ORGANIZATIONAL FLEXIBILITY

Organizational Flexibility

Executive Summary

Introduction

This paper is on labor market flexibility boasts pledge of encapsulating the sequence of convoluted components into the lone measure. The objective of this paper is to critically consider building of the catalogue such and submit to an initial study in Australia. Our investigation of evolution of returns to ability in Australia over the ten years proposes that these rankings cannot be supported. It contends that only by subjecting catalogue to the rigorous evaluation can validity and utility of catalogue to be evaluated. The empirical outcomes propose that methodology utilized in building of this catalogue is imperfect and partial.

Table of Contents

Introduction................................................4

Qualitative Research........................................6

Organizational tests and requirement for

Flexibility................................................6

Organizational notions for up to designated day world......................................................8

Flexibility at National Level.....................................................10

Conclusion................................................12



Organizational Flexibility

'Labor Market Flexibility' is defined as "the ability and willingness of institutions and individuals in labor market, employers as well as workers, to respond appropriately to economic and social needs of country." (National Labor Consultative Council, 1987, p.1) Stroper and Scott, 1990 identify it is as "a logic of tailoring labor input in production to shifting levels and qualities of outputs." Furthermore, Norris, 1986, suggests that "in the flexible labor market labor will be allocated, across occupations and industries, to its most productive uses and market will adjust so that shortages or surpluses of certain sorts of labor do not persist." (Norris, 1986, pp.1-2)

'Labor Market Flexibility' can take on two main forms, as identified by Deery et al (2001), 'Numerical' and 'Functional' flexibility. These forms can in turn be further broken down into 'external numerical,' 'internal numerical,' 'wage' and 'procedural' flexibility. (Casperz, 2004)

Firstly 'external numerical' relates to freedom to adjust size of work force allows firms to take advantage of external relations, either to access specialized skills and expertise or adjust to fluctuating labor demands e.g. temporary, part-time, subcontracting, home-workers.

'Internal numerical' refers to ability to adjust working hours of employees. It encompasses labor practices which increase ability of workers inside firm to changing demands e.g. multi-skilling, redeploy ability, and teamwork.

'Wage flexibility' or 'functional flexibility' describes freedom to deploy workers across different tasks within company. This type of flexibility can be implemented by varying wage levels according to criteria of capacity to pay and productivity. Thus, an individualist approach is adopted wage arrangements rather than collectively dealing with occupational groups.

Finally, 'procedural flexibility' indicates ability to adjust employee rewards, i.e. pay, bonuses. It also underlines processes by which change is introduced in an organization e.g. quality circles.

Introduction

The types of 'Labor Market Flexibility' are encapsulated within model of 'flexible firm,' the framework which is pivotal to appreciating impact of globalization on labor market. The model suggests that it is essential for the company to have staff that is flexible in every different way, if they are going to respond competitively to market. In order to do this, organizations must achieve the balance of the 'horizontally flexible' (staff with the combination of the wider range of skills) and 'vertically flexible' (the incorporation of higher skills e.g. qualifications) within their ...