Business and Management HL: Human Resources

 When a business hires people who already work within the company to fill a vacant spot.  Happens when:  Business is trying to restructure organization.  Internal candidates apply for a promotional post in the firm.

 More Cost Effective  Recruitment costs cheaper  Recruiting from within the company is faster  Less Down-Time  Internal People already familiar with how business operates.  Resources needed for induction and training are reduced

 Motivational  By providing promotional opportunities, staff feel more valued.  Staff work harder to get the vacant position they are working on.  Less Risk  Organization is more familiar with strengths and weaknesses of internal candidates therefore would know exactly who would best fit vacant position.  External candidate’s abilities and skills may be overestimated.

 Fewer Applicants  Limited number of potential applicants.  External Applicants may be of better quality than internal candidates  Time Consuming  When internal candidate is relocated or promoted, there would be another vacant spot which needs to be filled.  Overall, company takes a longer time filling in subsequent vacant spots than if it recruited externally.

 “Dead Wood” (When a business has stale and outdated working practices )  If company does not recruit externally, it will be difficult to get new ideas from outside organization.  Internal Politics  Resentment and conflict may occur amongst fellow workers who failed to gain the promotion.  Creates an uncomfortable working environment.

 The process where a business hires from outside the organization.

 Newspaper Advertising  Specialist Trade Publications (when business advertises job through a specific target audience magazine. Ex. Ad’s for teaching jobs are published in Times Educational Supplement)  Internet Advertising  Commercial Employment Agencies (when E.A. is paid to advertise and interview suitable applicants for a job. They make recommendations for selection. Saves a lot of time)  Job Centers  Headhunting (Refers to poaching of a person from current employer, due to person’s experience and expertise. Person is usually offered a contract with a pay deal that is too good to resist.)  University Visits  Direct Contacts (Personal recommendations made by a current employee who is in contact with a person with the necessary skills and qualities to fit vacancy.)

 New Blood.  Bringing in of new ideas from outside of organization.  Can contribute to sharing of good practices and may give information on how rival firm may have done things.  Wider range of experiences  Recruits may have experiences and skills that is suitable for business but are not possessed by internal candidates

 Larger Pool of Applicants  There’s a wider range and larger number of people to choose from for the job.  Increases chances of finding and selecting the most ideal candidate for the job

 Time Consuming  Process is very long and includes: External advertising, screening of applications, short- listing suitable candidates, interviewing and taking up references.  Expensive  Advertisements such as in newspapers, can be very expensive.  Businesses may also need to reimburse short- listed candidates for travel expenses.

 Great Degree of Uncertainty  When hiring external recruits, management do not really know external candidates, therefore take the risk that candidates can perform well on the job or not.