Modern organizations can be categorized on the basis of communication methods. In virtual organizations, employees work globally from different locations from separate divisions, offices or even from their own homes. Virtual organizations provide electronic facilities to their employees for communication. You can set the flow of communication according to the nature of your business with the help of organization structure. Organizational structure of the corporation can be based on official and casual framework of the policies of business including hierarchical levels, rules of communication and right and responsibilities of employees.
Structure of a virtual organization is designed to outsource business functions, volunteer toil; leverage information technology services and adopts an unfussy model. Virtual organization structure is more complicated as compare to other structures because it consists on the combine working of multiple organizations to produce goods and services.
Modern Virtual Organization Structure
Virtual organization is also known as boundary less organization with no physical existence. This type of organization works with the help of Internet in the alliances of network. Even a smaller virtual organization can work on global level as a market leader in its own niche. It requires dramatically less cost but there is a huge competition collectively in each niche.
Organization Structure and Outsourcing
Virtual organization structure requires outsourcing of diverse errands and trade functions for the purpose of cost cutting, maintenance of flexible infrastructure and aiding a scalability of the company. For instance, outsourcing explicit errands overseas with lower labor costs can be profitable for your organization in terms of efficiencies and reducing operating expenses.
If you want a cost effective virtual organization structure then you can try volunteer labor because it can reduce your operating expenses with the added benefits of getting best talent for your future projects. Volunteer labor can be professional in terms of scope and quality. In the virtual environment, volunteer can generate contents, perform different tasks and can play vital role in the improvement of the services of company.
Leveraging Information Technology
Virtual organization structure is best for those organizations that greatly use information technology even as the mean of their communication. These can be email, online chatting, conference calling, social media, voice-over Internet protocol etc. Use of information technology can increase the efficiency of your organization via rapid exchange of important details.
Minimalist Model for Virtual Organization
Virtual organization structure let you to combine talents and information technologies of different areas by outsourcing labor. Volunteer workers provide you with great benefits including cost cutting and increasing efficiency. Minimalist model plays important role in all this as you can employ full time works also for some important areas of day-to-day operations.
Democracy In Virtual Organization
Virtual organization structure required democratic decision-making environment because of the involvement of volunteer labor. Democratic decision-making environment works on the majority votes. This system enables everyone to take part in decision-making by expressing his/her point of view about the specific decision. This type of decision making usually increase the innovation and exchange of useful as well as creative ideas.
Procurement Organization Structure Procurement organizations are worked as intermediary for various companies in the purchase of goods and services. These organizations work with typical structure to alleviate the important issues within the company. Procurement organization structure is important part of any procurement business because without it you cannot control the flow of activities. Organizations are run by group of people who are required to work as team toward the common goals in the benefit of the organization. Ever...
Informal Organization Structure Informal organizations are quite different from formal organization because of lack of structure and role designation. Mission statement is important organizational element that contributes a lot in the construction of the business. Formal roles are only designated in case of membership desire. Organizations structure is necessary for both types of formal and informal organizations to get maximum advantage from the resources of the organization. Leadership of the informal organization is base...
Formal Organization Structure Organization structure is necessary to encourage efficient operations of the business. In case of the commencement of new business, it is necessary to draft a formal organization structure that will make your work easy. It helps you to determine and explain the purpose of your business or corporation. Although it takes time to design formal organization structure but after that you can easily and comprehensively accomplish your major tasks. While designing formal organization structure it is ...
Corporate Organization Structure Every corporation requires a proper organization structure because without it you cannot control the flow of business activities. It is necessary to distribute ownership and control to the joint owners of the corporation and it can be done with the help of corporate organization structure. Shareholders vote on various issues such as for the selection of board of directors, appointment of executives and important members of top management for the performance of day-to-day operations. Various a...
Divisional Organization Structure In divisional organization structure, business activities are divided in several segments on the basis of different geographical, services, market and product group. The divisional organizational structure is common in large companies that have a widely spread business in different countries and therefore for each state and region they have to organize a separate functional body. A divisional organization structure is a decentralized kind of structure where each division has an authority of m...
Finance Organization Structure Organization structure is necessary for each type of organization in order to define policies, strategies and objectives of the company. Type of the structure based on the objectives and nature of the organization. Policies, strategies and tasks all help you to design the organization structure. Finance organizations require performing important functions in the financial world therefore these types of organizations also require proper hierarchical structure. Financial organization serves as ...