What is the difference between a closed internal recruitment system and an open internal recruitment system?

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thanatassa eNotes educator| Certified Educator

Recruitment, especially for management or executive positions, is one of the most important parts of human resource management. Hiring the right staff is a crucial business decision. 

Recruitment can be internal or external, open or closed. Internal recruitment means hiring exclusively from within a company. This has the advantage of costing far less and a guarantee of hiring someone who is familiar with company culture. It can also boost employee morale and loyalty by showing that there is a path for internal promotion or career development. On the down side, it obviously generates a far smaller applicant pool than external recruitment and can lead to an inbred corporate culture.

In open recruitment, the information concerning an opening is made widely accessible (either internally or externally) and anyone who feels qualified can apply. In closed recruitment, a job opening is not announced and application is only by invitation. While closed recruitment is sometimes used for sensitive executive recruitment situations, where, for example, a board might not wish to make public their plans to defenestrate a CEO, it has several disadvantages. It can perpetuate an old boys' network, excluding women, minorities, and people of diverse backgrounds, and it can make employees suspect that promotions are not an open and transparent process but instead secretive and based on cronyism. While closed internal recruitment can facilitate an orderly succession in a case where an executive has been grooming a successor, it does not always result in as good a hire as might result from a more open process and wider applicant pool. 

farouk23 eNotes educator| Certified Educator

Internal recruitment is the process of filling job vacancies and open positions with employees from within the company. The applicant pool is limited only to those already employed within the organization.

In a close internal recruitment system, employees are not informed on job openings. The manager typically informs Human Resources of an opening and a list of potential internal candidates meeting the given criteria is drawn up. The manager then interviews the candidates and fills the position with the selected candidate. In an open internal recruitment system, employees are informed of open positions. In this process the manager notifies HR of a vacancy and then HR post the job opening publicly (within the company). Applications are then screened and a list of qualified candidates given to the manager for interview and selection. The manager then interviews and selects a candidate to fill the open position.