Virtual Organizational Structure and Collaborative Work

9) A virtual organizational structure employs individuals, groups, or complete business units in geographically dispersed areas. These people may be in different countries, operating in different time zones. They may never meet face to face in the same room, which explains the use of the word virtual. Despite this separation, they can collaborate on any aspect of a project, such as supplying raw materials, producing goods and services, and delivering goods and services to the marketplace. In some cases, a virtual organization is temporary, lasting only a few weeks or months. In others, it can last for years or decades.

10) A virtual organizational structure can be used within a firm. A company that makes lottery equipment, for example, can use a virtual organizational structure with dispersed workers who have distinct skills and abilities to save millions of dollars. Often, however, virtual structures are formed with individuals or groups outside a company. One company, for example, formed an organization called the Virtual Corporate Management System to assemble several small manufacturing businesses to compete with larger businesses. One small business that manufactured military communications equipment saw a dramatic increase in revenues when it joined the Virtual Corporate Management System.

11) In addition to reducing costs or increasing revenues, a virtual organizational structure can provide an extra level of security. Many companies are now dispersing employees and using a virtual structure in case of a terrorist attack or a disaster. If a disaster strikes at the primary location, the company still has sufficient employees at other locations to keep the company running. Procter & Gamble, a pioneer in virtual work structure, now defines the workplace as “anywhere someone is trying to be productive, whether it’s a P&G location or not.”7 Today’s workers are getting company work done at home, at a customer’s location, in coffee shops, on pleasure boats, and at convenient work centers in suburbia. It also allows people to work at any time. Using the Internet and e-mail, workers can put the finishing touches on a new business proposal in Europe or Asia, while coworkers in North America are sleeping.

12) There are a number of keys to successful virtual organization structures. One strategy is to have in-house employees concentrate on the firm’s core businesses and use virtual employees, groups, or businesses to do everything else. Using information systems to coordinate the activities of a virtual structure is essential. Even with sophisticated IS tools, face-to-face meetings are usually needed, especially at the beginning of new projects. One virtual team had a problem when a Russian member of the team thought her coworkers said her work was “awful.”8 Her team members actually said her work was “awesome,” but the word was not translated correctly. The incident resulted in negative behavior, in which coworkers in¬sulted each other by sending nasty e-mails, called flaming.

13) A virtual organizational structure allows collaborative work, where managers and employees can effectively work in groups around the world. A management team, for example, can include executives from Australia and England. A programming team can consist of people in the United States and India. Collaborative work can also include all aspects of the supply chain and customer relationship management. An automotive design team, for example, can include critical parts suppliers, engineers from the company, and important customers.

1. Answer the questions:

· What types of organizational structure do you know?

· What does a hierarchial organizational structure mean?

· What is the main trend in the traditional organizational structure today?

· What is the difference between team and project organizational structure?

· What is the main disadvantage of a multidimensional organizational structure?

 

2. Decide whether the following sentences are true or false. Correct the wrong ones:

· The major departments are usually divided according to number of people and can include marketing, production, information systems, finance and accounting, research and development, and so on.

· Information systems can be a key element in empowering employees.

· A virtual organizational structure, also called a matrix organizational structure, may incorporate several structures at the same time.

· In the past workers got company work done at home, at a customer’s location, in coffee shops, on pleasure boats, and at convenient work centers in suburbia.

· A virtual organizational structure allows collaborative work, where managers and employees can effectively work in groups around the world.

3. Fill the gaps with an appropriate word:

shipping flat project subunits dispersing incorporate units top-level permanent nonmanagement

1) Traditional organizational structure is an organizational structure in which major department heads report to a president or ____________ manager.

2) Employees in each group may have two bosses—a __________ boss and a functional boss.

3) Organizational _____________ and the way they relate to the overall organization is called organizational structure.

4) A simplified model of the organization shows the managerial pyramid from top-level managers to ______________ employees.

5) ___________ organizational structure is an organizational structure with a reduced number of management layers.

6) Multidimensional organizational structure may ______________several structures at the same time.

7) Virtual organizational structure employs individuals, groups, or complete business _________ in geographically dispersed areas.

8) Depending on the tasks being performed, the team can be either temporary or ______________.

9) The positions or departments that are directly associated with making, packing, or __________ goods are called line positions.

10) Many companies are now __________ employees and using a virtual structure.

4. Match the word with its definition:

 

1. goods	A. simulated in a computer
2. to produce	B. a manager in a position of trust in business
3. empowerment	C. to manufacture raw materials into finished goods
4. supervisor	D. something useful and intended to be sold that comes from nature or is made in a factory
5. virtual	E. giving employees and their managers more responsibility and authority to make decisions, take certain actions, and have more control over their jobs
6. subunit	F. to bring to an inferior rank
7. chain	G. any subdivision of a larger unit
8. to reduce	H. to work together with others to achieve a common goal.
9. salesclerk	I. a series of interconnected things
10. to collborate	J. a person employed by a store to sell merchandise, assist customers in finding merchandise, and accepting payment

 

5. Find the word in the text that means:

· an arrangement of items (objects, names, values, categories, etc.) in which the items are represented as being "above," "below," or "at the same level as" one another (p. 2)

· rectangular array of numbers, symbols, or expressions, arranged in rows and columns (p. 7) characteristic of members of the armed forces (p. 10)

· the condition of not being threatened, especially physically, psychologically, emotionally, or financially (p.11)

· of, relating to, or done by collaboration (p.13)

 

6. Points for discussion:

· Is it important to divide an organization into subunits? Say why.

· Why do you thunk there are so many forms of organizational structure? What do they aim at?

· What are advantages and disadvantages of a traditional organizational structure?

· What form of organizational structure would you prefer? Explain why.

· Shoul your boss be your “friend” or a “strict supervisor”? Give your opinion.