Name- Kamal Kant Soni

Roll no.- pg-08-36

PGDM 1ST TRISEM.

Q - What is VIRTUAL ORGANIZATION?

Ans. – The term virtual organization is used to describe a network of

independent firms that join together, often temporarily, to produce a
service or product. 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.
Virtual organization is a organization which have no physical
existence but exists on internet electronically. Virtual organization is a
dispersed network of skills and capability which distributed among
various/multiple locations for bringing the skills and capability. It is a
cooperation of institutes, organizations, firms that provide product
and services on the basis of common business understanding. They
present themselves as a unified organization.

Advantages:-

• Eliminate the physical boundary.

• Allows organization to sell product worldwide with efficient
way.
• With good collaboration of vendor & supplier, it creates great
business opportunity, lower operational cost & better market
understanding.
• Gain competitive advantages and increase market share by
selling product worldwide.
• To meet the dynamic demand of consumer and market.
Disadvantages:-

• Due to cultural difference, differ in working style, there may be

conflict between organizations which work in cooperation.
• In core competence, in virtual organizations, other firms take
advantages and share the intangible assets of each other which make
some organization feel insecure in way of security of their property.
• Due to virtual existence, some people are hesitates in believing
that organization rather than physical organization.

Identification of virtual organization

Dell Computers (US)-- For example, most of the components in a Dell

computer are made by other companies while Dell focuses on its
strengths--marketing, customer support and integration of these
components into the final computer products.

When buying a computer from Dell, the virtual organization includes

the Dell customer service rep, assembly line and assembly crew,
supply people for various components, the UPS truck and driver who
delivers the computer and people from MasterCard who pay for it. All
of the inventory in the system, regardless of location and ownership of
the company, can be viewed as a single system. Benefits may include
overall lower inventory levels in the whole system and better
customer service. For example, Dell tries to keep as little actual
inventory on hand as possible.
This is the structure of virtual organization. In that diagram we can
easily identify understand that some organization run their operation
with cooperation. There is a core organization such like DELL and
other subordinate firms that support core firm for running their
business. In example, computer parts manufacturing, customer care
services, master card for payment, logistic companies are the
supporting companies which run their business with core firm DELL

Customer
care
service

After sales Payment

service (Master
card
Core Services)
firm,Mgmt,
marketing
(DELL)

Manufacturi Logistic
ng services
(parts)
Q- What is LEARNING ORGANIZATION?

Ans.- Learning organization is organization which keep it with rapidly

changing environment with innovation and knowledge.
Learning organization is organization which:-
• Learn from experience and experiment.
• Encourage its employee for continues learning and critical
thinking.
• Allow the mistakes by employee.
• Acquire new knowledge from external environment for day to
day activities.

So from the above explanation we can easily understand the

learning organization. That organization’s major objective is to
keep itself up to date with rapidly changing technologies and
innovations as well as knowledge. The learning organization
focuses on enhancing its systems (including people) to continually
increase the organization's capacity for performance.

Characteristics:-
• Self mastery individual - The ability to honestly and
openly see reality as it exists; to clarify one's personal vision
• Mental models individual - The ability to compare reality
or personal vision with perceptions; reconciling both into a
coherent understanding
• Shared vision group - The ability of a group of individuals
to hold a shared picture of a mutually desirable future
• Team learning group - The ability of a group of
individuals to suspend personal assumptions about each
other and engage in "dialogue" rather than "discussion"
 Advantages:-
• Make superior performance and competitive advantages
• Create better customer relationship
• It improve the quality
• Encourage for innovation
• Keep up to date with technology
• It make employees feel independent & free
• It makes to understand risks more deeply

Disadvantages:-
• In traditional businesses, it get tough for employee to adopt new
technology easily
• In fast rapidly environment, it create hurdle for organization to
keep it up to date with each technology
• In some organizations, employee protest for new technologies
and innovations.

Identification of learning organization:-

If we see, we found a number of learning organizations

around us because most of the organizations adopting the new
theory that called “learning”. Mostly the garment sector and
research and development sector are known mostly for learning
because in research & development, then required to keep them
with the changes and technologies.