A virtual organization is a network of corporations made possible by what is stated, known as Information and Communication Technology (ICT).

1. MANAGING HR IN
VIRTUAL ORGANISATION
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Dr. Laxmikant N. Soni
NET (Commerce), NET (Management), SET (Commerce)
Dayanand College of Commerce, Latur
Dr. L. N. Soni

2. 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 al 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.
2Dr. L. N. Soni

3. 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’.
• 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.
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4. 4
• 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.
Dr. L. N. Soni

5. + -
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

6. 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 labour markets
enabling them to hire and retain the best people regardless of their
physical locations.
6Dr. L. N. Soni

7. 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.
7Dr. L. N. Soni

8. 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.
8Dr. L. N. Soni

9. 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.
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10. Some popularly known virtual
organizations
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11. CONCLUSION
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 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.
Dr. L. N. Soni

12. TALENT MANAGEMENT
A conscious, deliberate approach undertaken to attract,
develop and retain people with the aptitude and abilities to
meet current and future organisational needs.
TALENT=COMPETENCE+COMMITMENT+CONTRIBUTION
12Dr. L. N. Soni

13. PURPOSE OF TM
 To compete effectively in a complex and dynamic
environment to achieve sustainable growth
 To develop leaders for tomorrow from within an organization
 To maximize employee performance as a unique source of
competitive advantage
 To empower employees:
 Cut down on high turnover rates
 Reduce the cost of constantly hiring new people to train
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14. ELEMENTS OF EFFECTIVE TM
 Recruiting candidates who are talented and competent to support the
organisation’s goals.
 An active dialogue between managers and employees to determine which
employees desire to grow, which are happy to be at their current levels and
which are at risk of leaving and their reasons;
 An employee development plan that recognizes the new talents and
competencies that are needed for each employee’s internal career path to be
able to prepare to progress in the organization
 A measurement system that will allow the organization to track progress and
identify high potential employees in each talent pool when the need for
employee movement arises.
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15. WORK-LIFE BALANCE
 Work-life balance is about adjusting working patterns to allow employees
to combine work with their other responsibilities such as caring for
children or elderly relatives.
 Introducing appropriate employment practices to help employees achieve a
better work-life balance brings tangible benefits to your business.
 It can enable employees to feel more in control of their working life and
lead to increased productivity, lower absenteeism and a happier, less
stressed workforce.
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16. Tips for Better Work-Life Balance
1. Build downtime into your schedule.
2. Drop activities that sap your time or energy.
3. Rethink your responsibilities.
4. Get moving.
5. Remember that a little relaxation goes a long way.
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17. SIX SIGMA
 Six Sigma is a statistical management technique that seeks to drive
defects to less than 3.4 defects per million.
 Defects are defined as any non-conformance to customer specifications.
 Once the causes of defects are identified, processes are modified to avoid
the causes.
 It implies a customer driven approach where the customers may be internal
or external.
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18. HR Six Sigma Process
Six sigma implementation is through a process called
DMAIC(Define, Measure, Analyze, Improve, Control)
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19. Define
• Define Customers Requirements
• Develop Problem Statement, Goals and Benefits
• Identify the Process
• Define Resources
• Evaluate Key Organizational Support
• Develop Project Plan and Milestones
• Develop High Level Process Map
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20. Measure
• Define Defect and Opportunity
• Develop Data Collection Plan
• Validate the Measurement System
• Prepare data collection plan :
- How many data points do you need to collect ?
- How many days do you need to collect data for ?
- What is the sampling strategy ?
- Who will collect data and how will data get
stored ?
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Dr. L. N. Soni

21. Analyze
• Define Performance Objectives
• How well or poorly processes are working
compared with Competitor’s
• Identify Sources of Variation
• Don’t focus on symptoms, find the root cause
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22. Improve
• Perform Design of Experiments
• Develop Potential Solutions
• Develop implementation plan.
- Prepare final presentation.
- Present final recommendation to
Management Team.
• Correct/Re-Evaluate Potential Solution
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Dr. L. N. Soni

23. Control
• Define and Validate Monitoring and Control System
• Develop Standards and Procedures
• Implement Statistical Process Control
• Verify Benefits, Cost Savings/Avoidance, Profit
Growth
• How will you maintain to gains made
-Change policy & procedures
- Change drawings
- Change planning
- Revise budget
- Training
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Dr. L. N. Soni

24. THANK YOU !
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Dr. Laxmikant N. Soni
NET (Commerce), SET (Commerce), NET (Management)
Soni Institute of Management Studies, Latur
Coaching institute of: NET / SET
MBA – CET/CMAT/CAT/SNAP
BANK – PO/Clerk
Contact : 8087866077 / 9823611055