Flexible firm model atkinson 1984. Atkinson's Flexible 2022-10-27
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The flexible firm model, proposed by Atkinson in 1984, is an alternative approach to the traditional model of the firm that has dominated economic theory since the work of Alfred Marshall in the late 19th century. According to this traditional model, firms are assumed to be relatively inflexible, with a fixed set of inputs, a fixed set of outputs, and a fixed production function that describes how the inputs are transformed into outputs.
In contrast, the flexible firm model sees firms as being much more dynamic and adaptable. According to this model, firms are not limited to a fixed set of inputs and outputs, but rather can adjust their production processes and product mix in response to changing market conditions. This flexibility allows firms to respond more quickly to changes in consumer demand, which can give them a competitive advantage over less agile firms.
One key feature of the flexible firm model is the concept of the "production possibility frontier," which represents the maximum output that a firm can achieve given its available inputs. In the traditional model, this frontier is fixed, but in the flexible firm model, it is subject to change as the firm adjusts its production processes and product mix. This means that firms are able to explore a wider range of production possibilities, and are not limited to a single, optimal production point.
Another important aspect of the flexible firm model is the concept of "opportunity costs." In traditional economic theory, the opportunity cost of an action is defined as the value of the next best alternative that is forgone as a result of choosing a particular course of action. In the flexible firm model, however, opportunity costs are seen as being more fluid and dynamic. Firms are able to explore a range of different production possibilities and choose the one that maximizes their profits, rather than being constrained by fixed opportunity costs.
Overall, the flexible firm model offers a more realistic and nuanced view of the way firms operate in the real world. It recognizes that firms are not limited by fixed production functions and can adjust their production processes and product mix in response to changing market conditions. This flexibility gives firms a significant advantage in a constantly changing business environment.
Atkinsons Flexible Firm Model 1984 and Shamrock Organisations Handy 1989 The
It allows management to relocate core workers between multiple workforces and tasks. Fleetwood 2007 argue that there is an inextricable link between the practices associated with work-life balance and that of flexible working. It is a master tool for having a strong workforce, it should definitely be recommended to all senior managers of organisations worldwide who are still not familiar with the concept to familiarize themselves and get gain as much knowledge as possible start implementing it in their workplace. It also refers to the compensation granted to individuals upon the termination of their contracts. Critiques of the flexible firm model The flexible firm model has been criticised as not been backed up by facts Muller-Camen 2008 ; and Legge 2005; Torrington 2008 highlights the vagueness in the model as to whether the model is a description of trends or a prescription of the future. According to Lewis et al 2003 , the flexible firm analyses have a tendency to trigger different feelings among the employees especially the classification of employees into core and peripherals.
💌 Atkinson model 1984. Flexibility In The Workplace Management Essay. 2022
If cuts are required within the core group, then this may be indicative of major financial difficulty within the company. However, Pearce and Randell 1998 argues that the perceived effect of flexible work practice can best be determined by employees career preference; that is, whether the choice of flexible contract was intentional or not. They have a limited contract of employment either short term or part time and they enjoy even less security Torrington et al 2008. Examples include cleaners, drivers, caterers etc. The Atkinson model, also known as the Atkinson welfare function, is a mathematical framework that was developed by economist Anthony Barnes Atkinson in the 1970s and 1980s as a way to measure and compare levels of inequality and social welfare in different societies. According to Rose 2008 flexibility is mostly analyzed from the perspective of revolution within the structure of employment relationship and it aids in conforming rapidly to changes in the world of technology and market opportunity.
In an investigation conducted on some workers in a Swedish hospital, and result shows that individuals on flexible employment demonstrated higher levels of jobs insecurity and reduced organisational commitment Sverke et al 2000. Member of the core group have flexibility on the functions, or functions in a variety of trained, hence, they have a variety of skills. They consist of temporary workers, part-time or even self employed. This model highlighted the functions of the concept of flexibility. Therefore from an employee welfare point of view, it provides less job security and career perspectives to temporary than permanent employees due to which it is argued that employee commitment of the temporary employees is negatively affected Sarantinos, 2007. Organizational leaders make use of flexible budgets to help take into consideration; various uncertainties that may emerge after business operations commence.
