Virtuality and Virtual Organizations – The Conceptual Edifice

Abstract

This chapter forms the conceptual bedrock for VOs. Most organizations continue to cling on to traditional management practices in the absence of a new set of comprehensive guidelines to manage and measure organizational parameters in an increasingly virtual environment. They need to have reliable tools to comprehensively assess how they are faring, to manage risks through early indicators. Given the enormous confusion that appears to be prevailing, regarding the interpretation of virtuality, the chapter begins by proposing a sound definition of virtuality and VOs. It evolves a multi-dimensional conceptual model that can accommodate all the manifestations of VOs discussed in an earlier chapter. It develops an unambiguous quantifiable representation of virtuality. This is transposed on the underlying conceptual model, enabling organizations to measure and manage outcomes of virtuality and move up a well-defined maturity curve. This leads to the concept of Virtual Organizational Maturity. The chapter provides a framework for understanding new-age organizations by looking at virtuality not merely as a technological phenomenon but as a clearly structured organizational strategy.