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State any four limitations of Promotion. - Business Studies

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Question

State any four limitations of Promotion.

Answer in Brief

Solution

The four limitations of Promotion are:

  1. Employees promoted internally may lack necessary knowledge and abilities. Internal candidates may not have the requisite skills or knowledge for promoted roles, which can lead to poor performance and effectiveness.
  2. More talented outsiders may not be hired. Organisations may prioritise internal promotions over highly skilled external candidates, even if they are more qualified or talented for the post. This can result in missed opportunities to bring new viewpoints and experience into the organisation.
  3. Labour mobility is limited as individuals tend to remain with their current organisation. Promoting internally may deter individuals from seeking possibilities outside the company due to perceived limited opportunities for advancement. Employees may become less motivated to pursue new career options, resulting in stagnation and lower labour market competitiveness.
  4. Promotion choices can be biassed due to unclear criteria. Transparent and objective promotion criteria can prevent favouritism or personal prejudices from overshadowing merit or qualifications. Employees may feel unsatisfied and demotivated if they believe promotions are not based on their performance or ability.
shaalaa.com
Staff Promotion
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2023-2024 (February) Official
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