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Virtual Organizations New - Breakdown geographical barriers - enabled by information and communication technology - Offering: cost reduction, flexibility, market reach 24 hour service
VO definition A flexible network of independent entities linked by information technology to share skills, knowledge and access to others' expertise in nontraditional ways."
Main Characteristics of VOs Lack of physical structure (bricks & mortar) Reliance on communication technology Mobile work Hybrid forms Boundary-less and inclusive Flexible and responsive
Implementing visualization Telecommuting Telecentres Mobile Working Hot-desking Hotelling Virtual Teams
Telecommuting Tele Centres Mobile Working - Location away from usual work place,not necessarily at home (computers and telecommunications equipment) - Satellite offices outside of major cities, provide equipment not available in a home office - Working environment of mobile workers (pagers, laptops, portable devices)
Hot-desking Hotelling Virtual teams No permanently assigned offices/ desks (Assigned computer on arrival) Client provides employee with a desk and facilities Collaboration between employees from geographically dispersed locations (email, groupware, video conferencing)
Drive for Virtual Organisation Need for process innovation Sharing of core competencies Start-up, retirement,m turnover voids Globalization Mobile workers Global economy
Driver for Virtual Organisation Cost reduction (efficiency/effectiveness) Problems with traveling (Cost; security, time wastage, environment impacts) Pace Development of requisite technologies for the truly virtual organization
VO- assisting technologies - Unstructured information/ knowledge exchange (email, groupware) - structured information exchange (intranets, online databases, analytical tools, data-warehousing) Computer to computer exchange may be through traditional electronic data interchange (web-based XML)
Issues with VO - Staff capability Security issues Development cost/difficulty Infrastructure needs, especially globally/developing world communication and trust management + legal challenges and other emerging issues
Tutorial 1 Define virtual organization flexible network linked by information and communication technologies
Main characteristics of VO Lack of physical structure Mobile work Hybrid Boundary-less flexible and responsive reliance on technology
Potential benefits of VO Cost reduction Flexibility 24 hours
Potential problems or issues Security Trust infrastructure training
Driving of VO Need for process innovation Sharing of core competencies Start-up, retirement,m turnover voids Globalization Mobile workers Global economy
What are the typical approaches for implementing virtual organisations Telecommuting Tele centre Mobile working Hot-desking Hotelling Virtual teams
Driving Business Pressures Cost Human Resources Organizational Factors
Cost Pros:Eliminate company moves Avoid travel Real estate savings Cons: Virtual meetings lack trust/focus/communication/efficiency Hot-desking - employee morale, equality, lack of personal space, ergonomics, storage
Human resources Right person for the job (no limit of potential employee pool/ outsourcing) better safety and security (nothing in 1 location) work/life balance Cons: language cultural differences/ not always positive effect from working at home potential for weaker relationships inequality for those allowed to telecommute and those not
Organizational Factors Tying together decentralized company mergers and acquisitions regional representatives (closer to customer base) sales reps
Communication issues with VO Communication inclusion (who do I CC) Misunderstandings - slang Body language vocal inflections tone of communication
Technical issues sophisticated and complex infrastructure expense and operational lifespan of S/W & H/W High degree of training required to support the environment
Managerial issues Abuse of corporate time managing from a distance employee self-motivation defining goals
Business Case categories Defence - defends organization from pressure to go in particular direction Traditional - generally includes activities where there are relatively tangible financial returns to be had Strategic - fundamental shifts in corporate strategy New Economy - attempting to increase capacity to learn and innovate in a dynamic and hyper competitive market environment
Benefits of VO Collaboration savings revenue growth customer satisfaction knowledge of customer issues through getting close to customers improved decision making eliminate much of travel give better access to information give easier access to remote people ability to focus investment on innovation
Business case components Exec summ Intro Problem define As-is and to-be alternatives assumptions benefits estimates/measures cost estimates risk assessment financial analysis recommendations approach/timeline
Tutorial 2 Three main components of cost reduction achieved through visualization Avoid travel Moving Real estate
Typical HR advantages Work/life balance Right person Better safety and security
