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Published by: Harvard Business Publishing
Originally published in: 2002
Version: 9 April 2002
Length: 22 pages
Data source: Field research

Abstract

Details the rationale for and design of a unique organizational response by Motorola to the challenges of contingent staffing at its semiconductor facility in Austin, TX. The new outsourcing strategy is built on principles of supply chain management and business webbing to deliver flexibility in staffing, cost controls, and high-quality workers. Through a detailed description of the company''s existing methods for hiring contingent workers, it brings to light the organizational costs borne by firms that fail to develop an integrated strategic approach and provides an opportunity to examine the incentives of the different players (both internal and external) to participate in a new staffing model based on interfirm alliances with staffing companies. Also sets up a discussion of the potential difficulties the company is likely to run into in implementing the new staffing model and broader issues, such as the evolving nature of the employment contract, employee trust and loyalty, and strategic issues that arise when multiple firms compete for the same workforce. The teaching purpose is to illustrates the need for and design of a unique model for sourcing contingent or temporary workers.
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Abstract

Details the rationale for and design of a unique organizational response by Motorola to the challenges of contingent staffing at its semiconductor facility in Austin, TX. The new outsourcing strategy is built on principles of supply chain management and business webbing to deliver flexibility in staffing, cost controls, and high-quality workers. Through a detailed description of the company''s existing methods for hiring contingent workers, it brings to light the organizational costs borne by firms that fail to develop an integrated strategic approach and provides an opportunity to examine the incentives of the different players (both internal and external) to participate in a new staffing model based on interfirm alliances with staffing companies. Also sets up a discussion of the potential difficulties the company is likely to run into in implementing the new staffing model and broader issues, such as the evolving nature of the employment contract, employee trust and loyalty, and strategic issues that arise when multiple firms compete for the same workforce. The teaching purpose is to illustrates the need for and design of a unique model for sourcing contingent or temporary workers.

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