Running head: RECRUITMENT IN A CHANGING INTERNAL LABOR MARKET 1
Recruitment in a Changing Internal Labor Market
Name
Institution Affiliation
Date
RECRUITMENT IN A CHANGING INTERNAL LABOR MARKET 2
Question 1
The organization should eliminate the two-year plus seniority system as an eligibility standard
for binding on jobs because it can create a career development disaster and slow growth and
development in the organization. That is, the system should be eliminated to allow junior
employees to provide and demonstrate their knowledge and skills rather than denying them the
opportunity by having people with greater experiences. Prioritizing seniority element in internal
hiring causes an imbalance in competition among employees (Friedrich, 2016). This means the
organization should provide equal opportunities to all employees and motivate senior employees
to continue providing their services.
Question 2
The internal job posting system should remain in the company because it has the potential to
serve the internal mobility of knowledge and skills, which are crucial for the organization's
growth and sustainability. According to Cestone et al. (2018), the internal labor market system
facilitates increased performance, productivity, and employee motivation by signaling future
advancements in their careers, team cohesion, and identity. Therefore, the organization should
continue with facility-job posting to encourage mobility within the organization to improve
performance and team cohesion.
Question3
A strict promotion from within policy should not be maintained in the organization. This is to
allow the firm to enjoy the competitive advantage of internal flexibility within teams. Belenzon,
and Tsolmon (2016), mention that firms with internal labor markets and internal flexibility have
a competitive advantage since market frictions of rising and fall in demand for human capital
cancels out. This implies that the company should allow internal flexibility in that if team A
RECRUITMENT IN A CHANGING INTERNAL LABOR MARKET 3
experiences low machinery manufacturing activities, employees can move to team B with
favorable business environments. This flexibility allows the firm to avoid holding many workers
and can meet hikes in demand. Generally, flexibility in the internal labor market helps a firm to
save costs and improve performance.
Question 4
Leadership in this organization could implement a lateral career mobility path that would allow
junior employees to remain in their team and take up leadership positions across multiple teams.
This could provide opportunities for learning the knowledge and skill required in the
organization. Hirsh (2016) notes lateral career paths enhance advancement and team cohesion.
Thus, this could be an appropriate approach for Mitchell-Cole manufacturing.
Question 5
According to Madrigal-Moreno, Madrigal-Moreno, and de Jeús Montoya-Robles (2020),
successful communication of a new internal labor market should entail information that the
current system has flaws in achieving predicted performance. Thus, leaders in this organization
should cite the inadequacies of the current system and explain how the new system would
enhance improved performance and morale.
RECRUITMENT IN A CHANGING INTERNAL LABOR MARKET 4
References
Belenzon, S., & Tsolmon, U. (2016). Market frictions and the competitive advantage of internal
labor markets.>Strategic Management Journal,>37(7), 1280-1303.
Cestone, G., Fumagalli, C., Kramarz, F., & Pica, G. (2018). Insurance between firms: The role of
internal labor markets.>BAFFI CAREFIN Centre Research Paper, (2014-162).
Friedrich, B. (2016). Internal labor markets and the competition for managerial
talent.>Unpublished manuscript, Department of Economics, Yale University.
Hirsh, W. (2016). Growing leaders through career development.>Leadership in Organizations:
Current Issues and Key Trends, 137.
Madrigal-Moreno, F., Madrigal-Moreno, S., & de Jeús Montoya-Robles, M. (2020).
Communication as a Key Element in the Labor Inclusion of Mexican
Millennials.>International Review of Management and Marketing,>10(2), 15-20.
