ACCA Strategic Professional · Strategic Business Leader · Enabling success: talent management
Brightwater Telecom has a flat structure and a strategy of rapid entry into new markets. Senior roles are rarely vacant, and it needs managers with a deep understanding of its culture within two years. The CEO proposes mainly filling senior vacancies through internal promotion and development rather than external hiring. Which is the main DISADVANTAGE of this approach the board should weigh?
The main disadvantage is the risk of limited new ideas and perspectives. Internal promotion brings known performers, cultural fit, lower induction cost and better motivation, but it narrows the pool and can reinforce existing thinking, which matters for a firm pursuing rapid entry into new markets.
- AHigher induction costs because new managers do not know the culture
- BRisk of limited new ideas and perspectives entering the organisationCorrect
- CGreater uncertainty about the candidates' true capabilities
- DLoss of motivation among existing staff who see no promotion prospects
Explanation
Internal sourcing gives known performers, lower induction cost and motivational benefits, but restricts the inflow of fresh ideas and skills, a drawback when entering new markets. The other options describe advantages or disadvantages of external recruitment, not internal.
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