January 1, 2001 - Virtual Organizations, Part I Virtual organizations reduce and possibly eliminate the geographical boundaries of traditional organizations. As a result, virtual organizations challenge traditional management principles and create novel forms of behavior in both domestic and international organizations.
An example of the obliteration of traditional geographic boundaries is the journey of a computer programmer from Bangladesh to South Dakota. Using a Web Site, the programmer located a job in South Dakota, had an online interview, and relocated to the United States. Once in South Dakota, although the entire company is located in Pierre, most employee interaction is via the computer. On rare occasions all employees have a meeting that requires their physical attendance at a specific place.
Traditional Organizations Versus Virtual Organizations
But how different are virtual organizations from traditional organizations? Are they merely variations on a well-known theme or radically different than other forms of human cooperation? If they are different, what new management theories and skills are required to effectively set-up, maintain, and change a virtual organization?
These questions are urgent because of the implosion of much of the dot com world in the past few months. Was their failure because they were too virtual, not virtual enough, in the wrong business, or simply not well managed? Or, were they well managed but according to traditional management theories using traditional management skills that were poorly suited to the virtual world?
Web Exercise
While it is still early in the life cycle of virtual organizations, in addition to accounts of their fortunes in the popular business press, Web Sites and the Internet--of course--have information on both traditional and virtual organizations.
Using the sites below explore the differences between traditional and virtual organizational communication and motivation. Keep in mind how your behavior as a manager or worker would either stay the same or change as a member of a virtual organization.
Communication in Virtual Organizations
A Web Site that discusses "Building the Virtual Organization With Electronic Communication" is www.businessmedia.net.
Another useful Web Site is www.mindtools.com that presents ways to use communication devices such as e-mail, the use of the telephone and, even how to improve written communication, which ironically, becomes more important with the use of e-mail.
www.comnews.com is a Site that provides solutions for people who make decisions about communication issues in organizations. It has articles on information technology and links to industry associations.
Finally, www.behavior.org is the Web Site of the Cambridge Center for Behavioral Studies. In addition to articles and studies, this Web Site has the Behavioral Virtual Community that helps in sharing information with others.
Motivation in Virtual Organizations
A Web Site that reviews traditional motivation theories--which may be useful in virtual organizations--including Maslow's Hierarchy of Needs and the Two Factor Theory of Motivation is www.accel-team.com.
A Web Site that presents information concerning motivation and other issues in virtual organizations is cyberatlas.internet.com. Another site that contains a useful paper on virtual organizations and motivation in them is www.nubix.ch/vo/index.html.
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