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Question

"Internal sources of recruitment are better than external sources of recruitment." How?
Explain by giving any four reasons.

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Solution

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.

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