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Orgs must have the capacity to manage planned change and to be adaptive to uncertainities and

unanticipated pressurs at all levels in the org. the structure must avoi he hierarchwitd the rigidities

associated ial machine like bureaucracies, entrentched, powerful interet groups and inhibitive

demarcation among work groups. Instead, orgs should seek flexibility via organic structures extensive

decentralization and delegation of control and therefore through the design of the job.

flexibility refers to labor market and labor process restructuring to incease verstality in design and the

greater adaptibility of new technology in production. Specialization relates to niche and custom

marketing the apparent of fordism, mass production and standardisatio hence the concept unites

changes in production and consumption.

In contrast in the flexible firm model, flexibility is defined less abstractly and in terms of three facets ;

financial, numerical and functional flexibility (atkinson 1984)

Functional flexibility refers to a firms ability to deploy employees between activities and tasks to match

changing workloads, production methods or technology.

Numerical flexibility refers to a firms capacity to adjust labor inputs to fluctuations in outputs via the use

of non standard emplyment contracts, which even include outsourcing.

Financial flexiility refers to a firms ability to adjust employment costs to reflect the state of supply and

demand. In external labor market in a way that is supportive of the objectives sought by functional and

numerical flexibiity

Atkinson proposes that employers seek an optimal balance between functional, numerical and financial

forms of flexibility through segmenting the labor force into core and periphery groups. The core group

which conducts the orgs key firm specific continuous acivities, enjoys job security and the possibility of

career development in the internal labor market in return for the obligation to be multiskilled. It is from

this group that one org derives functional flexibility. The perphiral group from which numerical flexibility

is sought, comprises three categories of employees.

1/- who perform relatively routine or deskilled tasks which require an element of firm (to be continued)

2/- in one primary external labor market are those with specialist non firm specific skills, required by an

org on an intermittent discontinuous basis, eg systems analyst, tqm consultant and who demand a high

fee for specific items for service.

3/- finally there are those tasks eg cleaning, catering which can be contracted out to small firms

employing some of their core but largely casual temprorary unskilled labor.

A more elaborate version of the model appears in lewis, which builds upon the atkinsons model this

model represents different forms of flexibility functional numerical temporal financial cognitive org and

geographical.

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Temporal flexibility is only about changing the number and timing of working hours. Cognitive flxibility is

varying the psychological contract. Org flexibility I changing org sructure and design. Geographical

flexibility is moving people and changing the workplace.

It is evident that the notion of flexibility has gone well beyond that intended by the original progenitors.

Distinctions are also made between internal and external flexibility, with the former being moreprevalent in the early days of downsizing creating a bigger periphary.

The internal labor market is the one that operates within orgs eg applying for promotions, being

selected for certain jobs and so on. The external labor market is thesource of job applicants outside the

org. with more internal fkexibility (functional flexibility) and external flexibility (numerical flexibility)

anomic conflict, a the business wouldnt be able to focus either or standard production (ford) on the

differentiated product. Focuing on the rigid internal and a flexible external market gives a standard

product, whereas a rigid external and flexible internal market gives a diversified quality product. On the

other hand a rigid internal and a rigid external market gives an uncompetitive firm where focus is

neither on functional or numerical flexibility.

In the uk there is flexibility in the external labor market as employers are able to hire or fire with relative

ease. They are however constrained with regard to the internal labor market. Since british employees

traditionally have rigid attitudes, demand job security, staffing levels, adhere to strict jobs demarcations

have fixed methods of doi ng the work. Under these circumstances it is hard to obtain funcional

flexibility. However flexible external labor markets combined with rigid internal labor markets are uk,

collective bargaining has been used to negotiate more flexible bourndries between jobs. In attempts

soften up rigid job demarcation and thus increase functional flexibility.

However with flexibility in both internal and external labor market there is no job security, too much

change and too many demand from employees who maybe unable to cope. It can fadely be concludedby breasts concluion about how the flexible mosidel applies differently situation to situation. The

broader generalizations about any form of flexibility better tha the other, it is only applied in a half

baked manner without the conceptual unpinings near to understand. The implications of such

interventions. Here criticisms regarding the flexible model (to be continued)

It is not clear whether the models and terms are prescriptives or descriptive. Concepts are not clearly

defined and are difficult to test. Sweeping generalisations are made without a lot of empirical research

support. It is not vevn clear how much change from the old fordist to the new flexible is actually taking

place.

Te opposite of flexible is not neccessariy regid. It could be flexibility vs stability or flexibility could be y

iny ininterpreted as chaotic and confusing. Leg refers to several sources of empirical evidence about

flexibiliy in britain. There is evidence of increased numerical flexibility but as a pragmatic rather tha

strategic response. Sources indicate that the uk management until the turn of the last century were

under educated and not particularly effective. It remains a mystery whether increased prevalence of

atypical employment (numerical flexibility) a deliberate marketing strategy or just a reaction to changing

situations)

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Privatisation and outsourcing are not all negative despite a fairly critical literature on these forms of

numerical flexibility. A swinging pendu lam reconciles there seemingly contradictory statements. Undue

prominence to flexibiliy might have been an over reaction to perceiced rigidity in traditional

organizational forms that rended them incapableof deeling wih the turbulant internal and external

environment of the last three decades.

Where functional flexibility exists it consists of limited job enlargement and rather tha job enrichment.

The core traits have not really changed much with mechanics still doing mechanics work and

electricians doing electricians work.