The impact of flexible work arrangements, as a management strategy, on employees’ perceived productivity and mental wellbeing : a thesis presented in partial fulfilment of the requirements for the degree Master of Business Studies in Management at Massey University, New Zealand

Abstract

Flexible work arrangements (FWAs) have become increasingly prevalent over the past few decades. The COVID-19 pandemic has accelerated this trend, and many organisations now feel the need to continue providing flexible work options to meet the expectations of their employees. However, there seems to be a lack of understanding of how FWAs, as a management strategy, could moderate relationships with an organisation. Prior research suggests FWAs positively and negatively impact employees' productivity and mental wellbeing within an organisation. Therefore, it has become necessary for organisations to understand the impact of FWAs as a management strategy to use them effectively for decision-making. The Management Control Theory (MCT) and the Job Demands-Resources (JD-R) model provide the theoretical frameworks for the present study to examine the impact of FWAs, as a management strategy, on the relationships between employee experiences and perceived productivity and employee experiences and mental wellbeing. Using a quantitative research design, the present study examined the impact of FWAs, as a management strategy, moderating the relationship between employee experiences and perceived productivity and mental wellbeing. Data were collected from an online survey of New Zealand employees working in an organisation with FWAs. 176 valid responses were examined through correlational and moderation regression analysis. Key findings show a statistically significant relationship between employees’ experience and perceived productivity. Employee experiences, when expressed as opportunities, positively impacted perceived productivity, while when expressed as challenges, negatively impact perceived productivity. When FWAs, as a management strategy, were added as a moderator, the relationships were impacted: employee experiences, expressed as opportunities, had a more positive impact on perceived productivity; and employee experiences, expressed as challenges, had a less negative impact on perceived productivity. There was not a statistically significant relationship between employees’ experience, expressed as opportunities or expressed as challenges, and mental wellbeing. However, when FWAs, as a management strategy, were added as a moderator, the relationships were statistically significant: employee experiences, expressed as opportunities, had a positive impact on mental wellbeing; and employee experiences, expressed as challenges, had a less negative impact on perceived productivity. This study suggests that if organisations cannot provide sufficient resources to support employees, especially during challenging times, organisations could consider using FWAs as a management strategy to help moderate the relationship between employee experiences and perceived productivity, and employee experiences and mental wellbeing.