APPLICATION CASE

Prepared by:TANUSIA ARUMUGAM

RECRUITMENT IN A CHANGING INTERNAL

LABOR MARKET

INTRODUCTION AND CASE SUMMARY

The issues that has to be resolve:1. The inefficient of recruiting the

workers which is the one has more experience in the organisation can only be selected to promote to higher position.

2. The one who do not have 2 years experience hardly to be selected and only will put in the list of consideration.

This method of recruitment will most likely spill over the talented worker to the competitors. The suggestion given below is to reduce the spill over percentage and appreciated the talented workers. Job posting system is to assist the worker to seek for jobs

easily and effectively. Some seniority workers may do not have the skill of using

computer or latest technology. (may need this skill to work things out)

They need to widely open the job vacancy for everyone. (fully utilise the resources availability).

Experience for the junior may not sufficient but they could be quick learner. They are always follow up with the advance technology and their interpersonal skill is well-developed compare to the seniority workers.

So, there are a few suggestions for the organisation to improve their job recruitment

Q1: SHOULD SENIORITY BE ELIMINATED AS AN

ELIGIBILITY STANDARD FOR BIDDING ON JOBS- MEANING

THE 2-YEAR-PLUS EMPLOYEES WOULD NO LONGER HAVE

PRIORITY?

Seniority standard of bidding jobs should be eliminated in order to provide more opportunity for the fresh worker to bid the position as well.

Fresh worker might have the well-developed skill and comprehensive task given effectively and efficiently.

Experience gained by the seniority worker- (quick learner) in the industry. Out of the group of worker, it may turn out a few talented fresh workers.

Good in labour market because everyone has the incentive to work harder to win the position which offer by the company, which will not cause a split over talented worker to competitor.

If the organisation still insisted the policy of priority for the seniority- (may cause brain drain issues in the organisation)- talented fresh worker may split over their competitor.

Eg: A Talented Engineer who work in Microsoft that do not have the opportunity to win the position as a leader in Microsoft Inc because he do not work more than 2 years in the organisation. He may switch over to their competitors because there is more space for them to develop and there is no more incentive and motivation for them to work in Microsoft anymore. There will be leak of talented engineer to the competitors.

This will cause the competition against the competitor more competitive which is not a good move for them to lose the talented workers.

Q2: SHOULD THE JOB POSTING SYSTEM SIMPLY BE ELIMINATED? IF SO, WHAT

SHOULD REPLACE IT?

The job posting system should not be eliminated due to a few vital reasons.

To assist the unemployed to seek for jobs. (help the labour industry to match their skill)

Spell out the duties and requirements of the job and tells how applicants can apply. (proper job , proper skill).

Reduces the time for job turnover and it helps the people to save time and find suitable jobs effective and efficient.

Create wider network for the organisation to search for relevant worker to match their available vacancy. This system does help the organisation to search for pertinent worker effectively and efficiently.

Unlike newspaper job posting, has bombard information and lead human to ambiguous statement focus on particular part.

Job posting system, which develops in the Internet system helps the applicant to search job easily by just key in their detail in the website itself. Eg: jobstreet.com is created to assist everyone in the labour industry to search jobs effectively and efficiently.

This job posting system is a very important tool to stimulate the labour market.

Q3: SHOULD A STRICT PROMOTION-FROM-WITHIN POLICY BE MAINTAINED?

WHY OR WHY NOT?

Strict  “Promotion From Within" Policy means an employer has stated a commitment to consider current employees for new or replacement job opportunities - before hiring candidates from outside the organization.

Current employees who know the organization and its operating procedures are considered prime candidates because of their knowledge and experience. As such, they are able to learn and adapt to a new job faster than workers hired from the outside. For this reason, a "promotion from within" policy may be seen as a benefit to employer and employee alike. 

An internal promotion system must strive to avoid both specialization and predictability. In other words, a policy that promotes from within can only work if it allows for flexible cross-training and variety. (trained employee)

Benefits of a promotion-from-within policy: - Capitalizes on past investments (recruiting, selecting, training, and developing) in current employees. - Rewards past performance and encourages continued commitment to the organization. - Signals to employees that similar efforts by them will lead to promotion. - Fosters advancement of members of protected classes within an organization. 

Limitations of a promotion-from-within policy: - Current employees may lack the knowledge, experience or skills needed for placement in the vacant/new position. - The hazards of inbreeding of ideas and attitudes (“employee cloning”) increase when no outsiders are considered for hiring. - The organization has exhausted its supply of viable internal candidates and must seek additional employees in the external job market. 

Q4: HOW COULD CAREER MOBILITY PATHS BE

DEVELOPED THAT WOULD ALLOW ACROSS-TEAM MOVEMENT WITHOUT

THREATENING TEAM IDENTITY AND COHESION?

Development: Characteristics of a Mobility Path Policy

Intent of policy is clearly communicated Policy is consistent with philosophy and values of top

management Scope of policy is clearly articulated Employees’ responsibilities and opportunities for

development are clearly defined Supervisors’ responsibilities for employee

development are clearly stated Procedures are clearly described Rules regarding compensation and advancement are

included Rules regarding benefits and benefit changes are

included

Career mobility path consists of employee movement within internal labor market structure.

ALTERNATIVE MOBILITY PATHs- Emphasis on movement in any direction (up,down,side-side)

Reason:

The need to be flexible given global & technology changes

Slower organizational growth has made it necessary to find alternative ways

to utilize employees talents

With lateral track system, there is NO upward mobility where individual’s/

team contribution to organization stay at certain level for extended period of

time while serving in variety of capacities.

In team based kind of jobs: employees are ‘BONDED’ together with other

employees depending on the projects.

ALTERNATIVE MOBILITY PATHs

Steps need to be taken to ensure career mobility paths that allow across-team movement by:

Alternative reward systems-pay increase based on individual’s knowledge and skill acquisition and contribution to organization as team member.

Team building-having employee work in team as they are responsible for all aspect of work.

Counseling-workshops, self-directed workbooks and individual advising

Alternative employment-arrangement made for employees leaves of absence, sabbaticals and consulting assignment to ensure workers remain challenged and acquire new knowledge and skills.

Q5: IF A INTERNAL LABOR MARKET SYSTEM IS TO BE

PUT IN PLACE, HOW SHOULD IT BE COMMUNICATED TO

EMPLOYEES?

The availability of ILM for the employees are: employees get guarantees of employment and

permanent income; possibility of promotion; the search for a new working place outside the

enterprise takes much time and is quite expensive; provision of social guarantees and social defence.

Internal labour markets refer to the institutional rules and procedures, such as recruitment, training and the price of labour, which govern the employment relationship (Doeringer and Piore, 1971)