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

Merits of Internal Sources

• 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.

• Filling of jobs internally is cheaper as compared to getting candidates from external sources.

• 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