The Operation of Internal Labor Markets

Abstract

The topics of interest in this book are the processes through which people join organizations, move from one job or status to another in those organizations, and leave the organizations. Flows of individuals into, through, and out of a single large organization, even in a limited time period, occur as a consequence of two related processes that underlie organizational staffing. In one process, decisions are made as to which jobs should be created, changed, and eliminated. Intertwined with these decisions are judgments and actions regarding who should be hired, promoted to positions of increased status and financial reward, and encouraged to leave the organization. Of equal importance in any analysis of staffing are the consequences of these processes for those who are not considered for various jobs and who are therefore overlooked, ignored, or demoted. Collectively, these staffing decisions and the organizational processes that shape and condition staffing patterns constitute the internal labor market (ILM) of the organization.