Does hiring a new graduate or less experienced candidate create a major impact in an organization performance or productivity wise? Yes/No and why?

It depends on the percentage of fresh graduate from the total employees and on the nature of the company's business.

if the percentage is high and the business needs skillful employees (planes manufacturing, for example), performance will go down, if the business  needs less skills (like telemarketing) the percentage has low impact, and so on.

I really don't understand why having less than2 years of experience or being a new graduate is a big issue during an interview. All of us started from zero and yet we learned and we became competitive, efficient and effective as we can be. Being a newbie or having less experience doesn't mean we can not do the job. We can, all we need is exposure to apply the theoretical principles that we have learned in the university or college.

So what if the candidate has less experience or newbie? Companies nowadays are very aggressive in setting up training programs for their staff - especially the new ones because they believe that they have all the potentials within and it just needs to be cultivated. Developing employee has never been important and there's no reason to be hesitant in hiring a newbie or less experienced one. A very good HR Manager always have an "eye" for a potential candidate and will not consider the years of experience as a setback in hiring him or her, considering the fact that he will not be given a supervisory or managerial level (yet). Another important thing to look up is the attitude which can be observed during the interview. Sad to say, some HR executives are still in the "old school" of evaluating and considering a candidate - i.e. hiring somebody because of an MBA or Ph.D. degree. Having an MBA or Ph.D. does not and will not assure you that he/she is the right person for the job.

So, my answer is No.

and I rest my case...