Step 1: Understanding internal sources of recruitment.
Internal recruitment involves filling job vacancies with current employees. However, it has its limitations:
Step 2: Analyzing the limitations.
- (A) The scope for induction of fresh talent is reduced: Limiting the pool of talent to only current employees restricts the company's ability to bring in fresh perspectives.
- (B) Employees are motivated to improve their performance: This is not a limitation but an advantage, as employees may work harder to secure promotions or advancements.
- (C) The employees may not take challenging tasks if they are sure of time-bound promotions: This could be an issue but does not directly relate to limitations of internal recruitment itself.
- (D) Internal recruitment may boost the competitive environment in the organisation: This is an advantage, as competition can encourage improved performance and motivation among employees.
Step 3: Conclusion.
According to the analysis, option (A) represents a limitation of internal recruitment. Options (B) and (D) are advantages, not limitations. Option (C) is a potential issue but not a direct limitation of the recruitment method itself. Therefore, only (A) is a true limitation.
Final Answer: [\boxed{\text{The correct answer is (A) only.}}]