Virtual Organizations Introduction

Scope Virtual Organizations charactristics Virtual Organization and Virtual Team Virtual Organizations infrastructure

VO Characteristics Members separated geographically Work conducted via a networked computer Appear to outsiders as a “physical entity” – "an organization distributed geographically and whose work is coordinated through electronic communications."

Virtual Corporation Produce virtual products products that adapt in real time to changing customer needs Emphasis on quality and service Move away from inflexible mass manufacturing models Return to craftsmanship and customization - (mass customization)

VO Work Patterns Virtual Teams Virtual Organizations Virtual Labs etc.

VO Work Strategies 24/7 Workshop – unmanned Outsourcing Global Partnerships Design here Produce there Teleworking Remote Helpdesk

Trends Driving Move Toward Virtual Organizations Globalization of markets, products, resources and labor Information/Knowledge Work > 70% of work is information intensive Technology Performance; Connectivity, Portability

Work in Organizations: Taylorism Principles of Scientific Management Frederick Taylor (1911) Time Studies Standardization of tools Precise job descriptions Task Allocation

Break down a task into component parts “The man in the planning room, whose specialty is planning ahead, invariably finds that the work can be done more economically by subdivision of the labor; each act of each mechanic, for example should be preceded by various preparatory acts done by other men”

Task Problem The notion of “task” becomes too inflexible

Taylorism at Work: Fordism Henry Ford was a pioneer in mass production Implemented the “Assembly Line” Increased productivity ten-fold Product price reduction led to increased markets which led to increased profits

Fordism and Deskilling of the Work Force Craft-based production was displaced by the assembly line Division of labor was the king of the assembly line Used less skilled labor to perform task minutely defined by management

Some Problems Rigid production systems Labor-management problems Marketing products because of their production cost rather than because of consumer needs Made organizational change difficult

Virtual Products as Services Shift in focus of “production” from manipulation of materials to information management/creation Services Intangible Consumed as produced No inventory Customer helps to produce

Service and Flexibility A service orientation allows an organization to be more flexible

Role of Virtual Teams At the center of a Virtual Organization Need to have specialized knowledge Multidisciplinary One person can be part of multiple teams Flexibility and Responsiveness are foci

Time in VO Shorter design cycles Faster time to market Feedback from customer Sleeker supply chains Recovery Strategy for Screw-Ups

Information in VO Knowledge of customer needs leads to customization Highly developed specialist tools enable support for skilled knowledge workers Improved communication leads to integration of design, production, marketing, sales, service, etc. New management control methods cut across traditional organizational units

VO Enhancements Use technology to enable remote work and cooperation Telework Manage “invisible” employees Telemanagement New services emerge with the new VO Teleservices

VO Design Principles Modularity Open-closed principle: impression of coherent system but really dynamically reconfigurable Organization is constructed after customer request Heterogeneity in competencies Complementary Principle: multiple skill sets blended Time and Space Distribution Transparency Principle: organization appears to be where customer is

VO Limitations Substituting F2F interactions always possible? Are there any spontaneous informal interactions? Is there any trust developed? Technology cannot do it alone

VO and Message Systems Remote virtual teams may have coordination problems Message system allows for the management of electronic communications between and within teams Message control is a management technique

Dimensions of Organizational Design Time Place

Division of Time/Place Same Place Different Place Same Stationary Time Mobile Different Stationary Time Mobile

Division of Time/Place Same Place Different Place Same Face-to-Face Interaction Synchronous Distributed Interaction Time Different Asynchronous Interaction Asynchronous Distributed Interaction Time

Shared Information Spaces Hard to get folks together even when they work in the same “place” Virtual teams need coordination Web can be forum for different “presentations” by virtual team members

Same Time/Same Place Meetings Unfocused Time Suck Central part of most organizations Sometimes virtual teams get together

Same Time/Different Place Geography sometimes makes “getting together” difficult Video Conferencing Desktop Conferencing

Different Place/Different Time Web Shared Information Space

Different Time/Same Place Web Shared Information Space