3.+Virtual+Organization+Structure+and+Culture

=Virtual Organization Structure =

A Virtual Organization Structure is also known as boundary-less organization with no physical existence. This type of organization works with the help of the Internet in networks of alliances. Even a small virtual organization can work on global level as a market leader in its own niche. It requires dramatically less cost but there is a huge competition collectively in each niche. Virtual organization structure requires a democratic decision-making environment which works on the majority votes. This system enables everyone to take part in decision-making by expressing his/her point of view about the specific decision. This type of decision making usually increase the innovation and exchange of useful as well as creative ideas. 'Virtual work is increasingly common, as globalisation, advances in technology and a continuing search for economic advantage and access to expertise lead firms to use virtual work strategies. For example, global sourcing is increasing steadily throughout firms’ value chains, including outsourcing and offshoring of knowledge work such as R&D, product design and IT services. Contemporary work teams may include far-flung members who collaborate across boundaries of distance, time, nationality and organisation.' (Watson-Manheim et al, 2012) [|Read more]

Previous researchers have argued that the differences between virtual organizations and traditional organizations are largely ones of decentralization versus centralization and non-hierarchical versus hierarchical [|Read more]

The VO is an outcome of collaboration between parties aligning diverse competencies to take advantage of emerging market opportunities (Davidow & Malone, 1992; Hughes et al, 2000; Badrinarayanan and Arnett 2008). In terms of physical presence, Hedberg, et al (1999), and Allen (1990) consider the virtual organization as not physically existing, but enabled by software to exist.

Hans (2008) defines the VO as short term, order based organization which is dissolved once the purpose is achieved, whilst Lipnack and Stamps (1997) define VO as “groups of people interacting through interdependent tasks guided by common purpose that work across space, time and organizational boundaries, with links strengthened by webs of communication technologies’.

Handy (1995) emphasized the role of trust in the VO, and Cueni and Seiz (1999) define the VO as a very customer oriented entity.

Bosch-Sijtsema (2002) neatly summarized preceding work as having concentrated on the external characteristics of a VO, and defined these as:

• Combination of companies/organizations

• Sharing knowledge and resources

• Dispersion of members

• Short duration time

• Based on mutual trust

• IT is used for communication & information distribution

<span style="font-family: Georgia,serif; font-size: 14px;">Whilst the external view of a VO is that there is a loose structure, it is clear that some entity or entities must fulfill the role of coordinator, to decide what work needs to be done and who does it. Whilst there is an assumption of a shared objective, without a decision making process either carried out by individuals or committee – chaos ensues.

<span style="font-family: Georgia,serif; font-size: 14px;">Bosch-Sijtsema went further in his analysis of the VO by considering the interaction of roles within the VO:

<span style="font-family: Georgia,serif; font-size: 14px;">**Management Roles** – is a person or group of people within the VO who gain the trust of other members in order to make decisions for the whole organization.

<span style="font-family: Georgia,serif; font-size: 14px;">**Complementary or Competitor** – the complementary structure is made up of partners who combine difference competencies for a specific outcome or either new products or knowledge. The competitor structure is made up of organizations who align resources to develop ideas, knowledge & innovation in their field, or to try to achieve standardization. <span style="font-family: Georgia,serif; font-size: 14px;">It is possible that the complementary structure could be dissolved at the end of its useful life, only to find in the future that a new VO evolves made up of the same entities who are now competitors.

=<span style="color: #0000ff; font-family: Georgia,serif; font-size: 18px;">Culture In Virtual Organization =

<span style="display: block; font-family: Georgia,serif; font-size: 14px; text-align: justify;">Culture is the way work is done in a company. It's how people work together, how they build teams and processes to deliver on your promise. It represents how strongly the organization believes in their promise and builds their reputation. Culture is grounded in the understanding and practices around the Purpose/Mission, Vision and Guiding Values of the company. It drives how decisions are made, how responsibility is assumed and employee’s behaviour in front of customers. It should be reflected in the standards and consistency with which they deliver your product or service. ([|Reference]) <span style="display: block; font-family: Georgia,serif; font-size: 14px; text-align: justify;">Every organization, and are there no exceptions, has a culture, a culture either that you establish or reinforces a leader or it is a culture that’s established and reinforced. In the absence of a leader, culture is about understanding and living the values, mission and vision statements and purpose of the organization. Leadership articulates the purpose of the business. It is why it exists and what it intends to do. Culture insures delivering and keeping the brand promise given to customers and prospects. <span style="display: block; font-family: Georgia,serif; font-size: 14px; text-align: justify;"> <span style="display: block; font-family: Georgia,serif; font-size: 14px; text-align: justify;">Culture is not only important but it is the force that holds the organization together. In a virtual organization command-and-control is near impossible as you can't look over the shoulder of your employees, you can't micromanage them or have them drop into your office. So culture is a fundamental element in building organizational gravity in a virtual company and it must be established during teh creation of the organization and constantly enforced by the leader. media type="custom" key="24716326"

<span style="font-family: Georgia,serif; font-size: 14px;">Handy, C., 2003, 'Trust and the Virtual Organisation', HBR

<span style="color: #0000ff; font-family: Georgia,serif; font-size: 16px;">Major Factors
<span style="color: #800000; font-family: Georgia,serif; font-size: 14px;">Cross-cultural Sensibilities <span style="display: block; font-family: Georgia,serif; font-size: 14px; text-align: justify;">Possessing an adequate level of cross-cultural sensibilities is another component variable often linked to effectiveness in virtual organizations (Wesner, 2008; Freedman, 2008). <span style="color: #800000; font-family: Georgia,serif; font-size: 14px;">E-Leadership <span style="display: block; font-family: Georgia,serif; font-size: 14px; text-align: justify;">Leadership has the responsibility to build and capitalize on the interrelationships of strategy, brand, culture, and talent to build a gravitational organization. <span style="color: #800000; font-family: Georgia,serif; font-size: 14px;">Branding and Culture <span style="display: block; font-family: Georgia,serif; font-size: 14px; text-align: justify;">Branding and culture is about answering; how you are and your business at keeping your promises. <span style="display: block; font-family: Georgia,serif; font-size: 14px; text-align: justify;">Brand + Culture = Market Growth <span style="color: #800000; font-family: Georgia,serif; font-size: 14px;">Organizational Culture Links to: Communication Strategy and effective Communication <span style="color: #800000; font-family: Georgia,serif; font-size: 14px;">Employee Motivation <span style="color: #800000; font-family: Georgia,serif; font-size: 14px;">Virtual Culture Further Reading: [|Creating a Strategic Vision]

=<span style="color: #0000ff; font-family: Georgia,serif; font-size: 18px;">References =

<span style="font-family: Georgia,serif; font-size: 14px;">Watson-Manheim M.B., Chudoba K.M. and Crowston K.(2012) ‘[|Perceived discontinuities and constructed continuities in virtual work]’, Information Systems Journal, Vol.22 (1), pp. 29-52

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Hedberg, B., G. Dahlgren, J. Hansson, and N.-G. Olve (1999). Virtual Organizations and Beyond: Discover Imaginary Systems. Chichester: John Wiley & Sons.

Bosch-Sijtsema, Petra (2002), International Journal of Information Technology & Decision Making, Vol 1, No 3

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