Functional flexibility is a qualitative approach to work, and Flexible Organization A proper flexible organization provides its work force arrangements where employees are given greater freedom to balance their work and personal commitments such as family, higher education, community activities, religious commitments, professional development, and general interests. A guide to a changing society. However, there is an ongoing consideration to extend the right to parents with children under the age of sixteen years Pitt 2009. Flexibility In The Workplace Management Essay The company has been ignoring market changes and trying to maintain its corporate image and identity. Furthermore, Taylorism and Fordism are used synonymously, however, Fordism can be seen as an extension of Taylorism , they are related to each other, with Taylorism making up the central core within the much broader framework of Fordism. Employees who perceive breaches in the psychological contract think about their relationship with the organisation from a negative point of view, and demonstrate increase intention to quit the organisation Robinson and Rousseau 1994.
Many human resource departments have now began giving their employees a more flexible work schedule as long as their work is being completed. Critiques of the flexible firm model The flexible firm model has been criticised as not been backed up by facts Muller-Camen 2008 ; and Legge 2005; Torrington 2008 highlights the vagueness in the model as to whether the model is a description of trends or a prescription of the future. It allows the business to match the volume and skill-level of staff to their requirements at the time, which may in the long-term lead to lower wage and other staff-related costs and provide a competitive edge over market competitors. In addition, Ursell 1991 cited in Dyer 1998 maintain that the scope of decision making associated with the core workforce is likely to be very limited and found that budgets, performance appraisals and selection techniques are being used to both monitor and control the extent of autonomy given to the core work force. From the above definitions, it is important to note that flexibility is influenced by changes in the economic situation, increased competition, labour market volatility and changes in the world of technology.
Atkinson, J. (1984) Manpower Strategies for Flexible Organisations. Personnel Management, 16, 28
Such persons are generally managers and design engineers. The flexible pay and compensation structure enables an organisation to pay core and peripheral employees differently due to which the non-permanent employees are excluded from payroll, health and other benefits. Examples include administrative, secretarial, sales, production and supervisory staff. A positive psychological contract is directly related to job fulfilment and commitment which ultimately will result in an increase on performance. In recent years due to dynamically changing global environmental factors such as technological advancement and social changes the emphasis on and utilization of flexible working patterns has increased.
Flexible firm john atkinson 1984 subcontracting Free Essays
By end of 1998 there was evidence of a crisis and since then the company has been on a decline. It argues that employers are increasingly segmenting their workers between a permanent 'core' of full-time employees, and a 'periphery' of part-time, temporary, subcontract and 'outsourced' workers. Our academic experts are ready and waiting to assist with any writing project you may have. Despite these criticisms, the Atkinson model remains a widely used and influential tool for understanding and addressing issues of inequality and social welfare. Several writers such as Blyton and Morris 1992; Atkinson 1984; Bramham 1994; Sparrow and Marchington 1998 cited Pilbeam and Corbridge 2006, Lewis et al 2003; Torrington et al 2008; Armstrong 2006; Legge 2005; Dyer 1998 have attempted to identify the different types of flexibility which exists in the workplace. Flexible Firm Model: Is it now Outdated and in Need of Revision? They are hourly paid, perform routine jobs and have no career track Handy, 1985.
Its aim is to maximise productive time and minimise unproductive time. The key belief of this model is that being proactive and decisive, rather than reactionary in terms of change is the difference between a successful flexible organisation and a dysfunctional organisation. Furthermore, Pilbeam and Corbridge 2006 analyzed the term flexibility from two contexts. This helps the organisation to reduce its financial cost and hence give financial flexibility. The study found that there are increased tensions in the working relationship.