Question

"Filling vacancies from within the organisation has some advantages as well as limitations."

Explain any three such advantages and any three limitations?

Answer 1

Under internal source of recruitment, the vacant job positions are filled by inducing the existing employees of the organisation. It implies shifting of the existing employees from one place/post to another place/post. This is called transfer. It also implies shifting an employee to a higher position carrying higher responsibilities, facilities, status and pay, through promotions.

Internal sources of recruitment are:

(i) Transfer It means shifting of employees from one job position to other at the same level of authority. Only the working place is changed. Therefore, it refers to horizontal movement of the workers. Transfer does not involve any drastic change in the responsibilities and status of the employee.

(ii) Promotion It refers to shifting of employees from one job position to the other with higher level of authority. Here, employees move in, upward direction within an organisational structure. There is also an increase in compensation or salary, e.g. promotion of a clerk to the post of an accountant.

Internal sources of recruitment are better than external sources in the following respects:

(i) Economical sources Internal sources are less time consuming and less expensive because the organisation and the employees are already known to each other.

(ii) Simplifies the process of selection Since, the employees are already known to the organisation, therefore, the process of selection and placement gets simplified.

(iii) Motivates employees Filling higher level jobs through promotion helps to improve the motivation and morale of employees as they know that they can be promoted to senior position in the organisation if they work harder for the organisation.

(iv) Sense of security Internal recruitment creates a sense of security among the staff.

(v) No problem in adjustment As the organisation and the employees are familiar with each other, this leads to smooth functioning of the enterprise without any problem in adjustment on the part of the new employees or the organisation.

Limitations of internal sources of recruitment are as follows:

(i) No scope for fresh talent Internal sources may not be able to bring new competent fresh talent, ideas and latest technical know-how.

(ii) Not suitable for new organisation A new enterprise cannot use internal sources of recruitment. No organisation can fill all its vacancies from internal sources.

(iii) Limited choice The choice is limited as the recruitment can be made only out of the candidates available within the organisation.

(iv) Employees become lethargic The employees may become lethargic if they are sure of time bound promotions.