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Handy's Shamrock

Management theory - Handy's Shamrock Organisation

The advantage of a flexible organisation is that it can react quickly to a change in its external environment. Since the 1990s, firms have examined their value chain and tried to reduce their workforce to a multi-skilled core, which is concerned with the creation or delivery of a product or service. All other supporting, non-central functions are outsourced wherever possible to the periphery.

Charles Handy suggested, however, that organisations do not consist of just the Core and the Periphery, since the periphery can be subdivided. He calls this a shamrock organisation:

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  • The first leaf of the shamrock represents the multi-skilled core of professional technicians and managers, essential to the continuity of the business
  • The second leaf Handy calls the contractual fringe, because non central activities are contracted out to firms specialising in activities such as marketing, computing, communications and research
  • The third leaf consists of a flexible workforce made up of part-time, temporary and seasonal workers.


For more details on Charles Handy and his work, follow the previous link.


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Co-operative Future Travel

Read the case study Future Travel Virtual Call Centre (you can do this in the window below or follow the previous link to read the article in a separate window) and then consider answers to the questions below.


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Question 1

Define the terms:

  • Offshoring
  • Homeshoring

Question 2

Explain the benefits of virtual call centres for the Future Travel and its employees.

Question 3

Using Handy's Shamrock Theory analyse the advantages and disadvantages of homeworking and teleworking arrangements for firms.


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1

Flexible workforce

Using a flexible workforce enable a business to:

a)
b)
c)
d)
Yes, that's correct. Well done. The flexible workforce makes the business more responsive to change.No, that's not right. The correct answer is A as the business is more responsive to change. B is possibly the most obvious negative reaction of the modern drive for more flexible workforces and C does not usually feature in a flexible environment. D is also not normally a very obvious feature of the flexible workforce.Your answer has been saved.
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2

Learning organisation

What is meant by the term a 'learning organisation'?

a)
b)
c)
d)
Yes, that's correct. Well done. This is a learning organisation as the firm which finds solutions to problems increases its own knowledge.No, that's not right. The correct answer is C. This is a learning organisation as the firm which finds solutions to problems increases its own knowledge. A is the not one which will be obviously looking for ways of moving forward. B is probably a paternalistic organisation and unlikely to be highly thought of in the 'learning' league. D is hoping that outsiders will somehow bring them up to date!Your answer has been saved.
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3

Knowledge management

Which of the following is the best definition of a firm that uses 'knowledge management'?

a)
b)
c)
d)
Yes, that's correct. Well done. This is just what a firm using knowledge based management does.No, that's not right. The correct answer is A as this is just what a firm using knowledge based management does. B is the opposite and C is one rooted in McGregor speak. D is also a characteristic of a business unlikely to be known for its knowledge led management.Your answer has been saved.
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