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