External sources of recruitment offer the following advantages:
(i) Qualified personnel   An organisation can attract highly qualified personnel through external sources.
(ii) Wider choice External sources create a large pool of candidates to choose from, for the organisation.
(iii) Fresh talent  External sources help to bring fresh talent or new blood into the organisation.
(iv) Competitive spirit   New entrants and qualified freshers creates competitive spirit and helps to improve performance.

No, I don't agree with this statement because:
(i) Organisations need human resource planning to meet the demands of changing job requirements due to changes in technology.
(ii) All the people available in the market are not equally eligible and may not be suited to the requirements of a given job position.

Staffing is the managerial function of filling and keeping filled positions in the organisation structure.This process needs crucial analysis of manpower.
Process of staffing
1. Estimating the Manpower Requirements
It involves forecasting and determining the number and kind of manpower required by the organisation in future.It involves workload analysis and workforce analysis.Workload analysis helps a manager to assess the number and type of human resources necessary to perform various jobs in the organisation, whereas, workforce analysis helps him to know the number and type already available.
A comparison of the two helps to know the actual requirement of manpower.It also helps to reveal whether the organisation is understaffed or overstaffed.Further, job description is done by specifying the desired qualification, experience, training and personal characteristics required for various job positions.
2. Recruitment
It may be defined as the process of searching for prospective employees and stimulating them to apply for jobs in the organisation.The objective of recruitment is to create a pool of prospective candidates, from which the best candidate can be selected.There are many sources of recruitment such as advertisement, casual callers, direct recruitment, etc.
While internal sources can be used economically, external sources can bring in fresh talent and wider choice.
3. Selection
In this step, right candidate is chosen for the right job from the pool of candidates obtained through recruitment.
This process ensures that the organisation gets best among available and it enhances the self-esteem and prestige of those who are selected.It involves a series of tests, interviews, and negotiations, in order to generate the contract of employment containing the terms and conditions of employment in the organisation.
4. Placement and Orientation
Placement means occupying the post or position for which the person has been selected.Orientation/Induction implies introducing the selected employee to other employees and familiarisng him with rules and policies of the organisation, by giving him a brief presentation about the company, his superiors, subordinates, and colleagues.
5. Training and Development
These involve improving job knowledge, skills and attitudes of employees on a regular basis so that they may perform their jobs efficiently. Apart from this, training helps in career building and increasing motivation of employees.It may be done, while doing work, i.e. on-the-job or before doing work, i.e. off-the-job.
6. Performance Appraisal
It means evaluating an employee's current or past performance against the pre-determined standards.In this step, the capability of the employee is judged, which helps them to know the standards, provide feedback and helps the manager to decide their future career prospects.
7. Promotion and Career Planning
It becomes necessary for all organisations to address career-related issues and promotional avenues for their employees.This will prove to be beneficial for both an employee and the organisation, as it will result in increased employee satisfaction and productivity, which would serve long-term interests of the organisation.
8. Compensation
It means all forms of pay or rewards offered to employees. It may be in the form of direct financial payments like wages, salaries, incentives, commissions, etc, or indirect payments such as insurance, free housing, vacations, etc.It is the most important and basic incentive used to motivate employees.

Internal sources refer to recruitment from within the organisation.Sources of internal recruitment are:
(i) Promotions
(ii) Transfers
Internal sources of recruitment suffer from the following advantages:
(i) Employee motivation Promotion to a higher level motivates the employee for better performance and leads to satisfaction of employees.
(ii) Simple process  The process of selection and placement becomes simpler, as the background of the candidate is already known.
(iii) Facilitate training  Transfer from one job to another facilitates training of employees.
(iv) No induction training  Employees selected from within the organisation do not need induction training.
(v) Filling deficiencies It helps to fulfill the deficiency of one department with the surplus of another.
(vi) Inexpensive  Recruitment from internal sources does not require much time, money and effort.
Limitations of Internal Sources
Internal sources of recruitment suffer from the following limitations.
(i) No fresh talent    Recruitment from internal sources does not bring fresh talent into the organisation.
(ii) Lethargic employees   When employees are sure of time-bound promotions, they become lethargic.
(iii) No competitive spirit   Competitive spirit among the employees may get hampered.
(iv) Reduce productivity   When employees are transformed frequently to different jobs, it results in reduced productivity.
(v) Not available to new enterprises   A new enterprise cannot avail the benefit of this source.