Explanation : Evaluation of External Recruitment: External sources of recruitment have both merits and demerits. On the plus side, the following may be cited: 1. The organisation will have the benefit of new skills, new talents and new experiences, if people are hired from external sources. 2. The management will be able to fulfill reservation requirements in favour of the disadvantaged sections of the society. 3. Scope for resentment, heartburn and jealousy can be avoided by recruiting from outside. The demerits are: 1. Better motivation and increased morale associated with promoting own employees are lost to the organisation. 2. External recruitment is costly. 3. If recruitment and selection processes are not properly carried out, chances of right candidates being rejected (false positive error) and wrong applicants being selected (false negative error) occur.