Organizational advantages Tying together decentralized company mergers and acquisitions regional representatives (closer to customer base) sales reps
Why prepare business case for virtualization effort Decide whether the cost is appropriate and effective
Lecture 3 Agenda Bricks, Clicks, & Pure play Organisational design models Changing nature of work
4 Types of organisation design Function (machining, assembly, finishing) Product (audiovisual, white goods, furniture) Geography (Asia-pacific, Europe, middle east) Market (Government, large clients, retail)
Mechanistic or Organic Mechanistic - hierarchical (tall) Organic (fluid, fewer authority, fewer regulations, location of authority can change)
Mechanistic vs Organic
Matrix Structure
New organisational structures Flat structure Customer-centric Self-organising teams Network organisation Virtual organisation
Flat structure No middle management (Reduces costs, improve customer satisfaction, communication) BUT: more responsibility and workload for manager
Customer-centric structure Customer participates in production co-production virtual customer communities
Self-organising teams Complete responsibility for production make their own managerial decisions loosely-coupled (freedom, autonomy, less demarcation) Set up when companies are seeking innovation
Network Organisation Large organisation with many alliances a lot of trust between partners outsourcing
VO version of network organisation focusing on IT networks that rely on electronic communication rather than hierarchical (mechanistic) control to provide coordination Partners so well integrated that they appear as a single organisation
CHANGES IN NEW ORGANISATIONAL STRUCTURES Delayering Outsourcing Atomisation Control without ownership - replacement of middle management with other forms of coordination - parts of the value chain are produced by other organisations - disaggregation of large divisions into smaller units - own production process without owning productive assets
Casualisation Horizontal linkages Devloution Faint Boundary lines - people employed for specific project - self-organising clusters of individuals - decision-making pushed to the interface of the organisation and customer - people move from group to group
Characteristics of three types of organisation? Bricks & Mortar Bricks & Clicks Pure play
Traditionally, large organisations can be structured based on function, product, geography, or market. Discuss the four resulting structures, their advantages and disadvantages Hierarchical (mechanistic)
Lecture 4 Types of Teams Networked teams Parallel Teams Project/Product-Development Teams Work/Production teams Service Teams Management Teams Action Teams
Networked Teams Parallel Teams Project/Product-Development Teams N - Individuals who collaborate to achieve a common goal or purpose P - Work in short term to develop recommendations for an improvement in a process P/P - conduct projects for users/customers for a defined period of time. Tasks usually no-routine results are specific and measurable
Work/Production Teams Service Teams Management Teams Action Teams W/P - Perform regular and ongoing work usually in one function S - support customers or the internal organisation in typically a service/technical support role around the clock M - work collaboratively on a daily basis within a functional division of a corporation A - offer immediate responses activated in emergency situations
Dispersion lack of proximity can negatively effect communication decrease closeness time zones and cultural differences
Success factors in leading VTs Proactive management of performance of team members appropriate methods of communication and collaboration sensitivity to cultural and language differences management of member's work assignments building and maintenance of trust adaptive approach to management
Factors of Proactive Performance management Accountability for team output continued coordination of member with leader and other members need for explicit expectations / shared understanding
Factors of Proactive Performance management Vision, mission and strategy development negotiated accountability between members have tangible performance measures share best practices
Factors of Proactive Performance management providing information and timely feedback formal performance appraisal through negotiated performance scale
Choice of communication and collaboration methods Compatibility Degree of group decision making Infrastructure 'gaps' in different countries
Task/ Technology fit media richness bandwidth issues synchronus vs asynchronus
Team lifecycle stages Forming Storming Norming Performing
Forming realistic project team previews coaching from experienced team members shared understanding and sense of team identity develop a clear mission acquire senior manager support
Storming Provide face-to-face team building sessions provide training on conflict resolution encourage conflicting employees to work together to find common ground provide diplomacy and mediation to create compromise solutions
