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For that case we have probation period
On of the crucial part in the organization is recruitment and selection,once the organization fail to recruit the right person to right position defiantly its de motivate the entire organization and increase the total cost. Usually what will happen is that gossip are spread across the department and demotivate the entire team performance.
The productivity shall be reduce through ideal the human being in the department, has not taken place any idea generation and innovation
It would impact in the hiring cost and dissatisfaction. Even though the probation period is there, it would be a burden again to process another selection.
