Flexibility refers to the capability of a business to adjust and respond to changes in its internal and external environment. There are various types of flexibility that organizations can use to increase their efficiency, competitiveness, and overall adaptability. Some examples include organizational structure, process, resources, and strategic flexibilities. Each of these flexibilities serves a specific role and has its own expected outcomes for an organization. An organization should be able to adjust to different changes, including structure, processes, strategies, and resources.
Organizational structure flexibility describes the ability of an organization to adapt its internal structure, such as its hierarchy, departments, and decision-making processes, to changing circumstances. Organizational structure is important because it allows a firm to respond quickly and effectively to changes in its external environment, such as shifts in market conditions or changes in customer needs (Song et al., 2019). Examples of companies that have implemented flexible organizational structures are Google and Zara, which have decentralized working schemes. By being able to acclimate its organizational structure, an organization can increase its efficiency, competitiveness, and overall adaptableness.
Process flexibility is a firm’s ability to adjust its practices to changing circumstances, such as its production methods, supply chain, and distribution channels. This tractability is crucial for organizations that need to respond quickly to changes in their external environment, such as shifts in customer demand or the introduction of new technologies (Song et al.,2019). An example is Toyota which has remained competitive by responding to changes in market trends. Being ready to embrace process changes can increase organizational efficiency, competitiveness, and adaptability.
Resource flexibility involves the ability of an organization to adapt its use of resources, such as its workforce, equipment, and financial capital, to changing circumstances. It allows the organization to respond quickly and effectively to changes in its external environment, such as shifts in market conditions or the introduction of new technologies. By responding to changes in the use of resources, an organization can increase its efficiency, competitiveness, and overall adaptability. Resource tractability allows the organization to allocate its resources most effectively and efficiently possible based on the changing needs and demands of the business (Song et al., 2019). When an organization experiences an unexpected increase in demand for its products or services, it can quickly ramp up production by increasing its use of equipment and labor. Conversely, if demand decreases, the organization can reduce its use of resources to minimize costs and maintain profitability. Resource flexibility is key to an organization’s ability to remain agile and responsive to changing business conditions.
Strategic flexibility is the capability of an organization to adapt its long-term goals and strategies to changing circumstances. Strategic alertness is crucial for organizations that need to respond quickly to changes in their external environment, such as shifts in market conditions or the introduction of new technologies. By being able to adapt its long-term goals and strategies, an organization can increase its efficiency, competitiveness, and overall adaptability. Strategic springiness allows the organization to remain agile and responsive to changing circumstances rather than being locked into a rigid plan that may no longer be relevant or effective (Brozovic, 2018). In addition, it allows an organization to take advantage of new opportunities, such as entering new markets or introducing new products or services. Strategic flexibility is key to an organization’s ability to navigate an uncertain and constantly evolving business environment.
In conclusion, flexibility is a key characteristic of successful organizations that enables them to adapt and respond to changing circumstances. Businesses should be able to respond to changes in organizational structure, processes, resources, and strategies, each of which serves a specific role and has its own expected outcomes. Organizations can increase their efficiency, competitiveness, and overall adaptability in an ever-changing business environment by understanding and actively pursuing these different types of supply chain flexibilities.
References
Brozovic, D. (2018). Strategic flexibility: A review of the literature. International Journal of Management Reviews, 20(1), 3-31. Web.
Song, J. M., Chen, W., & Lei, L. (2018). Supply chain flexibility and operations optimization under demand uncertainty: A case in disaster relief. International Journal of Production Research, 56(10), 3699-3713. Web.