Virtual Teams in an Organization: A Literature Review

Individual and Group Behaviour in an Organisation

CIA - 1 Research Assignment

Virtual Teams in an Organization: A Literature Review

Submitted by:
Vishal Tiwari
2MBAJ

Submitted to:
Dr. Archana Singh
Professor
Christ (DEEMED TO BE UNIVERSITY)
Hosur road
Bengaluru 560029
 Virtual Teams in an Organization: A Literature Review

1. Abstract:
In the modern organization there is a continuous growing concern for increasing the
efficiency and effectiveness amongst the team members and this is where the concept of
“Virtual Teams” finds its need. Virtual Teams addresses many major barriers of the
organization such as the geographical location of the members, time zone barrier, Cultures, etc.
The Primary goal of this study is to define the concept and also lists the challenges, risks,
drawbacks and concerns that are present in “Virtual Teams”. Although the use of these teams
is prevailing but there is very less known about this new concept. The technological
advancements have resulted in this concept of dispersed teams. Secondary focus of this study
includes comparison between virtual with conventional teams and how the need arose for the
involvement of technology in team formations.

2. Keywords:
Virtual teams, Face-to-Face, co-located, IPO, Swift Trust, multi-faceted trust, time-based
trust

3. Historical Developments on Virtual Teams:

Virtual Teams find its way in the 20th century with the increasing usage of Personal
Computers, Internet. Also the OPEC oil crisis where the costs where cut down by introducing
‘Telecommuting” where transportation costs were reduced. Also by the mid-1980s where
organization started to work with people across the globe to increase productivity, Talent
acquisition, improving service, and also reduce their time and costs. By 1990 various
companies started formation of teams across different cultures, Locations, Time zones across
Asia, America, to merge various Human resourcing practices and also provide 24 hrs working
concept due to various teams across times zones.

4. What Virtual Teams (VT) are?

Literature reveals a clear definition of VTs as teams working collaboratively using
technology towards achievement of a common goal with interdependent/dependent tasks and
are geographically dispersed. VTs are also defined by using the word ‘dispersed’ or
‘distributed’ often interchangeably. As definitions state VTs extend across geographical
borders, across one time-zone, across cultures a question raised is whether they fall outside
organizational boundaries? Arguments against this are VTs are still connected through
computer and networks within the organization as a team so they fall within. VTs involve
employees of various countries, culture. The most commonly noted boundaries are those of
geography, time, and organization, with the first two being mentioned in almost all definitions.
Contrasted against face-to-face teams, members of VTs are not constrained to one physical
location and can be located throughout the world (Martins, Gilson, & Maynard, 2004)

4.1 Virtual Teams as compared with Traditional Teams?

Virtual teams has Cyber-time, Cyber-space, Cyber-knowledge and Cyber-structure as the
attributes of virtual team. (Krawczyk, 2016). In this context cyber-space means their freedom
of working free from place, structure, time and also having wide knowledge due to diversity
present. Also virtual teams are values-based, easily reconfiguring, high performance and are
 Virtual Teams in an Organization: A Literature Review

cost-sensitive and decentralized. Involving diversity, knowledge and experiences allows

creativity and innovations in the team. But Virtual Teams lack visual contact, emotions, less
personal connects as compared to face-to-face teams. As per a Laboratory experiment
performed by Andres that Face-to-face teams possess greater quality of interaction due to
immediate feedback and more verbal and non-verbal interactions as compared with Video
conferencing, and email communications.

4.2 Technology in virtual teams

Technology is the considered as the mother of virtual teams as the communication solely
happens with the help of technology. VTs make use of various technologies depending on the
need and type of discussions as follows:
 Brainstorming and planning: Video conferencing.
 Business and Functional Requirement: Presentations over web with screen sharing.
 Project Daily Status: Email conversation.
 Project Discussions and detailing : Telephone communication
 Immediate queries/approaches : Organization pings/Chatbox

4.3 Challenges for Virtual Teams

Crucial challenges faced by Virtual teams are trust, effective communication, virtual setting
deadlines and team cohesiveness. (Shikha, 2013).

4.3.1 Trust:
Face-to-Face teams always have an advantage of having more trust levels as compared to
Virtual Teams due to much higher level of collaboration. Trust is a very crucial factor that
affects the functioning of the organization. Literature (Hacker, Johnson, Saunders, & Thayer,
2019) states various types of trusts as swift trust (i.e., trust that is built quickly based on surface-
level cues rather than interaction or knowledge of the trustee), as well as generalized trust (i.e.,
a single, unidimensional construct reflecting willingness to accept vulnerability to risk), time-
based trust (i.e., static trust vs. trust that is dynamic and evolves), multi-faceted trust (i.e., trust
as a multidimensional construct, such that individuals can be trusted in particular ways and for
particular behaviour), dispositional trust (i.e., trust as a function of a pre-existing characteristic
of the trustor), and institution-based trust (i.e., trust that is based on norms and rules created by
institutions that guide individual behaviour)

4.3.2 Performance:
Experimental studies by staples and Jhao researchers found the performance of the virtual
heterogeneous teams was superior to that of face to face heterogeneous teams (Hambley,
O'Neil, & Kline, 2007). Also communication with rich media proved much more effective as
compared to media less.

