The Organizations Internal and External Labor Markets - Assignment Example

Download file to see previous pages Compensation standards set in the organization are considerably grounded on the internal and external labor market conditions prevailing. For example, in this particular organization, the remuneration standards for those skills and expertise which are found in abundance in the labor marker are kept at low levels, while the rare skills which are rated highly by the organization but not found in abundance in the market need to be remunerated above industry standards. This is done with the aim of attracting, retaining and developing potential talents from the industry which accounts for one of the most potential competitive strengths for the organization (Osterman, 2004, p.2-3). Thus, it is seen how wage rates in the organization are determined and influenced by the existence, abundance or scarcity of human resources in the market. Likewise, the existing internal labor structure and strength of the organization forms the basis on which aspects such as career development planning, succession planning etc are designed in the organization. For this, labor forecasts are done to portray the future talents and skills which would be required for meeting organizational objectives. Long-term objectives of the firm might call for an increase in particularly skilled resources while a shrinkage in the demand for some other resources. It is crucial to determine or identify the gaps between the existing level of talent in the organization and the expected future talents which would be required in the organization. The organization plans it’s training and developmental activities based strongly on the skills it desires to nurture for accomplishing future goals. Besides that, the present recruitment and selection strategies are also designed in a way which helps to the future workforce requirements in the organization. ...Download file to see next pagesRead More