Q.Which method of recruitment is economical?

The statement that is not a limitation of internal sources of recruitment is option (C), because it actually describes a limitation of external recruitment, not internal.

Promotion is an internal source of recruitment.

Internal sources fill vacancies from within the organisation, mainly through transfers and promotions. Promotion raises an existing employee to a higher post with more pay and responsibility. As no outsider is brought i …

Internal recruitment simplifies selection because the organization already knows the candidate's performance, abilities, and cultural fit, making evaluation faster and more reliable.

Internal sources of recruitment (promotion, transfer) are more economical than external sources because they save the company the time, money and effort spent on advertising, external screening, and training a completely new employee.

Internal sources of recruitment draw candidates from among the organisation's own existing employees, mainly through promotion and transfer. External sources draw candidates from outside the organisation (campus placement, advertisement, placement agencies, employment exchanges, etc.).

Comparing the two:

• Economy: Hiring internally needs no advertisement cost, no large-scale screening of unfamiliar candidates, and usually a shorter induction period, since the employee already knows the organisation's culture and systems — making it more economical.
• Choice: External recruitment actually offers a wider choice of candidates (option A), since the pool is the whole job market, not just existing staff. …

Promotion is an internal source of recruitment.

Internal sources fill vacancies from among the organisation's existing employees, mainly through transfers and promotions. Promotion means shifting an employee to a higher post with more responsibility and pay. Since no outsider is brought …

The statement is false — internal sources of recruitment generally motivate, not demotivate, existing employees.

Internal recruitment means filling vacancies from among the organisation's own existing employees, usually through transfer or promotion. Far from demotivating staff, this practice is valued precisely because it boosts morale: employees see that the organisation rewards loyalty, experience, and good performance with real career advancement, which encourages them to work harder and stay with the organisation (improves retention). It is also cheaper and faster than external recruitment, and the employee is already familiar with the organisation's culture and systems. The genuine limitation of internal recruitment is different — it can limit the inflow of fresh ideas/talent …

Internal recruitment (filling a post from among the organisation's own employees, via promotion or transfer) is the more economical method of recruitment compared to external recruitment.

External recruitment means searching for candidates outside the organisation — through newspaper advertisements, placement/recruitment agencies, campus drives, or employment exchanges — all of which cost real money and management time, and also require a fresh, often lengthy, selection and induction process for someone unfamiliar with the organisation. Internal recruitment, by contrast, draws on people already working in the firm: the organisation already knows their performance record, no advertising or agency fee is needed, the selection process is quicker, and the new role needs far less induction/orientation since the employee already underst …

Promotion is an internal source of recruitment.

Internal sources fill vacancies from within the organisation, mainly through transfers and promotions. Promotion raises an existing employee to a higher post with more responsibility and pay. As no outsider is brought i …

Promotion, an internal source of recruitment, is what motivates existing employees.

When an organisation fills a vacancy by promoting someone already working there, it signals to all employees that hard work and loyalty are rewarded with career growth. This recognition builds confidence and loyalty, and motivates employees generally to perform better in the hope of being considered for future promotions, in a way that recruiting purely from outside the organisation does not. B …

Internal sources of recruitment include transfer and promotion of existing employees.

Recruitment sources are classified as internal or external. Internal sources draw candidates from within the organisation's own existing workforce:

• Transfer — moving an employee from one job to another, usually at the same level of responsibility and pay, often to a different department or location.
• Promotion — moving an employee to a position of higher responsibility, authority and usually higher pay, as a reward for performance and to fill a vacancy at a senior level. …

Promotion is the internal source; the other three options are all external sources.

Recruitment sources are classified as internal (from within the organisation) and external (from the outside labour market) — a standard distinction in the Staffing chapter of the Class-12 Business Studies/commerce syllabus:

• Internal sources — Transfers (shifting an employee to a similar post in another department) and Promotions (moving an employee to a higher post). These use the organisation's own existing workforce, build morale, and reward loyal/experienced staff.
• External sources — Direct recruitment (notices at the factory/office gate), Casual callers (candidates who walk in or write in on their own), Campus recruitment, placement agencies, advertisements, employee referrals, and labour contractors. These bring fresh talent and new ideas from outside. …