Chapter 15: HRM In Virtual Organisations
Technology has: 1. Prompted changes in organisational structures (the virtual organisation),
2. Modified work arrangements (the virtual team), 3. Influenced how people are managed
(the virtual workplace).
Virtual organisations – multi-site, multi-organisational and dynamic organisations consisting
of a grouping of units of different organisations (e.g. other businesses, consultants,
contractors) that have joined in an alliance to exploit complementary skills, in pursuing
common strategic objectives.
Virtual workplace – a new organisational form based on the idea of working anytime,
anywhere in real space or in cyberspace.
15.1 The Virtual Organisation Defined
The term ‘Virtual organisation’ describes a new relationship among organisations and
individuals that is enabled by technology and organisations, which deserve closer scrutiny.
• Core business activities are reduced, leaving the partners to focus on some of the
key business functions
• Core (or central organisation) is connected with the partners through technology
• Virtual organisations tend to be characterised as flexible, and their structure as
transitory and fluid
• Many definitions of the concept tend to see groups as important. Some appear to
see virtual teams as a sufficient condition for an organisation to be called a virtual
organisation
15.2 The Virtual Workplace
In practice we find three forms of virtual work arrangements:
1. Telecommuting – where people work away form the office, often at home’
2. Frontline – where people work away from the office, most frequently at a
customer’s site
3. Cyberlink – where teams of people are linked to the same process in a virtual space
Telecommuting – work accrued out in a location, for example a home, that is remote from
the central offices, where the employee has no personal contact with co-workers but is able
to communicate with them by electronic means.
,15.2.1 Telecommuting/ Telework/ Remote work
Examples of employees under these conditions are: journalists, trainers, service managers,
installation engineers and telesales staff. It may also involve the concept of ‘hoteling’, where
employees reserve a hotel space at work, such as a cubicle or conference room, as needed.
There are two forms of telecommuting. The first phase, it exists because employees have
requested that it does. In this case, it is purely an experimental exercise and does not
involve the whole organisation. It is employee-initiated, and it will probably occur once or
twice a week among older employees.
In the second phase, it takes a more formal approach as senior management decides that it
makes good sense and is in both the organisation and employee’s interest.
Implementing telecommuting
Number of aspects must be in place, these issues include:
• That the location where the employees operate from, normally at home, is suitable
for them to do so.
• That the equipment provided is user-friendly and has the capacity to provide
employees with the necessary information to enable them to do their jobs.
• That some logistical support is provided to the employees.
• That the performance at home is monitored regularly and that processes and
procedures are put in place in this regard.
• That any change in job roles, personal circumstances and organisational goals are
monitored and conveyed to the employee on a regular basis.
Advantages for employers
✓ Happier employees
✓ Reduction in expensive office space
✓ Increased applicant pool, since employees do not need to be in the same city as the
organisation for which they work
✓ Greater capacity for the organisation to get the talent it needs
✓ Reduced relocation costs
Advantages for employees
✓ Ability to concentrate
✓ No, or reduced, time in traffic
✓ Less wear and tear on a car, saving money
✓ Less money spent on petrol
✓ Less money spent on lunches
✓ More time to spend with family
, Disadvantages for employers
Need to have the appropriate technology in place to handle telecommuters
Need to change methods of management
Managers have to have ways of actively connecting with employees
Potential liability for workers’ compensation issues due to ergonomically improper
work postures
Necessity of evaluating employees for ability to work at home
Tracking time worked, which is important if the telecommuter is non-exempt
Deciding which jobs are telecommuting-appropriate
Dealing with morale issues of those employees who are not eligible of
telecommuting
Disadvantages for employees
Lack of connectivity or social interaction with fellow employees
Lack of connectivity and loyalty to, or identification with, the organisation
Potential lack direction
The feeling of being ‘out of sight, out if mind’ may lead to employees being let go in
downturns
The potential foe being overworked, either voluntarily or involuntarily, because
employees can always connect to the organisation, they may find themselves
working more
Career stagnation
Skills needed for telecommuting
Nickson and Siddons indicate that the profile of a successful telecommuting employee
includes four different skills:
1. Organisational skills
• Extremely organised
• Good time-management skills
• Confident with IT
• Know their job well and know exactly where they fit in with the organisation
• Can work without interruptions for most of the day when working at home
• Very task-oriented and do not procrastinate when faced with boring or
irritating work
2. Decision-making skills
• Confidence to make small and medium decisions without feeling the need to
consult their manager
• Happy working on their own
• Enjoy taking responsibility for the contents of their working day
• Particularly good at prioritisation
• Appreciate problem-solving
