Consider the following statements about external sources of recruitme…

Consider the following statements about external sources of recruitment:

(A) When vacancies are advertised widely, a large number of applicants from outside the organisation apply.

(B) External recruitment improves the motivation and loyalty of the existing employees.

(D) When a company taps external sources, the existing staff have to compete with the outsiders.

Choose the correct answer from the options given below:

Answer & explanation

Correct answer: option 2

The correct answer is Option (2) → (A), (C) and (D) only

(A) When vacancies are advertised widely, a large number of applicants from outside the organisation apply. — Correct. This is the merit of wider choice. Many outside applicants give the management more people to choose from.

(B) External recruitment improves the motivation and loyalty of the existing employees. — Incorrect. Better motivation and loyalty is a merit of internal sources, where a promotion leads to a chain of promotions. External recruitment may instead cause dissatisfaction among existing staff.

(C) External recruitment brings new blood in the organisation. — Correct. This is the merit of fresh talent. Outsiders bring new blood when present staff are too few or unfit.

(D) When a company taps external sources, the existing staff have to compete with the outsiders. — Correct. This is the merit of competitive spirit. Facing outsiders, the existing staff work harder to show better performance.

NCERT (2026-27 Edition): “Merits of Internal Sources … (i) Employees are motivated to improve their performance. A promotion at a higher level may lead to a chain of promotion at lower levels in the organisation. This motivates the employees to improve their performance through learning and practice. Employees work with commitment and loyalty and remain satisfied with their jobs. Also peace prevails in the enterprise because of promotional avenues;”

“Merits of External Sources … (ii) Wider Choice: When vacancies are advertised widely, a large number of applicants from outside the organisation apply. The management has a wider choice while selecting the people for employment.
(iii) Fresh Talent: The present employees may be insufficient or they may not fulfill the specifications of the jobs to be filled. External recruitment provide wider choice and brings new blood in the organisation. However, it is expensive and time-consuming.
(iv) Competitive Spirit: If a company taps external sources, the extisting staff will have to compete with the outsiders. They will work harder to show better performance.”

“Limitations of External Sources 1. Dissatisfaction among existing staff: External recruitment may lead to dissatisfaction and frustration among existing employees. They may feel that their chances of promotion are reduced.”