Question 7 of 7: The Contingent Workforce — a Management Case
Nivaar worked solution (AI-drafted; not reviewed by a licensed engineer)
Notes on this paper
National Exams — May 2015 — 23-CS-4 Engineering Management. Closed book; no calculators. Any five of the seven questions constitute a complete paper; all questions are of equal value. Answers are written in point form but fully, as instructed. Complete answers to all seven questions follow.
Question 7: The Contingent Workforce — a Management Case (20 marks: 5/5/5/5)
Temporary workers are likely less motivated—job insecurity, lower pay and few benefits reduce commitment; still seeking permanent work, they invest less and may leave. A visible two-tier system breeds resentment and lowers morale; the favoured core is more motivated but may feel added pressure.
(ii) Effect on Production, Service and Quality
Lower motivation and high turnover reduce quality and service: transient workers have less experience/knowledge, weaker customer loyalty and less incentive to excel. Since modern quality depends on teamwork and cooperation, which a churning peripheral workforce cannot sustain, quality is likely to suffer.
(iii) Long-Term Competitiveness
Short-term cost savings and flexibility, but long-term erosion of skills, experience, institutional knowledge, innovation and quality—plus reputational and recruitment difficulties—can outweigh the savings and leave the firm less competitive than rivals investing in a stable, skilled workforce.
(iv) Developing Long-Term Loyalty
Treat temporary workers fairly and with respect; provide pathways to permanent roles and advancement; offer training/development; include them in teams, communication and recognition; extend some benefits and fair pay; and ensure good, supportive management—reducing the "them-and-us" divide so even flexible workers feel valued.
