LFK is a coal－mining business．It has 135 employees who are all provided with training．After the dismissal of one of LFK＇s employees there is a job vacancy for a new supervisor．External recruitment will be used．The Managing Director is preparing a cash flow forecast for LFK．An extract is shown in Table 3．1． Do you think the advantages of external recruitment for a business are greater than the disadvantages? Justify your answer. .......................................................................................................................................
Exam No：0450_s25_qp_11 Year：2025 Question No：3(e)
Answer:
Award up to 2 marks for identification of relevant points. Award up to 2 marks for relevant development of points. Award up to 2 marks for a justified decision as to whether the advantages of external recruitment for a business are greater than the disadvantages.
Points might include:
Advantages:
- Brings new skills/ideas [k] improving productivity / efficiency [an]
- Wider choice of applicants [k] increases possibility of finding the best person for the job [an]
- Can bring valuable knowledge/experience of competition [k] so might gain a competitive advantage [an]
- Avoids creating a vacancy which will need to be filled [k]
- Avoids risk of upsetting employees when someone internal is promoted [k] which could demotivate/cause others to leave [an]
Disadvantages:
- Higher recruitment costs [k] increasing cash outflows [an]
- No knowledge of how business works / current operations [k] so may need (induction) training [an]
- More time spent / takes longer to fill vacancy [k] which could be used for other purposes [an]
Other appropriate responses should be credited.
Justification might include:
External recruitment can bring in new skills \([\mathrm{k}]\) improving productivity [an]. However, the new employee will not know how business works [k] so might need induction training [an]. External recruitment is better because the new ideas could lead to lower costs in the long term, [eval] which can more than cover the extra cost of any induction training needed [eval].
Points might include:
Advantages:
- Brings new skills/ideas [k] improving productivity / efficiency [an]
- Wider choice of applicants [k] increases possibility of finding the best person for the job [an]
- Can bring valuable knowledge/experience of competition [k] so might gain a competitive advantage [an]
- Avoids creating a vacancy which will need to be filled [k]
- Avoids risk of upsetting employees when someone internal is promoted [k] which could demotivate/cause others to leave [an]
Disadvantages:
- Higher recruitment costs [k] increasing cash outflows [an]
- No knowledge of how business works / current operations [k] so may need (induction) training [an]
- More time spent / takes longer to fill vacancy [k] which could be used for other purposes [an]
Other appropriate responses should be credited.
Justification might include:
External recruitment can bring in new skills \([\mathrm{k}]\) improving productivity [an]. However, the new employee will not know how business works [k] so might need induction training [an]. External recruitment is better because the new ideas could lead to lower costs in the long term, [eval] which can more than cover the extra cost of any induction training needed [eval].
Knowledge points:
2.3.1.1. Recruitment and selection methods
2.3.1.2. Difference between internal recruitment and external recruitment
2.3.1.3. Main stages in recruitment and selection of employees
2.3.1.4. Recommend and justify who to employ in given circumstances
2.3.1.5. Benefits and limitations of part-time employees and full-time employees
2.3.2.1. Importance of training to a business and to employees
2.3.2.2. Benefits and limitations of induction training, on-the-job training and off-the-job training
2.3.3.1. Difference between dismissal and redundancy with examples
2.3.3.2. Understand situations in which downsizing the workforce might be necessary, e.g. automation or reduced demand for products
2.3.3.3. Recommend and justify which employees to make redundant in given circumstances
2.3.4.1. Legal controls over employment contracts, unfair dismissal, discrimination, health and safety, legal minimum wage
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