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UNIT – I Lesson 1 HRM – AN OVERVIEW Lesson Outline Nature of ...

UNIT – I Lesson 1 HRM – AN OVERVIEW Lesson Outline Nature of ...

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Introduction<br />

Business, trade and industries have become global in character. The place and<br />

spread <strong>of</strong> MNCs are felt in every part <strong>of</strong> the world. India and China are rated high as fast<br />

developing global business powers. <strong>HRM</strong> issues and practices are assuming universal<br />

character with a need for adaptation.<br />

VIRTUAL ORG<strong>AN</strong>IZATION<br />

The emerging HR trend in virtual organizations is both a challenge and opportunity<br />

to HR experts. The ready availability <strong>of</strong> information networks, e-mails and portable<br />

telephones is seen as accelerating the “Virtuality’ <strong>of</strong> work. A virtual organization is a<br />

networ <strong>of</strong> corporations made possible by Information and Communication Technology<br />

(ICT), which is flexible and comes to meet the dynamics <strong>of</strong> the market. In this way the<br />

virtual organization gains benefit with regard to the traditional hierarchical systems. This<br />

form <strong>of</strong> organization is also called as network organization or digital organization.<br />

The virtual organization is a social network in which all the horizontal and vertical<br />

boundaries are removed. It consists <strong>of</strong> individuals working out <strong>of</strong> physically dispersed<br />

workspaces, or even individuals working from mobile devices and not tied to any<br />

particular workspace.<br />

The ICT coordinates the activities, combines the worker’s skills and resources in<br />

order to achieve a common goal. There is a creation <strong>of</strong> network relationship that allows for<br />

contracting, manufacturing, distribution, marketing or any other business function. In a<br />

virtual organization, a small group <strong>of</strong> executives oversee directly any activities that are<br />

done in-house and coordinate relationships with other organizations.<br />

CHARACTERISTICS<br />

Characteristics <strong>of</strong> virtual organization are<br />

� Power flexibility<br />

� Informal communication<br />

� Flat organization<br />

� Multidisciplinary teams<br />

� Goal orientation<br />

� Dynamics<br />

� Homework

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