A "Virtual Organization is a collection of business units in which people and work processes from the business units interact intensively in order to perform work which benefits all" (Porter, 1990. Competitive Advantage of Nations. New York: Free Press).
The maturity and convergence of computer and communication technologies has enabled the virtual organization flourish. It is certain that Information Technologies can widen the sharing, distribution of information in real time in a virtual organization. The cost savings may be a subject for debate.
Virtual organizations allow benefits such as flexibility in work schedules, facilitation of open communication channels, partnerships to share based on trust and mutual interests.
Issues such as undefined/ unclear work processes, improper and faulty management techniques and expectations, work among people who are distantly located and have never met before, lack of training in the work methods, technical incomptence and dependence are just a few among the inconveniences that can be experienced while working in a virtual organization. These issues cannot be ignored and treated as a matter of adjustment to change.
Such inconveniences lead to worker dissatisfaction and organizational failure if not managed with care and attention to the issues.
People working in a virtual organization are expected to be independent, competent and committed workers.
Technology exposes inefficiencies in processes quicker. For example, the supervisor's e-mail delay to "OK and go forward" becomes the only obstacle often in such environments(consider Business process management, workflow technologies for example in a loan processing scenario).
Expectations are set high for speed, accuracy and efficiency. Hence the mass appeal.
Every computer user today has the potential of yesterday's IS professional. Creating a Virtual organization and competing is a click away!
Reference:
Reinventing Business Organizations: The Information Culture Framework by Dr. Mohammed Naved Khan, Feza Tabassum Azmi (Singapore Management Review, Volume 27 No 2)
The maturity and convergence of computer and communication technologies has enabled the virtual organization flourish. It is certain that Information Technologies can widen the sharing, distribution of information in real time in a virtual organization. The cost savings may be a subject for debate.
Virtual organizations allow benefits such as flexibility in work schedules, facilitation of open communication channels, partnerships to share based on trust and mutual interests.
Issues such as undefined/ unclear work processes, improper and faulty management techniques and expectations, work among people who are distantly located and have never met before, lack of training in the work methods, technical incomptence and dependence are just a few among the inconveniences that can be experienced while working in a virtual organization. These issues cannot be ignored and treated as a matter of adjustment to change.
Such inconveniences lead to worker dissatisfaction and organizational failure if not managed with care and attention to the issues.
People working in a virtual organization are expected to be independent, competent and committed workers.
Technology exposes inefficiencies in processes quicker. For example, the supervisor's e-mail delay to "OK and go forward" becomes the only obstacle often in such environments(consider Business process management, workflow technologies for example in a loan processing scenario).
Expectations are set high for speed, accuracy and efficiency. Hence the mass appeal.
Every computer user today has the potential of yesterday's IS professional. Creating a Virtual organization and competing is a click away!
Reference:
Reinventing Business Organizations: The Information Culture Framework by Dr. Mohammed Naved Khan, Feza Tabassum Azmi (Singapore Management Review, Volume 27 No 2)
