Many organisations have HR policies or legal requirements that mandate open competition for roles above a certain level. In practice, these requirements can be satisfied on paper while the actual decision is made informally. A manager identifies who they want — a former colleague, a referral, a family connection — and posts the role externally to satisfy the process.
In larger organisations, the motivations are sometimes more banal: the external process protects the hiring manager if the chosen candidate underperforms, provides interview practice for the team, or generates a benchmark for salary negotiation with the internal candidate. In each case, external applicants are unpaid participants in a process that was never designed to select them.
The result is structurally identical to a ghost job: candidates apply, progress through rounds, and are then ghosted — because the decision was never theirs to affect.