Virtual Organization Case Study

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The study of trust and control in a virtual organization has had researchers emphasizing on the importance of trust as a necessary condition for ensuring the success of these mentioned organizations (2001, p.277). Although we have been led to believe that this trust is the backbone of the virtual work environment, the author Michael Gallivan has explored the Open Source Software (OSS) movement and has made a case for the contrary. He states that “various control mechanisms can ensure the effective performance of autonomous agents who participate in virtual organizations”. He goes on to say that effective performance can be produced through control, efficiency, predictability, and calculability of processes can occur in the absence …show more content…

A virtual organization is goal directed and consists of geographically distributed agents who may or may not ever meet face to face. The term “organization” is general in terms of referring to a multitude of different types of entities (Gallivan, 2001, p.281). Gallivan also goes on to make an argument that while many say the only way to manage someone you cannot see is through trust, he argues that by controlling the conditions for collaboration and norms of behavior, any agent can have confidence in other members of the virtual organization, thus obviating the need for trust (Gallivan, 2001, p.283). He goes on in further detail to dissect the OSS movement by distinguishing the concept of the virtual organization as well as examining how members of the OSS can function effectively as a distributed network of agents. Here he uses the work of psychologist Richard Hackman who also argues that there is more group effectiveness than one dimensional measures of productivity. This requires us to look further into the group’s success in delivering a specific product to understand the group performance. He claims that groups must be designed in specific ways and have certain controls to produce effective outcomes. Gallivan then moves to explain that the foundation of this control is spelled out in sociologist George Ritzer’s “McDonaldization of Society”. This McDonaldization theory draws from Max Webber’s views of rationalization, identifying four attributes of modern organizations which include efficiency, calculability, predictability, and control (Gallivan, 2001,p.286). None of these attributes mentions trust in any of their explanations. The author goes on to explain that this is more of a social critique and remains neutral in value. He

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