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Organisations and the Transformation of the Internal Labour Market

Author

Listed:
  • Damian Grimshaw

    (Manchester School of Management)

  • Kevin G. Ward

    (Manchester School of Management)

  • Jill Rubery

    (Manchester School of Management)

  • Huw Beynon

    (Cardiff University)

Abstract

This paper explores changes in employment policies and practices that are typically associated with the classical `model' of the internal labour market. Drawing on documentary information and interviews with managers in four large organisations in the UK, the evidence suggests that many of the `traditional' pillars of the internal labour market have been dismantled. New policies around training, recruitment, pay, job security and career progression have been introduced in response to pressures and opportunities for change, both internal and external to the organisation. Changes in the external labour market involve a shift in the balance of power between labour and capital, coupled with a weakening of the mechanisms which coordinate and regulate labour market exchange. Within the organisation, there are a range of pressures to transform production, or service delivery, including the restructuring of traditional forms of work organisation, the extension of working-time and changes in organisational structure. This paper analyses evidence of new employer-led `market solutions' to this range of conflicting pressures. The aim is to highlight the tendency for contradictory outcomes as new policies capitalise on changing external conditions, but at the expense of meeting organisational demands. Also, new policies implemented by individual employers may be unsustainable where, on aggregate, they fail to develop workforce skills or to fulfil career expectations.

Suggested Citation

  • Damian Grimshaw & Kevin G. Ward & Jill Rubery & Huw Beynon, 2001. "Organisations and the Transformation of the Internal Labour Market," Work, Employment & Society, British Sociological Association, vol. 15(1), pages 25-54, March.
  • Handle: RePEc:sae:woemps:v:15:y:2001:i:1:p:25-54
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    Cited by:

    1. Cristini, Annalisa & Origo, Federica & Pinoli, Sara, 2017. "The healthy fright of losing a good one for a bad one," Journal of Economic Psychology, Elsevier, vol. 59(C), pages 129-144.
    2. Peter Skott & Frederick Guy, 2005. "Power-Biased Technological Change and the Rise in Earnings Inequality," UMASS Amherst Economics Working Papers 2005-17, University of Massachusetts Amherst, Department of Economics.
    3. Frederick Guy & Peter Skott, 2008. "Information and Communications Technologies, Coordination and Control, and the Distribution of Income," Journal of Income Distribution, Journal of Income Distribution, vol. 17(3-4), pages 71-92, September.
    4. Chris Forde & Gary Slater, 2005. "Agency Working in Britain: Character, Consequences and Regulation," British Journal of Industrial Relations, London School of Economics, vol. 43(2), pages 249-271, June.
    5. Santos, Miguel, 2010. "From Training to Labour Market. Holocletic Model," MPRA Paper 26617, University Library of Munich, Germany.
    6. Arjan Keizer, 2011. "Flexibility in Japanese internal labour markets: The introduction of performance-related pay," Asia Pacific Journal of Management, Springer, vol. 28(3), pages 573-594, September.
    7. Dong, Xiao-Yuan & MacPhail, Fiona & Bowles, Paul & Ho, Samuel P. S., 2004. "Gender Segmentation at Work in China's Privatized Rural Industry: Some Evidence from Shandong and Jiangsu," World Development, Elsevier, vol. 32(6), pages 979-998, June.

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