Most of our readings thus far have discussed organizational
structure theory and practice utilizing companies established somewhere with
brick and mortar. What about a company that works virtually with virtual
employees? Can virtual companies use the mechanics of organizational structure?
Of course they can.
An interesting article titled “Using “Traditional Virtual”
organizational structure” by Vlatka Hlupic, a professor of Business and
Management at the University of Westminister, gives a good case for how this
type of infrastructure “supports worker autonomy while maintaining a
consistent, effective, and efficient corporate infrastructure”(Hlupic, 2012).
When looking at the development of the “traditional virtual” organizational
structure in the case study for Brand Velocity in the article, many of the
seven issues that were identified as central concepts were also addressed here.
All of the BV employees that work virtually work autonomously. They are
integrated through required communication mechanisms and they are given the
opportunity to make business related purchasing decisions to name a few.
Although BV wouldn’t be considered an emerging
organizational structure because of its traditional structure, it has some
similarities. Primarily, BV’s adaptability of its virtual network structure
allows them to be rapidly responsive to their environment.
There are many things that make Brand Velocity an
organization aligned with the “information age” companies. They have formed key
strategic alliances to help them do their jobs more efficiently at a lower cost
and to allow them to focus on their core competencies. Along with being
centralized, their corporate infrastructure is still very traditional including
accountability and hierarchy.
In conclusion, I believe they are making a good run at being
a successful company in the information age and being virtual. I also believe
with so many employees being virtual, eventually they may have some issues with
motivation since the human factor of their internal integration is almost non-existent.
Link to the article: http://www.managementexchange.com/hack/using-traditionally-virtual-organizational-structure
Hlupic, V., & Co-Authored by Bergstrand, J., Grams, C.,
Blobelt, S., Zandona, G., Grove, M. Using “traditionally Virtual”
organizational structure, Management Innovation
eXchange, April 2012.
Nohria, N. (1995). "Note on
Organizational Structure." Harvard Business School.
Applegate, L
(1995). "Managing in an Information Age." Harvard Business School.
.
Audrey, you bring up a different type of hybrid organizational structure, one that mixes virtual and traditional aspects. What are some potential challenges of this system? Would it work for all types of virtual organizations or is this structure specific to one industry/org type? How does this structure differ from typical virtual organizations as explained by Daft (2007)?
ReplyDeleteI am unsure what you mean by this statement, "many of the seven issues that were identified as central concepts were also addressed here." Can you explain that more fully?
Dr. Pade, I would suspect that this type of structure would cause some type of disconnect between hub employees and virtual employees especially as they grow. Also, I would have to question who is mining the store (virtual field).
DeleteI don't believe this type of structure would work for every virtual company and may be industry specific and more geared towards those firms that truly understand and breathe virtual. The BV company differs in the since that it doesn't outsource key functions of the company which could possibly lower administrative cost. Also, BV has full control and decision-making power within, whereas most virtual organizations divides that up between partners.
The Note on Organization Structure talked about issues that must be addressed when thinking about structure of any organization that included: the division of labor, coordination mechanisms, the distribution of decision rights,organizational boundaries, the informal structure and the political structure (Nohria, 1995). When looking at the division of labor in BV, all of the virtual employees work the same position but autonomously. They are integrated through a required communications process regularly which may be an inefficient use of time but it is a coordination mechanism. Lastly, there is some distribution of decision rights by these virtual professionals running their locations like a business and making purchasing and other decisions. Theses are just a few alignments.
Audrey, It seems like a combination of virtual and bricks and mortar organization is reality. And the need for structures and process to ensure that "empowerment is not anarchy" (Applegate, 1995) is critical. One of the things I took from the reading this week is that regardless of the structure implemented, the processes and employee selection and evaluation around it have to be in place for it to work.
ReplyDelete