Human Resourse Management Case

IIM INDORE |

LEISURECO |

CASE ANALYSIS |

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1/10/2014 |

MUKUL KUMAR SINGH | 2013PGP229 |

KUNGUMA VAISHNAVI | 2013PGP197 |

SIDDHARTH MODI | 2013PGP389 |

ANISH JAIN | 2013PGP163 |

SHALINI VIRDI | 2013PGP364 |

SHASHI KANT SHARMA | 2013PGP368 |

HRM AND FLEXIBLE FIRM DEBATE

The model of Flexible Firm was proposed by John Atkinson which suggests that we can design our workforces to proactively meet our business needs through flexible staffing arrangements in order to meet the demands of a highly competitive market and attain its strategic aims and goals. The five environmental factors that explain this sort of work orientation are-

* Firms are in search for permanent reduction in the labour cost and the market is in a standstill position.

* Organizations and firm tend to avoid repetition of processes like job loss and redundancies which turns out to be expensive, demoralizing and demotivating.

* Economic uncertainties and continuous sustainability concern make the businesses hesitant towards employing huge number of full-time employees.

* Rapid advancement of technology and decrease in cost make the labor with particular skills vulnerable as their skills and capabilities do not last for long time.

* Reduction in working time in many cases to 37 hours a week have caused employers on how they can get the most out of time worked.

The model postulates four kinds of flexibilities viz functional, financial, numerical and sub-contracting. The Leisure Co case is focused on the last two flexibilities which poses a great challenge to the standard employment relationship.

* Numerical flexibility- It enables the firm to adjust labour forces rapidly. It is provided by a periphery of workers who are easily disposable and who face considerable insecurity.

* Sub-contracting or distancing – it deals with replacing an employment contract and the restrictions of the employment legislation with a short-term commercial contract...