Which of the following are the limitations of internal sources of recruitment?

(A) The scope for induction of fresh talent is reduced.

(B) Employees are motivated to improve their performance.

(C) The employees may not take challenging tasks if they are sure of time-bound promotions.

(D) Internal recruitment may boost the competitive environment in the organisation.

Choose the correct answer from the options given below:

(A) and (C) only

The correct answer is option 2- (A) and (C) only. 

Except (B) Employees are motivated to improve their performance & (D) Internal recruitment may boost the competitive environment in the organisation, all others are limitation of internal recruitment.

The limitations of using internal sources of recruitment are as follows:

• (i) When vacancies are filled through internal promotions, the scope for induction of fresh talent is reduced. Hence, complete reliance on internal recruitment involves danger of ‘inbreeding’ by stopping ‘infusion of new blood’ into the organisation;
• (ii) The employees may become lethargic if they are sure of time bound promotions;
• (iii) A new enterprise cannot use internal sources of recruitment. No organisation can fill all its vacancies from internal sources;
• (iv) The spirit of competition among the employees may be hampered;
• (v) Frequent transfers of employees may often reduce the productivity of the organisation.