Virtual Organisations
BDO 319 2026
09/03/2026
LEARNING OUTCOMES
Learning outcomes/specific outcomes of the study theme
▪ Discuss the concept of virtual organisations. (Include characteristics).
▪ Critically evaluate the concept of the virtual workplace by emphasising three common virtual
workplace arrangements.
▪ Explain what virtual teams are, why they are important and the characteristics and success factors
of virtual teams.
▪ Discuss three types of virtual teams.
▪ Explain the following HR practices in virtual organisations:
▪ Why does HR matter?
▪ What does HR do?
▪ Staffing and recruitment?
▪ Performance appraisal?
▪ Compare the organisational attributes of virtual organisations and traditional organisations
Unit Outline Today
Virtual
Virtual Teams
Organisations
HR Practices in
Virtual
Organisations
Virtual
Organisations
Virtual Organisations
• Virtual organisations: multi-site, multi-organisational and dynamic institutions
consisting of a grouping of units of different organisations that have joined in
an alliance to exploit complementary skills, in pursuing common strategic
objectives.
• A temporary network of independent companies, suppliers/coatomers linked by
technology to share skills, cost and access to one another market.
LO 1 VIRTUAL ORGANISATIONS-CHARACTERISTICS AND TYPES
Clevertech
Creators of apps for organizations large and small,
Clevertech has “a global team solving global challenges.”
Many of those team members work remotely, and in hiring
for those positions, the company looks for people who fit
this bill: “You understand the advantages of working
remotely, have a good Internet connection, and some quiet
space to video chat or share your screen.” Mozilla
The maker of Firefox, Mozilla is a nonprofit organization
with a distributed team and a lot of remote workers
around the world. As the company says, “We have 13
Identify Characteristics from the global offices and people working in more than 30
cases that indicate that these countries. If you work best from home, that’s not a
Organisations are Virtual problem. We can support you anywhere.” Most of the
open jobs on the company’s career page right now are
Organisation remote positions.
Characteristics of Virtual Organisations
• Virtual organisations are characterised as those organisations in which the ongoing
relationships with partners are salient.
• 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
Forms of virtual work arrangements
▪ Telecommuting
▪ Frontline
▪ Cyberlink
TELECOMMUTING
Work carried 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.
Aspects to consider:
The location the employee is working from is suitable
The equipment provided is user-friendly
Employees are provided with logistical support
Performance is monitored
Changes in job roles, personal circumstances & organisational goals are
monitored
TELECOMMUTING: Advantages and Disadvantages
Employees Employers
Advantages for employees Advantages for employer
• Ability to concentrate • Happier employees
• No/reduced time in traffic • Reduction in office space
• More family time (full list on page 618) • Reduced relocation costs (full list on page
617
Disadvantages for employees Disadvantages for employers
• Lack of connectivity of social interaction • Need to have appropriate technology in
with fellow employees place
• Potential lack of direction (full list on page • Managers need to have ways of effectively
connecting with employees (full list on page
618)
TELECOMMUTING
• Skills needed for telecommuting
• Organisational skills
• Decision-making skills
• Motivation
• Communication skills
FRONTLINE MODEL
• Moving employees (e.g. sales and service) out of the office and
into the field to work from remote locations. Mobile offices and
customer locations is characteristic of the front line model.
• At these remote locations employees can share offices which can
result in huge cost savings for the organisation. It can also
contribute to better service delivery to customers, as employees
are physically closer.
CYBERLINK MODEL
• Found whenever teams involving customers, suppliers and/or
producers form to manage work collaboratively. These groups work
together face to face and in cyberspace to realise a product or
service goal. The groups can also be called virtual teams.
• Goal of the cyberlink model is to capture the hearts and minds of the
customer and encourage repeat business.
• The core of the cyberlink model thus consists of virtual teams.
Virtual
Workteams
LO 3: VIRTUAL WORKTEAMS- WHAT ARE THEY AND CHARACTERISTICS
Definition: Virtual team - team of people who are dispersed geographically and primarily interact
electronically and who may meet face-to-face occasionally. For these relationships to grow and
flourish, a key element needs to be present - trust
1. Have some charter for working together, e.g. Shared purpose or shared
mission/vision –good relationships…. Strong communication skills, motivated
2. Must be interdependent, 3. Committed to working
thus the product must be truly
team created…. Key business
together …connected by
functions, share leadership technology
4. Accountable as unit to someone or something in the
parent organisation, flexible, groups as important…….
SUCCESS FACTORS OF VIRTUAL WORK TEAMS
• Training of team members.
• Planning and managing of virtual tasks and projects.
• The use of technology for expansion of teamwork.
• Trust within the team.
• Soft skills of the team.
• Leadership of the team.
• A climate of cooperation, collaboration, trust and accountability.
• Recognition of conflict and its positive resolution
• Ability to interact with team
• Need for intercultural skills
[Link]
TYPES OF VIRTUAL WORK TEAMS
Project Teams Group of members together for duration of a specific project...
Measurable outputs , qualified staff....formal meetings....
