FLEXIBLE WORK ARRANGEMENTS AND ORGANIZATIONAL PERFORMANCE – THE DIFFERENCE BETWEEN EMPLOYEE AND EMPLOYER-DRIVEN PRACTICES
FLEXIBLE WORK ARRANGEMENTS AND ORGANIZATIONAL PERFORMANCE – THE DIFFERENCE BETWEEN EMPLOYEE AND EMPLOYER-DRIVEN PRACTICES

Summary/Abstract: Flexible work arrangements (FWAs) enable flexibility in the work design of employees and, consequently, can improve work-life balance and enhance organizational performance. Based on the disparate nature of previous findings and social exchange theory, we defined the two 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 the employer versus employee-driven perspective of FWA application. The data on 12 different FWA 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. On the other hand, several employer-driven practices 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.

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