Norming Create customized templates or team charters specifying task requirements - set individual accountabilities, completion dates and schedules establish procedures for information sharing - distinguish task, social and contextual information design procedures- and design procedures appropriate for each - assign a team coach with skills for managing virtually
Performing - Ensure departmental and company culture supports virtual team work - Provide sponsor support and resources for the team to perform
VT management best practice - face to face meetings - appropriate technology - clear work processes (timelines) - flexibility - communicate clear objectives - understand cultures
Leadership structures
Setting up VT Foster team identify (launch meeting, communication protocols - availability) - standards for communicating (email, response time) - foster spontaneous communication (facebook)
Setting up VT Assess time, resources and technology already available determine member's current access and skills assess technology compatibility assess fitness for purpose
Setting up VT Establish goals SMART (specific, measurable, attainable, relevant, time bound) Assign tasks create timeline team plan
Setting up VT Meetings Give adequate lead time for prep Create an agenda meeting facilitator - concise, timely and inclusive management
Management competencies Build commitment, not control focus coordinate and communicate connect, not gate-keep manage by results, not by sight coach, not handle dialogue, not dictate blend technology and people understand team personalities and backgrounds
Lecture 11 Management Requirements Broad view (whole) strategies central focus + coordination strong emphasis on human factors depends on communication strong focus on knowledge
General Managers do? Planning Organizing Staffing Directing Coordinating Reporting Budgeting POSDCoRB
New tasks for GM of VO Communication Assessment Learning Valuation
Communication Assessment C - Ensuring that knowledge flow are efficient and timely A - match VO's goals with structure on a dynamic basis
Learning Valuation L - constant replenishment of VO's stock of knowledge V - continuous reassessment of knowledge assets in terms of their current and future value
Virtual management Gaps Skills gap (KM, technical, relationship) Network Gap (flexible and organic) Knowledge management (seldom conceptualized as an asset) Boundaries gap Coordination gap (should be flexible rather than top/down or bottom up
Types on intangible capital - Knowledge capital - Human capital - Organizational Capital
Knowledge capital action based (knowledge available to firm which can be actively employed)
Human capital brain's knowledge capabilities are intangible - most development in people takes place on the 'mental plane' Investment in human capital equate
Organizational Capital embodied in the persons composing the organization (rather than its technology or machines) and cannot be appropriated in any indvidual
Knowledge management (Types of knowledge) Macro and Micro Embedded and detached Marketable and non-marketable Personal and group Transferable and non-transferable
Macro and micro Ma - possessed by society or culture at large Mi - specific, specialist (competitive advantage)
Marketable and non-marketable Determined by degree of specificity and embeddedness (some knowledge may not be marketable but still mission critical)
Personal-group knowledge Degree of transfer-ability between individuals, personal knowledge heavily flavoured, group knowledge is preferred (less susceptible to subjective assessment)
Fundamental CSF (critical success factors) Shared purpose Trusting relationship Willingness to share risk Mutual benefit derived from the existence of the VO
Models of virtuality Co-alliance Star Alliance Value Alliance Market Alliance
Co-alliance Star alliance Co - Shared partnership, equal, knowledge resources, skills, alliance may change with market opportunities St - coordinated networks of interconnected members reflecting core. surrounded by satellite organisations, core controls communications
Value alliance Market Alliance Alliances based on product chain value (extended relationships) Come together to coordinate manufacture, marketing, selling, distribution of diverse set of products (Aust. E market)
Overall virtual concerns Security Reliability Legal Priorities of group, individual, organisation
Security Privacy Content assurance Source validation Cross-application consistency Hostile code protection
Reliability technology how will the internet evolve new technologies available
VO's and law jurisdiction issues, tax consequences, ip rights
Prioritisation of needs Trust, flexibility, learning, rewards (individuals, group, organisation)
Tutorial Questions (11) Discuss the commonalities of traditional and virtual organisation management. What are five of the virtual management gaps? Explain each one. Describe the structures of the co-alliance model, star-alliance model, value-alliance model, and market-alliance model. How do security issues of traditional organisations differ to those of virtual organisations?
