ABSTRACT
This report is based on an investigation on Virtual Organizations Development and Management in the Service Sector of Nigerian Economy a Study of Selected Service Organization in the North Central of Nigeria. Virtual organization management takes a macro view of an entire organization from top to bottom and seeks to institute and incorporate best practices, policies and procedures for working in any type of virtual environment and for managing any specific virtual organization. In carrying out this investigation, five research questions and five Hypotheses were formulated. There was no pre-test administered due to the smallness of the population. The Chief instrument for data collection was questionnaire one type of questionnaire was designed for both the mangers and the employees. Thirteen (13) questionnaire items were administered to the respondents. The data were analyzed using a chi-square statistical technique. The result of the study showed that selected service organization in the North Central of Nigeria could benefit from knowledge development, as mutual co-existence between management and workers is guaranteed. It also showed that Selected Service Organization in the North Central of Nigeria would have difficulties in growth and development if members that are geographically dispersed were not motivated. The result of the study also showed that virtual organizations could use technology for “Monitoring” employees work. The sophistication of technology permits managers, if they prefer to monitor every single keystroke or phone call of the employees, and many companies are doing so. When we examine virtual organization from the perspective of a network of organizations and its internal patterns, then we can certainly conclude that the virtual organization is a new type of network. The novelty lies in the essential role that ICT plays in the virtual organization. Finally, recommendations and area for further research was highlighted base on the result.
CHAPTER ONE INTRODUCTION
1.1 Background of the Study
The topic of virtual organization brings together theories about the nature of work in the information age, the organization of social behavior, and the role technology plays in the evolution of social structures. Virtual organizations are seen as the emerging standard in business, resulting from technological advances and changing expectations on the part of consumers and collaborators. Goldman, S.L, Nagel, R.N, and Preiss, K. (1995), argues that virtual corporations are here to stay. With information processing and telecommunications network continuing to expand, corporations that use these technologies to their full potential will succeed, and in the process raise the standard for competition higher than traditional forms of organization can achieve.
In essence, there is abundant justification for regarding management in the service sector as the most crucial activity of man because one who manages a concern is saddled with the responsibility of not only establishing but also nourishing and maintaining a type of internal environment in which people can work together in co- operation efficiently in order that they may achieve some set corporate objectives. It makes no difference whether or not these people are of the same sex, nationality, religious creed, linguistic group, educational background, political affiliation, etc. to be able to do this, the manager will need to study, understand and respond to the various elements affecting his operational environment. Such elements must also include economic, social, ethical, moral, political and technological ones. The managers work, therefore calls for some detailed analysis, which can only be done by breaking it into some major element or functions. Broadly speaking, these are the functions of planning, organizing staffing, directing and controlling (Umoh, 1996:2).
Management in virtual organizations are motivated by economic realities of the information revolution to organize their patterns of relationships around goals or interest that complement those held by other actors regardless of location. Davidow
and Malone (1992:38) provide the example of American Airlines’ SABRE reservation system. SABRE makes money for American by providing more information about customers to members and by giving customers faster response and more choice. This is a core competency that American uses to enter productive partnership with other airlines. In virtual organization, the work needed to meet a given goal is divided between various other entities based on the perceived competencies of the other actors involved.
Davidow and Malone (1992:7-8) describe the distinguishing characteristics of a virtual corporation as a focus on change, being customer driven and managed, and the presence of highly skilled workers working in a collaborative climate. Virtual organizations succeed when they develop relationships with their clients that last three or four product generations and include a broad variety of services related to a product. Goldman et al. (1995:87) agree with these characteristics and build on them, proposing a structure defined by the alliance of distinct core competencies distributed among discrete entities. To be successful, argues Goldman et al. (`1995:15), each firm must focus on achieving world-class excellence in one area. Market success follows from opportunistic alliance to the other firm to design, manufacture and market a product in a given niche. By building a virtual web (Goldman et al, 1995:22) of relationships with other corporations, what includes competitors, suppliers, and clients, a corporation enables itself to efficiently and effectively pull together the resources needed to develop and deliver productive solutions to client problems. By integrating their complementary core competencies, virtual organizations can reap the benefits of interdependence, reduced overhead, increases productivity, greater commitment from members and customers, an increased array of opportunities for future collaborations (Goldman et al; 1995:110, Davidow and Malone, 1992: 114).
Goldman et al. (1995:110), and Davidow and Malone (1992:114) alternate between the term virtual corporation and virtual organization, using both to refer to an entity. However, by describing virtual organization as a noun these authors reify the idea of the virtual organization as object at the same time that they define it as a corporate
entity nested in a continually shifting pattern of cooperative relationships that swiftly capitalize on opportunities for new product and services.
High productivity and / or development is one of the aims of virtual organizations, and for any project to succeed, people always work together co-operatively. Examples can be seen in government, military operations and philanthropic organization. It is usually the ability of those in management capabilities that determine the effectiveness of working co-operatively towards a set goal. If the management level or quality in virtual organization does not facilitate or permit effective co-ordination of the scarce human resources then there would be no need for technical skills, engineering capabilities, material resources or scientific knowledge (Umoh, 1996:4).
This research is aimed at examining the quality in virtual organizations and the nature of management that is practiced by selected service organizations in the North Central of Nigeria. It is believed that a long human interaction has existed between the management and its members and their relationship has contributed to the achievement or failure of the organizational objectives. This is based on the understanding that goals and objectives of virtual organization could be achieved or not achieved through human elements. This is why the researcher wants to know whether the process of virtual organization changes perceptions of relationships and interpretations of time and space. This research seeks to answer this question and provide a direction for further research on virtual organization as a process.
