LESSON 09

HR MANAGEMENT IN VIRTUAL ORGANISATIONS

The outline
• The virtual organisation and workplace
• HR management practices in virtual organisations

Have a look at the following mind map to see where you are in the process
of working through the study material.

Career management Labour relations Diversity management

Chapter 08 Chapter 13 Chapter 03

Performance Competency-based
management Health and safety HRM
Chapter 09 Chapter 12 E-reserve

Training and Compensation and HRM in virtual

development fringe benefits organisations
Chapter 10 Chapter 11 Chapter 15

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9.1 LEARNING OUTCOMES

Read through the outcomes before you continue. This will give you an
overall picture of what we will discuss in this Lesson.

After studying this Lesson, you should be able to

• differentiate between the three forms of virtual work arrangements

• distinguish between the various virtual teams
• explain the role of technology within virtual teams
• discuss the role of the HR professional within the virtual organisation
• discuss issues relating to several HR practices within the virtual work environment
• distinguish between the concepts of e-learning, m-learning and cloud computing

9.2 KEY CONCEPTS

Several key concepts are listed at the end of chapter 15 in the prescribed book
and you should be able to define the following terms.

CyberLink Telecommuting
E-learning Cloud computing
M-learning Front line
Technology E-mail
Virtual teams Virtual workplace

9.3 INTRODUCTION

The 21st century has brought about tremendous exciting changes in technology. We can
now contact someone from halfway across the globe within a matter of seconds. Data is
available literally at our fingertips, some cell phones have e-mail and internet facilities and
we can even phone friends and relatives abroad via the internet. The information
technology revolution touches each one of us and the office environment has not been
left out. Virtual teams, telecommuting and even virtual organisations are the new
buzzwords in the 21st-century workplace.

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Since the Covid-19 pandemic gripped the world earlier in 2020, organisations worldwide
had to adapt their operations very quickly to the challenges linked to the lockdown (Du
Preez 2020).

Let us now look at the virtual organisation as an entity.

9.4 THE VIRTUAL ORGANISATION AND WORKPLACE

In a traditional employment relationship within the organisation’s normal operation,

employees report to work in an office building. This means that they are office bound and
are expected to report for work and leave the office building at a specific time. The
employment relationship may require the employee to have frequent face-to-face
interaction with the supervisor or line manager. Virtual organisations differ from traditional
organisations in that they have partners, a core business and flexible working
arrangements, and are linked with partners or teams via technology. Some of the reasons
for organisations opting to go virtual may include globalisation with growing trends to
include global customers, an ability to quickly pool expert resources, the creation of
communities of excellence, more specialised products and services, or a need to use
specialised knowledge (Čulo 2016). Inevitably, organisations must develop information
technology capabilities and compatibility to successfully operate in a virtual workplace
setting.

Study sections 15.1 and 15.2 in chapter 15 of the prescribed book.

Activity 9.1
Read this case study and then answer the questions that follow.

Expanding virtually

Bongi is a pharmaceutical sales representative at a leading pharmaceutical company

in South Africa. The company discovers, develops, manufactures and markets a broad
range of healthcare products. Their customers generally include doctors and
pharmacies. Until now, the sales representatives were office bound. They used to

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 contact their customers via telephone or electronic mail. On request, they would visit
the potential client and provide him/her with more information and samples of their
products. If the client was interested in their products, the representative would take
their orders on-site and process it when he/she returns to the office.

Due to a high demand in their products, the company has decided to expand their
operations division. This expansion will move into the fourth floor where the sales
representatives are currently based. The company has therefore decided that the sales
representatives will no longer have offices at headquarters. The company, however,
requires the sales representatives to be at the office for their weekly sales meeting and
monthly video conference with the owners in Texas.

Bongi is very happy with this arrangement as they have provided her with a company
laptop, car, mobile phone and internet access. The laptop is set up to access the
company’s server from anywhere in the country that is connected to the internet. With
the advances in technology, brochures are now available electronically and the sales
representatives can now process the order directly from the client’s site. Bongi feels
that she will be very productive with this new work arrangement; Peter, on the other
hand, feels that he will now be able to do whatever he wants! No more bosses looking
over his shoulder. Now his time is his own and he can manage it as he pleases. He
cannot wait to work from home.

