Internal Labor Market
Internal labor markets (ILM) are an administrative unit within a firm in which pricing and allocation of labor is governed by a set of administrative rules and procedures. The remainder of jobs within the ILM is filled by the promotion or transfer of workers who have already gained entry. Internal labor markets are shielded from the competition of external labor markets (ELM). However, competition of ILM exists within the firm in the form of job promotions and pay.
The main reasons why internal labor markets were developed are as follows:
Read more about Internal Labor Market: Skill Specificity, On The Job Training, Analysis, Customary Law
Famous quotes containing the words internal, labor and/or market:
“I believe that there was a great age, a great epoch when man did not make war: previous to 2000 B.C. Then the self had not really become aware of itself, it had not separated itself off, the spirit was not yet born, so there was no internal conflict, and hence no permanent external conflict.”
—D.H. (David Herbert)
“The mode of founding a college is, commonly, to get up a subscription of dollars and cents, and then, following blindly the principles of a division of labor to its extreme,—a principle which should never be followed but with circumspection,—to call in a contractor who makes this a subject of speculation,... and for these oversights successive generations have to pay.”
—Henry David Thoreau (1817–1862)
“At market and fair, all folks do declare,
There is none like the Boy that sold Broom, green Broom.”
—Unknown. Broom, Green Broom (l. 23–24)