Q.A company is manufacturing paper plates and bowls. It produces 1,00,000 plates and bowls each day. Due to local festival, it got an urgent order of extra 50,000 plates and bowls. Explain the method of recruitment that the company should adopt in the given circumstances to meet the order.

Let’s start with something you already know. When a cricket team needs a new player, they can either promote someone from the junior squad (internal) or go out and scout a player from another team or a local tournament (external). That second option — looking outside the existing team — is exactly what external recruitment means in an organisation.

What is External Recruitment?

External recruitment is the process of filling a job vacancy by hiring someone who is not currently employed by the organisation. Instead of promoting or transferring an existing employee, the company looks for candidates from outside — fresh graduates, experienced professionals from other firms, or even people from different industries altogether.

The NCERT Class 12 Business Studies textbook defines it clearly: “External recruitment refers to the process of searching for and hiring employees from outside the organisation.” The key word is outside — the candidate has no prior employment relationship with the company.

Why do companies use it?

No organisation is a closed system. Over time, every company needs fresh ideas, new skills, or simply a larger pool of talent than what exists internally. External recruitment brings in people who have worked in different environments, learned different methods, and can challenge the status quo. It also becomes necessary when the organisation is expanding rapidly and there simply aren’t enough internal candidates ready for the new roles.

Common sources of external recruitment

Companies use several channels to reach outside candidates. Here are the ones you’ll find in your syllabus:

• Direct recruitment – The company puts up a notice outside the factory gate or office. This is common for unskilled or semi-skilled workers.
• Campus placements – Companies visit colleges and universities to hire fresh graduates. This is a major source for entry-level professional roles.
• Employment exchanges – Government-run exchanges that register job seekers and refer them to employers. This is more relevant for blue-collar and clerical jobs.
• Advertisements – Newspapers, job portals (like Naukri.com), or company websites. This reaches a wide audience and is used for almost all levels.
• Placement agencies – Private firms that specialise in finding candidates for a fee. Executive search firms (headhunters) are used for senior positions.
• Casual callers – People who walk into the HR office on their own initiative. Their applications are kept on file for future openings.
• Recommendations – Existing employees refer friends or former colleagues. This is quick and often yields reliable candidates.

Advantages and disadvantages (as per NCERT)

Advantages:

• Wider choice – The organisation can select from a large pool of candidates with diverse backgrounds.
• Fresh talent – New employees bring new ideas, skills, and approaches that can improve performance.
• Qualified personnel – If the organisation needs specialised skills that existing employees lack, external recruitment is the only option. …