The Advantages and Disadvantages of the Virtual Organization Structure

1. Introduction

The globalization of business has been made possible by advances in information communication technology (ICT). This has led to the rise of the virtual organization, which is defined as “an organization that uses ICT to coordinate geographically dispersed individuals and/or resources to carry out its business functions” (Dahya, 2002). The virtual organization has several advantages over the traditional brick-and-mortar organization, including increased flexibility, reduced costs, and improved communication and collaboration. However, there are also some disadvantages, such as the need for a high degree of trust among members and the potential for disruptions due to technical problems.

2. What is a virtual organization?

2.1 Defining characteristics of a virtual organization

There are four defining characteristics of a virtual organization:
First, a virtual organization is an organizational structure that relies heavily on ICT to Coordinate the work of geographically dispersed individuals.
Second, a virtual organization is often characterized by a decentralized decision-making structure.
Third, members of a virtual organization typically have a high degree of autonomy and independence.
Finally, a virtual organization often has a flat organizational hierarchy (Dahya, 2002).

2. 2 The advantages and disadvantages of the virtual organization structure

There are several advantages to the virtual organization structure:
First, the use of ICT enables members of a virtual organization to work together more effectively than they could in a traditional brick-and-mortar organization.
Second, the decentralized decision-making structure of a virtual organization allows for more flexibility and faster decision making.
Third, the high degree of autonomy and independence afforded to members of a virtual organization encourages creativity and innovation.
Finally, the flat organizational hierarchy of a virtual organization results in increased communication and collaboration among members (Dahya, 2002).
However, there are also some disadvantages to the virtual organization structure:
First, the reliance on ICT can make a virtual organization more vulnerable to technical problems.
Second, the decentralized decision-making structure can make it difficult to reach consensus on important issues.
Third, the high degree of autonomy and independence can make it difficult to coordinate members’ activities. Finally, the flat organizational hierarchy can lead to conflict among members (Dahya, 2002).
Overall, however, the advantages of the virtual organization structure outweigh the disadvantages. The use of ICT provides many benefits that conventional organizations cannot match. In addition, the decentralized decision-making structure ensures that decisions are made quickly and efficiently. The high degree of autonomy and independence allows members to be creative and innovative. And finally, the flat organizational hierarchy results in increased communication and collaboration among members.
3. How does information communication technology (ICT) enable the formation of virtual organizations?

ICT plays a vital role in the formation of virtual organizations. ICT enables geographically dispersed individuals to work together by providing a means of communication and collaboration. ICT also makes it possible for members of a virtual organization to work independently and autonomously. In addition, ICT provides a platform for the decentralized decision-making structure of a virtual organization. Finally, ICT can facilitate the flat organizational hierarchy of a virtual organization by enabling members to communicate and collaborate more easily (Dahya, 2002).

4. Key technologies for the virtual organization

There are two key technologies for the virtual organization: online stores and proprietary technology. Online stores provide a platform for members of a virtual organization to sell products and services. Proprietary technology allows members of a virtual organization to access and use the resources of the organization from any location.

4. 1 Online stores

Online stores are a key technology for the virtual organization. Online stores provide a platform for members of a virtual organization to sell products and services. Members of a virtual organization can use online stores to sell products and services to customers around the world. Online stores allow members of a virtual organization to reach a global market quickly and efficiently.

4. 2 Proprietary technology

Proprietary technology is another key technology for the virtual organization. Proprietary technology allows members of a virtual organization to access and use the resources of the organization from any location. With proprietary technology, members of a virtual organization can work independently and autonomously. Proprietary technology also allows members of a virtual organization to share files and data quickly and easily.

5. How do conventional business organizations use ICT to become more virtual?

Conventional business organizations are using ICT to become more virtual. Conventional business organizations are using ICT to coordinate the work of geographically dispersed individuals. Conventional business organizations are also using ICT to decentralize decision making. In addition, conventional business organizations are using ICT to provide a platform for the flat organizational hierarchy of a virtual organization. Finally, conventional business organizations are using ICT to facilitate the sharing of files and data among members of a virtual organization.

6. The e-business style

The e-business style is a type of business organization that relies heavily on ICT. The e-business style has three defining characteristics: the virtual environment, the service-oriented architecture, and the massively parallel processor.

6. 1 The virtual environment

The virtual environment is a key characteristic of the e-business style. The virtual environment is a platform that enables members of an organization to work independently and autonomously. The virtual environment also allows members of an organization to share files and data quickly and easily.

6. 2 The service-oriented architecture

The service-oriented architecture is another key characteristic of the e-business style. The service-oriented architecture is a type of computing that enables an organization to offer services to customers through a network of computers. The service-oriented architecture allows an organization to offer services to customers around the world.

6. 3 The massively parallel processor

The massively parallel processor is a key characteristic of the e-business style. The massively parallel processor is a type of computing that enables an organization to process large amounts of data quickly and efficiently. The massively parallel processor can be used to process data from multiple sources simultaneously.

7. Conclusion ICT has brought about a lot of advancement in different sectors including the business sector where it has facilitated the formation of virtual organizations. Virtual organizations have many advantages over traditional brick-and-mortar organizations, including increased flexibility, reduced costs, and improved communication and collaboration. ICT has also enabled conventional business organizations to become more virtual by providing a platform for the decentralized decision-making structure of a virtual organization. In addition, ICT has facilitated the sharing of files and data among members of a virtual organization.

FAQ

A virtual organisation is an organisation that exists and operates primarily in a digital space.

The benefits of managing a virtual organisation include increased flexibility, reduced overhead costs, and the ability to reach a global audience.

Organisations can manage their resources effectively in a virtual environment by using cloud-based solutions, online project management tools, and video conferencing platforms.

The challenges that a virtual organisation faces when it comes to communication and collaboration include maintaining team cohesion, managing expectations, and ensuring that everyone has access to the same information.

Managers can ensure that employees remain productive when working remotely by setting clear goals, providing adequate support, and staying in regular communication with them.

The security risks that virtual organisations need to be aware of include data breaches, cyber attacks, and social engineering scams.

Other issues that need to be considered when managing a virtual organisation include time zone differences, cultural barriers, and language barriers.