That night at home Bongi tells her husband about this exciting opportunity to work from
home. “How does your boss know what you are doing? Won’t it be tempting to rather
sit and do nothing?” asked Mark. Bongi responds by saying: “Not for me. I think it will
be easier to work from home. Here are no distractions like in the office and now I can
drive directly to my clients. It will save me a lot of time and petrol money, and I still have
my targets to achieve, so there is no sitting around. However, Peter seemed to be too
excited with this new arrangement. I think he might take some advantages. But in the
end, it is all about discipline”.

Mark thinks about this and realises that Bongi might be right – there are many possible
benefits. He wished he had an opportunity to work from home; but as a store manager
it might not be possible (Wärnich et al 2015).

a. Identify and briefly discuss Bongi’s new work arrangement.

b. Outline the skills Bongi will require to be successful in this work arrangement.
c. Briefly discuss the benefits of such an arrangement.
d. Mark would like to work from home as well. Discuss Mark’s suitability for the new work
arrangement.

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e. Due to the Covid-19 pandemic and lockdown, management recommends that all
employees work from home. Explain if Peter will be successful working from home.

Feedback

Bongi’s new work arrangement is telecommuting.

Telecommuting is when work is carried out in a location (e.g., home) that is remote from
the central offices, where the worker has no personal contact with co-workers but can
communicate with them by electronic means. Examples of workers under these
conditions are journalists, trainers, service engineers, installation engineers and tele
sales. When implementing the telecommuting work arrangement, aspects such as
location, logistical support, monitoring performance, job roles, personal circumstances
and organisational goals need to be considered and be in place for this work arrangement
to work successfully (Wärnich et al 2018).

Employees like Bongi need additional skills if they are to operate within a telecommuting
environment. These include organisational, decision-making, motivation and
communication skills.
Just as there are benefits for the employee and employer when telecommuting,
organisations should be aware of the problems associated with such a work arrangement
for both the employees and employers. For example, the technology can pose problems
due to power failures or internet connectivity issues.

Mark is a store manager; therefore, he is always required to be at the store. He cannot

manage the store from home.

The Covid-19 lockdown poses a problem for organisations because there are specific
characteristics and skills needed to make telecommuting work. Peter will not be
successful. It seems as if Peter does not have the necessary discipline to work from
home. He sees this work arrangement as an opportunity to do what and when he wants.

Let us look at three forms of virtual work arrangements: telecommuting, frontline and
CyberLink.

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 Study section 15.2 in chapter 15 of the prescribed book.

Activity 9.2

a. Distinguish between a frontline and CyberLink work arrangement.

b. Identify and discuss the different types of virtual teams found in virtual organisations.
c. Discuss the impact of technology on virtual organisations and teams.

Feedback

The frontline model: Employees work away from the office, most frequently at a
customer’s site. Frontline involves moving employees (e.g., sales and service) out of the
office into the field to work from remote locations, mobile offices and customer locations.
Employees can share offices, which can result in huge cost savings for the organisation.
The frontline model can also contribute to better service delivery to customers.

The CyberLink model is found whenever teams involving customers, suppliers and/or
producers collaborate to manage work. These groups work together face to face and in
cyberspace to realise a product or service goal. An important condition for the successful
functioning of this model is for organisations to restructure their culture and work systems
(see section 15.2.3 in the textbook).
Three types of virtual teams can be found: project teams, service teams and process
teams. Organisations and the HR function should consider the cost benefits and
complexity of implementing virtual teams (see table 15.1 in the textbook). We will look
briefly at each of these teams.

Project teams
Here a group of members come together for the duration of a specific project. The project
will normally define the skill base needed for the task on hand and suitably qualified staff
can then be identified. The team can decide to hold formal meetings on a predefined
basis and then work together in subgroups to complete their individual modules. Just as
in the case of teams found in traditional organisations, the team will have measurable

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outputs.

Service teams
In the case of service teams, these teams may be found across several locations or
countries. Their main responsibility will be to solve problems and provide advice. IT
support is a typical example of a service team. Due to the time differences across
locations, this virtual team may need to be staffed during abnormal working hours. It is
important to note that in contrast to project teams the service teams focus on problems
and people outside the team itself. Each team member works virtually using the available
technology to solve the different types of problems. A typical example would be the
technical team of an internet service company such as MWEB, Telkom, Vodacom and
MTN.

