BusinessEssays.net

In what way do you think the flexible work model benefits employers during times of economic growth AND downturn?

There are many benefits can be enjoyed by employers through a design of flexible organization, be it during an economic downturn or growth time period. In the times of economic growth, flexible organization can enhance the speed and responsiveness of an organization. The flexible organization can faster adapt and change itself to suit the changes in market environment and grow fast. As such, with more responsive organization, the organization can become better, produce happier and more satisfied customers meet market demand more accurately, fast to react to the market changes and trends, and ultimately achieve higher growth rate and financial profitability at the end of the day. Besides, flexible organization can also keep the costs down. As the people and workforce are managed to be flexible, many costs due to rigidity of management layers, bureaucratic organization structure can be eliminated or reduced. All these costs incurred are unnecessary, and the save money can in turn enhance the margins and profitability of the firm. Apart from that, with a flexible organization, the organization can be managed more easily. Job roles and function may not required to be created to undertake certain works or responsibilities, as workforce can be more flexible in handling many of the tasks arises in workplace daily. Doing the economic downturn, flexible work model enable a firm to keep it costs down and remain highly competitive in a gloomy economic environment. The organization can easily managed to take over market shares from the competitors, and then to build stronger competitive advantage for the firm competitors are struggling hard to survive or retrenching the workforce to cut down costs. Besides, in a bad economy, a flexible work model can also prevent retrenchment exercises in an organization that will decrease employees’ confidence, trust and motivation in an organization. This is because employees can be managed to handle different task, to adjust according to the new opportunities in a different economic climate and to learn up new skills or competencies to cope with the changing trends in the business environment. In contrast, those firms with rigid job roles design will retrench some of the workforce in certain department making losses.

References:

Atkinson J, & Meager, N. (1986), New Forms of Work Organisation, IMS Report 121, Institute of Manpower Studies: Brighton.

Atkinson, J. & Meager, N.(1986) Changing Working Patterns: How companies achieve flexibility to meet new needs, Institute of Manpower Studies, National Economic Development Office, London.

Boxall, P., & Purcell, J. (2000). Strategic human resource management: Where have we come from and where are we going? International Journal of Management Reviews, 2: 183-203.

Dessler, G. (2011) Human Resource Management ,12^th edition, Prentice Hall,

Dyer, L., & Holder, G. W. (1988). A strategic perspective of HRM. In L. Dyer & G.W. Holder (Eds.), Human Resource Management: Evolving Roles and Responsibilities. Washington, D.C.: Bureau of National Affairs.

Gilmore, S., & Williams. S. (2009), Human Resource Management, New York, OUP.