different ways of flexible working, e.g. home working and flexible hours

Cambridge IGCSE Business Studies (0450) – Topic 2.2 Organisation and Management

2.2.1 Simple Organisational Structures

What is a Simple Organisational Structure?

• Typical of very small businesses, start‑ups or sole‑traders.
• Flat hierarchy – usually only the owner/manager and a small team.
• Direct, informal communication between staff and the owner.
• Decision‑making is rapid because authority is concentrated in one person.
• Typical span of control: 2‑5 staff per manager.

Simple Organisational Chart

Diagram of a typical simple structure showing the owner/manager, the chain of command and the span of control.

Why is Flexibility Important in a Simple Structure?

• Flat hierarchies allow rapid changes to working arrangements.
• Flexible working helps the business to:
  • Adapt to market fluctuations and seasonal peaks.
  • Attract and retain skilled staff who value work‑life balance.
  • Reduce overheads such as office rent, utilities and travel costs.

2.2.2 Forms of Flexible Working

2.2.3 Advantages and Disadvantages of Each Flexible Working Type

2.2.4 Impact of Flexible Working on a Simple Structure

1. Increases responsiveness to market changes because decisions remain quick and centralised.
2. Requires the owner/manager to adopt digital communication tools (video‑conferencing, cloud‑based file sharing, instant messaging).
3. Shifts some managerial tasks towards coordination, performance monitoring and trust‑based leadership.
4. Can blur traditional lines of authority; a written flexible‑working policy helps maintain a clear chain of command.

2.2.5 Functions of Management in a Flexible‑Working Context

• Planning: develop a flexible‑working policy, set productivity targets for remote staff, forecast staffing needs for different shifts.
• Organising: allocate tasks across home‑based, part‑time and shift staff; design job‑sharing arrangements.
• Co‑ordinating: use digital platforms (shared calendars, project‑management software) to synchronise activities.
• Leading (Commanding): delegate authority, empower staff to manage their own schedules, maintain motivation through regular virtual briefings.
• Controlling: monitor performance with key metrics (output, quality, attendance), conduct regular reviews, and adjust arrangements as needed.

2.2.6 Leadership Styles and Flexible Working

2.2.7 Trade Unions and Flexible Working

Even in small businesses, trade unions (or employee representatives) may negotiate flexible‑working terms. Typical union concerns include:

• Ensuring that flexible arrangements do not lead to lower pay or reduced benefits.
• Protecting health and safety for home‑based staff (e.g., ergonomic equipment).
• Guaranteeing that part‑time or shift workers receive fair overtime and holiday entitlement.

Owners should be prepared to discuss any proposed changes with employee representatives and, where required, reflect agreed terms in written contracts.

2.3 Recruitment, Selection and Training

2.3.1 Recruitment & Selection – Using Flexible Working as an Incentive

• Flexible options attract:
  • Students seeking part‑time work.
  • Parents or caregivers needing home‑based hours.
  • Highly skilled professionals who value autonomy.
• Interview questions can probe candidates’ ability to work independently, manage time and use digital tools.
• Internal recruitment (promoting an existing employee to a flexible role) can reduce training costs and retain institutional knowledge.

2.3.2 Training Methods for Flexible Workers

• Induction for remote/home workers: familiarise new staff with IT systems, cyber‑security policies and virtual‑communication etiquette.
• On‑the‑job training: use screen‑sharing, live demonstrations and “buddy” systems for real‑time guidance.
• Off‑the‑job training: e‑learning modules, webinars and online courses that can be accessed at any time.
• Shift‑work training: rotate staff through different shifts during induction to ensure they understand all operational procedures.

2.4 Internal and External Communication

Communication Channels for Each Flexible Working Type

Barriers to Effective Communication in Flexible Arrangements

• Time‑zone differences for remote staff.
• Reduced non‑verbal cues in video or text‑based communication.
• Information overload if too many digital platforms are used.
• Technical failures (poor internet, hardware breakdowns).

Ways to Overcome These Barriers

• Agree on core hours when all staff are reachable.
• Standardise the use of one or two main communication tools.
• Provide training on digital etiquette and effective virtual meetings.
• Maintain a backup communication method (e.g., phone) for emergencies.

2.5 Practical Steps for Introducing Flexible Working

1. Conduct a staff survey to identify preferred arrangements and any constraints.
2. Draft a written flexible‑working policy covering:
   • Eligibility and request procedures.
   • Core hours, maximum weekly hours and overtime rules.
   • Performance expectations and monitoring methods.
   • Health‑and‑safety provisions for home‑based work.
3. Consult with any trade union or employee representative and incorporate agreed terms.
4. Provide training on the digital tools and communication protocols that will be used.
5. Implement a trial period (e.g., 3 months) and collect feedback on productivity, morale and any operational issues.
6. Review the trial results, make necessary adjustments, and then roll the flexible‑working arrangements out permanently.