Directorate of distance education master of business administration

Virtual Organization 
The emerging HR trend in virtual organizations is both a challenge 
and opportunity to HR experts. The ready availability of information 
networks, e-mails and portable telephones is seen as accelerating the 
“Virtuality’ of work. A virtual organization is a network of corporations 
made possible by Information and Communication Technology (ICT), 
which is flexible and comes to meet the dynamics of the market. In this 
way the virtual organization gains benefit with regard to the traditional 
hierarchical systems. This form of organization is also called as network 
organization or digital organization. 

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The virtual organization is a social network in which all the 
horizontal and vertical boundaries are removed. It consists of individuals 
working out of physically dispersed workspaces, or even individuals 
working from mobile devices and not tied to any particular workspace. 
The ICT coordinates the activities, combines the worker’s skills 
and resources in order to achieve a common goal. There is a creation 
of network relationship that allows for contracting, manufacturing, 
distribution, marketing or any other business function. In a virtual 
organization, a small group of executives oversee directly any activities 
that are done in-house and coordinate relationships with other 
organizations.