Neel Traders, a small firm, has to fill five office posts within the next six months, so it is in no hurry. Its manager plans to place advertisements in national newspapers and then process every application received.
Which limitation of external sources does this plan face most directly, and which external source would reduce it?
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Costly process; screening its own database of casual callers
Option (1) Lengthy process; screening its own database of casual callers — Incorrect. The firm is in no hurry, so time is not its problem.
Option (2) Costly process; hiring a placement agency — Incorrect. The limitation is right, but placement agencies charge a fee, so they add to the cost.
Option (3) Lengthy process; hiring a placement agency — Incorrect. Time is not the worry here, and an agency charges a fee.
Option (4) Costly process; screening its own database of casual callers — Correct. Advertising and processing every application make external recruitment a costly process. Casual callers apply on their own. Screening a list of them when a vacancy arises reduces the cost of recruiting.
NCERT (2026-27 Edition): “(ii) Casual Callers: Many reputed business organisations keep a database of unsolicited applicants in their offices. Such job-seekers can be a valuable source of manpower. A list of such job-seekers can be prepared and can be screened to fill the vacancies as they arise. The major merit of this source of recruitment is that it reduces the cost of recruiting workforce in comparison to other sources.” “(v) Placement Agencies and Management Consultants: In technical and professional areas, private agencies and professional bodies appear to be doing substantive work. Placement agencies provide a nationwide service in matching personnel demand and supply. These agencies compile bio-data of a large number of candidates and recommend suitable names to their clients. Such agencies charge fee for their services and they are useful where extensive screening is required. These professional recruiters can entice the needed top executives from other companies by making the right offers. …” “Limitations of External Sources 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. |