Page 85 - DMGT406_HUMAN_RESOURCE_MANAGEMENT

Human Resource Management

Notes 5.11 Internal and External Sources

First consideration should be give to the internal candidates, where there are no suitable candidates
available within the organization, then external sources of recruitment should be considered.
Source of recruitment tells us, "Where are suitable candidates available in required number?
Techniques tell us- "How they can be informed about the availability of job and organization".
Sources of recruitment include:

5.11.1 Internal Sources

These include personnel already on the payroll of an organization, that is, its present working
force. Whenever any vacancy occurs, somebody from within the organization is upgraded,
transferred, promoted or sometimes demoted.
1. Present Permanent Employees: Organisation consider the candidate from this source to
higher level due to firstly availability of most suitable candidate for jobs relatively or
equally to the external sources, secondly, to meet the trade union demands, thirdly to the
policy of organisation to motivate the present employees.
2. Present Temporary or Causal Employees: Organisation use this source to fill position of
lower level.

3. Retrenched or Retired employees: Dependent of Deceased, Disabled, retired and Present
Employee.

Merit

1. It improves the morale of employees, for they are assured of the fact that they would be
preferred over outsiders when vacancies occur.

2. The employer is in a better position to evaluate those presently employed than outside
candidates.
3. It promotes loyalty among the employees, for it gives them a sense of job security and
opportunities for advancement.
4. They are tried people and can be relied upon.
5. It is less costly than going outside to recruit.

Demerits

1. It often leads to inbreeding and discourages new blood from entering an organization.
2. There are possibilities that internal sources may "dry up", and it may be difficult to find the
requisite personnel from within an organization.
3. As promotion is based on seniority, the danger is that really capable hands may not be
chosen.

5.11.2 External Sources

External sources includes source outside the organization. They usually include:
1. New entrants to the labour force i.e. young mostly inexperienced potential employees—
the college students.

78 LOVELY PROFESSIONAL UNIVERSITY