Flexible Organisations

What is a Flexible Organisation?

• A flexible organisation is one that is able to adapt and respond relatively quickly to changes in its external environment in order to gain an advantage and sustain its competitive position

The Organisational Structure is Key to Flexibility:

• The structure of an organisation helps determine how effectively it can identify the need for change and also respond to the necessary change

• A flexible organisation is more likely to have adopted what is often referred to as an ‘organic’ structure, as compared with a ‘mechanistic’ structure

Two Approaches to Organisational Structures:

• Organic Structures:

  • Informal

  • Flexible and fluid (easy to change)

  • Favours verbal communication

  • Associated with decentralised decision-making and empowerment

  • Find change easier to handle

• Mechanistic Structures:

  • Formal

  • Bureaucratic (find it hard to change)

  • Formal communication methods

  • Associated with centralised decision-making and supervision

  • Favours standardised policies and procedures

  • Little perceived need to change

Characters of a Flexible Organisation:

• Use flexible working

• Flat hierarchies

• Culture embraces change

• Quick decision-making

Advantages of Flexible Working:

• Ability to attract a higher level of skills because the business is able to attract and retain a skilled and more diverse workforce.

• Recruitment costs are reduced

• More job satisfaction

• Better staff morale

• Reduced levels of sickness absence.

Disadvantages of Flexible Working:

• Can Lead to Less Productivity. ...

• Can Lead to More Procrastination. ...

• Workplace Flexibility Often Means Working from Home. ...

• Flexible Working Arrangements may not Always Equal High Paying Jobs. ...

• It can be Harder for Managers and Employers to Keep Track of what Their Employees are doing.