Vir tual Organization

Names Nisha Mohammad Omkar Datar Salman Khan Samah Kazmi Click to edit Master subtitle style Zarna choksi Zeba Qureshi Roll no. 67 68 87 88 113 114 3/20/12

Definition: A Virtual Organisation (VO) is a group of individuals collaborating through the use of online services (VO = People + Services) In business an organization that can take one of the following forms:

a business which operates primarily via electronic means; see virtual business independent organizations that share resources to achieve their goals; see virtual enterprise

Concept

Virtual organization (grid computing) a group who shares the same computing resources
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People Management: Virtual organizations thrive on the competence of the people who comprise the organization; as such managers in virtual organizations are more sensitive and responsive and adopt more sophisticated HRM techniques and systems than those in conventional organizations.

Relationship Management: The integrated network of people, processes, suppliers, vendors and partners is a key element of virtual organizations and as such managers of virtual organizations take more care to nurture and support the elaborate network of people an d firm interaction that exist in a virtual environment.

Difference from conventional

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Knowledge Management: The transfer of both codified and uncodified knowledge presents a serious challenge to the continued success of the virtual organization. For knowledge transfer to happen effectively, then an appropriate system has to be instituted to facilitate and ensure the sharing of both structured and unstructured forms of knowledge. Technology Management: It is difficult, perhaps un-imaginable to discuss the concept of a virtual organization without reference to technology infrastructure required to make this possible. The technology consideration is on the network design, information flow and processes, IT infrastructure such as VOIP, teleconferencing, document sharing etc.

Difference from conventional

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Potential advantages identified by the cited experts included:

Swifter reaction times to new products emerging in global and local markets; The opportunity for switching suppliers and human resources in accordance with stated objectives; Reduction of expenses involved by the necessity of using working spaces rent, maintenance, insurances etc.; More efficient usage of office space, in the case when some employees work according to the traditional system, while others prefers a telecommuting system; etc.;

Advantages gas, electricity, water Diminishing utilities expenses

3/20/12 Reduction of the consumption of consumable materials;

Decrease of salary expenses, as the virtual team members are paid for their task and not for their time spent at work; Possibility to have experts located in any part of the globe; Possibility to hire low cost but qualified labor force (recruiting the personnel can be done in geographic areas where the labor force is low cost and well trained); Increase of productivity and performances due to the fact that virtual team members can better focus on the results to be achieved; Reduction of the number of absentees because the virtual team members work at home; disadvantaged areas.

Advantages opportunities in rural or Creation of jobs and employment

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Added complexity due to the participants being distributed to multiple geographical locations and restricted from face-to-face interaction (Bjorn & Ngwenyama); Increased risk of communication breakdowns due to cultural and organizational differences inherent to participants from geographically diverse regions of the world (Bjorn & Ngwenyama); Reduced productivity due to a lack of shared meaning and cohesiveness that shared meaning can produce between members of an organization (Bjorn & Ngwenyama; Peters & Manz, 2008);

For those who telecommute i.e. work home, Limtations self-disciplineatand an reduced productivity due to lack

overabundance of distractions around the home 3/20/12 (Hortensia).

What are the steps to a virtual organization?

outsourcing mainly to reduce costs where there is some experience in working at a distance, but three is one dominant party and high certainty of what everyone must do. forming strategic alliances to share the work and gain experience in developing and sharing common goals. Here there is no dominant party although the parties are fixed. and then becoming virtual organizations to achieve flexibility. Now the partners themselves can quickly change, with greater emphasis on the use of knowledge to create new and innovative products. It is of course possible for only a part of an organization to become virtual. In that case organizations can gradually 3/20/12 evolve from real to virtual.

How they work

What are the reasons for organizations becoming virtual?

Globalization, with growing trends to include global customers, Ability to quickly pool expert resources, Creation of communities of excellence, Rapidly changing needs, Increasingly specialized products and services, Increasing required to use specialized knowledge Working electronically. In a virtual organization all places of work would be through communication using computer workspaces. You can the go from electronic workplace to workplace to 3/20/12 see the activities that are taking place in the organization.

Tools for optimization