In an internal labor market,employees often spend too much time lobbying for promotions or preferred job assignments.These are referred to as:

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Influence costs refer to the time and effort employees spend lobbying for promotions or preferred job assignments within an internal labor market. This can be a significant drawback of an internal labor market, as it can lead to politicking and favoritism, rather than merit-based hiring and promotions. Administrative costs refer to the costs of managing an internal labor market, such as advertising job openings, conducting interviews, and processing promotions. Market costs refer to the costs of hiring from outside the organization, such as recruitment, training, and compensation for new hires. Human capital costs refer to the investment in developing the skills and knowledge of employees, which is not directly related to the costs of an internal labor market.

In an Internal Labor Market,employees Often Spend Too Much Time