Virtual Organizations

Introduction

Scope Virtual Organizations charactristics Virtual Organization and Virtual

Team Virtual Organizations infrastructure

VO Characteristics

Members separated geographically Work conducted via a networked computer Appear to outsiders as a “physical entity” – "an organization distributed

geographically and whose work is coordinated through electronic communications."

Virtual Corporation Produce virtual products

products that adapt in real time to changing customer needs

Emphasis on quality and service Move away from inflexible mass

manufacturing models Return to craftsmanship and

customization - (mass customization)

VO Work Patterns Virtual Teams Virtual Organizations Virtual Labs etc.

VO Work Strategies 24/7 Workshop – unmanned Outsourcing Global Partnerships

Design here Produce there

Teleworking Remote Helpdesk

Trends Driving Move Toward Virtual Organizations

Globalization of markets, products, resources and labor

Information/Knowledge Work > 70% of work is information intensive

Technology Performance; Connectivity, Portability

Work in Organizations: Taylorism Principles of Scientific

Management Frederick Taylor (1911)

Time Studies Standardization of tools Precise job descriptions Task Allocation

Task Allocation Break down a task into component

parts“The man in the planning room, whose

specialty is planning ahead, invariably finds that the work can be done more economically by subdivision of the labor; each act of each mechanic, for example should be preceded by various preparatory acts done by other men”

Task Problem

The notion of “task” becomes too inflexible

Taylorism at Work: Fordism Henry Ford was a pioneer in mass

production Implemented the “Assembly Line” Increased productivity ten-fold Product price reduction led to

increased markets which led to increased profits

Fordism and Deskilling of the Work Force Craft-based production was

displaced by the assembly line Division of labor was the king of the

assembly line Used less skilled labor to perform task

minutely defined by management

Some Problems Rigid production systems Labor-management problems Marketing products because of their

production cost rather than because of consumer needs

Made organizational change difficult

Virtual Products as Services Shift in focus of “production” from

manipulation of materials to information management/creation

Services Intangible Consumed as produced No inventory Customer helps to produce

Service and Flexibility

A service orientation allows an organization to be more flexible

Role of Virtual Teams At the center of a Virtual

Organization Need to have specialized knowledge Multidisciplinary One person can be part of multiple

teams Flexibility and Responsiveness are

foci

Time in VO Shorter design cycles Faster time to market Feedback from customer Sleeker supply chains Recovery Strategy for Screw-Ups

Information in VO Knowledge of customer needs leads to

customization Highly developed specialist tools enable

support for skilled knowledge workers Improved communication leads to

integration of design, production, marketing, sales, service, etc.

New management control methods cut across traditional organizational units

VO Enhancements Use technology to enable remote

work and cooperation Telework

Manage “invisible” employees Telemanagement

New services emerge with the new VO Teleservices

VO Design Principles

Modularity Open-closed principle: impression of coherent

system but really dynamically reconfigurable Organization is constructed after customer

request Heterogeneity in competencies

Complementary Principle: multiple skill sets blended

Time and Space Distribution Transparency Principle: organization appears

to be where customer is

VO Limitations Substituting F2F interactions always

possible? Are there any spontaneous informal

interactions? Is there any trust developed? Technology cannot do it alone

VO and Message Systems Remote virtual teams may have

coordination problems Message system allows for the

management of electronic communications between and within teams

Message control is a management technique

Dimensions of Organizational Design Time Place

Division of Time/Place

Same PlaceDifferent

Place

SameStationary Stationary

TimeMobile Mobile

DifferentStationary Stationary

TimeMobile Mobile

Division of Time/PlaceSame Place

Different Place

Same

Face-to-Face Interaction

Synchronous Distributed Interaction

Time

Different

Asynchronous Interaction

Asynchronous Distributed Interaction

Time

Shared Information Spaces Hard to get folks together even

when they work in the same “place” Virtual teams need coordination Web can be forum for different

“presentations” by virtual team members

Same Time/Same Place Meetings

Unfocused Time Suck Central part of most organizations Sometimes virtual teams get together

Same Time/Different Place Geography sometimes makes

“getting together” difficult Video Conferencing Desktop Conferencing

Different Place/Different Time Email Web Shared Information Space

Different Time/Same Place Email Web Shared Information Space