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New Grow Ltd. is a company manufacturing electronic goods. Since the demand for the company's products increased in the market, the level of production had to be increased. This required recruitment of more people in production department.

Kapil, the HR manager, conducted an analysis which revealed the number and type of employees available in the department. Kapil used the internal sources first for recruiting a few employees. For the rest of the recruitment, he decided to use various suitable external sources like advertisement, placement agencies, campus recruitment and web publishing.

He followed a process for the purpose of selecting the best candidates and conducted a series of employment tests and interviews. Ten people were finally selected and after the medical examination their contract of employment was prepared. Since the new employees had to handle highly sophisticated machinery, the training was given to them away from the workplace by creating work environments in the separate laboratory.

The employees got trained well and with increased workforce, the company could achieve its target of high level of production.

Identify the correct statements with respect to Internal sources of recruitment

A. Transfers and promotion are the two important sources of internal recruitment.

B. Internal recruitment induces fresh talent in the organization.

C. Internal recruitment simplifies the process of selection and placement.

D. Selecting employees through internal recruitment reduces their motivation.

E. Internal recruitment is a costly process.

Solution

Correct Option: 2

Transfers and promotions are indeed important internal sources (A is correct). Internal recruitment simplifies selection and placement as employees are already familiar (C is correct). Internal recruitment does NOT induce fresh talent (B is wrong), it increases motivation (D is wrong), and it is economical, not costly (E is wrong). Hence, A and C only are correct.

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