Maclnnes, 1987 and Pollert, 1988 says that flexibility is only one managerial concern and it cannot be abstracted from its other areas of goal and interest. Core and peripheral framework of work division allows company to use the part-time labour and increase its functional flexibility.
The overall conclusion from the survey of Saudi Aramco is that they haven’t explicitly and comprehensively reorganized their work force on a flexible basis. Consistent with argument developed in Godard (1991), these considerations vary in accordance with three sets of structural variables: size, technology and market conditions. Flexible model looks more appropriate for large corporations instead of small organisations as their employee consciousness is generally more problematic because of alienating effects of size. Second flexible practices is more appropriate in capital intensive corporations because they have uncertain and complex technologies requiring high levels of formal and informal training. They also employ advance process production technique. Also flexible practices are more likely to affect the firms producing essential goods and services with a high degree of capital and they are operating in concentrated markets.
As Godard concluded that to argue that size, technology and market conditions determine the extent to which it is rational for management to adopt flexible practices is not to suggest that they rigidly determine variation in these practices. It left to suggest, however, that failure to adopt the flexibility paradigm and not reflect mistaken strategic choices as much as it does cost-benefit considerations consistent with the rational pursuit of profit: considerations which vary in accordance with structural variables. ...
Though there are undoubtedly limits to managerial rationality, it is a mistake to think that these considerations are not at the core of managerial decision processes or that they do not become reflected in the extent to which flexible practices are adopted.
Therefore, strategic choices are of less importance that structural variables, it may be that they serve as rationalizations. Still they don't serve as determinants.
There are further researches required in understanding the processes underlying the formation of management policies and practices in deep intensive ways. Further study will also benefit including an extended set of new and structural variables. Presently it looks that flexible firm model can be generalized across countries and occupations, but they cannot be used as long term setting before any firm can set it as usual practice.
The criterion of fairness applies through acceptability of the contract defined in terms of offers and expectations. The theoretical concept was supported by empirical investigation.
The psychological contract is a hypothetical contract. Rawls, 1971 suggested that hypothetical contract can be accepted as psychological contract only if it is assessed as fair. Psychological contract consists of offers and expectations which cannot be measured in terms of promises and obligations for both parties involved in contract. This terminology is considered in accordance with legal contract definitions (cf. Applebey, 2001; Atiyah, 1989; Bucher, 2003; Knapp & Chrystal, 1987; Lando & Beale, 1999), which is contract without agreement from both sides and doesn't produce obligations. It depends on employment relationship and their track record for success. The empirical studies