OL 4940 Virtual Workplace S. Ross

Is a virtual workplace: Productive? As effective as working in the office? More cost effective than working in a office?

Organizational Reasons for Virtual Workplaces Reduced real estate expenses Increase productivity (studies have shown a gain of 15% to 40%) Higher profits Improved customer service (can increase face to face time with customers) Access to global markets Environmental benefits A study once showed that if 20,000 federal workers could telecommute just one day per week, they would save over two million gallons of gasoline, and pounds of carbon dioxide emissions each week.

Potential Disadvantages of Virtual Workplaces Set up and maintenance costs Loss of cost efficiencies (when equipment and services are set up on one location, they can’t be accessed by multiple individuals) Cultural issues (virtual organizations in global settings have to transfer their business policies and cultures to work across collaborating organizations, geography and cultures) Feelings of isolation (a level of social interaction with supervisors and co-workers is essential in almost all jobs) Lack of trust (success in any virtual work environment is that co- workers fulfill their obligations and behave predictably)

When are virtual working arrangements appropriate? First, virtual working arrangements ARE NOT appropriate for all jobs Organizations must first understand the parameters of each job it considers for a virtual work environment Just as employees may not be suited to work away, managers may not either The dynamics of the organization, manager and employee relationship must gel

Characteristics for a Virtual Work Environment Employee / Manager An open, positive attitude that focuses on solutions to issues rather than on reasons to discontinue virtual arrangements A results-oriented management style. Those who need structure and control are unlikely to be effective managers in virtual work environments Effective communications skills, both formal and information, with employees working remotely and at the primary business location An ability to delegate effectively, and to follow up and ensure that work is accomplished

Advantages of Virtual Teams Members are dispersed geographically or organizationally It save time, travel, expenses and provides access to experts Teams can be organized by member proximity to one another Firms can use outside consultants without incurring expenses for travel, lodging and downtime Virtual teams allow firms to expand their potential markets – enabling them to hire and retain the best people regardless of their physical location (including workers with disabilities) Employees can more easily accommodate both personal and professional lives Dynamic team membership allows people to move from one project to another Employees can be assigned to multiple concurrent teams

Virtual Teams Disadvantages Primary interaction is through some form/combination of technology or electronic system(s) Lack of physical interaction Challenges for Managers Need for communication Performance management – define, facilitate and encourage

5 Simple Rules to a Virtual Workplace Program 1.Determine the specific needs of your organization (SWOT) 1.Questions to ask – efficiency, growth, improved talent, revenue, expansion or cost reduction 2.Study and “benchmark” best practices 3.Evaluate and understand “core” technologies to allow employees to be productive 4.Set policies and guidelines for managing your virtual workforce