virtual organisation

2. Not physically existing as such but made and
connected by software.
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3. HRM 25
Virtual Organisation

4. Virtual Organization
• Virtual organization is a new form of organization that emerged in
1990. It is also known as network organization or digital organization.
• Simply stated, a virtual organization is a network of corporations
made possible by what is stated, known as Information and
Communication Technology (ICT) which is flexible and is created to
meet the dynamics of the market. In other words, the virtual
organization is a social network in which all the horizontal and
vertical boundaries are removed.
• In this sense, virtual organization is a boundary less organization. It
consists of individuals working out of physically dispersed work
places, or even individuals working out of mobile devices and not tied
to any particular workplace.

5. Features of virtual Organisation
• Technology:
New technology has transformed the traditional ways of working.
In particular, the worlds of computing and telephony are coming
together to open up a whole new range of responsibilities. Computer
Telephony Integrations (CTI) will usher in a new revolution to the
desktop. The CTI has traditionally been used in all call centre
applications.
• E-mail Integration:
Integrating Short Message Service (SMS) into the existing e-mail
infrastructure allows the whole organisation to take advantages of SMS
products such as ‘Express Way’.

6. • Office System Integration:
SMS technology can greatly enhance the existing or new office
systems, e. g., phone messages can be sent via SMS rather than returning
it in a message book.
• Voice Mail Alert:
SMS technology added to the existing voice mail system builds an
effective method of receiving voice mail alerts.
• Mobile Data:
This enables a laptop to retrieve information anywhere through the
mobile phone network. Mobile data communications revolutionize
where and how work is done.
• In the past, corporate information has been inaccessible from many
places where it is needed. One’s ability to link laptop to mobile phone
keeps one connected to his/her virtual organisation from anywhere.

7. Advantages Disadvantages
Increased productivity
Less paperwork
Can be quickly reshaped
Money saved
Facilities to work at home
Difficult to control
Technologies can be easily revealed
Problems with external partner can
occur
Advantages & Disadvantages

8. Advantages of Virtual Organization
• It saves time, travel expenses and eliminates lack of access to experts.
• Virtual teams can be organized whether or not members are in reasonable
proximity to each other.
• Use of outside experts without incurring expenses for travel, logging and
downtime.
• Dynamic team membership allows people to move from one project to another.
• Employee can be assigned to multiple, concurrent teams.
• Teams’ communication and work reports are available online to facilitate swift
responses to the demands of the (global) market.
• Employees can accommodate both personal and professional lives.
• Virtual teams allow firms to expand their potential labor markets enabling
them to hire and retain the best people regardless of their physical locations.

9. Disadvantages of Virtual Organization
• The lack of physical interactions with its associated verbal
and non-verbal cues and also the synergies that often
accompany face-to-face interaction
• Non-availability of para-verbal and non-verbal cues such
as voice, eye movement, facial expression, and body
language which help in better communication.
• Ability to work even if the virtual teams are miles apart
and the members have never or rarely met each other
face-to-face.

10. HUMAN RESOURCE ISSUES IN VIRTUAL ORGANISATION
• Recruitment, development and socialization processes are designed to ensure
right person for right job.
• These processes also regulate and control the antecedent condition as of job
performance. A virtual organization is staffed by knowledge workers who are
brought together under short-term market relationships.
• These highly proficient employees are left to do their own things in order to
provide world class products and service.
• Jobs in virtual organizations are knowledge-based. Such jobs are assumed to
require greater skills, have greater varie4ty and offer better quality of working life
(QWL).
• Virtual organization has both positive and negative implications for human
resources.

11. Main HR issues in a virtual organization
1. Recruitment is conducted under time pressure and requires high
performance expectations.
2. Both human capital (knowing one’s job) and social capital (knowing each
other) become linked.
3. Social relationships do not require much stability.
4. Workplace is variable because there is high need for readiness to be
mobilized at any moment.
5. Value of idleness is shown in terms of learning by watching what others
do.
6. Master apprentice relationships and craft based learning become
significant.
7. Job status and project feedback is short-term. Therefore, virtual
organizations require a heavy investment to create systems and staffing
structure.

12. Some popularly known virtual
organizations

13. Conclusion
Virtual organization is often associated with such terms as virtual
office, virtual teams, and virtual leadership.
The ultimate goal of the virtual organization is to provide innovative,
high-quality products or services instantaneously in response to
customer demands.