1) Limited Options: The recruitment of only internal candidates restricts the choice of management. The present employees may not be suitable to take up position of higher responsibility but there will be no option. A person will be selected only out of the available candidates. The outside candidates, even though they may be suitable, will not get a chance to show their talent.
Internal sources may dry up in the meantime and filling up of higher position will b-become a problem.
2) Lack of Originality: The present employees may not be able to bring new ideas. They will be accustomed to carry on things in the same old ways. New persons will bring fresh thinking and new methods may be tried.
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