STUDY ON IMPACT OF FLEXIBILITY ON ORGANIZATIONAL

PERFORMANCE

Introduction

• The objective of business owners is profitability. • Providing flexible work options is one of the strategies to extract the

maximum human capital. • But this strategy should be used very effectively, otherwise it may

cause more harm to an organization. • This project will enable us to get an insight that what is the

contribution of Flexible Human Capital Practices in organizational performance.

• A survey has been conducted by two perspectives, employee’s perspective as well as organizational perspective to get the best outcome.

Objective

• To get an insight about the contribution of Flexible Human Capital Practices (when adopted as a whole in a congruent cultural context) to a work force.

• It will also evaluate all terms of flexibility and give the conclusion for the suitable terms of flexibility for an organization as well as for employees, based on the responses obtained.

Hypothesis

• To what extent a company gives flexible options to its employees is dependent upon the sector of the company. This was included in our survey.

• Part time working is totally a different thing when we are talking about flexible work options. So the care has been taken that working part time is not taken into consideration during this survey.

• Age is also as a differentiating factor that affects the flexibility.

• Gender is a differentiating factor as Indian culture requires females to have more flexible options when compared to males.

Methodology• We conducted a survey by using a questionnaire which we circulated

amongst employees of different companies.

• Collected 82 responses.

• Availability of the flexible options would be different for different sectors and hence the analysis was done sector wise.

• The size of the company was not considered as the sample size was very small and the responses were recorded in similar size companies.

• Both employees and employers were included to get the correct impact.

• Sample was distributed demographically considering age & gender.

Methodology (Cont.)

Questionnaire

• Type of the organization– IT and software related firms– Services– Manufacturing and metal related

organization– Retail– Education and related– Medical and related– Banking and financial services– Others

• Flexible working options available– Reduced working hours for

limited no. of days– Sharing work with colleagues– Flexible work time option– Work from home option

Methodology (Cont.)

Questionnaire

• Reason behind the flexible working options– To have more leisure time– To handle the work more

efficiently– Childcare and/or parent care

needs– To spend more time with family– Some emergency– If any other than please specify

• Merits available for the flexible working options– Improved productivity– Better stress management– Increased motivational level– Better work life balance– None– Other please specify

Methodology (Cont.)

Questionnaire

• Demerits available for the flexible working options– Procrastination– Alienation and isolation at work

place– Lack of coordination with clients

and colleagues– Misuse of this options for invalid

or improper reasons– None– Others please specify

• Rating the effect of availability of flexible working options on the individual’s overall performance of work place on a scale of 1 – 5.

• Rating the effect of availability of flexible working options on the organization’s overall performance of work place on a scale of 1 – 5.

Analysis

Analysis is carried out gender-wise, age-wise and sector-wise

GENDER-WISE RESPONSE

Male Female

AGE-WISE RESPONSES

Beow 25 Above 25 Total

Analysis (Cont.)

MARITAL STATUS WISE RESPONSES

Married Unmarried

SECTOR-WISE RESPONSES

IT Ser Teach Med Mfg. Retail Other

Analysis (Cont.)

FLEXIBLE WORKING OPTIONS

reduced work hrs flexible work times sharing with colleagues

work from home others OPTIONS NOT AVAILABLE BUT WANT TO AVAIL

Reduced work hours flexible work time sharing work

work from home other

Analysis (Cont.)REASONS FOR WORK FLEXIBILITY

for leisure time to handle work efficiently

child/parent care needs spend time with family

some emergency other

improved pro-ductivity; No. of responses; 30

better stress management;

No. of re-sponses; 51

increased mo-tivationn; No. of responses;

12

better work-life balance; No. of responses; 69

none; No. of responses; 0

other; No. of responses; 2

Merits of flexibility

improved productivity better stress management increased motivationn

better work-life balance none other

Analysis (Cont.)

Organizational Perspective• Following are the advantages for the organizations because of the

flexible work options:

– LOWER COST

– TURNOVER

– HEALTH CARE COSTS

– Stress and Depression

 – REAL ESTATE / FACILITIES COSTS

– LABOR COSTS

– QUALITY

Analysis (Cont.)

Organizational Perspective (Cont..)• Talented and focused employees who are on flexible schedules are more

likely to be committed to the organization’s goals, deliver superior value and are inclined to be satisfied and loyal.

• More efficient and profitable in the short run. Also better poised for long-term success.

• These organization’s investments are in constructive, future-oriented assets–-human capital, innovation, and customer relationships-–all leading indicators that stock analysts use to evaluate stock price. 

• HIGHER EARNINGS

 • INCREASED PROFITIBILITY

Conclusion

• Proper utilization of flexibility is necessary for the benefit of both employees and organization.

• Flexible work option will enable employees to balance their professional and personal life and also to manage work stress.

• Flexibility, if not utilized properly, will impact the performance negatively and lead to laziness and inefficiency.

• It is very important to have a proper plan before using the flexible options.

Thank you