Analysis of Virtual Teams: Benefits, Challenges, and Recommendations

This report analyzes the concept of virtual teams, defining them as groups connecting members from different locations using information and communication technology. The memo explores the advantages of virtual teams, such as access to global talent and cost savings, while also addressing the challenges, including potential productivity issues. It emphasizes key elements for success, including trust, communication, leadership, goals, and technology. The report also discusses the risks associated with virtual teams, such as the possibility of missed objectives and reduced productivity. The report concludes with recommendations for managing directors, advocating for the implementation of virtual team strategies, and emphasizing the importance of regular interaction with virtual team members to improve efficiency and productivity. The report is based on secondary research and aims to inform decision-making regarding the adoption of virtual teams within an organization. The report references the work of Ferrazzi (2009), Bergiel, Bergiel, & Balsmeier (2008), and Govindarajan, & Gupta (2001).

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

example, selecting an effective team leader, identify the need for an external coach, and
choosing a GBT sponsor.
Risks and issues associated with the virtual team
Virtual teams are hard to get rights which affect the productivity of an organization or
business. It is observed by Ferrazzi, (2009) around 82% fell short of their objectives and
33 percentages rated as biggest unsuccessful due to use of the virtual team. A recent
study also identified that around 66% failed to satisfy the consumer's requirement and
most of the virtual team reduced the productivity of an organization. But it can be
improved by communicating with the virtual team on daily basis, adopting more
advanced technologies, developing a leadership skill, and make trust.
It is concluded that this memo analysis the concept of virtual team and develop a
business strategy for an organization. An organisation should implement this plan in
their business due to their numbers of benefits like saving cost, time, improve efficiency
and productivity. In future, the issue of performance and productivity will be resolved
by making goals, leadership skills and adopting advanced information technologies. So,
it is advice for managing director they should develop and design the strategy of a
virtual team and ensure that they interact with their virtual members on regular basis.

References
Ferrazzi, K 2009, Getting Virtual Teams Right, viewed 6 December 2018, <
https://hbr.org/2014/12/getting-virtual-teams-right>.
Bergiel, BJ, Bergiel, EB and Balsmeier, PW 2008, ‘Nature of virtual teams: a summary of
their advantages and disadvantages’ Management Research News, vol. 31, no. 2, pp.99-
110.
Govindarajan, V. & Gupta, AK 2001, ‘Building an effective global business team’ MIT
Sloan Management Review, vol. 42, no. 4, p.63.