Importance of Virtual Team in Business Companies

To: Gareth Eldrige, The Hotel School- Melbourne
From: Vikrant Yadav
Date: 05 December 2018
Subject: Importance of Virtual Team
The term virtual team is defined as a group that connect two or more members from
different geographical location. Today, use of information and communication
technology is growing very quickly and most the companies use the virtual team to
enhance their business. The main aim of this memo is to analysis the concept of virtual
team and describes their pros and cons of a virtual team. It will help to managing
director to understand the answer of why virtual team plan should be applied in a
business company.
The job of a virtual group in procuring skilled workers
As companies expand geographically and telecommunication the utilization of virtual
team becomes more significant for a business industry. According to Bergiel, Bergiel, &
Balsmeier, (2008, pp. 99-110) virtual team is an advanced management tool that
provides a way to an organization to take benefit of the pool of global talent. This
approach allows individuals to interconnect across the worlds without leaving the ease
of their office. There are main five key elements uses in a successful virtual team such as
trust, communications, leadership, goals, and technology.
The significance of virtual team in the saving of cost & time
Virtual teams allow business in dropping their operating cost and leading their
operations in an efficient manner that provides a competitive environment.
Govindarajan, & Gupta, (2001, p. 63) identifies that each global organization
competitive advantage which depends on their ability to coordinate critical sources and
data which are spread across various physical location. However, the virtual team has
the potential to control and manage the operating cost and time of an organization by
which the managing director can develop such a strategy. According to author, the
structure of a leadership includes main three roles in the area of a virtual team, for