Process teams
Due to the nature of this type of team, its membership is likely to be fluid as members are
called upon to address the challenges the team is facing at any time. An example of a
process team would be a team of managing directors from each market within Europe to
continually develop a company’s organisational effectiveness. The team would have an
evolving action plan to address the problems that arise at any point in time (Wärnich et al
2018).

Technology plays a vital role in realising the potential of working flexibly. Virtual teams
rely heavily on technology and the correct infrastructure. Technology forms a large part
of managing and empowering a virtual team. The HR function should be informed of what
technologies are offered and used by remote employees and must train line managers
on how to manage virtual teams (see “a profile of a successful telecommuting employee”
and “virtual tips and tools” in the prescribed book).

One of the most important building blocks in the successful functioning of effective teams
is communication. The key to on-going, stimulating communication that will sustain a
creative working environment is the use of technology. The team can either all collaborate
at the same time, known as synchronously, or at different times to each other, known as
asynchronously. Technology to support virtual teams and the groupware used in
computer-supported cooperative work, generally can be grouped into several categories
such as Zoom or Microsoft teams and e-mailing (Wärnich et al 2018).

9.5 HR MANAGEMENT PRACTICES IN VIRTUAL ORGANISATIONS

What has become clear over this incredibly turbulent period is that companies that have
made shrewd digital investments pre-Covid-19 were the most resilient and best placed to

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weather the storm. Furthermore, trends such as cloud, digital collaboration and analytics
introduced in the workplaces have now accelerated and organisations are now making
important technology investment decisions (Du Preez 2020).

Study section 15.3 in chapter 15 of the prescribed book.

Activity 9.3

a. Due to the Covid-19 pandemic, if organisations were to appoint more employees, for
example people responsible for handling the marketing and distribution of their
product, they would have to revise HR policies and procedures during lockdown.
Explain how the virtual environment would influence the work of the HR function.
b. Briefly explain the role of the HR professional in a virtual organisation.
c. Distinguish between e-learning and m-learning.

Feedback

Virtual organisations follow a team-based approach to human resources. This influences

the way employees are managed and thus also the HR policies and procedures that will
be applied.
Different generations (traditionalist, baby boomers, generations X and Y, millennials and
now generation 2020) have developed generational core traits which impact the HR
function and organisations.

Staffing practices will concentrate on the characteristics of people who will perform well
in a fluid, ever-changing environment; training and development will concentrate on
knowledge sharing; and performance monitoring, appraisal and feedback will have to take
place over long distances, which complicates an already complicated human resource
activity. New approaches to compensation such as broad banding and person-based
systems will be more appropriate in the virtual organisation.

The HR professional plays the roles of coach, architect, designer/deliverer, facilitator and
leader to add value and contribute to the virtual organisation’s capacity to be competitive.

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The HR professional must be aware of different sets of expectations from both the
employees and employer when fulfilling these roles.

E-learning involves the use of the internet, electronic media and information and
communication technologies (ICT) to conduct training online, whereas m-learning is a
subset of e-learning, educational technology and distance education that focuses on
learning across context and learning with mobile devices. The HRM2602 module uses
blended learning, which integrates e-learning and m-learning.

M-learning technologies include handheld computers, MP3 players, notebooks, mobile

phones and tablets. The method is convenient in that it is accessible from virtually
anywhere. Before adopting this type of learning, however, several issues need to be
considered:

• top management’s support

• enough funds must be available for the development of this training
• HR function and management must be retrained to accept this new approach
• the potential users (learners) must be computer-literate and have access to computers
and the internet
• trainees need to be self-motivated enough to direct their own learning

E-learning has a major impact on the HR function, especially T&D. Therefore, advantages
and disadvantages must be considered (see table 15.2 in the textbook). E-learning, as
well as m-learning, involve not only providing the trainee with content, but also giving the
learners the ability to control what they learn, the speed at which they progress through
the programme and even when they learn. This type of learning also allows learners to
collaborate or interact with other trainees and experts and provides links to other learning
resources such as reference material, company websites, and other training
programmes.

