Human Resource Management - Internal Labour Markets

military man Resource Management - Internal Labour Markets (ILMs)

Occur when fasts adopt a policy of recruiting proles at a low-level, then advancing them by a sequence of jobs within the enterprise

Employees entire career takes channelize within a single boldness - cradle-to-grave

Typical employee relationship with the firm are characterised by:

1.         Long-term attachments

·         The longer a worker is happily employed, the greater the workers commitment and loyalty leave be to the firm

·         By creating an ILM, the firm lowlife keep the employee motivated and kernel by, for example, instituting formal grievance procedures

·         This enables the firm to create a master copy atmosphere

·         Recent empirical evidence indicates that ILMs are related to greater organisational commitment and longer employee tenure

2.         Hire mostly at institution level

·         Commonly hire a cohort of graduates and train them together

·         Creates efficacious support networks

·         Induces healthy competition

·         Facilitates relative performance evaluation

3.



        Promotion from within

·         Introduces long-term perspective

·         Enables employees to determine a career path within the organisation and achieve it

·         Have a goal to work towards, increases performance

·         But, can demotivate workers as they must progress up the hierarchy - cannot pop out layers

·         Further problem is the role of losers, those who are not promoted

·          may feel highly stigmatised and have negative feelings towards the company

4.         Training, both usual and firm-specific

·         Training should not be viewed as an expense, but as an investment in the human capital of employees

·         According to the Human Capital Theory, firms should only train workers if the cost of training is less(prenominal) than the gross benefits received minus the increase in payment following training: B - S > C

·         If this is the case, training workers will enhance the firms profits and...

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