Advantages of Outside Recruitment

•    There is a wider choice as there are more people to choose from.
•    Brings people into the organization who have different ideas, opinions, experience and backgrounds.
•    Helps give the organization a totally new direction especially when a firm is not doing very well.

Disadvantages

•    Expensive and more time consuming.
•    Wastes valuable time through orientation.
•    The new person will lack experience and how the organization functions, he will take time to grasp the workings of the firm.
•    It is difficult to evaluate a person from outside effectively, a defective quality may be missed in the interview especially qualities that need subjective judgement.

Note:

•    Recruitment of managers must involve gathering of information about the likely candidate. There are several sources of information and they include, past performance, personal interviews, in-depth investigations (gather data on an individuals habits, financial stability, family life, criminal records, etc) or from tests and assessments. The tests used are either intelligence tests, achievement tests, interest tests or aptitude tests.

•    Forecasting the need for managers

The supply of managers in an organization cannot remain constant throughout. Managers leave for other firms, some retire, some are sacked, some may die etc. To avoid being understaffed or staffed with wrong managers an organization must plan for the needs of its managers. This planning or forecasting can follow certain distinct steps.

•    Taking inventory of existing managers
•    A firm must always have an updated organizational chart showing existing managers by levels.
•    Estimate growth/decline (attrition)

    Past history should give some data on who might need to be replaced.

•    Evaluate quality of existing managers

A firm should know the managers who qualify for any of the levels on management. Situations change and occur that may affect the qualifications of managers. A manager who was qualified last year may be unqualified this year due to environmental factors e.g. use of sophisticated technology or the expectations of workers and the society changes, changes do affect the work of managers and some may be unable to respond accordingly.