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Virtual organization is a new form of organization that emerged in 1990. It is also known as network organization or digital organization. Simply stated, a virtual organization is a network of corporations made possible by what is stated, known as Information and Communication Technology (ICT) which is flexible and is created to meet the dynamics of the market. In other words, the virtual organization is a social network in which al the horizontal and vertical boundaries are removed. In this sense, virtual organization is a boundary less organization. It consists of individuals working out of physically dispersed work places, or even individuals working out of mobile devices and not tied to any particular workplace.

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Technology: New technology has transformed the traditional ways of

working. In particular, the worlds of computing and telephony are coming together to open up a whole new range of responsibilities. Computer Telephony Integrations (CTI) will usher in a new revolution to the desktop. The CTI has traditionally been used in all call centre applications.

E-mail Integration: Integrating Short Message Service (SMS) into the existing

e-mail infrastructure allows the whole organisation to take advantages of SMS products such as ‘Express Way’.

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Office System Integration: SMS technology can greatly enhance the existing or new

office systems, e. g., phone messages can be sent via SMS rather than returning it in a message book.

Voice Mail Alert: SMS technology added to the existing voice mail system

builds an effective method of receiving voice mail alerts.

Mobile Data: This enables a laptop to retrieve information anywhere

through the mobile phone network. Mobile data communications revolutionize where and how work is done. In the past, corporate information has been inaccessible from many places where it is needed. One’s ability to link laptop to mobile phone keeps one connected to his/her virtual organisation from anywhere.

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Increased productivity

Less paperwork

Can be quickly reshaped

Money saved

Facilities to work at home

Difficult to control

Technologies can be easily

revealed

Problems with external

partner can occur

Advantages & Disadvantages

It saves time, travel expenses and eliminates lack of access to experts.

Virtual teams can be organized whether or not members are in reasonable proximity to each other.

Use of outside experts without incurring expenses for travel, logging and downtime.

Dynamic team membership allows people to move from one project to another.

Employee can be assigned to multiple, concurrent teams. Teams’ communication and work reports are available online to

facilitate swift responses to the demands of the (global) market. Employees can accommodate both personal and professional lives. Virtual teams allow firms to expand their potential labour markets

enabling them to hire and retain the best people regardless of their physical locations.

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The lack of physical interactions with its associated verbal and non-verbal cues and also the synergies that often accompany face-to-face interaction

Non-availability of para-verbal and non-verbal cues such as voice, eye movement, facial expression, and body language which help in better communication.

Ability to work even if the virtual teams are miles apart and the members have never or rarely met each other face-to-face.

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Recruitment, development and socialization processes are designed to ensure right person for right job. These processes also regulate and control the antecedent condition as of job performance. A virtual organization is staffed by knowledge workers who are brought together under short-term market relationships. These highly proficient employees are left to do their own things in order to provide world class products and service. Jobs in virtual organizations are knowledge-based. Such jobs are assumed to require greater skills, have greater varie4ty and offer better quality of working life (QWL).

Virtual organiazation has both positive and negative implications for human resources.

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1. Recruitment is conducted under time pressure and requires high performance expectations.

2. Both human capital (knowing one’s job) and social capital (knowing each other) become linked.

3. Social relationships do not require much stability.

4. Workplace is variable because there is high need for readiness to be mobilized at any moment.

5. Value of idleness is shown in terms of learning by watching what others do.

6. Master apprentice relationships and craft based learning become significant.

7. Job status and project feedback is short-term. Therefore, virtual organizations require a heavy investment to create systems and staffing structure. 9

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Virtual organization is often associated with such terms as virtual office, virtual teams, and virtual leadership.

The ultimate goal of the virtual organization is to provide innovative, high-quality products or services instantaneously in response to customer demands.

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A conscious, deliberate approach undertaken to attract, develop and retain people with the aptitude and abilities to meet current and future organisational needs.

TALENT=COMPETENCE+COMMITMENT+CONTRIBUTION

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To compete effectively in a complex and dynamicenvironment to achieve sustainable growth

To develop leaders for tomorrow from within anorganization

To maximize employee performance as a unique source ofcompetitive advantage

To empower employees:

Cut down on high turnover rates

Reduce the cost of constantly hiring new people to train

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Recruiting candidates who are talented and competent to support the organisation’s goals.

An active dialogue between managers and employees to determine which employees desire to grow, which are happy to be at their current levels and which are at risk of leaving and their reasons;

An employee development plan that recognizes the new talents and competencies that are needed for each employee’s internal career path to be able to prepare to progress in the organization

A measurement system that will allow the organization to track progress and identify high potential employees in each talent pool when the need for employee movement arises.

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Work-life balance is about adjusting working patterns to allow employees to combine work with their other responsibilities such as caring for children or elderly relatives.

Introducing appropriate employment practices to help employees achieve a better work-life balance brings tangible benefits to your business.

It can enable employees to feel more in control of their working life and lead to increased productivity, lower absenteeism and a happier, less stressed workforce.

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1. Build downtime into your schedule.

2. Drop activities that sap your time or energy.

3. Rethink your responsibilities.

4. Get moving.

5. Remember that a little relaxation goes a long way.

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Six Sigma is a statistical management technique that seeks to drive defects to less than 3.4 defects per million.

Defects are defined as any non-conformance to customer specifications.

Once the causes of defects are identified, processes are modified to avoid the causes.

It implies a customer driven approach where the customers may be internal or external.

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Six sigma implementation is through a process called

DMAIC (Define, Measure, Analyze, Improve, Control)

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Define

• Define Customers Requirements

• Develop Problem Statement, Goals and Benefits

• Identify the Process

• Define Resources

• Evaluate Key Organizational Support

• Develop Project Plan and Milestones

• Develop High Level Process Map

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Measure

• Define Defect and Opportunity

• Develop Data Collection Plan

• Validate the Measurement System

• Prepare data collection plan :

- How many data points do you need to collect ?

- How many days do you need to collect data for ?

- What is the sampling strategy ?

- Who will collect data and how will data get

stored ?

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A n a l y z e

• Define Performance Objectives

• How well or poorly processes are working

compared with Competitor’s

• Identify Sources of Variation

• Don’t focus on symptoms, find the root cause

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I m p r o v e

• Perform Design of Experiments

• Develop Potential Solutions

• Develop implementation plan.

- Prepare final presentation.

- Present final recommendation to Management Team.

• Correct/Re-Evaluate Potential Solution

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Control

• Define and Validate Monitoring and Control System

• Develop Standards and Procedures

• Implement Statistical Process Control

• Verify Benefits, Cost Savings/Avoidance, Profit

Growth

• How will you maintain to gains made

-Change policy & procedures

- Change drawings

- Change planning

- Revise budget

- Training

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Prof. Laxmikant N. SoniDayanand College of Commerce, Latur (Maharashtra)

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