| Bases of Difference | Internal Sources | External Sources | |
| 1 | Nature | It is positive in nature. | It is negative in nature. |
| 2 | Meaning | It involves the identification of sources of potential employees and encouraging them to apply. | It is the selection from amongst the qualified applicants. |
| 3 | Process | Recruitment process starts before selection. | Selection starts after the process of recruitment. |
| 4 | Classification | The sources of recruitment are classified as internal and external. | There is no such classification. |
| 5 | Object | Its main object is to create a large pool of candidates. | Its object is to select the most appropriate person after eliminating others. |
| 6 | Restriction | There is no restriction on the number of persons applying for the job | Only restricted number of persons are selected. |
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