Process Teams Service Teams
Example: Team of managing Teams may be found across number of
directors from each market within locations or countries- main purpose to
Europe to continually develop solve problems & provide advice, focus
company’s organisational on problems & people outside team ...
effectiveness – evolving action plan Staff abnormal hours, use technology to
to address the problems that arise at solve problems – technical team of
any point in time... Internet team such as MWEB / Telkom /
Vodacom / MTN / Cell C, etc...
HR PRACTICES IN
VIRTUAL
ORGANISATIONS
LO 5- HR PRACTICES IN VIRTUAL ORGANISATIONS
WHY DOES HR MATTER AND WHAT DOES HR DO
Coach – helps business leaders & teams to allocate attention and energy – goal setting
approach & feedback
Architect – attend meetings aligned with strategy. Offer ideas & alternatives how to perform
– competency approach
Designer / Deliverer – align, integrate & innovate HR practices – decide: hire, promote,
career development, training, etc. NB communication strategy
Facilitator-ensure ideas, competencies, authority and rewards move across alliance borders.
Ensure action in teams & organisations – sensitive to relationships –monitor quality of teams
– clear purpose. Best decisions, group effectiveness…
Leader – draw up HR business plan: realities, HR vision, deliverables, HR governance &
measures.
HR PRACTICES IN VIRTUAL ORGANISATIONS -
STAFFING
• Follow process to match best people in job: ID best candidates for
virtual environment
• Employees must have complementary skills & characteristics to work
in virtual teams – crucial
• Understand new work environment to select and place candidate
• Characteristics: Cognitive, competent in job, communication,
interpersonal skills, extroversion, open, self-discipline, tolerance…
HR PRACTICES IN VIRTUAL ORGANISATIONS -RECRUITMENT
Strategy where to recruit and whom
• Step 1: Inform a complete & accurate picture to candidate of the nature of work,
values, norms, etc.
• Step 2: Inform nature of training they will receive & personal development plan
• Step 3: May use traditional recruitment methods – media, networks, internet &
agencies
• Step 4: This process driven by skills. what does the candidate have to offer–someone
who can easily adapt to the virtual workplace.
HR PRACTICES IN VIRTUAL ORGANISATIONS –PERFORMANCE
MANAGEMENT
• Evaluate how well employees perform compared to set of standards & provide feedback to them
• These employees selected carefully and managed differently – challenge to PA process mainly output-
driven
• Virtual environment may be unstable, flexibility is the norm. Speed of responses, deadlines to meet
and product completion may have huge influence on PA process
• Face-to-face contact between supervisor and employee to large extent non-existent
• HRIS vital – challenge for supervisors who struggle with electronic technology…Supervisors must
exactly know what these employees are doing. Proper interaction and record keeping are vital.
VIRTUAL ORGANISATIONS VS TRADITIONAL ORGANISATIONS
• Streamlined. Virtual organisations outsource much of the • Streamlined. Traditional organisations fully employ all
work beyond their core line of business. functions inside and outside of core business.
• Flexible. Virtual organisations are able to shift focus and • Flexible. The decision-making structure and highly
change their way of working to meet market and customer specialised roles make shifts in work slow and often
needs. difficult.
• Focused. Virtual organisations have clearly identified • Focused. The organisation works on a variety of market
customers and markets, and concentrate on their core line opportunities at once, so there is no clear identification of
of business. the customer or marketplace.
• Communication. In virtual organisations, communication is
• Communication. Occurs through scheduled meetings in
free flowing, without regard to the level or role in the
conference rooms, from leaders to employees. There are
organisation. E-mail, instant messaging and Internet allow
the open sharing of information and ideas between and formal hierarchical memos and decision-making is top-
among employees and customers. Decision-making down.
happens between employees at all levels and customers.
SUMMARY: VIRTUAL ORGANISATIONS
There is a fast-growing interest in another way of working which combines changes, in technical
and organisational systems of choice. This is virtual working and by extension virtual teams.
Different types of teams within the virtual organisation can be found: project, service and
process teams.
The key for any company at the outset of a virtual teamworking implementation is to be
technologically aware and open, not technologically deterministic and closed.
Success of virtual teams will not come from tight managerial control: this inhibits the extent
of the interactions within the network.
The team will benefit most from acknowledging the fact that they are all individuals, and then
drawing on their individual strengths to create a microcosm within the wider organisation
that embodies a shared culture and operating principles that they believe will enable them to
deliver the best results as a team.
SUMMARY: VIRTUAL ORGANISATIONS
Virtual organisations will need to adapt their recruiting processes to the changing skill base and
nature of the labour pool from which they are recruiting.
For the virtual organisation with its geographically dispersed global labour pools the traditional
idea of candidates having onsite testing batteries and interviews is not practical.
The virtual organisation's geographically dispersed supervisors, peers and subordinates offer a
unique environment for understanding performance evaluation, monitoring the employee's
outputs may be a way of making performance evaluations work under these conditions.
E-learning is training conducted using the Internet and intranet, and both the advantages and
disadvantages should be considered in its development.
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