Explain the limitations of internal sources of recruitment.

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.

(iv) Sense of Competition among Employees Hampered: Sense of competition is aroused when one is confronted with a better qualified employee. This recruitment system hinders the entry of better qualified employees. Therefore, the employees do not get a chance for any competition.