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  • Essay / Researching the article “The challenges of managing virtual organizations”

    The article I chose to research for this assignment is “The challenges of managing virtual organizations” produced by the Center of technical research ATV of Finland Ltd. It is a non-profit organization that addresses economic concerns and employment issues. The main focus of the articles was centered on the profitability and savings that virtual organizations enable compared to their traditional counterparts, specifically on the time and quality that are combined on a global scale. It further emphasizes convergence to increase flexibility, customer relationships and mitigation measures to reduce risks. The two objectives mentioned above cannot be achieved without diligence. Organizations must therefore emphasize collective achievement within a shared vision and sharing of information among all stakeholders and internal departments. Say no to plagiarism. Get a tailor-made essay on “Why violent video games should not be banned”? Get the original essay Convergence The article states that for a virtual organization to function effectively, the performance achieved must depend on collaboration (Karvonen, Jansson, Salkari, & Ollus, 2006). Further dialogue highlighted the need for management to define a methodology to address collaborative efforts, but failed in applying convergence through communication; an essential cornerstone of any organization, virtual or not. As Morgan, Paucar and Wright (2014) state, communication is a fundamental aspect of any organization, but it is even more imperative within virtual organizations, without communication the global market structure would not be possible; worsened in the virtual landscape. Communication is not limited to internal stakeholders, but also how they communicate with external stakeholders and customers. Convergence and team building has been considered one of the most important factors establishing group cohesion, enabling more effective communication between departments (Morgan, Paucar, & Wright, 2014).CommunicationInternal communication is an element key to an organization's culture and ensures that stakeholders understand the company's goals and objectives and, where necessary, provide direction and ensure working efficiency and collaboration. Authentic, honest and open two-way dialogue with employees and customers should be a fundamental aspect of any communications policy. External and internal communications are a key element in achieving excellence and managing risk. Particularly, when it comes to communicating a virtual organization, since multiple stakeholders will be involved as an audience, it is the responsibility to address the needs and concerns of each stakeholder and provide relevant information and metrics. “Calculating risk is one thing, communicating it is another” (Gigerenzer, 2015). Indeed, the best designed and formulated plan will not gain public support if it is not communicated effectively. Vision Recognizing constraints, an organization can be more effective if staff are informed and engaged: when staff understand the same values, work policies and procedures in the same way and focus on achieving the same vision, then the organizational culture will promote much more efficient use of resources and more engaged staff (Nahavandi & Denhardt, 2014). Hoch & Kozlowski (2014) described that the..