Internal Recruitment vs External Recruitment: A Case Study of Desklib

ORGANIZATION BEHAVIOUR
Student’s Name
Course
Date

1
In my current organization, we believe in external recruitment where we make
recruitment of new staff every time there are vacancies in the organization. When our old staff
retire, we advertise for such positions in media and invite new qualified applicants who feel they
have satisfied the necessary requirements as we highlight in our advertisements. Similarly, we
don’t employ internal promotions which require an organization to promote their already existing
staff to fill positions in the higher positions whenever those vacancies arise. Rather, we directly
advertise those vacancies too and after successful processes of recruitment, the selected
applicants are passed through an interviewing committee who then shortlist and employ the
applicant with the sharpest competitive edge in terms of skills, experience and overall expertise.1
We are a manufacturing company that deals specializes solely in the manufacture of food
items such as cereals and grains into flours. Considering the high number of companies that deal
with the same processes and manufacture same items we do, we are often in a very competitive
field. Every manufacturing company seeks to get the best results that could win it a greater
market share and a sharper competitive edge than the rest. In our company, we believe that an
organization’s staff hold critical importance in facilitating the achievement of the overall stated
organizational goals and targets. Highly trained workers who are well specialized and
consequently well developed in their fields in terms of experience are able to give out high-
quality output with less wastage of resources and time. Subsequently, this helps the such an
organization to fair well in the competitive market as contributed by the high-quality output
produced as well as the low costs of manufacturing expenses incurred during the production
processes which enable the organization use lower prices as a competition tool.
1 Chan and William. "External recruitment versus internal promotion." Journal of Labor
Economics 14, no. 4 (2012): 555-570.

2
External recruitment enables our company to hire and employ workers from other
competitive company’s and facilitates the introduction of new skills into our company, which
subsequently make I more competitive as compared to the rest of the companies.2 However, our
company is faced with high rates of employee turnover where most of our employees spend only
a little time in our company before leaving the company. Such leavers are then replaced by new
employees externally recruited.3 This has led to increased losses in our company and even
reduced its competitive power against its competitors. This is highly attributed to the fact that
whenever new employees are hired, they take more time to settle and familiarize with the
functioning of pour company before they can finally be effective in their allocated production
fields. More still, those workers only remain productive for a little while before they exit our
company to other companies in need of their skills. When they settle in their new companies,
they employ our company’s secrets and makes their companies an even greater competitive
threat to our company.
Workforce motivation theories seek to understand the various factors that motivate
employees and consequently improve their loyalty towards an organization. Moreover, motivated
employees are more goal-oriented and they are more engaged in their activities which in turn
improves their productivity in the company.4 Managers who are well equipped with knowledge
relating to management theories often drive success into their organizations by investing in their
2 Chen and Kong-Pin. "External recruitment as an incentive device." Journal of Labor
Economics 23, no. 2 (2015): 259-277.
3 Hom, Peter W., and Rodger W. Griffeth. Employee turnover. South-Western Pub, 2011.
4 Cascio and Wayne. Managing human resources. McGraw-Hill Education, 2018.