Implementing a Successful Virtual Workforce

Implementing a Successful

Virtual Workforce

MGT 651

November 21, 2007

Ramkumar Kuzhipully

Sitting at home in a flannel robe and fuzzy slippers, drinking coffee with the dog lying at one’s feet is the dream of many workers, and it’s happening more and more all the time. The advent of teamwork is nothing new, but cyberspace is providing a forum for the workplace that is revolutionary in bringing teams together. Technologically-connected people are the basis for the term virtual teams. Virtual teams refer to any team of geographically dispersed employees working together electronically who share responsibility for the team’s results (Malhotra, Majchrzak, & Rosen, 2007). Several companies, both global and domestic, have jumped on the virtual workplace bandwagon in recent years. It is estimated that 14% of the workforce performs from home at least two days each week, up from 11% in 2004, and this figure is expected to increase to 17% by 2009 (King, 2007).

The benefits of virtual teaming are many. The employee working from home is one less person on the road adding to pollution and traffic jams. One U.S. government study concluded that if 20,000 federal workers were allowed to telecommute just one day a week, 102,000 gallons of gas could be saved, 81,600 pounds of carbon dioxide emissions could be avoided, and over two million miles of travel would be averted (Cascio, 2000). Use of virtual teaming allows managers to seek employees with the best skills to perform the work. Early in this decade, Harley-Davidson of York, Pennsylvania, returned to profitability and began competing heartily in overseas markets thanks to the addition of virtual teams (M. Attaran & S. Attaran). The cost of virtual teams to companies can pay off over time in reduced travel costs and less absenteeism. Logan Aluminum in Russellville, Kentucky has drawn on virtual teams to trim turnover by 20% and reduce absenteeism to 1.2% in a 2 year span (M. Attaran & S. Attaran, 2003). But how do you create a successful virtual workforce that is both efficient and productive?

Designing virtual teams involves four basic areas. First, managers must exhibit a commitment to the virtual team. The leader must clarify goals, provide resources, impart feedback, and develop strong interpersonal relationships among team members. Second, technology must provide the team’s communication medium. Collaborative computing varies from conducting meetings online to more intricate programs designed to facilitate users collaborating in real time, sharing documents and managing projects. Third, cultural diversity must be considered and celebrated as part of any virtual team design. Community spirit involves a sensitivity to differences. Fourth, an atmosphere of trust must be developed. The days of constant scrutiny and control are falling to the wayside as employees are measured by results and not the day to day tasks.

Leadership

The new “e-office” paradigm presents many new challenges for today’s managers. An organization can still obtain a competitive advantage but must learn new ways of doing business and directing employees in this virtual world. As these knowledge workers thrive and become more autonomous, the manager will still be needed. In fact, better management skills will be necessary to control and monitor productivity of such teams.

A manager’s responsibilities for leading a virtual team are not unlike the ones for a team that is collocated. As the first priority, the leader should establish goals for any project undertaken as these will serve as a target and be used to evaluate the team’s success. Goals also give a team an identity, a reason for being brought together. According to Kerber and Buono, the goals should provide a “compelling challenge that energizes the team to overcome the difficulties of spatial distance…” (2004, p.4). Then the leader must tell the team what they are to accomplish. A fair division of assignments can occur once the team has their objective. When goals are met, appropriate rewards should be bestowed. Alternatively, when goal attainment fails, the team must be held accountable.

Once the decision is made to create the virtual team, the second priority is that the manager must see that reasonable resources are provided to be sure the venture doesn’t fail because of unmet technological and operational needs. Many expenses arise when building a virtual team despite the savings in overhead that may be gained by telecommuting. Business owners can expect to pay additional costs to set up home offices initially and maintain