Flexible-Firm Model Origins The Flexible-Firm Model was proposed in 1984 by John Atkinson

Numerical Flexibility . This generally applies to the peripheral workforce, and is related to the volume of low-skilled workers available in the labour market. Numerical flexibility means that employers can match labour demands with the number of employees under contract at the company. This can be achieved through the of flexible employment methods such as short-term contracts, outsourcing, temporary workers and other means.

Financial Flexibility . Financial flexibility refers to the capability of organisations to adjust the price (pay) of labour in accordance with the supply and demand of workers within the company. It also refers to the compensation granted to individuals upon the termination of their contracts. Thus, financial flexibility is related to and supportive of numerical and functional flexibility.

Two Dimensions

In addition to the three forms of flexibility, Atkinson outlined two dimensions in which flexibility can be applied:

•