Strategies and measurement for workforce flexibility: an application of functional flexibility in a service setting

Abstract

In situations where a volatile product market meets an unstable labour market, as is often found in customer contact service operations such as the hospitality industry, there is a need for the constant manipulation of labour supply to match labour demand. Functional workforce flexibility, where multiskilled staff are able to move from jobs in one department to jobs in another, presents an opportunity for solving part of the problem. Presents an approach to calculating the need for functional flexibility dependent on the identified discrepancies in labour demand and supply. Having identified the size of the need, a strategy needs to be developed for fulfilling that need. In implementing this strategy, two approaches are identified: planned whole job substitution and boundary loosening. While the planned approach offers the rational course for maintaining quality and productivity levels, there is evidence that an evolving approach may help to stabilize a highly volatile situation by breaking down barriers from within.