Management Assignment: How Gig Economy Is Changing Workforce?
Question
Task:
Prepare a management assignment addressing how the gig economy is changing the workforce?
Answer
Introduction
According to the words of de Man and Strandhagen (2017) considered in the managemengt assignment, the business world is changing drastically, the way people work, and the shape of workforce is changing with it. The rise is technological developments, innovations and forces of globalizations, organizations are bound to respond to such changes and required to be agile. The concept of contingent workforce is relatively new but has changed the overall economy the manner in which people considers business and employment. The Gig economy is a form of contingent work arrangements that is more than a passing trend where two out of five organizations have adapted to this trend (Morrell, Griffin and Nelson, 2018).
Analysis of the report
The following report presented by Storey, Steadman and Davis (2018), seems interesting in a way that it discusses the effects of different technological innovations and way people like to work to earn more. Gig workers are those who work as freelancers or for a temporary period. Today’s workforce is more flexible with respect to their work and is willing to work as contingent workers than full time employees in any organization. The rationale behind such a working pattern is that gig economy is creating a new set of expectations and attitudes to work. Mainstream businesses are becoming inclined towards gig economy because it allows them to become technologically advanced and deliver products and services to customers faster. At the same time, flexibility and variety have become the core mantra for majority of workers. As identified by Morley (2020), it is expected that approximately 80% of the workforce will comprise of gig workers by 2030. Upon analysis of the provided report, the most important lesson received is that gig economy has become an auxiliary salary for many workers and seasoned specialists apart from their regular jobs to meet their expanded living and lodging expenses. Today, organizations of all sizes are inclining towards adopting gig economy as it may fulfill their immediate needs from workers. Even workers find that the benefits outweigh the downside most of the times Storey, Steadman and Davis (2018). Another lesson learned is the remarkable transformation in the labor market has allowed organizations to change the game of employment and develop collaborative workforce for business growth. It is evident from the survey conducted in the report that even with the profound benefits of gig economy; it is not free of challenges. Gig workers might not be receiving the status of a permanent employee and therefore they may not receive the perceived benefits that of a permanent work (Mathur, 2019). Concerns over the lack of benefits can impact the way gig workers survive in the labor market. However, the overall picture shows more benefits than drawbacks not only for giggers but also for organizations.
Importance of the analysis
The report suggests that gig economy is becoming powerful, prominent and changing the overall economy. I agree with the author when he highlights that a contingent workforce can help drive and accelerate change. I also agree that business models require rapid scale-ups with the constant support from technology and innovative ideas. The opportunity lies in utilizing contingent workforce that often comprises of highly skilled professionals who prove to be critical in bridging the integration of new products, technology and services into their operations. Organizations of any size prefer a gig economy to reduce their operational costs Storey, Steadman and Davis (2018). Organizations have been outsourcing their work to third parties and therefore understand the need for specialized and trained people who provided their services for some base charge. The most important aspect the article highlights is that contingent workers are opting for gig economy because they are willing to progress their careers in this manner.
However, I feel a gig economy can pose challenges for organizations. Organizations may need to retain the corporate culture and create an environment that contributes to meeting company goals. The concern lies whether gig workers will be able to understand and remain committed to the long term needs of the organization. The answer probably would be a no because gig workers are meant to work on a temporary basis and not as permanent workers. Currently, companies like Uber, Lyft, Fiverr and Airbnb can benefit from the gig economy benefits as presented in the report.
Reflections about working as a team
According to my understanding, a reflection allows a person to capture new knowledge and information to continuously learn and improve. While working as an important member of my team, I understood that building a reflection can be a great opportunity to express my thoughts, feelings, and opinions. I support the fact that educational institutions and organizations are allowing people to work more in teams and learn to be efficient and become team players. I learned that working as a team can help resolve complex matters that might not be possible to accomplish individually. The contribution made by each team member during the group presentation is commendable and helped me learn on different facts on the given topic. The in-class discussion helped to gain better insights on the evolution of gig economy and its impact on the labor market. I also understood that it is not the need of the hour but an inexpensive way for organizations to build a flexible workforce that can provide the work more efficiently. As technology has made our lives easier, it has made people well equipped to provide their services. The rise of contingent workforce and gig economy holds immense opportunities for both organizations and gig workers. However, according to my opinion, it is important that organizations and gig workers consider the long-term impacts of such a flexible work culture.
Conclusion
In this interesting take of events in the contingent workforce culture, gig economy has become an important aspect of how people perceive their work. As organizations are striving to survive in their industries, they must consider rapidly shifting consumer preferences and competition from start-ups in order to respond and adapt to new changes. Therefore, the concept of gig economy can not only develop a collaborative workforce for organizational growth but provide a more flexible work culture.
Reference List
de Man, J.C. and Strandhagen, J.O., 2017. An Industry 4.0 research agenda for sustainable business models. Procedia Cirp, 63, pp.721-726.
Mathur, R., 2019. How is Gig Economy Transforming the Workforce?[online] Available at:
Morley, I., 2020. The rapidly expanding gig economy is not merely a response to changing economic conditions.[online] Available at:
Morrell, D.L., Griffin, J.B. and Nelson, M., 2018. Crowdsourcing as a Career Trend: Are Online Workers the New Contingent Workforce. Journal of Strategic Human Resource Management, 7(3), p.1.
Storey, D., Steadman, T., and Davis, C., 2018. How the gig economy is changing the workforce. [online] Available at:
