Analyse the potential benefits that can be achieved as well as the limitations and challenges of a virtual organisation structure?

Introduction
A virtual organisation is an organisation that involves disseminated and detached entities and
requires information technology for supporting the work and communication. This is not an attribute
of the firms, rather it is one of the form of the organisations. The virtual organisational structure relies
highly on the information technology (Griffin and Moorhead, 2011). However, it is important to
mention that up till now its precise definition is not agreed upon by the researchers. This structure
implies the innovative and novel relationships among individuals and organisations. The term virtual
is defined as something which is not physically present and it relies on some software for its existence.
This virtual structure is also defined as the ‘unreal but looking real’ structure. It outlines the
contemporary organisation where there is a conventional cooperation which does not exist physically
and this entirely represents the digital process of independent web associates. Such structure has the
limited physical resource and value is added through knowledge instead of equipment. As time is
passing, the virtual structure is becoming common and many contemporary organisations has adopted
this structure (Bellini et al., 2016). This structure has many advantages and benefits, therefore, many
organisations are adopting it. This essay reviews the potential benefits of virtual structure.
Furthermore, it is important to highlight that there are many limitations and challenges of this
structure which often demotivates the organisations to adopt it. This essay also sheds light on the
limitations and challenges of the virtual structure.
Main Body
A virtual organisation is considered to be a business concern that is present inside a space
where no legal as well as physical structures’ compulsion exist (Child, 2015). The main three features
of virtual organisations include reporting associations and extent of control, grouping of personnel
into divisions and divisions into the business concerns, and efficient communication along with
direction and incorporation. In virtual organisations, work can be performed and can be conducted
anytime and anywhere (Lin, 2011).
According to Bowditch, Buono and Stewart (2007), virtual workplaces and teleworking as
well as telecommunication are almost one thing. In all of these, workers work from another site
external to the outdated workplace. Virtual workplaces and teleworking have become vastly common
for some managers, and happened with apprehension by other people. The idea is a comparatively
novel one, which makes it problematic to make absolute strategies that set clear limits for working
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external to the outdated office setting. Just like other work settings, there are benefits and drawbacks
to virtual workplaces and teleworking.
As mentioned by Griffin and Moorhead (2011), there are numerous benefits of virtual
business. Virtual structure is time saving, with no transportation expenditures and removes lack of
contact to specialists. Ashkenas et al., (2015) told that the members can be managed whether or not
they are in practical contact with one another. Help from external specialists can be taken without
experiencing expenditures for transportation, classification and interruption. Workers can main work
life balance. According to Hoch and Kozlowski (2014), with the help of virtual teams, companies
can increase their probable labour markets allowing them to recruit and keep the best persons
irrespective of their physical positions. As said by Bellini, Pereira and Becker (2016), the main benefit
of virtual team appreciated by an association is the related with cost reduction. According to Daim et
al., (2012), the main benefit of virtual structure is that the business can rescue enormous expenditures
infrastructure, office places, utilities bills such as gas, electricity, water. Several companies contract
out their processes to the low-cost areas. Therefore, manufacturing cost also declines with the
decreased raw material expense, operational expenses as well as lesser salaries of the staffs in these
physical sites.
As said by Starbird and Palen(2013), virtual business structure permits companies to look for
aptitude beyond their country. This takes together the specialists and authorities from around the
world to work together on the plan. The improved information sharing and better modernisation
occurs as company’s human capital share their knowledge of international and native marketplaces.
Bartel, Wrzesniewski and Wiesenfeld (2012) stated that workers in a virtual team have a te