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Handy's Shamrock Organization
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Handy's Shamrock Organization
Advantages and Limitations
- The core workers must be well paid and remunerated.
- They are likely to also enjoy some degree of job security, be well motivated and highly productive.
- The insourced workers will suffer from a lack of job security thereby negatively affecting their levels of morale.
- However, they present flexibility for an organization and are easier to 'hire and fire'.
- For insourced workers, they are able to develop two or more careers simultaneously.
Core Staff (The first leaf)
- This consists of full-time professional workers who handle the daily operations of the business.
- They are crucial to the organization's operations, survival, and growth.
- The core group of workers is becoming an increasingly smaller group with developments in e-commerce and teleworking.
- This has led to downsizing and restructuring of the workforce in may businesses.
Peripheral Workers (The second leaf)
- Charles Handy believes that people are the most important resource within any organization.
- Handy recommended that business ought to place greater emphasis on meeting the needs of workers.
- Handy also emphasized the dynamic nature of change within organizations and the external business environment.
- He came up with the concept of the shamrock organization.
- The model gets its name from a shamrock plant (a three-leafed clover)
- Handy argued that within a shamrock organization there should be three groups of core staff.
- This group of workers are what Handy called the contingent workforce, consisting of part-time, temporary, and portfolio workers who are employed as and when they are required.
- They tend to be paid by the hour or day for short periods of employment, so this helps to reduce labor costs for the firm.
- The peripheral group of workers forms the flexible workforce for an organization and constitutes a greater proportion of the workforce for large companies.
Outsourced Workers (The third leaf)
- This group consists of individuals or businesses that are not employed by the organization but are paid to complete particular and specialized tasks, such as advertising campaigns or skills training.
- Freelance workers, subcontractors, agencies and the self-employed are examples of outsourced workers.
- They are hired by an organization for their skills and paid by results.
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