As long as there is full disclosure and the ability for others to compete, I don't see a problem.  

It is better than the union-sponsored system I saw in State Government where the final person is pre-selected before the announcement is even made.   

Or the new person is forced on an organization because they e on their 3rd Work Improvement Program and are going to be fired unless the union can find them a place to further vegetate.  Saw that several times in State government and locally here at Duck U one of my relatives has had the same incompetence rewarded in her organization.

That's the sort of thing that deserves 'gross shame' in my opinion.