Explain the Atkinson’s model of the ‘flexible firm’.
this is a university case study question please write 625 words and provide Harvard style referencing.
ANSWER
One of the management techniques for optimal use of human resources in an organisation is flexible firm model developed by John Atkinson's in 1984.The main idea behind this model is organising workplace using different flexibilities.
Here workforce of organisation are segmented into 2 parts core (permanent employees ) and peripheral group, He identified 3 kind of flexibilities to be adopted in organisation functional, financial and numerical based on skill, job security, availability (supply in market ) etc.
BASE OF MODEL
* workforce segmentation
- Core group
- Peripheral group ( first and second )
* Types of flexibility
- Functional
- Financial
- Numerical
Functional flexibility - It involves the flexible movement of employees fyon from one job to another based of production requirements which involves cross functional training of employees.
Financial flexibility - It involves the fluctuation of pay or compensation based on supply and demand for labour. It's mainly applicable to contract labours or worker's employed on hourly bases.
Numerical flexibility - It involves increasing the number of employees based on requirement by way of hiring human resources through franchising, part time employment, self employment, job sharing, home based work, short term contractors etc.
Employees segmentation | Flexibility | Job security | Replacement |
Core employees
(Main or primary workforce )
| functional | secured job | can't be replaced easily |
First peripheral (secondary employees less skilled and experienced than core employees ) | financial and numerical | unsecured | replaceable |
Second peripheral ( part time employees, contract based employees etc) | financial and numerical | unsecured | replaceable |
Core group - core group of employees is composed out of primary employees who can't be replaced easily because of their skill, knowledge and experience and they are like permanent employees. We see scarce supply of employees from this core group and it comes under functional flexibility.
Peripheral group - It consists of employing human resources based on requirement like during peak time or inorder to completeparticular task, we have easy supply of these employees and it comes under financial and numerical flexibility, unlike core employees we can replace them easily.
So,This model helps company to adopt flexible working hours their by increase the productivity by adopting suitable strategies, even it's cost effective because you can hire man force based on requirement and company can respond quickly to changing market demand.
But one of the drawback of this model is peripheral employees are kept far from job security, training and development in field they work their by its considered as discrimination (highly unsecured during recession etc) workforce of organisation.
( Atkinson, J. (1984). Manpower strategies for flexible organisations. Personnel Management, August. And research paper by different scholars like Suzette Dyre , anna pollart etc.)
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