Organizations choosing an external labor orientation:
a) hire new employees with the expectation that they will remain employed for a long period of time and develop a strong commitment to the organization
b) hire new employees with the expectation that they will not form a long-term attachment to the organization
c) focus on developing their employees
d) are not overly concerned with internal equity
The correct answer and explanation is :
Correct Answer: b) hire new employees with the expectation that they will not form a long-term attachment to the organization
Organizations that adopt an external labor orientation prioritize hiring talent from outside the organization rather than developing it internally. This strategy is rooted in the belief that the best candidates for a job are found in the external labor market and not necessarily within the current workforce. As a result, these organizations often fill positions by recruiting new employees who already possess the skills needed for the role, rather than investing in long-term training and development for existing employees.
A key characteristic of external labor orientation is the short-term employment relationship. Employers who follow this model do not expect or encourage employees to stay with the company long term. Instead, they view employment as more transactional—employees are brought in to fulfill specific needs, and once those needs change or are met, the employment relationship may end. There is generally less emphasis on loyalty, promotion from within, or long-term career paths. This approach is commonly used in industries with high turnover, seasonal demands, or rapidly changing skill requirements, such as retail, hospitality, or technology consulting.
This orientation contrasts sharply with an internal labor orientation, where organizations invest heavily in training, mentorship, and career development to promote long-term employment and advancement from within. Internal approaches focus on building employee commitment, while external approaches emphasize flexibility and immediate results.
While external labor orientation can bring fresh perspectives and up-to-date skills into an organization, it may also lead to lower employee engagement, weaker organizational culture, and higher turnover costs. Therefore, organizations need to weigh these factors carefully when deciding which orientation best aligns with their strategic goals and industry demands.
In summary, option (b) correctly identifies that organizations with an external labor orientation do not expect long-term attachment from their employees, making it the most accurate choice.