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Baack (2017) explains that those who belong to a geometrically dispersed group known as a virtual organization use technology to communicate with one another and coordinate their activities. The author further states that the links between virtual companies are strengthened via communication webs, and they are meant to operate beyond organizational borders and geographical barriers. The internet and the growing reliance of businesses on it are responsible for the growth of virtual organizations. In order to preserve a competitive edge, this is motivated by the requirement for worldwide customer satisfaction as well as the use of global talent. Virtual organizations were created as a result of the interaction of these forces which ultimately resulted in employers prioritizing the global talent and therefore effectively making the process adaptable at the lowest cost possible.
The virtual organizations have pros and cons, some of the disadvantages are that the organizations have effective utilization of resources and therefore making them more favorable (Baack, 2017). Virtual organizations also have low levels of bureaucracy. They have adaptable, responsive and flexible when it comes to adapting to changes in the external environment. Some of the disadvantages, on the other hand, are that they cannot work with a group in one common space (Baack, 2017). Another disadvantage is that the initial establishment of such organizations is capital intensive and therefore making it hard for small organizations to join and operate effectively.
Some of the technological devices that have the greatest impact on virtual organizations are things like computers, internet connectivity, the web platforms as well as the large data bank contained in the Google platforms which have enabled acquiring and sharing of information effective. This has greatly reduced the cost of upgrading or improving the performance of businesses and therefore encouraging a positive growth.
Baack, D. (2017). Organizational behavior (2nd ed.). [Electronic version]. Retrieved from https://ashford.content.edu
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