3.10 Flashcards
(35 cards)
What is a flexible organisation
- One that is able to adapt and respond relatively quickly to changes in its external environment in order to gain advantage and sustain its competitive position
Benefits of being a flexible organisation
- More likely to be efficient and productive
- More likely to respond to and meet changing customer needs and wants
- Improved decision making
- More attractive place to work
- Can concentrate on its core competencies rathe than trying to undertake every business activity
- More likely to identify and respond to the need for change
Restructuring
Organizational restructuring is a process where a company makes fundamental changes to its operational or financial structure. This involves alterations to:
- Organisational structure
> Changing reporting lines
> Splitting departments
> Redesigning job roles and responsibilities
- Operational structure
> Changes to processes
> Workflows
> Hoe a company produced its goods or services
Reasons for restructuring
Adapting to market changes
- Companies may restructure to stay competitive in a changing market
Improving efficiency
- Restructuring can aim to streamline operations and reduce costs
Restructuring also involves decisions about
- Activities undertaken by a business
- Activities that are outsourced to external suppliers
Flexible employment contracts
Flexible working involves arrangements where there are a variety of options offered to employees in terms of working time, working location and the pattern working
Types of flexible controcts
Zero hour contracts:
- The employer doesn’t guarantee a minimum number of working hours
- Employees work when employers need them and some are required to take the shifts offered others don’t
- Pay depends on how many hours they work
Flexitime:
- Employees work within a core period, but can arrange their hours otherwise
Compressed hours:
- Employees work the same number of hours over fewer days
Annual hours contracts
- Employees agree to work a certain number of hours in a year, but the pattern can vary
Staggered hours contracts
- Employees start and finish work at different times
Part time
- Working fewer hours than full time
Benefits of a flexible workforce
- Savings on costs
> Doesn’t need to provide office and other accommodations as staff can work at home - Help with recruitment and staff retention
> There’s evidence that flexible working results in better job satisfaction and staff morale - There’s more women and ageing people in the workforce and so people have more responsibilities outside of work
- To meet employment legislation
> Increasing laws allow employees legal right to request flexible working - Take advantage of developments in technology
> Cheaper and simpler for employees to access work online and at home
Drawbacks of flexible working
- Potential loss of customers if key employees reduce their working hours
- Lower employee productivity
- Managers can find it difficult to manage or administer flexibility
- No substitute for certain employee skills
- Lots of administrative work involved in setting up and running flexible working
Lewin’s force field analysis
- Force field analysis provides an overview of the balance between forces driving changes and the forces resisting change
Lewin’s force field model
—————-> 5 1<———————–
Forces for Forces resitting
Change Change
—————>3 4<————————
Driving Restraining forces
Forces
—————->1 2<———————-
Explaining force field analysis
- 4 forces driving change and forces restraining it
