On The Construction Of The Internal Labor Market In Private Enterprises

At present, regarding the development of civilian-operated enterprises, there is a lot of discussion about the conflict between family-managing system and modem business management system. The family-managing system has the factors restricting developments of civilian-operated enterprises, but the modern business management system has disadvantages to carry into execution. This paper has abandoned the difficult problem that whether the civilian-operated enterprises should adopt the modern business management system or remain the family-managing system. And the author proposed the viewpoint that we could establish and develop internal labor market in the family-managing enterprises. Regardless of modern-control enterprises and family-control enterprises, both must face external labor market. So the author thought that both also must face the internal labor market. We may think that the internal labor market doesn't belong to the modern business management system nor the family-managing system.By comparing internal labor market system with family control system, this paper draws the conclusion: when civilian-operated enterprises have reached a certain size, internal labor market system is superior to family-managing system in reducing the internal bargaining costs, and could accelerate our civilian-operated enterprises.The innovation of this paper lies in the internal labor market theory which developed based on the traditional economic theory is striped from the traditional theory temporarily. The civilian-operated enterprises could remain the family-managing system, meanwhile establish and develop internal labor market and weaken the family-managing system gradually. Based on short-term, this may save the bargaining costs and the system- transformation costs for civilian-operated enterprises. Based on long-term, internal labor market theory also has indicated a developing direction for civilian-operated enterprises.