Question 294 marksShort AnswerSection C

(a) State any four merits of internal source of recruitment. OR (b) State any four benefits of training to the employees.

Staffing
Merits of Internal Recruitment / Benefits of Training to Employees (OR)

Official answer

This is an OR question — attempt only ONE part, (a) or (b).


(a) Merits of internal source of recruitment (any four):

  • Simple and economical: It saves the time, effort and money that external advertising and screening would otherwise require.
  • Improves morale: Employees are motivated to work harder because they see a genuine chance of promotion within the organisation.
  • No need for induction training: Since the employee already knows the organisation's work culture and systems, adjustment time is minimal.
  • Reliable and accurate information: The organisation can assess the candidate's suitability based on their actual past performance record, unlike an unknown outside applicant.

(b) Benefits of training to employees (any four):

  • Increases efficiency: Trained employees perform their tasks better, faster, and with fewer errors.
  • Enhances career growth: Training improves an employee's skills, making them eligible for promotion and higher pay.
  • Reduces need for supervision: A trained employee can work more independently and confidently, requiring less monitoring.
  • Improves job satisfaction and morale: Employees who feel more competent at their job tend to have higher confidence and satisfaction.
Answer keywords:internal recruitmentpromotionmoralestaffingtraining benefitsefficiencyjob satisfactioncareer growth

Marking scheme

  1. 1.1 mark for each correctly stated and (ideally) briefly explained point, up to a maximum of 4 marks — only the part attempted, (a) or (b), is evaluated.
  2. 2.Full marks for any four valid, distinct points from the recognised list for the chosen part.
  3. 3.In part (b), points describing benefits to the organisation rather than the employee do not earn credit, since the question specifically asks for benefits to employees.

Hint

For (a), think 'cheap + motivating + already-known employee', not 'fresh talent' (that's an external-recruitment merit). For (b), focus strictly on what the employee personally gains, not what the company gains.

Quick oral answer

Internal recruitment is economical and boosts morale through promotion prospects, while training benefits employees by increasing their efficiency, career growth, and job satisfaction.

Common mistakes

  1. 1.In part (a), listing 'fresh ideas' or 'wider choice of candidates' as merits of internal recruitment — these are actually merits of external recruitment.
  2. 2.In part (b), describing benefits to the organisation (higher output, lower supervision cost) instead of benefits to the employee as specifically asked.
  3. 3.Writing training and development as identical concepts — training is job-specific and short-term; development is broader and future-oriented.

Analysis and explanation

Both parts relate to Staffing, but represent different sub-topics — sources of recruitment (a) and training and development (b) — and are placed as an OR to give students flexibility.


Concept (a): Internal recruitment fills vacancies through promotion or transfer of existing employees, contrasted with external recruitment (which taps outside candidates but brings fresh ideas and wider choice).


Concept (b): Training focuses on improving present-job skills and is distinct from development, which prepares employees for future/higher roles.


Exam trap: In part (a), students often mix merits of internal recruitment with merits of external recruitment (e.g., 'fresh talent' or 'wider choice' are actually external-recruitment merits, not internal). In part (b), students frequently list benefits to the organisation (e.g., 'higher productivity for the company') instead of benefits specifically to the employee, as the question demands.

Interesting facts

NCERT lists both merits and demerits of internal recruitment — a key demerit is that it restricts the entry of fresh talent and can breed favouritism, which is the natural counterpoint to this question.

Companies with strong internal-promotion cultures (e.g., many Japanese firms following lifetime-employment traditions) historically show higher employee loyalty and lower attrition.

The ROI of employee training is well documented — organisations that invest in structured training report measurably lower turnover and higher productivity per employee.

Question details

Q29 of 37 questions

Board
CBSE
Class
Class 12
Subject
Business Studies
Year
2026
Section
Section C
Marks
4
Type
Short Answer
Chapter
Staffing
Topic
Merits of Internal Recruitment / Benefits of Training to Employees (OR)
Bloom's level
understand
Syllabus topic
Unit 6: Staffing — Sources of Recruitment (Internal) / Training and Development (Benefits to Employees)
Author
CBSE
Reviewed by
Padhantu Academic Team

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Frequently asked questions

What is the key difference between internal and external recruitment?

Internal recruitment fills vacancies from within the organisation (transfer/promotion), while external recruitment taps candidates outside the organisation. Internal recruitment is cheaper and boosts morale but limits fresh talent; external recruitment brings new ideas but costs more and takes longer.

How is training different from development?

Training is a short-term, job-specific process aimed at improving an employee's current job performance, while development is a broader, long-term process aimed at overall growth and preparing employees for future/higher responsibilities.