Virtual structure

Virtual structure is a type of modern form of grouping posts, cells, or organizational units of different organizations, and even entire companies, whose main task is to implement stated objectives. It has no legal personality, property or personnel employed by a single entity.

Virtual organization structure consists of two basic elements:

• network
• virtual enterprise

In a virtual organization relationships are very important, and the possibility of rapid communication between the partners, which is achieved by using communication technology and network computing. These networks are the basis of a virtual organizations. The dynamics of the environment constantly requires organizations to deal with new obstacles. They must keep up with the continuing changes and assimilate the innovative information technology. In this organization, it does not matter who and at what level in the hierarchy is, all interested parties are equal. Work breakdown and control of processes is done by a company that coordinate deal with particular customer. When it comes to the duration of a virtual organization, this can not be strictly defined. Organization will exist as much time as it will need to fulfill the order or project.

Application

Virtual structure is often used by large corporations. Companies do not employ workers, but contract workers of outside service provider, for pursuing specified objectives. Contractors makes products in their own factories, because virtual organizations do not have own production centres. The production process is not controlled in any way by the virtual organizations. Virtual organization give only own brand to finished products. The aim is to substantially reduce the cost of production, which is possible because of cheap labour in poorer regions of the world.

See also:

• Organization types
• Principles and features of organizational structure

Examples of Virtual structure

• Online Collaboration Platforms: Online collaboration platforms like Slack, Asana, or Trello allow virtual teams to communicate, assign tasks, and track progress. These platforms allow members to collaborate in real-time, regardless of their physical location.
• Project Management Software: Project management software like Basecamp, JIRA, and Redmine enable virtual teams to easily collaborate and manage their projects. These applications provide tools for tracking tasks, setting deadlines, and managing resources.
• Video Conferencing Software: Video conferencing software like Zoom, Skype, and Google Hangouts enable virtual teams to communicate with each other even when they are in different locations.
• Virtual Workspaces: Virtual workspaces like Google Docs, Microsoft Teams, and Dropbox allow virtual teams to store and share documents, spreadsheets, presentations, and other files. These tools enable teams to collaborate on projects and access information quickly.

Advantages of Virtual structure

A virtual structure has several advantages over traditional structures. These include:

• Increased efficiency - A virtual structure allows for increased efficiency in operational processes, as decisions can be made quickly without the need for physical meetings and discussions. This can also reduce overhead costs, as fewer resources are needed to complete tasks.
• Reduced bureaucracy - Virtual structures can reduce bureaucracy, as processes are streamlined and streamlined in a way that eliminates the need for excessive paperwork or other activities that can slow down the process.
• Increased collaboration - Virtual structures can facilitate collaboration between different organizations, as communication and collaboration are easier to manage and coordinate.
• Flexibility - Virtual structures are highly flexible, allowing organizations to design and manage their operations in any way that best suits their needs. This can help organizations stay agile and responsive to changes in the market.
• Greater scalability - Virtual structures are also incredibly scalable, allowing organizations to easily expand their operations as needed. This allows organizations to expand with minimal disruption to their existing operations.

Limitations of Virtual structure

Virtual structures have several limitations, including:

• Limited communication: Virtual structures lack physical presence, making it difficult to have face-to-face conversations and build relationships.
• Limited resources: Virtual structures lack access to physical resources, such as office space, equipment, and personnel.
• Limited accountability: Virtual structures lack the ability to impose discipline and hold personnel accountable for their actions.
• Limited coordination: Virtual structures lack the ability to coordinate activities and ensure that tasks are completed efficiently.
• Limited legal protection: Virtual structures lack legal protection and are vulnerable to lawsuits and other legal challenges.

Other approaches related to Virtual structure

The other approaches related to Virtual structure include:

• Network Structures - Network structures are organizations that are based on formal and informal relationships between two or more independent organizations. These structures are characterized by the use of information technology, such as shared databases, distributed computing, and electronic communications, to facilitate communication and collaboration.
• Project-based Structures - Project-based structures are organizations that are created for a specific purpose, such as developing a new product or service. They are usually short-term and involve a combination of different companies in different locations, which share resources and expertise.
• Virtual Teams - Virtual teams are teams of people who work together online, using technology such as video conferencing and email. These teams are often geographically dispersed and lack regular in-person contact.

In summary, virtual structure is a type of modern form of grouping posts, cells, or organizational units of different organizations, and even entire companies, whose main task is to implement stated objectives. Other approaches related to Virtual structure include Network Structures, Project-based Structures, and Virtual Teams.

Virtual structure — recommended articles

Boundaryless enterprise — Virtual organization — Corporate network — Service delivery architecture — Functional structure — Departmentalization — Teamware — Knowledge tree — Network structure

References

• Ahuja, M. K., & Carley, K. M. (1998). Network structure in virtual organizations. Journal of Computer-Mediated Communication, 3(4), 0-0.