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Tuesday, 10 December 2013 14:47

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Would you open administrative team positions for the new service line internally first? 

Yes,

The process is a good way of rewarding employees who have portrayed excellent skills in the job. This may motivate employees to increase their commitment to the organization. Sourcing internally is cost-effective compared to external hiring. The organization is likely to hire the best employees because the hiring team can access the past performance of the employee to assume the new positions.  The process has the potential of creating a successive promotion among employees. The process also reduces the likelihood of hiring new employees who have appealing papers but lack the necessary practical competencies. The hiring process is likely to be short


Are there some potential problems with this approach?

Despite its advantages, the process is likely to cause organizational inbreeding. The developed personnel may have a limited perspective to the organization and challenges facing the organization and generally the entire industry.  The organization will also be required to direct a lot of resources to train and develop the required competencies among the staff. Singling out certain employees for the new position is likely to trigger political infighting among employees for promotion. It potentially generates resentment and lack of cooperation between the newly promoted staff and the team he or she will be in charge of.  The process is also seen as a way of retaining status quo within an organization. Internal sourcing may also retain existing culture of the organization. This is a confront when the existing culture of the organization is faulty. The selection process is also likely to decrease the morale of the staffs who fail to capture the open positions.


Reference

Spector, B. (2010). Implementing organizational change: Theory into practice (2nd ed). Upper Saddle River, NJ: Pearson Prentice Hall


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