee relations,
   3. Learning curve effect and so on.
2. Advantages of external recruitment,
   1. Reduces scope of employee frauds,
   2. Stir between employees will be reduced,