What is the meaning of Internal Source of Recruitment? Why do organisations prefer recruitment through internal sources? Explain.

Internal sources of recruitment means finding candidates for a job from within the organisation.

Organisations prefer recruitment through internal sources because of the following reasons:

(i) Increase in Motivation: Motivation of the employees of the organisation is boosted when recruitment is made by internal sources, particularly by promotion. If they know before hand that their promotion is possible, they will feel inspired. Ambition to occupy post of higher rank will add to their morale and they will perform their existing duty with utmost care and efficiency.

(ii) Industrial Peace: Because of promotional avenues employees get satisfied and hence, industrial peace is established. The promotion process continues from top to bottom in the whole organisation. This motivates the employees to enhance their performance through learning and practice.

(iii) Easy Selection: Organisation has full information about the employees working there. As such, their selection for the higher post involves no risk.

(iv) No Need of Induction: Induction means to acquaint the employees with their job and the organisation. In this source of recruitment, this information is already available to the employees. Hence, there is no need of induction in this case.

(v) Adjustment of Surplus Employees: Under this method, the employees from the departments where they are in surplus, are transferred to those where there is shortage of staff. In this way, the deficiency of staff is met out. Hence, no hurdle in the work takes place.