This document discusses virtual organizations and related concepts. It begins by defining a virtual organization as a network of corporations enabled by information and communication technologies to be flexible and meet market dynamics. Key points include: - Virtual organizations remove horizontal and vertical boundaries and are boundaryless. - Technologies like computer telephony integration and mobile data allow individuals to work from dispersed locations while staying connected to their virtual organization. - Both advantages like increased productivity and disadvantages like difficulty controlling employees remotely are discussed.

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2. 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.
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3.  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’.
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4.  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.
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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.  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.
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7.  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.
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8.  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 organiazation has both positive and negative
implications for human resources.
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9. 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. 9

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11. 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.
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12. 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
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13.  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.  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 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. 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 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. 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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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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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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24. Prof. Laxmikant N. Soni
Dayanand College of Commerce, Latur (Maharashtra)
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