[영문] 가상조직 조사 및 사례(Virtual Organization and Case Study)

소개

A temporary network of companies, suppliers, customers, or employees, linked by information and communications technologies, with the purpose of delivering a service or product. A virtual organization can bring together companies in strategic partnering or outsourcing arrangements, enabling them to share expertise, resources, and cost savings until objectives are met and the network is dissolved. Such organizations are virtual not only in the sense that they exist largely in cyberspace, but also in that they are unconstrained by the traditional barriers of time and place. A greater level of trust is required between employer and employee or coworkers, or partner organizations, because they will be working out of one another`s sight for most of the time.

목차

1. Concept
2. Hierarchy in Virtual Company
3. Communication by Network
4. Concept of Good Worker
5. Disadvantages for Virtual Organization
6. Labor in Virtual Organization
7. Labor market trend for Virtual Org
8. Conclusion

본문내용

VO’s characteristics:
 It is born out of downsizing and rightsizing.
 typically a Core Organization that owns the project and contracts out for functions outside of its core competencies
Advantages
It is cost effectiveness, expertise, and flexibility
Disadvantages
It can be brought lack of ownership, command, and control

2. Hierarchy in Virtual company
Virtual organizations are using the maximal capabilities of both technology and humans to meet objective. Unlikely to traditional hierarchy, decision-making are being entrusted more to the employees who are most familiar with the work situation. Diminishing number of middle management layers. A certain major company has only three designations: the CEO, the secretary and the associate. Virtual hierarchy is the focus of the virtual organization on its core competencies. And Relying on an electronic handshake than on going through the traditional protracted legal paperwork.

Traditional hierarchy VO through Network

 LAN, Internet, the transaction costs of organisational coordination drop so sharply, and outsources many of these functions and concentrates on what it does best. That means focusing on design or marketing.
 virtual organization is highly centralized, with little or no departmentalization.
(Bo. Hedbeg, 1997)

Case study
Paul Newman`s food products company sells about 190million in food every year yet employs only 18 people. This is because it outsources almost everythingㅡmanufacturing, procurement, shipping, and quality control, that they consider non-core or non-strategic to third parties or external vendors

3. Communication by network

A. Internet-based WWW
Provide a mechanism for electronic access to external environment and electronic access to customer. Design for remote sites, shared knowledge, common project
Security system is used such as fire-wall, for reasoning of other parties are not allowed to participate in the organization.

B. Intranet
It is form that based on internet but placed on private servers, outsiders are not allowed to join the private servers.
Intranet is used inexpensive and easy share data across a private network. (Oates. David, 1998)

4. Comparing Traditional and Virtual Organisation

A. Career
How many years he has worked or what he has taken position indicates his career in traditional organization. But, in virtual organization, highlight career is what he has done.

Case study
In Hollywood’s golden era, movies were made by huge studios such as MGM, Warner Brothers, and 20th Century Fox owned If someone works big movie-making company prove he has talent. However, nowadays, most movies are made by a collection of individuals and small companies who come together and make films project by project. This structural form allows each project to be staffed with his or her talent most suited to its demands, rather than having to choose just from people employed by studio. Which projects he or her has participated in then how successful done it is criteria for measuring his or her career.

B. Labour market
Companies which adopted virtual organization are no longer taking huge, vertically iterated corporations with full-time workers. They subcontract with Outsourcing factories, it pays workers from outside the company to do the work or supply the things. therefore, Labour market is gone down, and then, workers move out to other organization or are being temporarily unemployed during they acquire new skill.

Case study
In Korea, many manufacturing companies tend to move out factories or outsource to which located in developing country such as China, India, where workers got paid low wages relatively. As the result, the country’s labour market is gone down.

Solution
To prevent producing mass unemployed people, the Government provides vocational education which teach new skills that required in new trend industry. Thus, those unemployed people got subsidy from government till they are hired.



C. Concept of Good worker

Accumulating career and terminating in one company meant good workers that the company recognize his or her talent, even evaluated he has company loyalty. For them, job security is relatively important over others. But, the labour market has been changing that companies are going to be flexibility with employees. Venture companies want to hire creative workers instead of seeking job security.

