- This topic has 2 replies, 2 voices, and was last updated 4 years ago by
.
- Posts
Hello Tutor,
One disadvatage written in Kaplan book is:
”Monitoring of the workforce may be difficult since the core organisation will not employ many of the virtual organisation’s workforce and those that it does employ will often work remotely”.
My question is doesn’t virtual organisations like Amazon have their own technical departments and teams looking after the processes and all??
Second one, ” Confidentiality of information is a risk since the core organisation will share information with it’s partners (some of these partners may also work with competitor’s organisations)”.
My question is what sort of confidentiality are they talking about here?
Thank you.
I don’t think that Amazon is a virtual organisation. It is an on-line retailer.
Typically, in a virtual organisation almost all tasks are outsourced leaving only a core of permanent employees So, R&D, HR, IT,marketing, sales ledger, accounting, distribution, manufacturing and warehousing could all be outsourced. The problem is not so much monitoring the workforce but coordinating all the outsource firms and ensuring adequate performance.
For your second question if, for example, HR were outsourced then there will probably be lot of potentially sensitive information held by third parties. Similarly, using a factor to administer the receivables ledger will put lots of information about sales and customers in the hands of others.
- The topic ‘Network (virtual) Structure.’ is closed to new replies.