Establishment of Virtual Teams in Business: Pros and Cons

This report by Desklib discusses the establishment of virtual teams in business and its impact on cost-cutting, carbon footprint, and cross-time zone working. It highlights the advantages of virtual teams, such as cost-cutting and reduction of carbon footprint, and the disadvantages, such as cross-time zone working issues. The report concludes that virtual teams can be helpful for business growth, but strategic decision-making is necessary to mitigate the issues.

Running head: BUSINESS COMMUNICATION
BUSINESS COMMUNICATION
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1. Introduction
The organization is headquartered in Sydney, which is undertaking steps to develop
virtual teams in the different time zones located in Sydney, New York, Beijing and Mumbai. The
distribution of the work in the different time zones as helped in assembling the talented group of
people to enhance the functioning of the systems that are planned by the business. On the other
hand, the virtual teams will also be helping the organization in making an expansion as per the
needs of the same while operating in the diverse markets. The establishment of the virtual teams
will also be helping the organization in maintaining a steady cost cutting strategy related to
freight and transportation. It will also be helping the organization in undertaking the efficient
functioning of the systems of the business. However, there are different issues that might be
faced by the organization due to the implementation of the virtual teams. Therefore, the purpose
of the report is to identify the different aspects through which the establishment of the virtual
teams will be affecting the activities of the business.
2. Justification for the establishment of Virtual teams- Cost Cutting strategy
The establishments of the virtual teams will be helping the organization in cutting off the
different costs related to the freight and transportation. On the other hand, the different costs that
are undertaken by the organization due to shipping of the products and services offered by the
organization can be reduced through the implementation of the virtual teams’ concept. Pinjani

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and Palvia (2013) stated that the creation of the virtual teams helps organizations in undertaking
smooth market penetration initiatives in the different economies which helps in the growth of the
business. Therefore, the establishment of the virtual teams helps in maintaining the proficiency
of the functions as per the objectives of the business. The establishment of the virtual teams will
be helping to ensure the productivity of the business, which will be helping he business firm in
optimizing the utilization of resources (Hoefling 2012).
3. Justification for the establishment of Virtual teams- Reduction of the carbon footprints
The reduction of the carbon footprints is facilitated through the lesser rates of carbon
emissions through the establishment of the virtual teams. The lesser rates of carbon emission in
the environment will be helping the organization in undertaking efficient CSR activities as per
the objectives of the business (Weimann et al. 2013). The key changes in the systems of the
business will be controlled through the establishment of the virtual teams, which will be
enhancing the processes of the business firm. The initiatives that are undertaken by the business
swill be helping the same in enhancing their goodwill in the markets. On the other hand, the
minimization of the harmful emissions will be facilitated through the different range of activities
that might be undertaken by the virtual teams. The establishment of the virtual teams will be
helping the organization in lowering the activities based on the construction of traditional offices,
which also helps in reducing the impact of the heavy industries on the environment (Mukherjee
et al. 2012). The virtual teams will also be helping to maintain the proficiency of the work
functions that are undertaken by the workforce as per the objectives of the business growth.
4. Justification against the establishment of Virtual teams- Working in the cross time zones

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Working in the different time zones might affect the coordinated functioning of the
virtual teams that are located in the four different time zones. The lag of proficient
communication among the team members affects the proper functioning of the virtual teams as
per the objectives of the business. It might affect the smooth functioning of the business as per
the objectives of the same (Hoch and Kozlowski 2014). The differences in the time zones will
also affect the productivity of the business through delays. It will be affecting the performance of
the members in the virtual teams. On the other hand, the increased conflict due to the differences
in the work culture will also be affecting the proper performance of the team members in the
virtual teams. The key issues that might b faced by the team members will be based on the lack
of proper communication between the different departments that are situated in the distant
economies. It will be affecting the dynamics of the efficient work done (Daim et al. 2012).
5. Conclusion
Therefore, it can be stated that the implementation of the virtual teams will be helpful for
the growth of the organization in the different market structures. However, there are different
issues that might be faced by the organization through the change in the systems of the business,
which can be mitigated through adherence to strategic decision making systems.

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References
Daim, T.U., Ha, A., Reutiman, S., Hughes, B., Pathak, U., Bynum, W. and Bhatla, A., 2012.
Exploring the communication breakdown in global virtual teams. International Journal of
Project Management, 30(2), pp.199-212.
Hoch, J.E. and Kozlowski, S.W., 2014. Leading virtual teams: Hierarchical leadership, structural
supports, and shared team leadership. Journal of applied psychology, 99(3), p.390.
Hoefling, T., 2012. Working virtually: Managing people for successful virtual teams and
organizations. Stylus Publishing, LLC.
Mukherjee, D., Lahiri, S., Mukherjee, D. and Billing, T.K., 2012. Leading virtual teams: how do
social, cognitive, and behavioral capabilities matter?. Management Decision, 50(2), pp.273-290.
Pinjani, P. and Palvia, P., 2013. Trust and knowledge sharing in diverse global virtual
teams. Information & Management, 50(4), pp.144-153.
Weimann, P., Pollock, M., Scott, E. and Brown, I., 2013. Enhancing team performance through
tool use: How critical technology-related issues influence the performance of virtual project
teams. IEEE Transactions on Professional Communication, 56(4), pp.332-353.

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