‘Filling vacancies from within the organisation has some advantages as well as

limitations’. Explain any three such advantages and any three limitations.

Merits: Merits of internal sources of recruitment are as under:

(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.

Limitations: Following are the limitations of internal sources of recruitment:

(i) Stops the entry of Young Blood: The greatest defect in the system of internal recruitment is that the young and technically sound people do not get a chance to enter the company. Consequently, old people run the organisation with the help of their out-dated ideas and no new idea can develop.

(ii) Employees become Lethargic: Internal source of recruitment creates a definite feeling of promotion among the employees. This feeling makes them lethargic and it affects their performance.

(iii) Not Available in New Organisations: Recruitment through this source is possible only in the previously established organisations. The new organisations have to make use of the external source. Moreover, it is not essential that the entire recruitment need of the old organisations may be fulfilled through this source.