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Case Study: Quantor'scasual Workforce Policy

1. Quantor established a casual workforce policy to gain flexibility but experienced unanticipated problems as the casual workforce grew. 2. Casual workers sought permanent positions and remained for the maximum contract period, undermining workforce flexibility. Managers also wanted to hire good casual workers permanently. 3. Treating casual workers differently than permanent employees was incompatible with Quantor's culture that prioritized employee well-being.

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Edward Wing
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166 views2 pages

Case Study: Quantor'scasual Workforce Policy

1. Quantor established a casual workforce policy to gain flexibility but experienced unanticipated problems as the casual workforce grew. 2. Casual workers sought permanent positions and remained for the maximum contract period, undermining workforce flexibility. Managers also wanted to hire good casual workers permanently. 3. Treating casual workers differently than permanent employees was incompatible with Quantor's culture that prioritized employee well-being.

Uploaded by

Edward Wing
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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1 PA RT 4: O rg a n i s at i o na l p ro ce s s e s

1 8 . 1 CA S E ST U DY
CASE STUDY

Qu a n t o r’s casual work f o rce policy practices succeeded in creating a more flexible workforce,
Three years ago, Quantor Corporation, a large manu- and there was some evidence that using casual workers
facturer of computer printers and other peripherals, increased profitability. However, these practices created
established a task force to determine the most appropriate unanticipated problems that became apparent as the
use of casual workers throughout the company. The percentage of casual workers increased.
company had started to rely on contract, part-time and One problem was that few people wanted only contract
temporary agency people to fill temporary jobs. At the employment. Most were seeking full-time permanent work
time, this represented less than one per cent of Quantor’s and were using their casual position as a stepping stone to
workforce, and the company wanted to review these those jobs at Quantor. The result was that many contract
practices to ensure consistency and effectiveness. workers remained for the entire two-year maximum period
After reviewing current ad hoc practices, the task force and beyond. The company was reluctant to apply the task
concluded that Quantor needed casual workers when force’s recommendation of not renewing contracts beyond
demand for the company’s products expanded rapidly or a two years because of the perceived arbitrariness of this
new product was launched. Quantor needed this action as well as loss of knowledge to the organisation.
workforce flexibility because of uncertain production Several contract staff members asked the company for an
demand beyond the short term. At the same time, the task employee-paid benefit package (benefits are mainly
force warned that treating casual workers the same as employer-paid for permanent employees). However,
permanent employees would undermine the benefits of Quantor rejected this because it would add further
flexibility, create false hopes of permanent employment permanence to their employment relationship.
among casual workers and possibly create feelings of Quantor’s managers also began to complain about the
inequity between the two groups. Thus, policies were company policy that casual workers could not be offered
introduced to treat casual workers differently from permanent employment. They appreciated the opportunity
permanent employees. to select permanent employees based on observations of
Quantor’s task force established two casual worker their performance in on-contract or on-call positions.
categories: on-call and on-contract. On-call people are Quantor’s task force had warned against this practice because
employed by Quantor as part-time staff. They work a full it might create inequities and raise false expectations about
day, but only up to two-thirds of the hours of a full-time the likelihood of permanent employment. Managers
permanent employee. Their managers can alter their work acknowledged this risk, but the inability to permanently hire
schedules at will to suit production demands. On-contract good contract staff was frustrating to them.
people are employed full-time by Quantor for a fixed The third problem was that Quantor’s treatment of
period, usually six months. Their contract may be renewed casual workers was incompatible with its organisational
up to three times for a maximum employment of two years. culture. Quantor had a strong culture based on the
On-call and on-contract employees receive no philosophy of employee wellbeing. The company had a
employee benefits other than the government mandated generous benefits package, supportive leadership and a
minimum holiday pay. Benefits therefore represent belief system that made employees a top priority in
approximately 10 per cent of their total pay, compared to corporate decisions. The company did not treat casual
nearly 40 per cent for permanent employees. However, workers in a way that was consistent with this philosophy.
casual workers earn the midpoint of the pay grade for their Yet if Quantor treated casual workers the same as
job group, which represents 15 per cent above the entry permanent staff members, flexibility would be lost. For
rate. This rate is paid even when the casual worker lacks example, managers would continue renewing contract
experience in the job. workers even when their employment was not essential,
and would be reluctant to schedule on-call people at
Quantor’s casual workforce problems awkward times.
Three years after Quantor’s task force recommendations, Quantor’s team orientation was also incompatible with
the casual workforce policy was in trouble. Current its use of casual workers. Permanent staff members
C H A P T ER 1 8 : E mp l oy me nt re l a ti on sh ip an d ca re e r dy n a m ics 2

frequently gathered to discuss organisational and group Discussion questions


decisions. Casual workers were not invited to these team 1. Identify the problems that Quantor experienced with its casual
activities because they might be working at Quantor for workforce practices. Also identify other possible casual workforce
only a few more months. This barrier created some awk- problems that have not been explicitly mentioned in this case.
ward moments for managers as casual workers continued
2. Discuss the problems with casual workers at Quantor in terms of the
working while permanent employees went to meetings and psychological contract and organisational commitment.
team sessions.
3. What alternative strategies might allow Quantor to include a casual
As these problems intensified, senior management
workforce with fewer problems?
formed another task force to re-examine Quantor’s casual
workforce policy. The company needed casual workers, but Source: Written by Steven L. McShane, based on information in S. Nolley
it was increasingly apparent that the current practices were and H. Axel, Managing Contingent Workers (New York: AMACOM,
not working. 1996).

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