The Internet Encyclopedia (Volume 3)

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IMPACT OFVIRTUALTEAMS ON THEORGANIZATION 605

collaborative tools, working in virtual teams, uncoupled
from time and space, would be extremely difficult.
Internet-based groupware allows virtual teams to work
together to perform many different types of functions.
Groupware products offer a combination of asynchro-
nous and synchronous communication and information
exchange tools in one package. Using groupware, vir-
tual teams can send and receive e-mail, access databases,
conduct video conferences, brainstorm, chat, have discus-
sions in electronic forums, use bulletin boards and white
boards, execute project management, schedule events
with a calendaring function, and share documents and
applications.
Groupware is becoming more and more sophisti-
cated as the technologies have evolved. Using just a Web
browser and a telephone, virtual teams can access a URL
at a scheduled time to have real-time audio chats while
simultaneously working on shared documents. Virtual
teams can conduct meetings in their own virtual world.
These artificial environments are created with computer
hardware and software. The groupware allows the vir-
tual team members to represent themselves in this virtual
world as either an image or icon (in a two-dimensional
virtual world) or as an avatar (in a three-dimensional vir-
tual world) so it looks and feels as if the team members
are actually sharing the space.

Choosing the Correct Technology
Virtual team members must work with each other to share
information, brainstorm ideas, receive feedback, make
decisions, get training, and learn new techniques. Differ-
ent technologies facilitate different types of communica-
tion. The virtual team must select the most efficient and
effective tool to communicate given the team’s task and
type, the skills and backgrounds of the virtual team mem-
bers, and the resources of the organization.
There are other factors that assist in determining which
communication technologies the virtual team will utilize.
Cost of the hardware and/or software needed for some
technologies can be prohibitively expensive. A technology
may have a steep learning curve and the amount of train-
ing required would not be feasible for the virtual team.
Additionally, there may be some team members who are
“technophobes” and not comfortable working with any
type of technology.
The organization must have the appropriate phys-
ical infrastructure. More sophisticated communication
technologies such as Internet-based video conferencing
need a higher bandwidth to operate effectively. The hard-
ware/software has to be compatible with the already ex-
isting systems. Technology can—and will—fail. Virtual
teams need a backup plan if one of the primary tech-
nologies becomes inoperable; access to technical support
is critical. Having a previously agreed upon method for
urgent communication in the case of technical failure
should be established by the virtual team at the very be-
ginning of the process.
The technology must match the goals of the virtual
team and facilitate what the team is trying to accomplish.
Regardless of the technology utilized, the communication
among virtual teams has to be very focused and organized.

Protocols, such as the primary tool used for communi-
cation, plus the language, timing, member accessibility,
prioritization, and response rate, need to be established
for the virtual team to function effectively.
Synchronous communication tends to build relation-
ships in virtual teams more quickly than asynchronous
interaction (Haywood, 1998). Positive feedback can be de-
livered using any type of technology, but negative feedback
should be discussed where the team members’ faces can
be seen, such as in an Internet video conference. Video
conferencing also helps the team create a sense of iden-
tity because it is a technology with a high degree of social
presence, meaning the virtual team members can connect
on a much more personal level than using a technology
such as e-mail, which has a much lower degree of social
presence.

IMPACT OF VIRTUAL TEAMS
ON THE ORGANIZATION
The growth of the Internet and other communication
technologies, along with a variety of sociological and eco-
nomic forces, has made virtual teaming a reality. More
and more organizations are embracing virtual teams and
making them part of everyday operations. There are both
advantages and challenges, however, in working with vir-
tual teams.

Advantages
The use of virtual teams provides the organization more
flexibility. No longer bound by time and distance, teams
can come together as fast as the mouse click that logs
them on to the Internet. The organization has more lat-
itude in how, when, and where tasks are performed. Vir-
tual team members are also afforded more flexibility on a
personal level. Working virtually, people are not tied to
a specific place or timeframe in which to perform the
task, allowing the team members to organize their time
in the most efficient and effective way for each of them
personally.
Because virtual teams can consist of members from
all over the world, there is a larger group of people to
draw from. The diverse makeup of the virtual team pro-
vides for more ideas from a variety of viewpoints. With
virtual teams organizations can also utilize expert consul-
tants and bring in team members with specific expertise
more cost effectively. There is also a much greater oppor-
tunity for information sharing and collaboration among
virtual team members using Internet-based communica-
tion technologies, along with more occasions for input
and feedback from all virtual team members.
There are chances for creating strategic partnerships
or alliances that may not have been feasible without em-
ploying virtual teams. Organizations may become more
competitive. An increase in the product cycle development
or reduced time to market is possible when using virtual
teams. Utilizing virtual teams can also provide an organi-
zation the opportunity to increase productivity. Internet-
based communication technologies allow virtual teams
to essentially work around the clock from any geographic
location. The lack of common distractions that can occur
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