The paper "External and Internal Recruitment Methods" is a perfect example of a business assignment. Flexibility in a firm depends on whether it affects the organizational operation or the contractual arrangement. The main difference between organizational flexibility and contractual flexibility is that organizational flexibility is reversible while contractual flexibility is not reversible. The reversibility found in contractual flexibility arising from the fact that contractual flexibility only modifies the arrangement of individual workers. When dealing with flexibility in firms, it is common to assume that there is no pre-planned strategy set for achieving the objectives.
Rather, the flexibility results from an opportunity, such as taking advantage of high levels of unemployment. There are four components of the move towards flexibility within Atkinson's model of the flexible firm. These include numerical flexibility, functional flexibility, financial flexibility and distance flexibility. In numerical flexibility, the firm’ s management has the ability to alter the labor so as to go in line with the demand. In functional flexibility, the firm has the ability to train and assign labor depending on the tasks. In financial flexibility, the firm has the ability to alter the pay structure depending on the firm’ s performance.
In distance flexibility, the firm has the ability to replace the permanently employed labor with other types such as self-employment, subcontracting and wage employment, depending on the firm’ s state. Moreover, Atkinson divided workers into two groups; core and peripheral groups. The core group of workers is permanently employed by the firm and is mainly affected by functional flexibility. On the other hand, the peripheral group is not permanently employed by the firm. Therefore, this group is usually affected by the numerical and distance flexibility of the firm when the need arises. There are various reasons why firms implement flexibility.
These include the need to maintain a competitive stand in the market, the need to keep changing, the changing technology and the organizational structures of the firm.
Atkinson, J, Flexibility: Planning for a Uncertain Future, Manpower Policy and Practice. 1985.
UKeducation. What is the Flexible Firm. Retrieved from:
Victoria,M, Employment Law: Staying on the Right Side of Employment Law When Employing
New Staff, 2011