Please enable JavaScript.
Coggle requires JavaScript to display documents.
FISSURISATION ( network of small business entities ) - Coggle Diagram
FISSURISATION ( network of small business entities )
This is an EU strategy created to face unemployment. Denmark is the model which represents best this strategy.
MORE FLEXIBILITY
• Numerical flexibility: easy hiring and firing without costs (facile assunzione e licenziamento)
• Working-time flexibility: availability of workers to change their working time
• Functional and organisational flexibility: ability of workers to change their tasks and do different jobs.
• Wage flexibility: wage can increase or decrease depending on the company performances.
• Outsourcing flexibility: capacity/possibility for companies to give away part of their production cycle.
MORE SECURITY
Employability: the government should help unemployed workers.
Income support: from employment to unemployment
PERIOD OF TRANSITION (the government must take into consideration )
• Education/Work
• Well paid Job/Low paid job
• No family/Family
• Employment/unemployment
FISSURED WORKPLACE: describes fundamental changes in the organization of work arising from firms' competitive strategies in the 21st century.
OUTSOURCING: refers to an organization contracting work out to a 3rd party > creation of the so-called vertical disintegration because small business entities start working for a lead company.
driven by
higher labour costs
trying to cut costs for competition
increasing demand of popular goods
expansion of service sectors
NEW BUSINESS MODEL > BUYING is more convenient than MAKE
focus on costs cutting
replace employment contracts with commercial contracts
has developed through different models:
Subcontracting chain: when the contractor subcontract something and the new contractor can subcontract again.
External subcontracting: company outsources some of the services which before were made inside it.
Temporary agency work (staff-leasing): when work agencies hire the worker and he is sent to a company (under a different employer)
Internal subcontracting: big factory includes employees from different companies
In order to be a contractor you should have 2 characteristics: low prices and quality of work. it's important to not fall into pirate agreements, which come when, to cut costs a contractor cut wages and labour standards (per tagliare I costi di un imprenditore vengono tagliati gli stipendi e norme del lavoro)
There exist two types of outsourcing contracts
Labour intensive contracting: when cost of labour is higher than cost of assets
Capital intensive contracting: when capital (machinery and equipment) is more expensive than labour (e.g., transportation service: trucks are more expensive than the driver).
OFF-SHORING (refers to getting work done in a different country, usually for cost advantages )