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Explain about the term flexible firm.
Flexible firm:
By John Atkinson the conception of the “flexible firm” was proposed, he recognised about organisations will need greater flexibility when they are to adapt swiftly and meet the ever growing market and competitive disputes they face. Larger workforce flexibility maybe needed due to uncertain market circumstances or seasonal changes into demand, flexibility assists accomplish greater cost-effectiveness for an organisation. The term “flexible firm” model proposes which we can design flexible staff arrangements to proactively meet business requirements. Numerical flexibility can be accomplished through more use of peripheral workers for examples: part-time, external labour or temporary staff, as like freelancers, sub-contractors and self employed. Conversely core workers for examples, full-time permanent workers, can often give greater functional flexibility.
A company has a new design for their product in next year that can reduce their material cost of producing units from $8.14 to $7.32. The company passes on half of all cost savings
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