1.

Despite internal sources of recruitment being economical, why do companies not always use this source? State any five reasons.

Answer»

The companies do not always use internal source of recruitment despite being economical because of the following reasons:

(i) It is an incomplete source as no organisation can fill all its vacancies from internal sources.

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

(iii) Spirit of competition among the employees may be hampered.

(iv) Frequent transfers of employees may often reduce the productivity of an organisation.

(v) Complete reliance on internal recruitment involves danger of inbreeding' by stopping 'infusion of new blood' into the organisation.

(vi) A new enterprise cannot use internal source of recruitment.

(vii) There is limited choice of candidates when the vacancies are to be filled from internal source of recruitment.



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