This document discusses human resource issues that arise in virtual organizations where employees work remotely and communicate electronically. Some key challenges include recruiting and retaining talent without face-to-face interaction, defining and measuring performance, building trust among remote employees, ensuring effective communication across locations and time zones, and providing leadership without physical proximity. Successful virtual organizations address these issues through careful planning, regular communication, collaborative technology, and a shared organizational culture that prioritizes relationships and commitments.

1. HR ISSUES IN VIRTUAL ORGANIZATIONS Presented by: Varun Nayyar 2020070010

2. WHAT IS VIRTUAL ORGANIZATION A virtual organization is a group of people that relies primarily or exclusively on electronic forms of communication to work together in accomplishing its goals. Lipnack & Stamps suggest that any team which operates outside a 50 foot (15.25m) radius will demonstrate some of the characteristics of a virtual organization. It can be any organization where regular face-to-face contact is difficult or impossible, due to: Time zones, shifts or schedules, Geography

3. TYPES ALLIANCE ORGANIZATION DISPLACED ORGANIZATION TRULY VIRTUAL ORGANIZATION

4. ORIGIN

5. NEED OF THE HOUR

6. Modes of Working with Groups Same Time Different Time Same Place Different Place Traditional face-to-face meeting environment with or without technology Team members communicate asynchronously using technology Team members communicate asynchronously using technology Participants join scheduled synchronous meetings with help of technology

7. DIFFERENCE Element_______ From_Traditional vertical___ _ To Virtual Network __ Jobs - Narrow Duties - Broad Based Duties Skills/Competencies - Functional Skills - Cross Functional Skills Performance - Position/Job - System/Network Structure - Command/ Control - Self Managed Virtual - Functional Hierarchy

8. ADVANTAGES Cost reduction Perform work in most cost-effective location Reduce travel & accommodation expenses (NOT ELIMINATE!) Lower real estate costs Productivity & Effectiveness Apply most appropriate resources (from anywhere) to job Can schedule to follow-the-sun/around-the-clock

9. CONTD… Improved Staff Satisfaction Opportunity to participate in projects they may not otherwise Can build ongoing relationships/networks across business

10. HR ISSUES CAREER DYNAMICS Recruitment Human capital Vs Social capital Variable Work Place Less Chances of Promotion

11. PERFORMANCE MANAGEMENT Define Performance Facilitate Performance Encourage Performance

12. COMMUNICATION Informal Communication Formal Communication Language Issues

13. TRUST Lack of trust can be indicated by: Unwillingness to share information Withdrawal of effort or just doing the minimum Discounting others’ contributions

14. LEADERSHIP

15. LEGAL ISSUES

16. REAL ESTATE FACTOR

17. KEY TO SUCCESS IS: 10 percent technology And 90 percent people = 100 % success

18. How to Overcome? Schedules Need to identify INDIVIDUAL deliverables and deadlines Need to include teleconferences, meetings, etc. for planning Consider language: Avoid “local terms” – select a team language Avoid emotional terms – they can be misconstrued Use “active skills” in verbal communication Ensure proper respect is maintained for all team members

19. CONTD… Building trust between members Keep the vision, purpose and values “front of mind” Create key delivery dates (mini-milestones) Ensure processes are executed and deal effectively with delivery failures Share praise and recognition amongst team as appropriate Team culture that everyone keeps their commitments

20. CASE STUDY Objective: To enhance the overall customer satisfaction & employee productivity. Real Estate Consideration. To reduce the need for sales and service employees to come into the office. Launched its virtual office ‘Mobility Program’ in 1992.

21. CONTD… Similar arrangements came pouring in from other sales offices nationwide. Results: Employees loved mobility. Customers loved it because sales people were more tuned into their needs.

22. SOME DO’s Do devote time to building and maintaining relationships with those they lead over distance Communication face to face at the beginning of the relationship Have periodic planned and spontaneous visits to remote sites Provide opportunities for representatives of remote sites to visit HQ periodically Engage in small talk with distanced individuals in face to face settings and computer mediated exchanges Notify long distance employees of news that impacts them at the same time you tell local employees Be specific and detailed with directions given over email Initiate follow-up phone calls to important email messages Forward email messages only to relevant parties Delete unnecessary parts of emails before forwarding or replying

23. DON’TS Deliver bad news via email Use local colloquialisms with foreigners especially in email Use email to discuss emotionally charged issues (e.g. disagreements) Assume that one an email is sent, it will be read an understood Always travel to remote sites or expect remote individuals to always travel to you – mix it up Disclose pertinent information to local individuals before distanced individuals Assume meanings are shared Allow email to completely replace phones and teleconferences

24. THANK YOU