A virtual organization is an organization involving detached and disseminated entities (from employees to entire enterprises) and requiring information technology to support their work and communication.

1. VIRTUAL ORGANIZATION
Ms. LUBNA SURAIYA
M. Phil Research Scholar,
Research Dept. of Commerce,
St. Xavier’s College, Tirunelveli

2. INTRODUCTION
Virtual can be defined as not physically existing or “unreal but
looking real”. A virtual organization is an organization involving detached
and disseminated entities (from employees to entire enterprises) and requiring
information technology to support their work and communication. Virtual
organizations are supported by primary technologies such as internet and the
World Wide Web, EDI, telecommunications, e-mails, groupware and video
conferencing. By using electronic sounds and images virtual organization
implies innovative relationships between organizations and individuals.
Technology and globalization both support this particular type of
organization.

3. SALIENT FEATURES OF VIRTUAL
ORGANIZATIONS
 Associated with Virtual office, cyber teams and leaders
 Common purpose and vision
 Cross Cultural Sensibilities
 Useful for Physically Challenged and Handicapped
 Effective Communication
 Knowledge Sharing
 Well defined Structure and Centralization
 Create Networking and boundary less
 Organic framework : (wide spans of control and low formalization)
 Outsourcing : manufacturing, procurement, shipping, quality control
and advertising agencies

4. STRUCTURE OF VO

5. BENEFITS OF VO
ORGANIZATION
ORGANIZATIONAL
BENEFITS
EMPLOYEE
BENEFITS
SOCIETAL
BENEFITS

6. ORGANIZATIONAL BENEFITS
1. Cut throat Competitive Advantage
2. Supply Chain Integration for merger and acquisition between two
companies through online
3. Flexibility, dynamism and better responsiveness
4. Less investments costs initially
5. 30 to 50% rise in productivity
6. Accurate record keeping and no manual labour required.

7. EMPLOYEE BENEFITS
1) More independence: individuals can work when they need and decide in
decide the ways.
2) Amount of stress reduced: No workplace pressure and consequently an
improved WLB (Work Life Balance).
3) Leveraged Global Talent
SOCIETAL BENEFITS
i. Environmental benefit: less pollution
ii. Expansion of the work place area: possibility to work efficiently in the
rural areas.

9. DRAWBACKS OF VIRTUAL ORGANIZAIONS
Lack of understanding Different Time Zone Lose chance on promotions
Problem of Connectivity Unauthenticated User Security issues

10. Dependent on Technology Lack of team work
Legalized ?????????
Conflict Scenario

11. CONCLUSION
Any kind of process will have its own pros and cons. Virtual office
workers work remotely and hence they do not take part much in team
meetings or brainstorming sessions. This means the spirit of team work is
lesser in virtual office workers. Similarly virtual office workers also come
with their own advantages and disadvantages but it is up to the bosses and
the organization to create a leverage and work on the cons and try to
enhance the pros, so that the resultant workforce remains satisfied, stress
free and the working environment is transformed into a fruitful one.