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It is better to choose the manager one of the team, because he knows very well the work environment
It is better to choose the manager one of the team, this will be a good stimulation to proove that they can get promotions. Obviously, the chosen employee for promotion should have or is able to developp the right skills for that.
It is better to choose the manager
It is good to promote one of the team to be a manager, that makes the employees more loyal and keen on their jobs. Besides, from time to time you have to make a rotation between managers, cause the new manager will investigate every point in his new job (like making a new budget from scratch), will add new ideas and will re-evaluate the subordinates based on their work only.
I see that Manager can be more variable if he was one of the team and he have the appelity to improve himself and the worke.
in my opinion, the manager should choose the team members as he is in better position to analyze the prospective members of the team.
It is better to select from existing employees because, select the efficient to do different strategy, who is familiarize with the same atmosphere. But need "bird's eye view" upon each and every team members.
