Vasu is a hard-working employee in the organization. He has been working as a junior clerk for the last five years. As Srinath, the senior clerk retired he expected to fill the vacant position. But instead of vertically shifting Vasu, the company appointed Raman as a senior clerk through a placement agency. Vasu felt demotivated and frustrated.

Identify the limitation of external sources of recruitment discussed above.

Dissatisfaction among existing staff

The correct answer is option 2-Dissatisfaction among existing staff.

In this case, Vasu, an existing and hard-working employee, expected to be promoted to the senior clerk position after the retirement of Srinath. However, the company opted to bring in an external candidate (Raman) through a placement agency. This decision led to Vasu feeling demotivated and frustrated, highlighting the potential dissatisfaction among existing staff when internal promotions are overlooked in favor of external hires.

An enterprise has to tap external sources for various positions because all the vacancies cannot be filled through internal recruitment. The existing staff may be insufficient or they may not fulfill the eligibility criteria of the jobs to be filled. External recruitment provides wide choice and brings new blood in the organisation. But this method has some limitations-
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.
2) Lengthy process: Recruitment from external sources takes a long time. The business has to notify the vacancies and wait for applications to initiate the selection process.
3) Costly process: It is very costly to recruit staff from external sources. A lot of money has to be spent on advertisement and processing of applications.