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.