5.+Pros,+Cons+and+Value

=Advantages of Virtual Organisations =

Organisations can lower costs for working spaces as well as utility expenses such as rent, maintenance, insurance, water, electricity.

World wide virtual organisations can work 'around the clock'. People in New York can leave work for people in London to pick up, who in turn can leave work for people in Hong Kong to pick up on. This can shorten project life cycles and improve speed to market.

Those working overseas have better and closer access to their local markets, knowledge and intelligence. This allows the business to exploit this. This can be done without the cost of opening up new offices.

Virtual organizations can increase productivity for those who like to work at home or in a silent place and fewer unnecessary meetings can increase productivity.

Virtual organizations allow firms to redesign jobs to make employees more effective and efficient.

Virtual Organisations enhance flexibility of working for employees allowing employees to save on costs and reduce or eliminate travelling time, (which is also environmentally beneficial). Employees can have lower living costs as they can choose where to live, rather than having to be close to where the office is located. This can improve retention of employees.

Virtual Organisations have a greater availability of talent to chose from and they can create world class teams from across the globe, converging various people's expertise to optimise operations. Expertise from any location, especially where companies have for example research labs around the world. 'To begin with the positive points, organizations can reduce the cost by having a virtual organization. In this way, they can reduce some cost for working spaces and as well as utility expenses such as rent, maintenance, insurances, water, electricity, and raw materials. Secondly, some employees may find themselves to work faster at home rather than in the company’s office. Working at the office can sometimes be very disturbed as there can be a lot of people in one office. Thus, virtual organization can increase productivity for those who like to work at home or in a silent place. Finally, virtual organization allows firms to redesign jobs to make employees more effective and efficient...[|Read more]

Disadvantages of Virtual Organisations It is difficult to build a desired corporate culture in a virtual organization which could create a complex corporate culture workplace as they are coming from different cultures or geographies. This could result in conflict.

Difficulty for managers to control workers and hence Managers are tough when measuring the performance and commitment of their employees as they work at their own places rather in the traditional set up.

Communication more difficult for virtual offices because there are less physical interactions and challenges are faced by teams in terms of coordination across different time zones

An overdependence is created on ICT in order for employees to work and with failure of this technology, work comes to a standstill.

Employees may become complacent and in absence of contingency plans & lack of specific ways to monitor performance could all overall affect the quality & time of a project leading to delays or even possible abandonment without completion

However, the ways of operating make some disadvantages, problems and threats as well...[|Read more]

Virtual Organization in Health Services
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