This chapter provides an assessment of the contemporary labour market context of Human Resource Management and the impact of current trends in labor market on the practices associated with Human Resource Management in relation to attraction, motivation and retention of talents.
1.2 Review of Prior Work
A labour market can be understood as the mechanism through which human labour is bought and sold as a commodity and the means by which labour demand (the number and type of available jobs) is matched with labour supply (the number and type of available workers). As such, the labour market constitutes the systematic ...view middle of the document...
For example, in seeking to retain employees the internal labour market can act as a source of motivation and contribute to a positive psychological contract, through the provision of training and development, career opportunities and good terms and conditions of employment. The operation of the internal labour market can also be understood as a device for managerial control through a process of stratification, division and the detailed allocation of roles and responsibilities. Whilst all organisations have internal labour markets of some description, the ‘classical model’ of internal labour markets Grimshaw et al., (2008) is typically associated with a very structured approach to managing the workforce. This includes limiting access to the labour market from outside the firm (often restricted to specific entry points, generally at lower levels) and recruiting to more senior jobs by internal promotion or transfer, often accompanied by in-house training. Such internal structures are notable characteristics of larger organisations which benefit from employee retention and promote the long service of employees both by providing internal opportunities for career advancement and through reducing their ability to move to another firm (for example, through limiting the development of transferable skills in favour of those related to firm-specific technologies and processes).When understood in this specific sense, then it is apparent that many firms do not operate a ‘strong’ internal labour market, especially in the extent to which they offer employees the opportunity to develop careers. In such organisations, there are limited prospects for career progression, labour turnover is considered unproblematic or unavoidable, little emphasis is placed on learning.
1.3 Literature review of the Study
The Kenya higher education (HE) system has undergone a major transformation over the past two to three decades from a system that catered for a limited number of entrants in the late 1960s and early 1970s (approximately 6 per cent of school leavers) to one that now aims to provide tertiary education to half the population of 18-year-olds. The shift from an elite to a mass higher education system has been viewed by successive governments as the principal mechanism by which to create an adequate supply of highly qualified workers to fill the expanding number of ‘high-skill’ jobs in the economy (Keep and Mayhew, 2004), encouraged by employers who claim that more graduates are needed for Kenya organisations to remain competitive. However, employers have responded to the increased supply of graduate labour in a number of ways, not all of them in line with their calls for a more highly qualified labour supply. Some have created new or modified existing roles to take advantage of the supply of graduates and a number of studies have highlighted the...