[2] The main reasons why internal labor markets were developed are as follows:[1] Skill specificity has two effects important to the generation of the ILM: it increases the proportion of training costs borne by the employer, as opposed to by the trainee and it increases the absolute level of such costs.
[4] Analysis of Internal Labor Markets concerns the causes of an organization’s (or geography’s) workforce dynamics – attraction, development, and retention as well as the rewards that motivate them.
[6] Custom at the workplace is an unwritten set of rules based largely upon past practices or precedent.
The first is ILMs which consist of clusters of jobs related by the skills and capacities required for their successful performance.
Finally, selection and assignment of persons to higher level jobs occurs according to the rules that describe the criteria to be used in these decisions.