engleski

Flexible work arrangements and organizational performance – the difference between employee and employer-driven practices

Flexible work arrangements (FWAs) enable flexibility in work design of employees, which could lead to increased flexibility for organizations, better work-life balance and improved organizational performance. Based on disparate nature of previous findings and social exchange theory, we defined research questions with an aim to explore the impact of FWAs on organizational performance measured by both financial and non-financial indicators, while taking into account employer versus employee-driven perspective of FWA application. The data on 12 different FWAs practices was collected in 171 large-sized Croatian organizations by a questionnaire survey using CRANET methodology. Our findings suggest that organizational performance was higher in the employee-driven group of FWA practices where telework, work from home, compressed work week were positively related to various financial and non-financial organizational performance indicators. On the other hand, several employer-driven practices, such as shiftwork, overtime work, weekend work, annual hours count and fixed term contracts were found to be significantly, but negatively related to organizational performance. The main contribution of the paper is revealing the importance of work-life balance arrangements in achieving success and competitive advantage.

Flexible work arrangements, competitiveness, work-life balance, organizational performance, financial indicators, non-financial indicators

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