Which of the following is an important merit of Internal source of re…

Which of the following is an important merit of Internal source of recruitment?

Answer & explanation

Correct answer: option 1

The correct answer is Option (1) → No need for induction training

Option (1) No need for induction training — Correct. People recruited from within the organisation already know its people and rules. So they do not need induction training, which saves time and cost.

Option (2) Competitive Spirit — Incorrect. Competitive spirit is a merit of external sources. When outsiders apply, the existing staff must compete with them and work harder. Internal recruitment may in fact hamper this spirit.

Option (3) Wider Choice — Incorrect. Wider choice is a merit of external sources. Wide advertising brings many outside applicants, so the management has a larger group to choose from.

Option (4) Fresh Talent — Incorrect. Fresh talent is also a merit of external sources. Outsiders bring new blood, while internal recruitment reduces the scope for fresh talent.

NCERT (2026-27 Edition): “Merits of Internal Sources Filling vacancies in higher jobs from within the organisation or through internal transfers has the following merits:
(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;
(ii) Internal recruitment also simplifies the process of selection and placement. The candidates that are already working in the enterprise can be evaluated more accurately and economically. This is a more reliable way of recruitment since the candidates are already known to the organisation;
(iii) Transfer is a tool of training the employees to prepare them for higher jobs. Also people recruited from within the organisation do not need induction training;”

“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.”