Promotion: Promotion refers to shifting an employee to a higher position, usually with more responsibilities, better status, and increased pay. It motivates employees, improves morale, and utilizes internal talent effectively.
Transfer: Transfer involves shifting an employee from one job to another or from one department to another at the same level of responsibility and pay. It helps in job rotation, avoids monotony, and matches employees with departments where their skills are better utilized.
Final Answer: Internal recruitment through promotions and transfers boosts employee morale and helps in better utilization of internal resources.