Human Resource Management - Internal Labour Markets

Human Resource Management - Internal Labour Markets (ILMs) Occur when firms adopt a policy of recruiting workers at a low-level, then advancing them through a sequence of jobs within the enterprise Employee's entire career takes place within a single organisation - 'cradle-to-grave' Typical employee relationship with the firm are characterised by: 1.<Tab/>Long-term attachments ·<Tab/>The longer a worker is happily employed, the greater …

…middot;<Tab/>Problem is that workers come to identify with the way the firm operates as the only way the firm can operate ·<Tab/>So, organisational change is difficult to implement ·<Tab/>Such problems occur in all firms with strong cultures, but ILMs can strengthen implicit contracts that make it difficult to radically restructure processes and procedures