This series include Staffing function of management for XII Business Studies students for AISSCE preparation.

1. Business Studies By : Pratap Naik
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STAFFING
Vikash Residential School
Recruitment
S-3

2. Prepared by Pratap Naik
Learning Objectives
RECRUITMENT
It is the process of searching for prospective
employees.
Concept of Recruitment
Internal Source of Recruitment
Merits of Internal Source
Limitation of Internal Sources

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Learning Objectives
INTERNAL SOURCE OF RECRUITMENT
1. Transfer
2. Promotion
Concept of Recruitment
Internal Source of Recruitment
Merits of Internal Source
Limitation of Internal Sources

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Learning Objectives
MERITS OF INTERNAL SOURCE
1. Improves Employees Motivation and performance
2. Simple Selection Process
3. Tools of Training
4. Optimum Utilisation Human Resources
5. Economical Source
Concept of Recruitment
Internal Source of Recruitment
Merits of Internal Source
Limitation of Internal Sources

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Learning Objectives
LIMITATION OF INTERNAL SOURCES
1. No Fresh Talent
2. Employees May Become Lethargic
3. Not Suitable for New Organisation
4. Spirit of Competition Hampered
5. Frequent Transfers Reduce the Productivity
Concept of Recruitment
Internal Source of Recruitment
Merits of Internal Source
Limitation of Internal Sources

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Let’s Start..

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Concept of Recruitment
What is Recruitment ??
1

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Prepared by Pratap Naik
Recruitment is the process of
searching for prospective employees
and stimulating them to apply for jobs
in an organisation.

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Concept of Recruitment
▰ The object of recruitment is to attract potential employees with the necessary
characteristics or qualification, in the adequate number for the jobs available.
▰ The higher the number of people who apply for a job, the higher will be the
possibility of getting a suitable employee.
▰ The various activities involved with the process of recruitment includes
▻ Identification of the different sources of labour supply,
▻ Assessment of their validity,
▻ Choosing the most suitable source or sources, and
▻ Inviting applications from the prospective candidates, for the vacancies.

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▰ Recruitment is a positive step which aims at attracting number of candidates
to apply for the given job.
▰ The requisite positions may be filled up from within the organisation or from
outside.
▰ Thus, there are two sources of recruitment – Internal and External.
Concept of Recruitment

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Internal Sources of Recruitment
What are the sources ??
2

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1. Transfer
It involves shifting of an employee from one job to another or one department to another
without a substantive change in the responsibilities and status of the employee.
▰ It may lead to changes in duties and responsibilities, working condition etc., but not
necessarily salary.
▰ It is practically a horizontal movement of employees.
▰ Shortage of suitable personnel in one branch may be filled through transfer from other
branch or department.
▰ Transfers can also be used for training of employees for learning different jobs.
▰ At the time of transfer, it should be ensured that the employee to be transferred to another
job is capable of performing the new job.
Internal Sources of Recruitment

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2. Promotion
Promotion refers to shifting an employee to a higher position, carrying higher
responsibilities, facilities, status and pay.
▰ Promotion is a vertical shifting of employees.
▰ Promotion helps to improve the motivation, loyalty and satisfaction level of
employees.
▰ It has also a great psychological impact over the employees because a promotion at
the higher level may lead to a chain of promotions at lower levels in the organisation.
Internal Sources of Recruitment

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Merits of Internal Sources
Why should one go for Internal Sources??
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1. Improves Employees Motivation and performance
▰ Promotion at a higher level may lead to a chain of promotion at lower levels in the
organisation.
▰ Promotion motivates the employees to improve their performance through learning
and practice.
▰ Employees work with their commitment and loyalty and remain satisfied within jobs.
▰ Also peace prevails in the enterprise because of promotional avenues.
Merits of Internal Sources

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2. Simple Selection Process
▰ The candidates that are already working in the enterprise can be evaluated more
accurately and economically.
▰ This is a more reliable way of recruitment since the candidates are already known to
the organisation.
▰ Thus, internal recruitment also simplifies the process of selection and placement.
Merits of Internal Sources

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3. Tools of Training
▰ Transfer is a tool of training the employees to prepare them for higher jobs.
▰ When employees shifted from one job positions to another having different
responsibilities they lean variety of skill.
Merits of Internal Sources

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4. Optimum Utilisation Human Resources
▰ Transfers and promotions helps in optimum utilisation of human resources.
▰ Surplus workforce from one department may be shifted to a department or branch
where there is shortage of personnel.
▰ This helps to avoid terminations or removal of capable staff.
Merits of Internal Sources

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5. Economical Source
▰ Filling of jobs internally is cheaper as compared to getting candidates from external
sources.
▰ Organisation can save money as there is no need for advertisement and Selection
process.
▰ There is no need of orientation as existing employees are familiar with the
organisation.
Merits of Internal Sources

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Limitation of Internal Sources
Why not go for Internal Sources ??
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1. No Fresh Talent
▰ The scope for induction of fresh talent is reduced when vacancies are filled through
internally.
▰ This leads to the danger of ‘inbreeding’ by stopping ‘infusion of new blood’ into the
organization.
Limitations of Internal Sources

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2. Employees May Become Lethargic
▰ The employees may become lethargic if they are sure of time-bound promotions.
▰ Employees lack innovation and initiative when there is maximum job securities and
assured promotion.
Limitations of Internal Sources

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3. Not Suitable for New Organisation
▰ New enterprise cannot use internal sources of recruitment.
▰ Also no organisation can fill all its vacancies from internal sources.
Limitations of Internal Sources

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4. Spirit of Competition Hampered
▰ The spirit of competition among the employees may be hampered, when vacancies
are filled internally.
▰ Because employees aware about the promotion policies and they may feel there is no
need to compete.
Limitations of Internal Sources

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5. Frequent Transfers Reduce the Productivity
▰ Frequent transfers demoralize the employee motivation also reduce the efficiency
level.
▰ Thus frequent transfers of employees may often reduce the productivity of the
organisation.
Limitations of Internal Sources

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Recap
MERITS
INTERNAL SOURCE
1. Improves Motivation
2. Simple Selection
3. Tools of Training
4. Optimum Utilisation
5. Economical Source
LIMITATION
INTERNAL SOURCES
.
1. No Fresh Talent
2. Lethargic Employees
3. Not Suitable for All
4. No Competition
5. Reduce Productivity
INTERNAL
SOURCES
1. Promotion
2. Transfer

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THANKS!
Any questions?
You can find me at
9437368451
sreepratap@gmail.com