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ACCA Strategic Professional · Strategic Business Leader · Enabling success: talent management

Dovane Technologies has a stable core of engineers but experiences sharp seasonal peaks in customer support demand. The HR manager proposes using a pool of part-time and temporary staff for peaks. Which workforce model does this reflect, and what is its main risk?

This is the flexible firm model, with a stable core workforce and a peripheral pool of part-time and temporary staff used to meet peaks. Its main risk is that peripheral workers are less committed and less loyal, and valuable knowledge and service consistency may be lost when they leave.

  1. AA flexible firm model with core and peripheral workers; risk of weaker commitment and loss of knowledge among peripheral staffCorrect
  2. BA pure hierarchical model; risk of excessive layers of management
  3. CA matrix structure; risk of dual reporting conflict
  4. DA profit-sharing scheme; risk of free riding

Explanation

Retaining a stable core and using peripheral part-time or temporary workers to flex capacity is the flexible firm (core-periphery) model. It lowers cost in off-peak periods but peripheral staff tend to show less commitment and take knowledge when they leave. The other options describe structures or reward schemes unrelated to the described arrangement.

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