CHAPTER 15
Human
Resource
Management in
virtual
organisations
For use with Human Resource Management in South Africa 4e
by Grobler, Wärnich et al
ISBN: 1408019515 © 2010 Cengage Learning
Chapter outcomes
• Define the concept "virtual organisation"
• Identify three forms of virtual work arrangements
• List the advantages and disadvantages for the company and
employee when implementing the telecommuting work arrangement
• List the characteristics which truly identify a virtual team
• List three types of virtual teams
For use with Human Resource Management in South Africa 4e
by Grobler, Wärnich et al
ISBN: 1408019515 © 2010 Cengage Learning
Chapter outcomes (continued)
• Discuss the advantages and disadvantages when using technology
such as e-mail, bulletin boards, audio and video conferencing
• Discuss the role of the HR professional within the virtual
organisation
• Discuss issues relating to job analysis practices within the virtual
work environment
• Discuss issues relating to a number of HR practices within the
virtual work environment
• Explain how the traditional and virtual organisation differs
For use with Human Resource Management in South Africa 4e
by Grobler, Wärnich et al
ISBN: 1408019515 © 2010 Cengage Learning
Technology has:
• Prompted changes in company structures (eg. virtual organisation)
• Modified work arrangements (eg. virtual team)
• Influenced how people are managed (eg. virtual workplace)
For use with Human Resource Management in South Africa 4e
by Grobler, Wärnich et al
ISBN: 1408019515 © 2010 Cengage Learning
Virtual organisation defined
• Virtual organisations are multi-site, multi-organisational and
dynamic. At the macro level, a virtual organisation consists of a
grouping of units of different companies (eg. other businesses,
consultants, contractors) that have joined in an alliance to exploit
complementary skills, in pursuing common strategic objectives
For use with Human Resource Management in South Africa 4e
by Grobler, Wärnich et al
ISBN: 1408019515 © 2010 Cengage Learning
Virtual organisation (continued)
• Virtual organisations are characterised as those organisations in
which the ongoing relationships with partners are salient
• Core business activities are reduced, leaving the partners to
focus on some of the key business functions
• Core (or central organisation) is connected with the partners
through technology
• Virtual organisations tend to be characterised as flexible, and
their structure as transitory and fluid
• Many definitions of the concept tend to see groups as important.
Some appear to see virtual teams as a sufficient condition for an
organisation to be called a virtual organisation
For use with Human Resource Management in South Africa 4e
by Grobler, Wärnich et al
ISBN: 1408019515 © 2010 Cengage Learning
The virtual workplace
• Telecommuting
• Frontline model
• Cyberlink model
– Virtual teams:
• Group must have some charter for working together
• Group must be interdependent
• Group must be committed to working together
• Group must be accountable as a unit to someone or
something in the bigger organisation
For use with Human Resource Management in South Africa 4e
by Grobler, Wärnich et al
ISBN: 1408019515 © 2010 Cengage Learning
The virtual workplace (continued)
• Cyberlink model (continued)
– Types of virtual teams:
• Project teams
• Service teams
• Process teams
– Why virtual teams?
– Cost benefits of implementing virtual teams
– Complexity of virtual teamworking
– Technology for virtual teams
For use with Human Resource Management in South Africa 4e
by Grobler, Wärnich et al
ISBN: 1408019515 © 2010 Cengage Learning
Factors that contribute to the
complexity of virtual teamworking
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Number of team members
Number of different languages spoken in the team
Number or organisations represented in the team
Number of time zones within the group
Technical systems implemented
For use with Human Resource Management in South Africa 4e
by Grobler, Wärnich et al
ISBN: 1408019515 © 2010 Cengage Learning
HRM practices in virtual
organisations
• Virtual HR departments
• The role of the HR professional in the virtual organisation
• HR practices in virtual organisations
– JA
– Participants
– Methods of data collection
– Types of data and level of analysis
For use with Human Resource Management in South Africa 4e
by Grobler, Wärnich et al
ISBN: 1408019515 © 2010 Cengage Learning
HRM practices in virtual
organisations (continued)
• HR practices in virtual organisations (continued)
– Staffing
– Recruitment
– Selection
– T&D
– E-learning
– PA
– Compensation
– Negotiation
For use with Human Resource Management in South Africa 4e
by Grobler, Wärnich et al
ISBN: 1408019515 © 2010 Cengage Learning
Important skills and competencies
needed in virtual organisations
Shared sense of purpose
Operating guidelines
Team level Analysing & solving problems
Conflict management etc.
