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Handy's Shamrock Organization

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by

Alex Bridges

on 9 November 2012

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Transcript of Handy's Shamrock Organization

Handy's Shamrock Organization 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. Advantages and Limitations 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. Core Staff (The first leaf) 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. Peripheral Workers (The second 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. Outsourced Workers (The third leaf) 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.
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