What is a Virtual Organisation?

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Module: OE102, People at Work                By: Mariam N Hanif

Tutor: Michael Flagg                ID: 01009726

Page Title                                                                         Page

Introduction         2

Acknowledgements        3

What is a Virtual Organisation?        4

Managing virtual networks         7

Student workbook


This report is a completion of the assignment for the module OE102, People at work. The report consists of the answers to a) Explain what is meant by a virtual “organisation” & b) Why might virtual structures and networks be preferred by managers who seek to encourage entrepreneurship and innovation.

The report is of 1594 words which does not include this introduction.

I have made reference to relevant theorists in my answer.

My completed student workbook is attached to the end of this report.


I would like to acknowledge the following for the provision of the useful sources of information I made use of in order to gain knowledge and understanding in this subject.

Books, publications and journals

Module booklets, OE102, Michael Flagg, University of North London

Management & Organisation Behaviour, Laurie J Mullins, Prentice Hall

J.A. Byrne, The Virtual Corporation, Business Week 8 Feb 1993

The Digital Economy, Don Tapscott 1996

Virtual Organisations, Kamna Prasad & Viswanath Subramanian, 2000

Theorists

Lipnack & Stamps 1997

Robert Bradt 1998

Cambridge Dictionary

Anderson 1997

Sieber 1998,Wolters et al.1999

Eversheim 1998

Websites

www.virginstudent.com, Clare Field


Virtual and organisation are two different words put together. When defined separately, virtual means almost even if not exactly or in every way or that there is some sort of link with computers e.g. IBM’s Virtual Machine. Organisation is an establishment, a system of government (not necessarily The Government), or another definition an administration system. There are many definitions of organisation and I could fill this page with them.

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But what does “Virtual Organisation” actually mean? Virtual is considered to be any interaction that is not face-to-face. A virtual organisation uses technology to establish temporary alliances through a network of independent companies. It is the use of Information technology linking manufacturing, administrative services, customers and rivals to share skills, costs and access to one another’s markets.

“It will have neither a central office nor organisation chart. It will have no hierarchy, no vertical integration.”

Lipnack & Stamps (1997) define a virtual team as "a group of people who interact through interdependent tasks guided by common ...

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