Virtual Organization Structure and Challenges
Added on 2020-02-12
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Effective organisations andconsultancy process
TABLE OF CONTENTSINTRODUCTION .........................................................................................................................................................1MAIN BODY .................................................................................................................................................................1CONCLUSION ..............................................................................................................................................................8REFERENCES................................................................................................................................................................8
INTRODUCTION Virtual organisation can be termed as the organisation where the members aregeographically apart from each other and work by using information technology for the purposeof supporting the work and communication. Further, it does not shows attribute of firm butconsidered as a kind of different organisation. Present report is based on understanding theconcept organisation which helps the employees to get different opportunism at the time ofworking (Bal, Lashari and Nabavieh, 2014). Further, it also covers the various benefits of virtualorganisation which make the job as well as employees more effective as well as efficient in theirwork. Moreover, there are different types of challenges are faced in virtual organisation such asdilemmas of strategic planning, loss of control along with a requirement of appropriatemanagerial skills. In this type of organisation there is requirement of appropriate knowledge oftechnologies which can be properly utilise at the time of managing different activities of thebusiness. This report also explained the different strategies which helps in promoting the successof virtual organisation so that it helps a company to aware people regarding the organisation.MAIN BODYVirtual organisation refers to an organisation that involves the separate and circularizeentities with appropriate information technology that helps in the work as well ascommunication. It is a connection of cooperation made with the help of information andcommunication technology that is flexible for meeting the changes of the market. Furthermore, itis regarded as a social network which helps in removing the horizontal and vertical boundaries sothat it is considered as boundary less organisations. In this, an individual working out of thephysically dispersed areas or working from mobile devices and not bound with any particularspace of work. Through information and communication technology which helps in coordinatesthe activities and combines the workers and their skills for achieving the goals and objectiveswhich are set by the virtual organisation (Börjesson, Elmquist and Hooge, 2014). All of theactivities are controlled and coordinated through the network lines by the manager of thecompany. However, while considering the different issue of flexibility which provides variousoptions such as job sharing, home based working. There is one of the most significant issuewhich includes to attain the flexibility for responding the changes it can be internal as well as
external which helps in determining the extent of control and the autonomy amount which can beimposed by the virtual organisation on their members. It is considered as those type ofcompanies whose employees do work from home and interaction with the workplace can be donewith the help of computers. For example, there are some of the companies which using somekind of telecommuting are Coherent Technologies, Dow Chemicals etc. These type oforganisation which are characterized by outsourcing of competencies and the different areas ofoutsourcing covers the human resources, research and development along with sales andmarketing. For instance, the performance of Nike is very well in marketing as well as productdesign so that which is based on the outsources of information technology for maintaining theinter organisational coordination (Gibbs, Sivunen and Boyraz, 2017). This type of companies canbe described as the organisation which are without walls and highly connected to the hugenetwork of suppliers, customers and the joint venture partners. In addition to this, the management of virtual organisation is can be analysed through the humanissues and technical issues. For instance, there are different experience and cultures plays animportant role in the collaboration. Other than this, communication among the partners alongwith the planning. In modern era, virtual organisation are considered as some of the most effective way toincrease the activities of business. This type of organisations are used to describe the network ofindependent firms which join together for the purpose of producing goods and services. Themain aim of virtual organisation is to give innovative and high quality products for respondingthe demands of customers. This organisation creates new linkages, advanced informationtechnology it is considered as important element which is the key or success of virtualorganisation. Virtual organization is an emerging trend across the business sector. It can be look upfrom three levels - Individual, organizational and societal as a whole. The biggest advantage ofvirtual organization is that cost saving, In this we can save the huge expenses on real estate,office spaces, utilities bills such as gas, electricity, water etc. Many organizations outsource theiroperations through the effective use of technology to cost region. Product cost also reduces withreduced raw material cost, operational costs and lower wages cost of the employees whichcovers the large geographical area because they hire employees from anywhere according to
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