Business
Virtual Organizational Structure
A virtual organizational structure is a framework in which employees work remotely, often from different locations, using technology to communicate and collaborate. This structure allows for flexibility and cost savings, as it reduces the need for physical office space and can attract talent from diverse geographic areas. Virtual teams are often managed through digital platforms and tools to ensure effective coordination and productivity.
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6 Key excerpts on "Virtual Organizational Structure"
eBook - ePub- Janice Burn, Peter Marshall, Martin Barnett(Authors)
- 2007(Publication Date)
- Routledge(Publisher)
et al. 1998). In the face of change and uncertainty in business, virtual organizations offer a low cost, highly responsive and adaptable way to organize and compete. This chapter deals with the essential reasons why virtual organizations are an effective way to organize. In presenting this argument we will examine the essential features of virtual organizations, then go on to examine some essential business processes that characterize the operation of virtual organizations, and then finally deal with the issues involved in successfully managing virtual organizations.2.2 Characterizing the essence of the virtual organization
When reading the literature on the virtual organization, we find the online concept and the collaborating parties concept, and the hybrid that combines these two concepts.2.2.1 The online VO
For some, a virtual organization is essentially an electronic one, an online organization. Proponents of this position offer Amazon.com and Ebay.com as examples of organizations that have been created primarily to exist in and exploit the opportunities offered by the WWW and cyberspace. This so-called virtual, or electronic, organization is discussed in contradistinction to the traditional ‘bricks and mortar’ retail outlet.2.2.2 The collaborative VO
An alternative to this first definition is to present the virtual organization as an organizational structure based primarily on the notion of collaborating entities, coming together to share competencies, skills, knowledge and other resources for the purpose of producing a particular service or good, or of taking advantage of a particular opportunity. While there is the clear expectation that IT and telecommunications would play an important role in coordinating and controlling the activities of disparate components of the virtual organization, IT becomes a key component, rather than the distinguishing characteristic.
eBook - PDF- Lawrence J. Gitman, Carl McDaniel, Amit Shah, Monique Reece, Linda Koffel, Bethann Talsma, James C. Hyatt(Authors)
- 2018(Publication Date)
- Openstax(Publisher)
• Trust. The network structure makes companies more reliant on each other and forces them to strengthen relationships with partners. • No borders. This structure expands the traditional boundaries of an organization. In the concept’s purest form, each company that links up with others to create a virtual corporation is stripped to its essence. Ideally, the virtual corporation has neither a central office nor an organization chart, no hierarchy, and no vertical integration. It contributes to an alliance only its core competencies, or key capabilities. It mixes and matches what it does best with the core competencies of other companies and entrepreneurs. For example, a manufacturer would only manufacture, while relying on a product design firm to decide what to make and a marketing company to sell the end result. Although firms that are purely virtual organizations are still relatively scarce, many companies are embracing several characteristics of the virtual structure. One example is Cisco Systems. Cisco uses many manufacturing plants to produce its products, but the company owns none of them. In fact, Cisco now relies on contract manufacturers for all of its manufacturing needs. Human hands probably touch fewer than 10 percent of all customer orders, with fewer than half of all orders processed by a Cisco employee. To the average customer, the interdependency of Cisco’s suppliers and inventory systems makes it look like one huge, seamless company. Virtual Teams Technology is also enabling corporations to create virtual work teams. Geography is no longer a limitation when employees are considered for a work team. Virtual teams mean reduced travel time and costs, reduced relocation expenses, and utilization of specialized talent regardless of an employee’s location. When managers need to staff a project, all they need to do is make a list of required skills and a general list of Chapter 7 Designing Organizational Structures 273
eBook - PDF- John R. Schermerhorn, Jr., Daniel G. Bachrach(Authors)
- 2017(Publication Date)
- Wiley(Publisher)
These virtual relationships are called into action on demand. When the work is done, they are disbanded or left idle until the next time they are needed. A virtual organization uses information technologies to operate as a shifting network of alliances. Other home furnishing firms to share mail-order catalog Offshore manufacturing and packaging firm Port-of-entry warehouse and distribution company Furniture design studio National accounting and financial management firm Retail lawn and deck furniture Business Core Strategic alliance Outsourcing contracts FIGURE 8.6 How Do Network Structures Take Advantage of Strategic Alliances and Outsourcing? Organizations using network structures replace some full-time positions and functions with services provided by alliance partners and outsourcing contractors. In these structures, “core” employees perform essential operations at the center of a “network” that links them with a shifting mix of outside partners and contractors. The example in this figure shows that a small group of people can run an online and mail-order business in this manner. Network activities are made easy and cost efficient by using the latest information technologies. Potential Advantages of Network Structures • Lower costs due to fewer full-time employees. • Better access to expertise through specialized alliance partners and contractors. • Easy to grow or shrink with market conditions. Takeaway 8.2 What Are the Most Common Organization Structures? 147 If you really think about it, each of us is probably already a part of virtual organizations.
