Question : Statement 1: Frequent transfers of employees may often reduce the productivity of the organisation. Statement 2: Internal source of recruitment increases the spirit of competition among the employees.
Option 1: Both are true
Option 2: Both are false
Option 3: Statement 1 is true and statement 2 is false.
Option 4: Statement 1 is false and statement 2 is true.
Correct Answer: Statement 1 is true and statement 2 is false.
Solution : The internal source of recruitment reduces the speed of competition among the employees as there is no competition from the outside world. Frequent transfers of employees may often reduce the productivity of the organisation.
Hence, option C is correct.
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