Researchers also have examined the performance effects of

internal labor markets that provide for promotion from within.

The Delaney and Huselid study, cited previously, found through
analysis of data from the National rgani!ations "urvey that
promotion from within is significantly related to perceptual
measures of organi!ational performance. "uch promotion
practices were correlated with performance for the for#profit
organi!ations in their sample. $nterestingly, these results were
not found when nonprofit organi!ations were included in the
analysis. However, an alternate measure of internal labor
markets assessed the degree of vertical hierarchy as an
indicator of promotion ladders. %hile greater vertical hierarchy
is inconsistent with tendencies toward flatter structure and
decentrali!ed decision making, this measure became
significantly related with performance when nonprofit
organi!ations were included in the analysis.