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Why do firms form internal labor markets/use bureaucratic control? According to Doeringer and Piore it is: O because employees learn skills on-the-job and the firms wish to reduce turnover. O in large firms where the owners can't directly observe how hard their employees are working it is to increase work effort and to make sure the job is done correctly. O in order to prevent other firms from hiring away their most productive employees. O to allow the firm to pay an optimal wage that will reduce the probability that workers will shirk on the job.

Why do firms form internal labor markets/use bureaucratic control? According to Doeringer and Piore it is: O because employees learn skills on-the-job and the firms wish to reduce turnover. O in large firms where the owners can't directly observe how hard their employees are working it is to increase work effort and to make sure the job is done correctly. O in order to prevent other firms from hiring away their most productive employees. O to allow the firm to pay an optimal wage that will reduce the probability that workers will shirk on the job.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Why do firms form internal labor markets/use bureaucratic control? According to Doeringer and Piore it is: O because employees learn skills on-the-job and the firms wish to reduce turnover. O in large firms where the owners can't directly observe how hard their employees are working it is to increase work effort and to make sure the job is done correctly. O in order to prevent other firms from hiring away their most productive employees. O to allow the firm to pay an optimal wage that will reduce the probability that workers will shirk on the job.
Transcribed Image Text:Why do firms form internal labor markets/use bureaucratic control? According to Doeringer and Piore it is: O because employees learn skills on-the-job and the firms wish to reduce turnover. O in large firms where the owners can't directly observe how hard their employees are working it is to increase work effort and to make sure the job is done correctly. O in order to prevent other firms from hiring away their most productive employees. O to allow the firm to pay an optimal wage that will reduce the probability that workers will shirk on the job.
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