It may also include various aspects of training administration such as course enrolment,
testing and evaluating trainees and the monitoring of the trainees’ learning process. In
this technological age, employees are more active in their own career development and
they are learning on their own using web publishing and interaction tools like podcasts,
social media, learning 2.0 classrooms, virtual class rooms, Second Life, YouTube, blogs,
screen casting, and learning management systems (Moodle and Blackboard).
Organisations should create organisational social media platforms to harness the power
of interactive learning (Wärnich et al 2018).

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9.6 SUMMARY

In this Lesson we considered the impact of the management of employees within a virtual
organisation and you learnt about different forms of virtual work arrangements. Virtual
work arrangements are arrangements that allow employees with unique skills to work
remotely from their colleagues and managers. We highlighted the advantages and
disadvantages for both the organisation and the employees in implementing these types
of arrangements. HR professionals play a critical role in leading the transformation of the
HR function within an organisation from a traditional to a virtual organisation.

9.7 SELF-ASSESSMENT

Now that you have completed this Lesson, you need to determine whether
you have achieved the relevant learning outcomes stated at the beginning of the Lesson.
Therefore, read through the outcomes again before attempting to answer the self-
assessment questions.

Question 1

Telecommuting is one of the forms of virtual work arrangements. Discuss this concept by
giving a brief description of it and explaining how such a work arrangement can be
implemented. Also consider why an organisation would use this kind of work
arrangement.

Question 2

HR professionals will have to play five different roles in the virtual organisation. Identify
and briefly explain these roles and discuss the ways in which the professionals can fulfil
these roles.

Feedback

Question 1

You will find the answer to this question in "The virtual workplace" in chapter 15 of the
prescribed book.

Telecommuting is when people work away from the office, for example at home.

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Elaborate on this description, then explain the six obvious issues that organisations must
keep in mind when implementing a telecommuting work arrangement. Lastly, you can
explain the advantages of telecommuting.

Question 2

The answer to this question is in “The role of the HR professional and HR practices in
virtual organisations” in chapter 15 of the prescribed book and section 9.5 of this Lesson.
The question is easy to answer: simply explain the theory discussed in the table by
referring to each of the five HR roles in the virtual organisation.

SUMMARY OF TOPIC 4

Employees are a company’s most valuable resource, but the ability to use this resource
effectively is limited by the company’s HR policies and practices. HR must be flexible
enough to embrace the challenges facing the new business environment if it does not
want to be a constraining factor that undermines the organisation’s competitiveness. It is
becoming increasingly important for HR managers to align HR efforts with strategic
objectives, to integrate the different HR activities to support employee performance and
to recognise individual differences. The competency approach to HR management is a
way to ensure HR flexibility. Competencies are characteristics that employees possess
and use in appropriate and consistent ways to achieve desired performance. A
competency model is the written description of all the competencies needed to ensure
organisational success. This approach will lead to a change in HR practices such as
recruitment and selection, T&D, performance appraisal and compensation.

Virtual office, virtual teams and virtual organisations are the new buzzwords in HR. They
have come about owing to advances in technology and social and economic changes,
which have led to significant changes in the world of work. Examples are changed
organisational structures, different work arrangements and changes in the way people
are managed. Especially in the COVID-19 pandemic lockdown, the new approach to
working has had such an impact on HR management that a new field of HR management,
called e-HRM, has been created (Wärnich et al 2018).

It is very important that you achieve all the learning outcomes of this module, as they
guide your learning process in this module.

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This also means that you have completed the four topics for this module.

BIBLIOGRAPHY

Čulo, K. 2016. Virtual organization – the future has already begun. Media, culture and
public relations, 7(1):35-42.

Du Preez, D. 2020. How business adapted: COVID-19 case studies. Retrieved 27

November 2020 from https://diginomica.com/how-business-adapted-covid-19-case-
studies.

Wärnich, S, Carrell, MR, Elbert, NF & Hatfield, RD. 2015. Human resource management
in South Africa. 5th edition. London: Cengage Learning.

Wärnich, S, Carrell, MR, Elbert, NF & Hatfield, RD. 2018. Human resource management
in South Africa. 6th edition. Boston: Cengage.

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