The Pros and Cons of Virtual Organizational Designs

Topic 

The Pros and Cons of Virtual Organizational Designs

Instructions 

Virtual teams are becoming more common in organizations.  Assume you are starting your own business and want the organizational structure to be a virtual one.  What are the advantages and disadvantages of creating such a virtual organization? Explain.

Answer Preview 

Some of the disadvantages of a virtual organization are associated with the lack of cooperation from employees who only know each other remotely. Camaraderie is usually built by physical contact, something that is not possible in a virtual organization. Secondly, many customers would be wary to business with an organization without any physical address. This arises just out of trust issues that many customers unfortunately possess. Virtual organizations also require the passing of information back and forth. This information could be very important organizational data. With very many cases of hacking, this poses a security risk of company data which could easily land in the wrong hands (Gibson, 419). Starting a business that takes on a virtual design is an all important decision. With the knowledge of both the advantages and the disadvantages is important in making choices that will put the start-up in a great position for success.

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