HUMA 1745 Lecture 23: HUMA 1745 Lecture 23 Notes
1 May 2018
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HUMA 1745 Lecture 23 Notes – Coordinate Relationships
Introduction
• To coordinate relationships with the other organizations that manufacture, distribute,
and perform other crucial functions for the virtual organization.
• The dotted lines represent the relationships typically maintained under contracts.
• In essence, managers in virtual structures spend most of their time coordinating and
controlling external relations, typically by way of computer-network links.
• The major advantage of the virtual organization is its flexibility, which allows individuals
with an innovative idea and little money to successfully compete against more
established organizations.
• Virtual organizations also save a great deal of money by eliminating permanent offices
and hierarchical roles.
• The drawbacks of virtual organizations have become increasingly clear as their
popularity has grown.
• They are in a state of perpetual flux and reorganization, which means roles, goals, and
responsibilities are unclear, setting the stage for political behaviour.
• Cultural alignment and shared goals can be lost because of the low degree of interaction
among members.
• Team members who are geographically dispersed and communicate infrequently find it
difficult to share information and knowledge, which can limit innovation and slow
response time.
• Sometimes, as with Vancouver-ased Lululeo’s shipets of uitetioally see-
through yoga pants, the consequences of having geographically remote managers can
be embarrassing and even financially harmful to the company.
• Ironically, some virtual organizations are less adaptable and innovative than those with
well-established communication and collaboration networks.
• A leadership presee that reifores the orgaizatio’s purpose and facilitates
communication is thus especially valuable.
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