eBook - PDF- John R. Schermerhorn, Jr., Daniel G. Bachrach, Barry Wright(Authors)
- 2020(Publication Date)
- Wiley(Publisher)
Organic design An organization structure that is decentralized, with fewer rules and pro- cedures, open divisions of labour, wide spans of control, and more personal coordination. Organization chart A description of the arrangement of work positions within an organization. Organization structure A system of tasks, reporting relationships, and communication linkages. Organizational design The process of cre- ating structures that accomplish mission and objectives. Organizing The process of arranging, con- necting, and integrating people and resources to accomplish a common purpose. Process structure An organization structure that groups jobs and activities that are part of the same processes. Product structure An organization structure that groups together people and jobs focused on a single product or service. Project teams Teams that are convened for a particular task or project and that disband once it is completed. Self-enhancement bias The tendency to view oneself as more capable, intelligent, and ethical than others. Social network analysis or sociometrics A tool that identifies the informal structures and their embedded social relationships that are active in an organization. Span of control The number of subordinates directly reporting to a manager. Staff positions Positions that provide technical expertise for other parts of the organization. Strategic alliance A cooperation agreement with another organization to jointly pursue activities of mutual interest. Tall structure An organization structure that has narrow spans of control and many hierar- chical levels. Team structure A structure that uses perma- nent and temporary cross-functional teams to improve lateral relations. Virtual organization An organization that uses mobile IT to engage a shifting network of strategic alliances. Work process A group of related tasks that collectively creates a valuable work product.
eBook - PDFWiley Pathways Healthcare Management
Tools and Techniques for Managing in a Health Care Environment
- Donald N. Lombardi, John R. Schermerhorn, Jr., Tere Stouffer(Authors)
- 2015(Publication Date)
- Wiley(Publisher)
Vertical structures Traditional top-down organizational models. Virtual teams Teams that work together and solve problems through largely computer-mediated rather than face-to-face interactions. Work process A related group of tasks that together create a re- sult of value for the customer or patient. SUMMARY QUESTIONS 85 ASSESS YOUR UNDERSTANDING Go to www.wiley.com/college/Lombardi to evaluate your knowledge of the basics of workplace organization. Measure your learning by comparing pretest and post-test results. Summary Questions 1. Of the four major functions of management, organizing often happens in close conjunction with (a) leading. (b) planning. (c) controlling. (d) facilitating. 2. Formal structures within an organization include (a) recommended communication channels. (b) division of labor. (c) levels of management. (d) all the above. 3. Organizations that rely on functional structures can offer employees clear career paths within functions but sometimes become over-reliant on upper management to solve cross-functional disputes. True or false? 4. A potential advantage of a matrix structure is (a) improved problem-solving at the team level. (b) improved problem-solving at the technical level. (c) consistent and appropriate task assignments based on expertise. (d) efficient and effective task assignments based on training. 5. Throughout health care today, traditional horizontal work structures are being dismantled and replaced by more flexible vertical structures. True or false? 6. Organizing by teams offers numerous benefits to an organization. Benefits include all of the following except (a) shared responsibility by all team members for meeting performance targets. (b) improved morale as people in different areas better get to know one another. (c) streamlined interpersonal and interdepartmental relationships. (d) fewer barriers between departments.
eBook - PDF- John R. Schermerhorn, Jr., Daniel G. Bachrach(Authors)
- 2014(Publication Date)
- Wiley(Publisher)
• Network structures use contracted services and strategic alliances to support a core organizational center. • Boundaryless structures or boundaryless organizations combine team and network structures with the advantages of technology to accomplish tasks and projects. • Virtual organizations use information technology to mobilize a shifting mix of strategic alliances to accomplish tasks and projects. FOR DISCUSSION What problems could reduce the effectiveness of team-oriented organization structures? TAKEAWAYQUESTION 4 How are organizational designs changing the workplace? • Contingency in organizational design basically involves finding designs that best fit situational features. • Mechanistic designs are bureaucratic and vertical, performing best for routine and predictable tasks. • Organic designs are adaptive and horizontal, performing best in conditions requiring change and flexibility. • Key organizing trends include fewer levels of management, more delegation and empowerment, decentralization with centralization, and fewer staff positions. FOR DISCUSSION Which of the organizing trends is most likely to change in the future, and why? Management Learning Review Get Prepared for Quizzes and Exams 261 Self-Test 11 Multiple-ChoiceQuestions 1. The main purpose of organizing as a management function is to ____________. (a) make sure that results match plans (b) arrange people and resources to accomplish work (c) create enthusiasm for the work to be done (d) match strategies with operational plans 2. ____________ is the system of tasks, reporting relationships, and communication that links together the various parts of an organization. (a) Structure (b) Staff (c) Decentralization (d) Differentiation 3. Rumors and resistance to change are potential disadvantages often associated with ____________. (a) virtual organizations (c) delegation (b) informal structures (d) specialized staff 4.
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