XYZ Limited  CAST STUDY  solution

Please read the case given below and answer the questions given at the end :
XYZ Limited is a public sector undertaking with a staff strength of around 1,200 including 300' officers. As per the recruitment policy of the company , most employees join as trainees and after successful completion of training , are absorbed at the lowest intake level. Thus, in the case of workers , most start as Technician/Operator Trainees and officers , as Management Trainees. The company expects the higher posts to be filled by promotions and therefore , as far as possible , direct recruitment to higher positions is avoided. Only when there is an urgent requirement of a person to fill a higher post and no candidates from within the organisation are eligible, is an open advertisement released. In 1982, the company urgently needed one Junior Engineer (Instrumentation) ) to take charge of one of its plants. At that time, the company had four Junior Engineers (JEs) in position who had joined as Management Trainees in 1980 and had been regularised in 1981. Immediately above them was an Assistant Engineer, who in turn reported to the Project Manager. The company released an advertisement for the post of JE , seeking applications from those with at least two years' experience in the field. One Mr. Ramesh Chaudhari , who had four years ' experience in a private concern applied and was selected. He found the terms of appointment lucrative and joined the company in May 1982. As four JEs were already working in the company, Chaudhari became the junior - most JE as per the promotion policy of the company ; the four JEs would become eligible for promotion to the post of ' Assistant Engineer' in 1985 (on completion of four years 'service ) and Chaudhari in 1986. In July 1983, the Assistant Engineer left his job and hence, the company decided to fill the vacancy by direct recruitment. In the advertisement it was stipulated that the applicants should have a minimum of five years' experience. Chaudhari met the specification since he had four years previous experience plus one year in XYZ Ltd. Therefore, he applied for the post through proper channel. The company decided to call all the eligible candidates for interview. Accordingly, Chaudhari was also called along with the external candidates. He performed exceedingly well in the interview and was found suitable for the post. The General Manager (GM) , who was chairman of the selection committee, congratulated Chaudhari and told him that he had been selected. However, the GM changed his mind subsequently and asked the Personnel Officer not to issue the appointment letter to Chaudhari. He gave the following reasons for reverting his decision : MS-2 2 1 Mr. Chaudhari would get a higher post after completion of just over one year's service in the organisation as against the normal requirement of four years. 2. When Mr. Chaudhari joined , he was junior to the four JEs by about one year. If he was offered the higher post , he would suddenly become their boss. This would demoralise the JEs - in fact they had already decided to seek jobs elsewhere if Chaudhari became Assistant Engineer. The GM was convinced that he could not afford to lose four JEs and therefore , he chose to disappoint Chaudhari.
Questions :
1. If Chaudhari had been an external candidate , would he have got the job ? As an internal candidate , did he deserve to be treated in a different fashion ?
2. Did the management make a mistake in calling Chaudhari for an interview and selecting him, when he was "too junior " in the organisation ?
3. Are there any drawbacks in the recruitment / promotion policies of the company ? If yes , elaborate them .