(A) Internal Sources
(B) External Sources

(A) Internal Sources of Recruitment
Internal sources refer to inviting candidates from within the organisation.
Following are important sources of internal recruitment: –
1. Transfers: It involves the shifting of an employee from one job to another, from one department to another or from one shift to another shift.
2. Promotion: It refers to shifting an employee to a higher position carrying higher responsibilities, prestige, facilities and pay.
3. Lay-Off: To recall the temporary workers for work is called Lay-Off, who were temporarily separated from organization due to lack of work.

Advantages of Internal Sources Recruitment: –
(1) Employees are motivated to improve their performance.
(2) Internal recruitment also simplifies the process of selection & placement.
(3) No wastage of time on the employee training and development.
(4) Filling of jobs internally is cheaper.
Limitation of Internal Sources
(1) The scope for induction of fresh talent is reduced.
(2) The employee may become lethargic.
(3) The spirit of competition among the employees may be hampered.
(4) Frequent transfers of employees may often reduce the productivity of the organisation

.External Sources of Recruitment
When the candidates from outside the organisation are invited to fill the vacant
job position then it is known as external recruitment. The common methods of external sources of recruitments are:
1. Direct Recruitment: Under the direct recruitment, a notice is placed on
the notice board of the enterprise specifying the details of the jobs available.
2. Casual callers: Many reputed business organisations keep a data base of unsolicited applicants in their office. This list can be used for Recruitment.
3. Advertisement: Advertisement in media is generally used when a wider choice is required. Example– Newspapers, Internet, Radio, Television etc.
4. Employment Exchange: Employment exchange is regarded as a good source of recruitment for unskilled and skilled operative jobs.
5. Campus recruitment and labour contractors can be used for the purpose.
Merits of External Sources
1. Qualified Personnel: By using external sources of recruitment the management can attract qualified and trained people to apply for the vacant jobs in the organisation.
2. Wider Choice: The management has a wider choice in selecting the people for employment.
3. Fresh Talent: It provides wider choice and brings new blood in the organisation.
4. Competitive Spirit: If a company taps external sources, the staff will have to compete with the outsiders.

Limitations of External Sources of Recruitment
1. Dissatisfaction among existing employees: Recruitment from outside may cause dissatisfaction among the employees. They may feel that their chances of promotion are reduced.
2. Costly process: A lot of money has to be spent on advertisement therefore this is costly process.
3. Lengthy Process: It takes more time than internal sources of recruitment.