Flexible working, individual performance and employee attitudes: comparing formal and informal arrangements

In the context of a wider trend to individualize HRM, this paper examines the relationship between flexible working arrangements and individual performance. Drawing on a range of theories, it examines potential indirect effects on employee performance via job satisfaction and organizational commitment and analyses whether these relationships vary according to whether the arrangement was set up through a formal process, or negotiated informally between the employee and their line manager. Extant research has tended to focus on formal arrangements, however, informal arrangements are widespread and may better accommodate work-life preferences, thereby potentially fostering more positive attitudes from employees. Survey data from 2617 employees in four large organizations with well-established flexible working policies are analysed. Results from structural equation models show average positive indirect effects from informal, but also negative direct effects, from formal flexible working. When two forms of flexible working amenable to being set up by both formal and informal means are examined separately: formal arrangements for flexibility over working hours are found to be negatively associated with performance, but also a source of greater job satisfaction; informal remote working arrangements have positive indirect effects via organizational commitment and job satisfaction on worker performance.