Human Resource Decision Report

This report discusses the two main sources of recruitment: internal and external. It outlines the advantages and disadvantages of each, such as improved morale and loyalty for internal sources versus new ideas and qualified candidates for external sources. The report also emphasizes that internal recruitment is better for confidential positions due to trust and loyalty. The report includes references to support its claims.

Running head: HUMAN RESOURCE DECISION
Human Resource Decision
Name of the Student
Name of the Organization
Author note

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HUMAN RESOURCE DECISION
There is two broad category of sources that a company or recruitment department considers
while recruiting staffs for an open position such as internal sources and external sources. Internal
sources are the areas in which the people are recruited or hired from within the organization and
who is already under the payroll system of the company (Barma & Gupta, 2015). On the other
hand, external sources are the ones when people are recruited from outside the office or the ones
that are not working in the company. Both the sources has some advantages and disadvantages
(Basak & Khanna, 2017).
Advantages of internal sources are:
 Improves morale of all the employees when an employee is selected from within the
organization
 Promoted loyalty among the employees towards the organization
 Minimizes chances of errors in work as the work are already known
 No or minimum training costs
Disadvantages of internal sources are:
 Discourages other capable people from outside to join the organization
 It is possible that people with required qualification are not available in the organization
 Lack of creativity and innovation in the organization (Barma & Gupta, 2015)
Advantages of external sources are:
 Availability of well qualified and suitable person
 Brings in new ideas and innovation in the business

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HUMAN RESOURCE DECISION
 Economical if new employees are already acquainted with the position, which reduces
training costs
Disadvantages of external sources are:
 Demoralizes the internal staffs that are already working for the organization due to lack of
growth opportunities
 Expensive as the process of recruitment requires costs such as in advertisements and also in
conducting tests and interviews
 The problem of maladjustments between the new entrants and old employees (Sarker, 2017).
In case the position involves confidential issues or work then internal recruitment is much
better than external recruitment. This is because in such a confidential position hiring a person
that the business already trusts and know that they are loyal will be better than the ones they
recruit from outside. The new entrant might not be trustworthy towards the company. Moreover,
as the old employee is in the company from many years they will try their best to prove their
loyalty to the company and does not play with their confidential matters.

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HUMAN RESOURCE DECISION
References
Barma, D. D., & Gupta, M. (2015). Investigating the Effectiveness of the Sources of Recruitment
on Job Performance and Employee Attitude in India. Asian Journal of Management, 6(1),
67-71.
Basak, A., & Khanna, K. (2017). A Study on the Selection Criteria of Different Hotels of Delhi
NCR in Accordance to the HR Policies and Market Trends. International Journal of
Social Sciences and Humanities (IJSSH), 1(1), 27-38.
Sarker, B. (2017). Evaluation of Recruitment and Selection Process of Mutual Trust Bank
Limited (Doctoral dissertation, Daffodil International University).