The sources of recruitment can be broadly classified into two types, viz, internal and external.

1. Internal sources

Internal sources include

1. Transfers


2. Promotions

Merits of internal sources

1. It keeps employees happy with high morale.

2. It creates a sense of security among employees


3. It ensures continuity of employees and organisational stability.

4. It is quite economical.

5. Employees remain loyal to the organisation.

6. Labour turnover is reduced.


7. A better employer-employee relationship is established.


1. Sometimes employees who are already working in the enterprise may not be qualified for the new job.

2. This method involves inbreeding of ideas.


3. This method denies opportunity for outsiders to prove their worth in the organisation.

4. It may encourage favouritism and nepotism.

2. External sources

The following are the external sources which are most commonly used for recruitment.


1. Advertising

2. Personnel consultants

3. Employment exchanges

4. Educational Institutions


5. Waiting lists.

6. Unsolicited applicants.

7. Present employees

8. Jobbers and contractors

9. Leasing

Merits of external sources

1. Wide choice: By this, an enterprise can make the best selection.

2. Fresh view points: Fresh views and outlook may be available.

3. Varied and Broader experience: An enterprise can get the benefit of employing the personnel with varied and broader experience.


1. Heart burning among old employees: Employees of an enterprise will be demoralised, particularly when an important position is filled up from an external source.

2. Lack of co-operation from old staff: When existing employees are demoralised , they do not extend co-operation to the personnel selected from the external sources.

3. Danger of maladjustment: Sometimes, personal selected from the external source may not be in a position to adjust to the new environment.

4. There is deterioration in the employer-employee relationships.

5. There is a greater turnover of labour.


Selection involves choosing personnel to fill specific jobs in the organisation on the basis of educational qualifications, training, skills, abilities and personality of the persons available for the jobs. In other words, selection is the process of choosing the managerial personnel from among those who have applied for the jobs in the organisation.