For the past few years, organization has changed in order for the jobs and employees become more effective and efficient. Organizations are now changing their organisational structure from being traditional to virtual. Traditional organisational structure means having employees follow the chain of command (top-bottom). And normally having employees work in offices.
With virtual organisational structure, organization can now have virtual team (employees) work anywhere and anytime in the world as long as they have access to ICT (Information and Communication Technology). With the help of technology virtual organizations exist all over the world and companies who adapted this concept are gaining the benefits of it.
Virtual organisation has plenty of advantages for the company and employees, for example:
1. Reduced Cost – company can reduce the cost for working spaces, utility bills and raw materials. If you run your company virtually, you don’t have to worry about renting office space, buying furniture, paying for utilities, etc. Employees can also save money from gas consumption or public transport expenses and time travelling to work. We must not also forget the main reasons why organizations changed from traditional organization is because they know that by having virtual organizations some of the things they do could be done by someone else in a more effective way; that is for the same perceived value, they could do it for less.
2. Employees are happy and satisfied – today employees’ wants and prefer a job with flexible hours and where they can work anytime and anywhere they want. This will also give the company an opportunity to hire talented team members from all over the world. Employees can connect or communicate with each other regardless of time and location.
3. Increased Productivity- some employees find it easier and faster to work somewhere else rather than at the office. Working at the office can be difficult to get productive because of too many distractions (too many people and noise). With virtual organization employees will be more productive working at his/her choice of place in a quiet and more relax atmosphere.
4. Abilities to work at home- With virtual organisation he/she will be able to work at home. This is best suited especially for someone who has family. They don’t have to waste their time travelling to the offices and get stuck in the traffic. Instead, employees can now spend more quality time with their loved ones while doing their jobs.
There are also disadvantages when considering the virtual organization structure:
1. Lack of physical interaction- having a virtual organization means that everybody involves in the company will have no physical interaction with each other, unlike the traditional organization everybody will meet face-to-face and interact each other at the offices. This will be a big adjustment for someone who is used to work with other people.
2. Reputation Risk – if someone finds out that you run a virtual company with employees all over the remote areas, they might not think that the company is “real”. Today, many people “potential clients” are still hesitant with the virtual company; they still prefer the traditional organization where they can see with their own eyes that the company has an office and there are employees running the company. For those potential clients, “legit company” is seeing the physical place.