Dealing with change
Managing alignment
Flexibility
Co-ordinating activities
Adaptability
Emotional control Individual
Willingness to learn
etc.
Managers Encourage continuous
learning
Managing through
technology etc.
For use with Human Resource Management in South Africa 4e
by Grobler, Wärnich et al
ISBN: 1408019515 © 2010 Cengage Learning
Advantages of e-learning
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Self-paced: trainees can proceed on their own time
Is interactive, tapping multiple trainee senses
Allows for consistency in the delivery of training
Enables scoring of exercises/assessments and the appropriate feedback
Incorporates built-in guidance and help for trainees to use when needed
Is relatively easy for trainers to update content
Can be used to enhance instructor-led training
For use with Human Resource Management in South Africa 4e
by Grobler, Wärnich et al
ISBN: 1408019515 © 2010 Cengage Learning
Disadvantages of e-learning
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May cause trainee anxiety
Not all trainees may be ready for e-learning
Not all trainees may have easy and uninterrupted access to computers
Not appropriate for all training content (eg. leadership, cultural change)
Requires significant upfront cost and investment
No significantly greater learning evidenced in research studies
Requires significant top management support to be successful
For use with Human Resource Management in South Africa 4e
by Grobler, Wärnich et al
ISBN: 1408019515 © 2010 Cengage Learning
A model of virtual negotiation characteristics
Possible 3rd
party
Party A
Party B
Individual
differences
Individual
differences
Personality, distributive vs
integrative, sensitivity vs nonverbals, comfort with
technology
Personality, distributive vs
integrative, sensitivity vs nonverbals, comfort with
technology
Negotiation
dynamics
Personal disclosure,
entrenchment, flaming,
ethics
Negotiation
dynamics
Communication
media
Personal disclosure,
entrenchment, flaming,
ethics
Synchronicity, message
misinterpretation, message
content, information richness
For use with Human Resource Management in South Africa 4e
by Grobler, Wärnich et al
ISBN: 1408019515 © 2010 Cengage Learning
Attributes of virtual and traditional
organisations
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Streamlined
Flexible
Focused
Communication
Hyper time
Organisation structure
• Management of work &
workers
• Career path
• Information
• Office building
• Professionalism
• Customer relations
For use with Human Resource Management in South Africa 4e
by Grobler, Wärnich et al
ISBN: 1408019515 © 2010 Cengage Learning
Summary
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There is a fast-growing interest in another way of working which combines
changes, in technical and organisational systems of choice. This is virtual
working and by extension virtual teams.
Different types of teams within the virtual organisation can be found namely:
project, service and process teams.
The key for any company at the outset of a virtual teamworking
implementation is to be technologically aware and open, not technologically
deterministic and closed.
Success of virtual teams will not come from tight managerial control, this
inhibits the extent of the interactions within the network.
For use with Human Resource Management in South Africa 4e
by Grobler, Wärnich et al
ISBN: 1408019515 © 2010 Cengage Learning
Summary
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The team will benefit most from acknowledging the fact that they are all
individuals, and then drawing on their individual strengths to create a
microcosm within the wider organisation that embodies shared culture and
operating principle that they believe will enable them to deliver the best
results as a team.
Virtual organisations will need to adapt their recruiting processes to the
changing skill base and nature of the labour pool from which they are
recruiting.
For the virtual organisation with its geographically dispersed global labour
pools the traditional idea of candidates having onsite testing batteries and
interviews is not practical.
For use with Human Resource Management in South Africa 4e
by Grobler, Wärnich et al
ISBN: 1408019515 © 2010 Cengage Learning
Summary
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The virtual organisation's geographically dispersed supervisors, peers and
subordinates offer a unique environment for understanding, performance
evaluation, monitoring the employee's outputs may be a way of making
performance evaluations work under these conditions.
In the area of compensation the following methods may be used in the virtual
environment, person-based systems, broadbanding and classification.
While the process of negotiation has been written about extensively, little has
been done regarding this activity in the virtual environment. This environment
will dictate new rules for negotiating.
For use with Human Resource Management in South Africa 4e
by Grobler, Wärnich et al
ISBN: 1408019515 © 2010 Cengage Learning