Mr. Bhim Rajanwala is working as a personnel manager in a company of Delhi. Although he is not well educated he is an experienced person. Before this, he has worked on this post in two large companies. His intention is always in promoting an efficient employee to a higher post and in demoting inefficient one to a lower vacant post:

(i) State on what source of recruitment is Mr. Rajanwala concentrating?

(ii) What are the benefits of company which is depriving by using this source?

(i) Mr. Rajanwala is concentrating on internal source of recruitment.

(ii) By using this method the company is depriving of the following benefits.
Merits: External recruitment source has the following merits:

(i) Qualified Personnel: The external source of recruitment gives an opportunity to the qualified people from outside the organisation to enter it. This benefits both the organisation and the applicants from outside.

(ii) Wider Choice: By using the external source of recruitment, the number of applicants increase manifold which in turn increase the area of choice. The managers can appoint the most talented persons after examining the capabilities and talents of all the applicants.

(iii) Fresh Talent: The external source of recruitment helps the people with new and modern ideas to enter an organisation which certainly helps the organisation.