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Benefits of Internal Promotion

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While the new operation will be hiring many candidates externally, there are a number of jobs that would be attractive to employees from the eight similar operations. For example, the HR department will have a staff of about 15, six of whom will be at the managerial level and there are distinct advantages to promoting employees from a similar operation elsewhere in the company.

A key element of an effective performance management program is creating opportunities for employees to move up within the organizational structure. Some key elements of a successful performance management program would be:

A succession planning program to fill key positions quickly after they become open.
A career path program for individual employees.
An internal promotion program.
As an external expert in this area, you have been asked to work with a group of subject matter experts (SMEs) to develop a succession planning program, a career path program for employees, and an internal promotion program. You intend to base these plans on current research and on the facility described below:

The new facility will be a multi-purpose regional office with 1500 employees in a variety of disciplines. The new employees will be hired for all positions, ranging from a regional VP and senior staff functions, to the customer service team, and the distribution/warehouse team with 400 employees. The new facility will be similar to eight existing facilities in other regions.

Instructions
Describe the advantages of promoting from within the organization, based on current information from both application and research articles in the fields of staffing and promotion.
Include examples of organizations that successfully use internal recruiting.
Select an area of the facility described above and recommend a succession plan for at least two levels of the facility (for example, manager, two assistant managers, six department supervisors).
Create effective development plans to prepare people to move into these higher level positions, based on current information from both application and research articles from the areas of human resource development and staffing.
Propose how you would integrate a research-based career path program into the succession plan. Justify your recommendation with research.

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Solution Summary

Opportunities for employees to move up the organization is discussed in a structured manner in this response. The related references are also provided.

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Since the new facility will be a multi-purpose regional office with 1500 employees in several disciplines there are several advantages of promoting from within the organization. Those who are promoted from within have a good understanding of the organization, its culture, and its values. Also, those promoted from within have a strong network of relationships within the organization. Usually, those who are promoted from within have a mentor in upper management who steers them through obstacles and help make them successful (1). When an employee is promoted from within, the company recognizes the qualifications, characteristics, and skills it wants in its leadership team. Also, internal promotion has a positive impact on the morale of the employees because they see that hard work, perseverance, and good performance pay off. At the same time, the company will save time and money to fill open posts with its existing employees. For example, if a supervisor is promoted to the position of assistant manager, the company does not have to invite applications, screen applicants, interview and select the best applicant, provide orientation, and train the person to assume the position of assistant manager. One of the key benefits of promoting people internally is that the company knows the strengths and weaknesses of the person and is in a better position to select the right person for the position. Also, when individuals are promoted from within the managers can identify persons with leadership qualities and promote them to leadership positions. When an internal person is promoted it creates a high degree of loyalty to the firm. When a person is promoted from within the company can see that hard work and contribution to the firm matter. This motivates the entire organization. Moreover, such promotions increase the morale, retention, and engagement of employees throughout the organization. Even new employees are motivated when they see internal promotions because they see good prospects in the company. Internal promotion gets employees who have firsthand experience in the company and real-life experiences in the company itself. A person internally promoted reaches his potential faster; he knows the nuances and the organizational structure. He already has knowledge about the company's competitors, the software being used, and the way things are done in the company (2). An internally promoted person has high job efficacy, because of his knowledge of the company, and his connections within the company. One of the great advantages of internal promotions is that recruitment, especially at higher levels is expensive, using a recruiter is costly, and training the new employee is dear. Also, in the case of internal promotions, the employees have already supported the cause of the firm, its vision, and its mission (3). It is a way of rewarding hard-working personnel in the company. Internal promotions also show that the company appreciates, encourages, and prizes hard work. Another advantage of internal promotions is that there is no need for onboarding or orientation for an internally promoted person. There is a seamless change to new duties when promoted from within. Since the internally promoted person knows the company culture he can get synergies when he leads teams (4). The internally promoted person knows the company's operations, has an established understanding of the company, and helps increase employee retention. Moreover, internal promotions attract people to the company because it supports internal growth. Internal promotions also lead to increased employee satisfaction; those promoted from within have a good fit with the company and have greater ...

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  • BSc , University of Calcutta
  • MBA, Eastern Institute for Integrated Learning in Management
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