MNG81001 Management Communication Report: Virtual Teams Analysis

This report, addressed to the Managing Director of XYZ Company, provides advice on the formation of virtual teams. It highlights the advantages, including significant cost savings by reducing real estate, travel, and operational expenses, and the ability to leverage global talent by recruiting employees from various locations. The report discusses how virtual teams can reduce time-to-market and open new business opportunities across diverse customer bases. It also addresses potential challenges, such as the need for robust technological support and the importance of fostering trust and collaboration to mitigate conflicts and ensure effective communication within the team. The report recommends that XYZ Company prioritizes establishing clear communication channels and promoting a multicultural, diverse workplace to enhance the success of its virtual teams. The report also references key academic sources to support its arguments.

Running head: MANAGEMENT COMMUNICATION
MANAGEMENT COMMUNICATION
Student’s Name
University Name
Author’s Note

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To: Managing Director, XYZ
From:
CC:
Date: 08th January 2019
Subject: Advice regarding the formation of virtual teams
The new age Trend puts forward that virtual teams are being created by more and
more organisations. Just like any other workless innovation researchers are scrutinizing the
advantages and disadvantages of virtual work stations and work groups also. However
currently it is recommended that considering the advantages that comes with the formation of
a virtual work team XYZ company which is a Start-up in the domain with their working,
might consider the formation of virtual teams. Shanghai, Los Angeles, Bangalore as well as
Melbourne are important it hubs where technological advancement is enough for supporting
all facilities that is required for the working of virtual work groups. In this context it is
essential to discuss the advantages that XYZ Company might enjoy if they decide to work
with a virtual work group. The most visible advantage that they would enjoy is huge amount
of cost savings. Alongside saving the real estate costs, gas, water and electricity along with
their travelling cost of Executive and also of the employees on some instances. Many start-up
organisations who are unable to cope up with these expenses, are often compelled to
outsource their operations two regions where they need to pay comparatively lower cost for
these facilities. However in doing so they compromise with the clientele as well as other
business advantages that they could have enjoyed comma operating in their previous location.
This is one major benefit of virtual groups which can operate from the supreme locations as
deemed important by the organisation (Benefield, Shen and Leavitt 2016). They need not
keep their agency confined to an accurate location. Rather they can explore the benefits

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suitable to the industry that is available in various locations around important cities on this
earth.
The next most feasible advantage that seems possible currently is the leveraging
of global talent through formation of virtual work groups. As de Pillis et al. (2015) informs,
by formation of virtual teams the organisation do not need to accumulate the employees in a
distinct location and this leaves the opportunity for them to look for talented employees event
beyond the country or the distinct location where the operating. An instance can be provided
in favour of XYZ Company in order to show how they can exactly benefit from this point of
advantage. If it is supposed that one business hub with the top most facilities pertaining to the
XYZ company is located in Bangalore and they as you know that there is chance of mass
recruitment of workers for their it domain from Melbourne they would not need to worry
about a workstation installation or the availability of other facilities for availing the service of
their employees from Melbourne if they are having the facility of recruiting virtual work
groups.
There are ample evidences of recent start-up companies who have been able to make a
difference by formation of virtual work groups. Some of the eminent names are Zapier,
Upworthy, batchbook, buffer, Automattic and so on. So far as the case study is concerned the
reports regarding the failure of virtual work groups could be many. Virtual work groups
mostly fail because they are not able to bear the cost of technological support that is required
for multiple communication Pathways like instant messaging email as well as video
conferencing on high speed internet basis including others which are very essential for the
constant and accurate working of virtual work groups. Another important aspect because of
which virtual employee basis are not able to operate commendably, are the conflict in the
work groups as well as a certain rivalry between employees of various countries and this
intern fosters lack of Trust as well as collaboration among them. Hence it is recommended

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that XYZ company develop a virtual work group where the employees who might be
pertaining from various different locations, but they should know properly who else is there
with them in the domain their working and also there should be a personal channel of
communication between employees wherein they can interact and make themselves
acquainted with each other. They should not be any issues arising from the multicultural all
the diverse workplace atmosphere that comes in with the virtual work group. The most
important reason because of which it is suggestible that XYZ company form virtual work
group is that the time to market would be reduced at new business opportunities be open for
them. Accumulatively even if their working from a particular workplace they would be able
to manoeuvre as well as operate with some particular Geographic of demographic customer
bases. Whereas if a company is operating with a virtual work opportunities are open to them
to spread their business among the customer basis of all the countries where they have placed
their employees. It might be the fact the initial cost of the setup would be higher but bearing
that fact if the company is ready to be at the initial expenses, the success of virtual work
looks so far read that it would take long for the company to revive their cost and work on the
path of success.
Regards
The Advisory Officer
XYZ Company

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Reference List
Benefield, G.A., Shen, C. and Leavitt, A., 2016, February. Virtual team networks: How group
social capital affects team success in a massively multiplayer online game. In Proceedings of
the 19th ACM Conference on Computer-Supported Cooperative Work & Social Computing
(pp. 679-690). ACM.
de Pillis, E., Furumo, K., Ray, J., Furumo, H. and Higa, K., 2015. Deadbeats in virtual teams:
How gender, conscientiousness, and individualism/collectivism impact performance.
International Journal of Business and Information, 10(3).