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Question

Shaan and Shree Ltd. is a firm manufacturing jute lampshades. It uses leftover jute pieces from various jute factories to manufacture economical lampshades, which are supplied to various hotels in the nearby towns. It employs men and women from nearby villages as workers for creating good lampshade designs.
Shaan and Shree Ltd, is not able to meet its targets. Nitin, the supervisor of the company, was told to analyse the reasons for the poor performance. Nitin found the following problems and suggested certain solutions in the working of the business. The number of workers employed was less than what was required for the work. As a result, the existing workers were overburdened. The firm decided to search for new workers and it asked the present employees to introduce candidates or refer their friends and relatives to the firm. This enabled the firm to put people to jobs and assured the attainment of objectives according to the plan.

Which of the following is not a demerit of the recruitment process being referred to in the above question?

[1 mark]

A
Unsuitable candidates may be promoted.
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B
A new enterprise cannot use this method.
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C
It is a cheaper source of recruitment.
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D
It is a cheaper source of recruitment.
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Solution

The correct option is C It is a cheaper source of recruitment.
Recommendation by employees is an internal source of recruitment. One of the merits of this method is that it is a cheaper source of recruitment.

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