It is against this background that the researcher has decided to carry out an investigation to find out the nature and quality of management in virtual organization that are practiced in selected service organizations in the North Central of Nigeria, with the overall objective and recommending ways by which the present practice can be improved.
1.2 Statement of the Problem
The virtual organization (VO) is viewed as an organization consisting of independent partners, who try to combine their strengths, skills, resources, risks and finances in order to produce ideas or a product. Members of the virtual organization are often geographically dispersed and communicate with help of information technology. The VO is a popular organization structure, but it is also known that the virtual organization (VO) is difficult to manage. Members work individually and there is hardly any control. Some problems of the VO are that it is difficult to motivate its members; members suffer from social loafing and absenteeism. On the other hand, it is unclear how such an organization can reach a synergetic or learning effect by co- operating with each other’s core competencies. Learning is inhibited by several organizational boundaries of a VO. These boundaries are within time, space, structure, diversity and distribution of results and information.
Current literature on learning does not often take into account the problem of geographical and fluctuating workforce of a VO, although some do take into account learning between organizational partners (Hamel, 1991:10, Nonaka, 1995:24). Against this background it is pertinent to find out how virtual organization are developed and managed in the service sector such as banks, educational institutions, administrative institutions such as the civil service etc in the North Central of Nigeria.
1.3 Objectives of the Study
This research is out to examine and assess the nature of management and quality in virtual organizations. To this, the following objectives have been formulated:
1. To determine how knowledge is developed in a virtual organizations to enhance growth and development.
2. To find out how members work individually without any close supervision in virtual organization.
3. To examine how members that are geographically dispersed can be motivated to enhance effective performance.
4. To find out the extent to which virtual organization provides for ultimate adaptability and flexibility.
5. To examine how employees feel about losing real human contact and its effect on the virtual organizations.
1.4 Research Questions
Virtual organization and management is a current concept in Nigeria and thus generates a lot of questions. The following research questions have been considered in this study.
1. To what extent are there constraints in developing knowledge in a virtual organization and to what extent do they affect productivity?
2. To what extent does lack of close supervision of members impact on the growth and development of the virtual organizations in the North Central of Nigeria.
3. To what extents are members that are geographically dispersed be motivated to enhance effective performance?
4. To what extent does virtual organization provide flexibility and adaptability?
5. To what extent does lack of human contact affect the performance of the employees?
1.5 Research Hypotheses
There are some research hypotheses enumerated or stated below: These are:
1. Constraints in knowledge development negatively affect productivity in virtual organization.
2. Lack of close supervision has negative impact on the growth and development of virtual organizations in the North Central of Nigeria.
3. Geographical dispersion of members’ impact negatively on motivation.
4. Virtual organizational system impact negatively on flexibility and adaptability.
5. Lack of human contact negatively affects the performance of the employees.
1.6 Significance of the Study
As earlier mentioned, the impact of human resources in achieving organizational goals or objectives cannot be over emphasized. Through effective co-ordination of scarce human resources moral is raised while productivity of an organization is maximized.
Human resources are most valuable resources in any organization. The effective management of these resources is very important. Leadership is said to be the act of influencing people to achieve organizational objectives. The success of a leader to a greater extent depends on his ability to induce his subordinates to perform their work. Thus, this study is significant in many respects.
This study is aimed at investigating the nature of virtual organizations development and management in the service sector in the North Central of Nigeria, an area that the researcher considers to be very important. It is hoped that the recommendation made in this study will facilitate the operation of selected service organizations. This study is equally important to other similar organizations in the service sector. In other words it is hoped to be beneficial to other service organizations, institutions, researchers, government establishment and other organization that make use of human resources and intend to go virtual.
1.7 Scope of the Study
Virtual organization as a set of legally independent organizations which share resources and skills and interact among members through computer networks is wide in scopes and cannot dogmatically evaluated as a result of changes in technology.
Consequently, the researcher limits his area of study to selected virtual organizations in the North Central of Nigeria. In this study, all the various techniques and policies of the virtual organizations aim at increasing growth and the performance of the subordinates and staff towards the overall productivities and development of the virtual organizations were highlighted and evaluated.
1.8 Limitations of the Study
The researcher limits his area of study to selected virtual organizations in the North Central of Nigeria. This is feasible because the researcher is a citizen of Kogi State of Nigeria.
For this research work also the researcher faced constraints such as limited period of time, which the researcher has in carrying out his research work. Financial incapability in form of being able to procure needed money in time for carrying out the needed research work and moving from place to place to gather materials and distribution of questionnaire was one of such difficulties
encountered by the researcher. However, because of the above constraint, it shall be limited to selected virtual organizations in the North Central of Nigeria.
1.9 Definition of Terms
Virtulness: Virtualness is defined as the ability of the organization to acquire and maintain critical competencies through its design of value-adding business process and organizational structure (Davidow and Malone 1992:3).
Organization: Argyris (1957:39) view organization as the structure of positions and roles that is intentionally formalized for the purpose of securing co-operation among members of the group.
A Virtual Organization: Is an organization existing as a corporate non-for-profit, educational or other wise productivity entity that does not have a central geographical location and exists solely through telecommunication tools
(Ring and Van De Van 1994:94).
A Virtual Organization Management: Pierre (2006:7) describes virtual organization management as a macro view of an entire organization from top to bottom and seeks to institute and incorporate best practices, policies and procedures for working in any type of virtual environment and for managing any specific virtual organization.
This material content is developed to serve as a GUIDE for students to conduct academic research
VIRTUAL ORGANIZATIONS DEVELOPMENT AND MANAGEMENT IN THE SERVICE SECTOR OF NIGERIA ECONOMY: A STUDY OF SELECTED SERVICE ORGANIZATIONS IN THE NORTH CENTRAL ZONE NIGERIA
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