Business of Information (BOI)

1. Puspita Kencana Sari S.Kom, M.T.I pkencana2011@gmail.com 081510365085 Business of Information (BOI) Week #7

2. Managing in Virtual Organization

3. Managerial Problems in Virtual Work

4. Motivation “Human behaviour is motivated by the desire to fulfill certain needs” (Maslow)

5. Motivation • How to maintain worker motivation? • Works fulfill the first two needs by providing money • In virtual organization, the problem of socialization become much more difficult than in conventional organization • The freedom and independence of virtual organization, give people more control and offer self-esteem and self-actualization • BUT, socialization must precede self-esteem

6. Co-ordination • Problem ensuring right degree of co-ordination: enough to keep focused on the organization’s goals, but not too much to restrict creativity and flexibility • 3 methods of ensuring co-ordination: • Top-down; more restrictive, controlling • Centre-outwards; less hierarchical but there is a tendency for the centre to gravitate towards the centre of power • Diffused co-ordination; reciprocal co-ordination, each members known their own roles, the roles of their colleagues and how to adapt without losing focus in the final goal.

7. Accountability • Compliance becomes much more difficult to enforce in organizations where key employees work at a distance from headquarters. • Virtual organizations need strong codes of ethics that emphasize transparency , accountability and social responsibility. • Workers need to be motivated, socialized and trained to internalize the recommended norms of the firm and buy into its system of ethics and values

8. General Management Tasks

9. Fayol: POSDCORB

10. Fayol: POSDCORB • Planning • To give the organization directive • Include information gathering and analysis, forecasting in both macro and micro terms, formulating goals, setting out strategies and communicating them. • Organizing • To ensure the organizational fitness for purpose • Include defining physical structure of the organization, its communication networks, its knowledge management system, and corporate culture

11. Fayol: POSDCORB • Staffing • To ensure the right people are in the right jobs, and that people’s full potential is available to the organization • Include organizing and leading teams, motivating people and providing support for junior managers and employees at every level • Directing • To provide direction through example, regulation, learning and other methods which enable employees to understand more clearly what organization needs of them, what their own place in the organization is and how best they can carry out their own tasks.

12. Fayol: POSDCORB • Co-ordinating • Things to be done by harmonizing to that everyone is pulling willingly towards the same goal, with continuous managerial supervision and monitoring • Reporting • Gathering and dissemination of information and knowledge • Budgeting and finance • Include allocating the funds to be spent on particular projects, calculating the potential return on each and then managing finances

13. New Task for Virtual Management • Communication • Ensuring that knowledge flows are efficient and timely, linking all the elements of an organization to each other and to suppliers and customers • Assessment • Matching of the organization’s goals with its form and structure on a dynamic basis, and altering or amending that structure when opportunities arise

14. New Task for Virtual Management • Learning • Constant replenishment of an organization’s stock of knowledge capital through such activities as training and education, R&D, environmental scanning and so on. • Valuation • The continuous and dynamic reassessment of knowledge assets in terms of their present and future value to the firm.

15. Real vs Virtual: The Strategy Mix

16. Value Creation Matrix • Each organization needs to search for a suitable mix of virtual and non-virtual components in order to achieve its ends. Virtual Real Nature of product/service Relationship with customers Relationship with suppliers Relationship between elements of the firm Nature of work Relationship between management and employees

17. Virtual vs Real • The choice for value • The mix chosen should be the one that creates the maximum value for customers and shareholder • The choice for co-ordination • Virtual co-ordination reduces the time and costs that are required for co-ordination and thus improves efficiency. But, it never entirely becomes a substitute for face-to-face contact

18. Virtual vs Real • The choice for efficiency • It is necessary to look at the concept of efficiency on two levels, each process should be designed in the most efficient way possible and each process should contribute to organizational efficiency as a whole . • The choice for innovation • Innovation now longer needs to be concentrated in one place or come from dedicated, full-time research staff.

19. Virtual vs Real • The choice for motivation • People are easier to manage and motivate within fairly close graphical and cultural boundaries. Distance can’t be entirely overcome by communication technology, personal contact and presence are required to at least some extent • The choice for networking with supplier and customers • It depends on four things: nature of the supplier, the needs of the customer, the nature of the products/services being sold, and firm’s own facilities and competencies

20. Conclusion The choice is never a final one. Times change: the environment alters, customer needs change, new technologies open up new possibilities. The choice should reflect the dynamic needs of any business system.