Analysis of Virtual Teams and Effects on Organizational Performance Research Paper

Analysis of Virtual Teams and Effects on Organizational Performance - Research Paper Example Virtual teams allow organizations to collaborate with the most talented people in their field, in all geographies, thereby removing the need to hire local experts. Virtual teams enable an organization to create a more diverse talent pool that would have not been possible if the organization was not having a policy of virtual teams (Snyder, 2003).   With the implementation of virtual teams in the workplace, employees can work and communicate in real-time despite the barriers of geographical distance and time. Travel time and costs are reduced including expenses such as accommodation, travel, and other daily allowances. Virtual teams also enhance productivity as the daily work life does not get disrupted because of frequent travel (Opper and Fersko-Weiss, 1992). All these factors enable the organization to increase their productivity and reach markets quickly and effectively. Work life balance and flexibility: Virtual teams lead to enhancement of work life balance for its team member s. Virtual team members can carry out their work from their location at any time as they wish removing the necessity of frequent travelling. The flexibility in the timings that comes up with virtual teams enables team members to manage balance between their personal and work life. Extended market opportunity: Virtual teams give organizations an opportunity to reach markets spread across the globe. Virtual teams are generally spread around all the locations across the world. This structure enables teams to have direct and quick access to different markets. With the implementation of virtual teams, organization can build a local connect with the customers in each country. The local presence also enables the organization to get a better understanding of the market including customer taste and behavior. Virtual teams are an effective tool for organizations to increase confidence amongst customers. Customers can be sure of the services of an organization having virtual teams because of t he local presence of individuals in their country. Virtual teams also provide an effective tool for small businesses to establish their global presence. Small businesses can expand their market reach through use of virtual teams.  ·   Ã‚  Knowledge transfer: Another major advantage of having virtual teams is the continuous knowledge transfer between various team members. Technical tools such as net-meeting, remote computer access and video and audio conferences enable members from across the globe in different time zones to participant in various discussions which increase the knowledge for team members. Generally the team members in virtual teams are individuals with different skill sets and competencies. With virtual teams, members based out of different geographic locations can gain knowledge from other members at a very low cost. Disadvantages Although virtual teams have significant positives, they also come with certain disadvantages that might arise out of issues like comm unication deficiency, poor leadership and incompetent team members. These disadvantages might also hamper the growth of the team which may result in inability of the team to achieves its goals. Communication deficiency: Communication deficiency is the most critical disadvantage that comes with virtual teams. Members of the virtual team do not interact face to face and interact but primarily through technological tools. â€Å"Effective use of communication, especially during the early stages of the team’