Discussion 2 - Question 2

Virtual Organization is actually an organization filled with members that works geographically away from each other, communicating through online to share their resources in order to achieve their own goals.

Theres a lot of benefits to this practise, where some of them are listed below.

•            Efficient use of office space since not all employees are required to attend to their office thus, diminishing utilities expenses and reduction of the consumption of consumable materials.

•            Low expenses for salary, as the virtual team members are paid for their task and not for their time spent at work. And it matters less when an employee is absent in the office.

•            Possibility to have a cheaper labour cost in an area compared to other places, and chances of getting better experts in that particular area to handle a specific task.

•            Productivity and performance boost as workers can focus on their work anywhere comfortable as they want without getting pressure and stress from co-workers.

•            Job opportunities for rural areas.

However, such practise will have its drawbacks as listed below.

•                  Information and data are kept by the employees. Less security for the files, especially important documents crucial for the company.

•                  Risks of communication failure. Even with the same resources, different people will definitely have different understanding.

•                  Working at home unsupervised, workers might take the time to goof around doing their work last minute. Mistakes will surely occur and productivity drops.