Chapter 13: Learning Outcome #4 — Describe the characteristics of a virtual organization
What is a good example of a virtual organization?
Today's movie-making organization
What does a virtual organization allow all projects to be staffed with?
The talent best suited to its demands rather than just the people employed by the organization
What is the major advantage of the virtual organization?
Its flexibility
What "normal" organizational things may virtual organizations lack in their operations?
- Central office - An organizational chart - A hierarchy
What are the most common forms of virtual organizations?
- Outsourcing - Contracted work
What is a *virtual organization*?
A continually evolving network of independent companies—supliers, customers, and even competitors—linked together to share skills, costs, and access to one another's markets *NOT* literally virtual — does not consist of an organization on a computer
What does the virtual organization's flexibility allow individuals with an innovative idea and little money to do?
Successfully compete against more established organizations
How do virtual organizations save a great deal of money?
By eliminating permanent offices and hierarchical roles
How do managers in virtual structures spend most of their time?
Coordinating and controlling external relations, typically by way of computer-network links
What are the drawbacks of virtual organizations?
They are in a state of perpetual flux and reorganization, which means roles, goals, and responsibilities are unclear, setting the stage for political behaviour
What is today's movie-making organization a good example of a virtual organization?
Because today, most movies are made by a collection of individuals and small companies who come together and make films project by project