A clerk of a company is now appointed to the post of chief manager. Which method of recruitment is being used her?

Promotion

The correct answer is option 2- promotion.

It is the promotion, where a clerk, a lower-level employee, is moved to the chief manager position, a significantly higher-level role.

There are two important sources of internal recruitment, namely, transfers and promotions.
Transfers: It involves shifting of an employee from one job to another, one department to another or from one shift to another, without a substantive change in the responsibilities and status of the employee.
Promotions: Business enterprises generally follow the practice of filling higher jobs by promoting employees from lower jobs. Promotion leads to shifting an employee to a higher position, carrying higher responsibilities, facilities, status and pay. Promotion is a vertical shifting of employees.