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Change Management Challenges in Virtual Organizations

By HR Tech Outlook | Monday, July 13, 2020

Leaders must take these sociocultural factors under consideration, and develop a deeper understanding of workers' cultures and how cultural factors can hinder change at every level of an organization

Fremont, CA: Organizational change is necessary to ensure long-term business competitiveness. While planning to transform an organization, business leaders should consider various factors that support or hinder the desired change. However, implementing change can be challenging in the case of virtual organizations with a distributed workforce.

Let us look at some issues and challenges of managing change in virtual organizations: Top 5 HR Consulting Service Companies in UK - 2020

Workflow and Workplace Challenges

Workflows in virtual organizations are almost similar to workflows in non-virtual work environments. But, virtual workflows create managerial challenges in terms of productivity and efficiency. Mangers do not get enough control and have very less influence on the actual activities of virtual workers during their work time. For instance, remote employees need to attend house chores from time to time during work hours. Managers do not get to know each employee's work settings, which, in turn, creates gaps in strategic management and organizational change. Managers' insufficient access to actual workflow information makes it difficult to identify occupational safety issues that hinder successful organizational change management.

Sociocultural Factors

Having a multinational workforce may cause sociocultural issues in virtual organizations. Employee's culture in one region may be different from the cultures of other employees in other regions. These differences may give rise to favoritism that can affect strategic management and organizational change. Leaders must take these sociocultural factors under consideration and develop a deeper understanding of workers' cultures and how cultural factors can hinder change at every level of an organization.

Technological Barriers

Virtual organizations are solely dependent on information and communication technology, which imposes technological barriers and challenges in implementing organizational change. For instance, changes in technological functions, processes, tools, and procedures generally accompany organizational changes in virtual companies. This technological aspect creates barriers to successful organizational change through difficulties in adopting new technologies. Workers may find it difficult to get used to new technologies, or to integrate new tools in the workflow, considering their virtual workplace settings.

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