1. Managing flexible patterns of work for competitive advantage
Chapter 5
Managing flexible patterns of work
for competitive advantage
© Oxford University Press Southern Africa, All rights reserved.

2. Learning outcomes After reading this chapter you should be able to:
define the concept of flexibility
distinguish between the different types of flexibility
list ten organisational/management practices organisations can use to determine whether they are ready for flex work
discuss the flexible firm model
discuss the changing dynamics of the workplace and its impact on new forms of flexibility

3. Chapter Content
Opening case: Managing diversity for competitive advantage at Deloitte & Touche
Introduction
Concept of flexibility
Types of flexible patterns of work (advantages and disadvantages)
Organisational readiness
Flexible firm model
Changing dynamics of the workplace
Impact of new forms of flexibility

4. What is flexibility?
ability of the organisation to adapt the size, composition, responsiveness and cost of the people inputs required to achieve organisational objectives

5. Flexibility
Functional flexibility = management's ability to deploy and redeploy particular sections of the workforce on a wide range of tasks, in response to market demand, as and when required
Numerical flexibility = quantitative approach to the utilisation of the workforce

6. Flexibility
Work-time flexibility or internal numerical flexibility = further process of adjusting the 'quantity and timing of labour input without modifying the number of employees'
Job sharing = where one job (often full-time) is split between two (or more) employees

7. Flexibility
Distancing = relates to the outsourcing of activities that may include core and non-core activities
Financial flexibility = a compensation system designed to facilitate the development of flexible patterns of work, in particular numerical and functional flexibility

8. Flexibility
Procedural flexibility = the central tenet in the development of flexible patterns of work, particularly in the highly regulated labour markets
Regulatory flexibility = a process to encourage and facilitate the establishment, development or relocation of enterprises through the relaxation, amendment or exempting of public policy

9. Flexibility
Mobility/location flexibility = involves a change in the nature of work, or a career change with the same employer
Cognitive flexibility = the mental frame of reference required to effectively perform in the job and the level of cognitive skill required
Organisational flexibility = a structural response to the development of flexible patterns of work

10. Organisational readiness for flex work
policy - Are there specific policy and strategy statements approved and communicated by top management that endorse flex work as a component of the employment relationship?
employee commitment - How deeply are employees committed to the success of the organisation's mission and high achievement in their own jobs?
management commitment - Do the actions of management as well as their communications to employees reinforce management's support for flex work?

11. Organisational readiness for flex work
workforce planning - How good is the organisation at forecasting projects, deadlines, production quotas and workloads, at scheduling workforce needs and at allocating resources?
technology - Are information technology and communication systems in place to support flex work in smooth, efficient, consistent ways?
training and orientation - How effective are training content and delivery mechanisms for meeting the ongoing needs of flex workers?

12. Organisational readiness for flex work
teamwork - To what extent is work done in teams, and is there sufficient coordination to ensure coverage and to compensate for having team members on different schedules?
performance management - Are there methods for performance measurement, employee appraisal, and staff development that are equivalent, if not identical for flex workers and others?

13. Organisational readiness for flex work
decision making - Who holds decision rights and makes key decisions in the course of everyday work?
communication & information dissemination - How effective are the means, media and frequency of communication of everyday business information and are those processes robust enough to keep flex workers in the loop?

14. Flexibility and organisational design
increasing use of multiple forms of flexible patterns of work, to facilitate more timely responses to the competitive forces of the market
required the parallel development of organisational structures to facilitate these
provides management with the template to adjust and utilise the available human resources in a flexible manner in response to changing demands
flexible firm model/core-periphery model

15. Flexible firm model

16. Flexible firm model
provides competitive advantage through the restructuring of the employment relationship
based on a break with unitary and hierarchical labour markets and organisation of internal means of allocating labour, in order to create a core workforce and a cluster of peripheral employment relations
redefines the organisation into two broad segments:
core
periphery

17. Flexible firm model
made up of a permanent, highly-skilled group of employees with internal career
core
associated with organisation's development of qualitative/numerical flexibility (undertaking of important, but not vital day-to-day activities )
peripheral workforce
development of the flexible firm model reactive to the demands of the market, rather than a new-found strategic view of management towards the organisation of its human resources

18. Flexible firm model
implies a distinctive strategy on the part of management in developing more efficient and effective labour utilisation
criticised for its promotion of variation in terms and conditions of employment within organisations
provide a framework for analysis, insight and explanation with respect to the development of new patterns of work

19. Changing dynamics of flexibility
new workers - the changing dynamics of the flexible core worker
need to attract, retain and develop key employees for the core activities and develop a stable supply of workers for the periphery
new 'core' workers in the emerging 'knowledge' economy increasingly own the means of production - knowledge - which attracts large rewards
‘gold collar workers’
understand what motivates them
think differently, behave differently and have needs differently to the traditional employee
self-focused and less interested in the traditional benefits of employment (job security and working conditions)
manage their own careers

20. Changing dynamics of flexibility
new organisations - the changing dynamics of the flexible organisation
organisational design
accepting and accommodating the movement of human resources into and out of the firm
providers of new information
encouraging 'core' staff to leave to develop themselves and allow new talent into the core organisation developing a hybrid of the core-periphery model
management of 'distributed knowledge systems' or networks
team-based workforce
management's ability to derive competitive advantage from continually developing and exploiting both its knowledge stock and knowledge flows

21. Changing dynamics of flexibility
new perspectives - flexible workers need flexible managers
role and development of management is overlooked
new capabilities can only be developed where management understands this and has the skills and knowledge to create such an environment
employer of choice
management acts as the catalyst in the through flow of staff to enable the organisation to continually regenerate its knowledge base
invest resources in employees to ensure they continue to develop their knowledge, skills and ability to ensure the organisation develops sustained competitive advantage through their human resources

22. Advantages and disadvantages of flexible patterns of work
Employer’s perspective:
Advantages
enable employers to match organisational resources more closely with customer/product demand
reduce fixed costs
aid recruitment & retention
increase productivity
reduce absence & turnover
Disadvantages
increased training costs
higher direct costs
a more complex administration
communication difficulties
management of the flexible workforce

23. Advantages and disadvantages of flexible patterns of work
Employee’s perspective:
Advantages
the ability to combine work with outside interests
greater job satisfaction
improved motivation
less tiredness
Disadvantages
unequal treatment in terms of pay & benefits
reduced career opportunities
limited training opportunities
the 'psychological contract' is challenged
increased job insecurity
increased stress