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To attract employees to business organisations usually two kinds of sources are tapped: (I) Internal sources, and (II) External sources

(I) Internal Sources: In case of internal sources, vacant posts are filled with employees available within the organisation. Mostly the following are included in it.

(i) Transfer: This procedure involves the transfer of an employee from one department or branch to the other department or branch on the same post. This procedure is usually followed when some employees are surplus in one department and there is shortage of similar types of employees in another department.

(ii) Promotion: Promotion is a process by which an employee working at the lower rank is appointed to the upper rank where his responsibility increases, his status and salary are also enhanced. A post can be filled by sending an inefficient employee at some lower-position. It is known as recruitment by demotion.

(iii) Lay-off: It refers to the temporary separation of the employee from the employer on the initiative of the latter. In most cases, the lay-off takes place due to lack of work. There is clear understanding between the employer and the employee that the preference will be given to that employee as and when the work will be available.Thus, by recalling the laid-off employees, vacant position may be filled up.

(II) External Sources:

(i) Direct Recruitment: Sometimes information about the vacant posts is pasted on boards placed at important places by the organisations. Such information is usually displayed at the Workshop, Office or the Factory Gate. People who are interested in these jobs apply for them. This method of recruitment is meant only for the recruitment of unskilled workers.

(ii) Campus Recruitment: It refers to recruitment from educational institutions. Some big organisations remain in touch with the educational institutions with the purpose of recruiting young talented people. These persons come from colleges, universities, management institutes, technical institutes, etc. These institutions have a placement cell each with the purpose of helping their young students to find suitable jobs. The human resource managers of various companies get in touch with these placement cells and obtain the suitable persons for appointment.

(iii) Recommendations: With a view to establishing good employer-employee relations, sometimes managers recruit people on the recommendation of their existing employees. In this way, present employees feel encouraged and there is a complete control over new employees. This source is mostly used for appointing lower level employees.