Web servicing XML and outsourcing (9) Outsourcing contracting another party conduct a service that would otherwise be done in-house (back-office vs front-office) functional outsourcing (mailroom, payroll) Business process outsourcing
Outsourcing motivation Cost, lack of skills, process is difficult, cheaper
Pro's and cons of outsourcing Pro - flexible, cost, quality, core competency focus, risk less Con - managerial control, knowledge/skill
Decision matrix
XML Extensible markup language (facilitate data sharing, flexible specification of meaning of data, a standard)
Web service is any program that is callable by another program across the web in a way that is (platform-independent and language-independent) Uses infrastructure standards (xml, soap, wsdl, uddi)
Traditional vs Web T - within enterprise - procedural W - between enterprises - message driven
Web application vs web service User-to-program interaction (static integration of components Web service (program-to-program interaction) possibility of dynamic integration
Web service characteristics XML based Messaged based Language independent Dynamically located Dynamically assembled Internet Industry standards
Web services for Vo's platform neutral accessible in a standard wat accessible in interoperable way relatively cheap simplify integration outsourcing
Web services for Vo's contd inter-operable - connect across heterogeneous networks economical - recycle components, no installation automatic accessible - legacy assets and internal apps are accessible on the web scalable
SOAP simple object access protocol (soap is an XML notation for describing how messages are assembled and transmitted over http between service consumers and service providers
WSDL web services description language - enables automation of communication details between communicating partners discoverable through registry
UDDI universal description, discovery and integration (White pages [address, contact], yellow pages [industrial categories] , green pages technical information about services])
Lecture 6 Technology Communication support? Collaboration/communication tools monitoring tools (depending on team purpose) access to various databases knowledge management systems
Underlying technologies required TCP/IP - Transmission Control Protocol/Internet protocol DNS - domain name servers HTTP - hypertext transfer protocol FTP - file transfer protocol SSL - secure sockets layer HTML - hypertext mark-up language XML CSS - cascading stylesheets Intranets Firewalls
Groupwork characterisitcs Different places Different times Same or different organizations Permanent or temporary
CSCW Computer-supported cooperative work or collaborative computing
Group Support Systems GSS Information retrieval Information sharing (parallelism, anonymity) Information use Support participants (improve productivity and effectiveness)
Groupware Electronic brainstorming videoconferencing group scheduling voting service electronic meeting services
time/place
Synchronous Desktop and real-time EMS (electronic meeting systems) video conferencing audio conferencing instant messaging
asynchronous Email voicemail google docs
check pictures email, bulletin boards display, chat, emeeting, data conferencing
Group Ware dropbox, google docs, novell groupwise, webex
Questions Why communication important for collaborative computing Methods currently used for nonverbal communication in collaborative computing why is it useful to describe work in terms of time/place framework explain how anytime/anyplace meetings differ from same place same time meetings? describe the kinds of support groupware can provide? discuss criteria that you would use for selecting technology that will support your virtual team? discuss the possible uses of facebook to support virtual work? Soz Lou Lou
Lecture 5 - Communication and trust (Virtual teams success Group effectiveness is a function of?) environment factors (turbulence, industry characteristics) design factors (task autonomy, rewards supervision) Process factors Group psycho-social traits
Communication vs collaboration Communication - mere exchange of information Collaboration - act of shared creation and or shared discovery
Communication contexts Historical - assumptions from similar communications Cultural - audience, beliefs, and values Physical = place, time, lighting Psychological - emotions, mood Social - size and relationship
Effect of task type Some tasks less effective electronically - consensus formation however divergent tasks are better)
Choice of medium factors urgency, permanency, privacy, complexity, formality, experience, emotional impact.
Communication barriers differences in perception, information overload, message complexity, differing status, unethical communication, physical distractions.
Conflict resolution Assertiveness vs cooperativeness
strategic intentions competing accommodating compromising avoiding collaborating (win-win)
Principles in negotiation and collaboration Separate people from problem focus on interests, not positions invent options for mutual gain insist on objective criteria
Conflict resolution and collaboration Collaboration can occur in conflictual and difficult situations it is not necessary to begin with similar viewpoints for successful collaboration collaboration requires considerable communication skills.
Team design and collaboration teams are individuals that delegated separate tasks designed to achieve an appropriate end. working jointly is not enough for successful collaboration
Task functions and maintenance functions T - initiating, opinion-seeking and -giving summarizing M - harmonizing and compromising encouraging, diagnosing, standard setting
Dimensions of trust integrity, competence, consistency, loyalty, openness
Trust lost act inconsistently to what they said personal gain withhold information half-truths close minded
Trust built team player, practice openness, be fair,
Questions 1. Briefly summarise the key communication issues raised in the case study provided with this week's tutorial 2. which of the four commentators do you concur with 3. Seven principles of trust? 4. what methods and processes could be implement to ensure trust developed amongst members 5. five dimensions of trust? how can we build trust in these dimensions 6. how different levels of the power-distance index can create potential conflicts and degradation of trust in the team d
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