What are the pros and cons associated with the evolution of the virtual organization?  

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Michael Ugulini | (Level 3) Educator

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One of the 'pros', the advantages, of the evolution of the virtual organization is the reduction in operating expenses that can result from shifting to this business model. A company can outsource much work to freelancers who are connected electronically to their enterprise. Therefore, they do not have to accommodate these workers through having office space and paying rent on significant square footage.

Another advantage of virtual organizations is the way they can quickly tap into the expertise of a host of freelancers around the world. Before the advent of the Internet and on-line virtual offices, it was more time-consuming and expensive to find, connect to, and communicate rapidly with qualified individuals globally. Today, a business enterprise can locate and work immediately, virtually speaking, with talented people who can add value to their company immediately.

One 'con' or disadvantage of the virtual organization is the lack of human social face-to-face interaction that takes place. Unlike an office environment of diverse personalities, the virtual worker typically works from a home office alone. Some people find this works just fine and they are very productive under this paradigm. Others find the lack of socail interaction in the workplace stifling and this can hinder their productivity. Some virtual workers end up migrating back to a bricks and mortar so-to-speak office environment where they interact each day face-to-face with their co-workers.


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