Abstract
In this assignment I am going to evaluate how organisation might view internal labour markets and also find out how significant the internal labour market is for analysing the human resource practices and policies in an organisation. This will help me to find out how are they going to secure committed and productive workforce, in order to do this I will choose an organisation that I am familiar with it.
Introduction
The internal labour market (ILM) is a useful method that Tesco’s uses to analyse the interplay of rules, norms, power and custom within the organisation. The Internal labour market is highly structured and regulated, and has employment systems that confer significant advantages to those already employed in the organisation compared to outsiders. This basically means the people who are currently working for the organisation will be offered higher position within the organisation, for example, in Tesco more senior jobs are filled by internal promotion or transfer. The internal recruitment method gives organisation, such as Tesco, a good opportunity to look at their employee and asses their skill and ability.
Tesco’s understands the importance of internal recruitment and they tend to use this process to reduce recruitment cost and by employing workers within the organisation to fill up more senior position.
Here is a diagram shows how internal labour market works: Training
The reason Tesco are willing to spend money in training internal employees for other positions, is because they like to give opportunity to the people who are working within Tesco and wants to maintain the investment afterwards, therefore they offer the existing employee job security and structure promotions. The reason they do this is because they like to make their employees feel part of Tesco which works to Tesco advantage as it encourages employees to work