• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

It is predicted that by the year 2010 up to half of the British workforce could be working for some form of virtual organization or working at least part of the week at home.

Extracts from this document...


It is predicted that by the year 2010 up to half of the British workforce could be working for some form of virtual organization or working at least part of the week at home. Clearly this trend will have enormous implications for managers and for design of organizations and the ways in which they will try to achieve their objectives. Communication in the information age no longer requires employees to be in physical contact with each other, their customers or even the companies that employ them. Research by Forster (2001) sees 'Ericsson' already confidently using the virtual route, they have half of there workforce working away from there office. The forecast for the USA is that 60% of professionals will be virtually working by 2010. Teams Organisational Design Warner (2001) looked at virtual organisations and concluded that virtual organisations should be seen as a set of strategic options, in which managers should consider how they can best adapt the virtual model to their own organisation: there is no best solution. ...read more.


The effectiveness of managers can therefore be judged partly on there staff, by these factors: * Motivation and Morale * Success of training and Development * The creation of an Organisational environment in which staff work willingly and effectively Motivation and Morale Appendix 1 shows a basic motivational model. As yet no theory has come up with the best way to motivate but they may act as a guide. Vroom's expectancy theory based is model (see appendix 3) on 3 key variables: valence, instrumentality and expectancy. Motivation is a combination of valence and expectancy. Valency is the value a person places on the reward offered. Expectancy is the estimate of the likelihood that the reward might actually be achieved. So valency and expectancy both high equals motivated behaviour and valency and/ or expectancy both low equals no motivation. The effect of the virtual team could result in increased isolation by individual employees, resulting in a reduction of motivation and morale. This in some companies has resulted in "cyber slacking" where employees spend endless amounts of time wondering aimlessly around the net. ...read more.


One manager who took part in there study said that a manager goal of training should involve learning how to replace nods and smiles with protocols. Franks (1998) believes that workers will have to be continually re-educated and re-trained. The workforce will be able to obtain information and be supported by technology to gain information. Therefore training will probably have to be delivered remotely. Conclusion As the first wave of what Foster (2000) calls "Generation T" (the generation who have gown up on this technology) enters the workforce the need for direct face to face contact may diminish. However it is apparent that it is needed now and is this always possible? What if you wanted to employ staff from all over the world? It would simply be too expensive to fly everyone to the same place in order for them to meet face to face. Perhaps further study could look at how management could overcome the need for face to face sociability. Appendix 1 identifies and compares the important differences between the characteristics of traditional organisations and emerging virtual organisations such as Dell and Nike (Walters, 2000). 1 ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE People in Business section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE People in Business essays

  1. Assess the view that bureaucracy is the most efficient form of organization.

    Together with size, another important factor in deciding whether a bureaucratic environment is the most efficient way of functioning is the task the organization is expected to do. For example high performing corporations in dynamic environments who are constantly adapting to change will need procedures that are flexible.

  2. Building Effective Teams.

    Strategies for achieving goals are clear. Each member understands his or her role in realizing the purpose and values. The second characteristic is empowerment. Teams thrive on self-directed members who have been empowered to make decisions, troubleshoot problems, initiate change and experiment with creative ideas.

  1. The HRM model emphasizes: The need ...

    Typically they do not rely on others to locate and specify their strengths and weaknesses. They are expected to monitor their own development and progress.( http://www.performance-appraisal.com/results.htm) Advantages The MBO approach overcomes some of the problems that arise as a result of assuming that the employee traits needed for job success can be reliably identified and measured.

  2. Job roles and working arrangements

    Sue Timothy earns �25k per year. She gets a company car, group pension, health care, free gym access and shares at BHX as benefits. Her perks are to get discount on airlines, car hire, airport services, tour operator, and 1 free flight if she has been working at BHX for 2 years.

  1. Self-Efficacy Theory Explanation for the Managementof Remote Workers in Virtual Organizations

    This research has found that management issues are a significant factor preventing widespread adoption of telecommuting (DeSanctis, 1984; Duxbury & Haines, 1991; Duxbury, Higgins & Irving, 1987; Huws, 1990; Phelps, 1985; Risman & Tomaskovic-Devey, 1989; Roderick & Jelley, 1991). This implies that the issue of managing remote workers in virtual organizations is critical and needs to be better understood.

  2. The opt-out clause of the Working Hours Directive 1998.

    For example, an employer may say to a potential employee, that if they do not sign the opt-out clause contract then they cannot have the job. Health and safety issues will improve for employees, because when they are forced to work longer than what they want/can, then they will inevitably feel ill.

  1. Enabling a Remote Workforce.

    In general, remote workers appear to be more productive than traditional office workers. In an October 1995 survey of Fortune 1000 managers, 58% reported increased productivity by employees who telecommuted. Also, according to the State of California's Telecommuting Pilot Program, companies that implemented a remote work force experienced productivity increases ranging from 10 - 30%.

  2. Flexible working

    Taking this into consideration it is said that The concept of flexibility has developed as a central theme in discussions of how to reshape organisations' labour markets. (Beardwell & Holden, p.97) 3.0 FLEXIBLE FIRM A significant approach in dealing with flexibility in the organisation was John Atkinson idea of the flexible firm.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work