This website uses cookies to ensure you have the best experience. Learn more

Human Resource Management Internal Labour Markets

956 words - 4 pages

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 enterpriseEmployee's entire career takes place within a single organisation - '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 worker's commitment and loyalty will be to the firm· By creating an ILM, the firm can keep the employee motivated and content by, for example, instituting formal grievance procedures· This enables the firm to create a superior atmosphere· Recent empirical evidence indicates that ILMs are related to greater organisational commitment and longer employee tenure2. Hire mostly at entry level· Commonly hire a cohort of graduates and train them together· Creates useful support networks· Induces healthy competition· Facilitates relative performance evaluation3. 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 jump layers· Further problem is the role of 'losers', those who are not promoted· May feel highly stigmatised and have negative feelings towards the company4. Training, both general 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 than the gross benefits received minus the increase in salary following training: B - S > C· If this is the case, training workers will enhance the firm's profits and is worth the expense· Providing training attracts employees who are willing to learn· This serves as a form of self-selection, as only those willing to learn and progress academically will apply to the firm· As a result, the costs of selecting, training and replacing employees will be reduced, as those selected will be more suited to the company5. Wages assigned to jobs, rather than experience· Normally, employee remuneration levels are dependent upon skills or knowledge that employees acquire during their employment· For example, employee receives a basic wage which is increased as the worker demonstrates the ability to carry out certain tasks· Implicit that a more skilful worker is more valuable to an organisation, which motivates workers to acquire skills and qualifications· But, after a few years at an organisation, all of the skills have been learned, the motivation of progressing is gone· Become motivated by money rather than acquiring skills· To combat this,...

Find Another Essay On Human Resource Management - Internal Labour Markets

International Human Resource Management Essay

2659 words - 11 pages culture, enhancing procedural justice within MNC’s (Kim and Mauborgne, 1993) Human resource practices can be viewed as valuable resources to an organisation that increases the efficiency of business operations and its competencies (Zaheer, 1995; Szulanski, 1996). Bartlett and Ghoshal (1991) argued that human resource management policies and practices are becoming crucial because these practices can help in controlling international operations and co

Human Resource Management Essay

1890 words - 8 pages 1980's however, it was recognised that because the business world was changing, the role of Human Resource Management, as it became known must change too. Human resources departments have evolved from 'mechanical' agents to a hugely important part of the structure of a company working to develop a highly skilled, well-motivated workforce who are now expected to 'add value' to the organisation, rather than simply incur cost as it was deemed 20 years

Human Resource Management

1481 words - 6 pages think of the right candidate, but only he/she will need to look at the team & the company performance before he decides to hire a new staff (Ichniowski, 1997). It also provides a chance for the management to re-evaluate the team performance, as well as to re-locate internal resource so that all resource can be fully utilized and reconsider the need of new staff. The report has study the various roles and models of human resource management

Strategic Human Resource Management

2154 words - 9 pages IntroductionStone (1995, p. 4) stressed that the focus of human resource management (HRM) is to manage people within the employer-employee relationship, and that it involves the productive utilization of people. It can also be further describe as having a 'hard' and a 'soft' version. However, such a broad definition is unable to distinguish HRM from its 'predecessor' - Personnel Management, and the elasticity in the use of the term HRM makes the

Human Resource Management

4847 words - 19 pages business as well as themselves. Sparrow and Pettigrew[11] and Harrison[7] cite many organizations where a business-led approach to training and development is typical.This article will focus on the emergence of human resource development. In particular it will outline forces which are driving a move towards strategic HRD. It will examine the characteristics of strategic human resource management (HRM) and its key assumptions and philosophies. It will

Strategic Human Resource Management

1324 words - 5 pages internal labour market to the best advantage • The Global and local business climate • Internal human resource analysis against existing and future business strategies • Organisational analysis and organisational design recommendations. • Benchmarking against effective internal and external organisations Some SHRM considerations are: - • Is the organisational culture reinforcing the long-term business strategy? • Is the organisation’s structure

Human Resource Management - 3367 words

3367 words - 13 pages Human Resource ManagementThe focus of human resource management (HRM) is to manage people within the employer-employee relationship (Stone, 1995). However, such a broad definition is unable to distinguish HRM from its' predecessor' - Personnel Management. Some say that HRM "involves the productive utilisation of people" (Stone, 1995: p. 4), and is therefore more proactive than Personnel Management (Harrison, 1993: p.32). Others say that HRM is

Strategic Human resource management

8652 words - 35 pages network (e.g. SGHRM), new problems will confront human resource managers and, therefore, new research methods will be necessary. The evolution of a human resource management perspective Domestic HRM is typically defined as a broad typology that covers three areas: 1) work relations (i.e. the way work is organized, the division of labour and the deployment of workers around technologies and production processes); 2) employment relations (i.e. the

Human Resource Management - 3070 words

3070 words - 12 pages Human Resource ManagementIn its broadest sense, human resource management is a widely used term coined to encapsulate management policies and practices concerned with the supply and utilization of the labor resource required for the firm to meet its commercial objectives. To do so, the employer has to be able to compete within the labor market and meet basic requirements of social legitimacy relevant to the society in which the firm is located

Human Resource Management - 1235 words

1235 words - 5 pages Kong are investing more money on human research resource, analyst or hiring human resource consultant to find the right people for the job position.Therefore, Job analyst, specification and selection of people become an important part in the hiring cycle. Moreover, these are now become a vital stage of company development and enhancement.2 Executive SummaryHuman resource management can be separated into different categories: Job analysis, job

Human Resource Management - 3054 words

3054 words - 12 pages Human Resource ManagementIn its broadest sense, human resource management is a widely used term coined to encapsulate management policies and practices concerned with the supply and utilization of the labor resource required for the firm to meet its commercial objectives. To do so, the employer has to be able to compete within the labor market and meet basic requirements of social legitimacy relevant to the society in which the firm is located

Similar Essays

Human Resource Management And Migrant Labour

2223 words - 9 pages . As the labour market increases, ‎there is a direct impact on the supply and demand for goods and services within the market ‎‎(Dustmann, 2005, p. 132).‎ Immigration has an effect on the labour markets of the particular as well as the human ‎resource management (HRM) sector. The immigration factor affects the human resource ‎management in the international setting and the functioning of the human resource has also ‎changed. HRM is about managing

Changes In The Business Environment And Labour Market Affect Human Resource Planning (Hrp)

1980 words - 8 pages human resources from labour market. This show that labour market is an important factor in determining human resource strategy, therefore the changes of labour market will bring the effects to the HRP of organization.Normally, business environment can be categorized to 2 which are internal environment and external environment. The internal environment involves those factors that are found within the organization, for example, organizational

International Human Resource Management Essay

2479 words - 10 pages , performance management, training and development, compensation and benefits and labour relations. Certain activities change when HRM goes international such as the broad human resource activities of procurement, allocation, and utilisation. The national or country categories involved in international HRM activities are the host-country where a subsidiary may be located, the home-country where the firm is headquartered, and other countries that may

Strategic Human Resource Management Essay

1362 words - 5 pages Section One Strategic human resource management (SHRM) is a tactical method for the management of an organisation’s human resource function in line with organisational goals and objectives. SHRM enhances these functions by linking the traditional human resource practices to business strategy and the realization of organisational goals in order to enable the organisation to achieve a competitive advantage. Importance of SHRM in Organisations