Case study
The concept of permanent job has been disappeared, especially, this is far with Virtual organization. most movies are made by a collection of individuals and small companies who come together and make films project by project. This structural form allows each project to be staffed with her talent most suited to its demands. He has participated in which movie is his career. How long he has been there is not important.

4. Disadvantages for Virtual Organisaton

Virtual Organisation has disadvantages that performance evaluation is not easy cause of outsourcing with other many firms. It can bring quality deterioration of products. As the same logic, compensation systems do not operate well. Need for coordination of business processes, personnel, and information systems among the partner firms are high cost and take long time. Tight control is not exerted on how decisions are implemented throughout the organization. Under this structure, managers cannot monitor closely where workers are going to. The primary drawback to this structure is that it reduces management`s control over key parts of its business. (http://en.wikipedia.org/wiki/Virtual_enterprise)

Case study
Small and medium enterprises, even big companies such as IKEA, operate as form of virtual organization that they have core parts in head office and contract with outsourcing factory to China. This system can be brought difficult of management of quality. It directly connected with awareness of consumers that consumers do not willing to purchase products of inept image.



5. Labour in Virtual Organisation

A. Working relationship
There are two shapes of contract between employer and employee that one is permanent contract and the other one is casual contract such as Free lancer.
Free lancers is still minority in a company even, a labour union, yet permanent workers has a certain of security in contract. Permanent workers have advantages over casual workers that universally, higher income, benefits such as insurance, loan. The world labour market trend is toward casual contract, yet, contract workers are still minority in firms and unions.
However, if some one has outstanding talent in the field, and many demands are in the labour market means he or she works as a free lancer is better. In this situation, a employer invites the free lancer, no longer hire.

Case study
1. In Korea, 37% of employees out of total employed people are contract workers. Companies would like to hire contract workers. Even, duties between permanent and casual are almost same. But, compensation as what they have done is quite different over permanent workers such as salary, insurance, welfare and security.

2. Some free lancers such as popular writers or MCs of TV program have treated very high. Because they have outstanding talents. some people prefer to work as a free lancer because this shape of working is relatively free and less stressful over permanent workers. If they finish work given, they can go back to home. They can take a rest for how long they want after terminating of contract.

B. Control of labour turnover

Leaving key workers in a firm has a negative impact that give obstacle to a success or continuity of a project. Managers must minimise the ways in which it affects the business through a structured staff management programme. Some employees prefer to move work place from traditional into virtual organization reasons of less controlled, salary, and felt fit into other form of organization him or her self. (http://www.businesslink.gov.uk/bdotg/action/layer?topicId=1074410820)


Case study
Lee, Gun Hee, chairman of Samsung group, believes that manpower is key factor in internal influence factors. He has insisted on to managers that managing checklist of staff turnover. Hence, they offer convenience to key employees such as working at home, meeting through video display.

참고자료

· -Textbooks
· Raymond. J. Stone, Human Resource Management, 1998, John wiley & Sons.
· Stone. Florence, Recruiting and Retaining People, 2002, Capstone Publishing.
· Oates. David, Outsourcing and the Virtual Organization, 1998, Century Ltd.
· Bo. Hedbeg, Virtual Organization and Beyond, 1997, John Wiley & Sons Ltd.
· Hopkins, Bryan, Markham, James, e-HR, 2003, Gower.
· Peter. Laurence, Hull. Raymond, The Peter Principle, 1972, William Morrow & Co
· -Internet sources
· http://kin.naver.com/db/detail.php?d1id=11&dir_id=1111&eid=lA1GiiythX73bD+zjiCW/59KwBVMrJ0j&qb=dmlydHVhbCBvcmdhbml6YXRpb24=(accessed on 7th Aug)
· http://english.tulip.dk/Applicants/Politics/Recruitment%2Bpolicy(accessed on 8th Aug)
· http://www.aviva.com/index.asp?pageid=288(accessed on 8th Aug)
· http://www.hr.arizona.edu/09_rel/policies/pp116var.php(accessed on 8th Aug)
· http://en.wikipedia.org/wiki/Virtual_enterprise(accessed on 10th Aug)
· http://www.geocities.com/wilfratzburg/htmlrecruit.html#Organizational%20 Policies(accessed on 10th Aug)