Which of the following is not a merit of internal sources of recruitment?

A new enterprise cannot use internal source of recruitment

The correct answer is option (4)- A new enterprise cannot use internal source of recruitment.

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.

(iv) Transfer has the benefit of shifting workforce from the surplus departments to those where there is shortage of staff.

(v) Filling of jobs internally is cheaper as compared to getting candidates from external sources.