4.3.3 Conflict:
Virtual teams tend to have much more conflicts as compared to co-located teams because
of higher nature of dispersion and diversion involved. An experiment with 20 teams of 4
 Virtual Teams in an Organization: A Literature Review

members from US and China, subjected to both co-located and virtual teams and found VT
more conflicted because of higher diversity involved and more avoidance due to less
collaboration.

4.3.4 Cohesion:
Virtual Teams possess a less cohesion between employees because of no emotions, face-
to-face interactions involved and also due to lack of personal interactions they tend to low in
employees interpersonal connect.

5. Working with a Virtual Team:

5.1 Location:
As VTs are independent on the geographical location of the employees it provides great
location flexibility to the employees to work from their preferred location even work from
home. VTs provide great efficiencies in terms of location, space, time. With more flexibility
comes more satisfaction and motivation for the employees.

5.2 Selection:
As VTs are a diverse group of individuals collaborating over technology so the chosen
technology has a large effect in the effectiveness of the group. Depending upon the purpose of
meeting appropriate technology can be chosen which can be:

Technology Tool Purpose

Web Conferencing Webex, Live audio and Video.
Skype for Business Virtual Conference
Messaging and Chatting Skype, Contacting Team,
IBM Sametime Resolving Frequent queries
File Transfer File Transfer Protocol(FTP) Sharing Project Files
SharePoint Sharing Data Files
Email Citrix Sharing of Daily Project
Activity Status to Leads and
Vendor Apps
Managers.
Telephone Extension Services Discussing Business and
functional requirements,
VOIP Services
deliverables.

5.3 Training:
VTs require to be trained more for the technologies they are working in. It requires much
more skillset and more computer and internet proficiencies among the team members with
continuous sharing of the work done with others to facilitate collaborative working. Also due
 Virtual Teams in an Organization: A Literature Review

to no emotions, face-to-face meetings involved there is a strong need of interpersonal relations

amongst the team member for which there has to be sufficient motivation, satisfaction.

5.4 Rewards and Recognitions:

Rewards and Recognition are the two best sources of motivation and satisfaction which is
very useful for the VT members. This influences their individual interests, perception, emotions
and adds more values to their performance as they realise their true abilities are being
appreciated.

5.5 Security:
As Virtual Team involves exchange of sensitive and confidential information and project
related data files security becomes a major concern for the organisation to handle their working.
Organisations are moving towards a safer and secured way of communication to resolve the
risks involved.

6. Making Virtual Team a success:

Several characteristics are needed for the organisation to be effective and efficient in
making virtual team a success. First and foremost the senior level management of the
organisation must encourage the formation of virtual teams by knowing their true values and
benefits. Also they must try to address the challenges associated with the virtual Team working.
Secondly the organisations must provide proper technology required as per the need of the
team members and their should be adequate technological resources to make virtual team
working feasible with no delay and technical glitches as these technical glitches causes major
lags and also affects the deliverables of the team due to poor communication. Lastly the
organisation must provide sufficient training and skilling opportunities for the employees to
upgrade their skillsets as per the needs and recommendation for virtual team working. They
should provide a centralised knowledge sharing platform for the resources to up skill
themselves anyplace and at any time. Same has been shared in the below data from the
literature. (Morley, Cormican, & Folan, 2015)

Essential Organizational Level Introduction of New Technologies

Conditions for Tasks
Success
Support of senior Establish ownership for Detailed mapping to ensure technology
management virtual team support fits
Robust IT Infrastruc- Identify collaboration tools Design of new technology should
ture already in use involve future users
Technologically Ad- Identify virtual teams that Where possible new technologies
vanced Corporate currently operate should be aligned with existing ones
Culture successfully Local champions should be identified
 Virtual Teams in an Organization: A Literature Review

Develop toolkit for virtual Rewards/benefits of new technologies

teams should be emphasized
Develop training materials Adequate support should be provided
on tools for new technologies
Develop Guidelines for Clear guidelines and training to be
Identifying and Introducing provided
new technologies

6.1 IPO Framework in Virtual Team:

IPO framework provides and important theoretical framework to which provides Input-
Process-Output Model for virtual Team effectiveness. The framework divides the key inputs,
team emerging states and their outputs which the researchers use in analyzing the effectiveness
of virtual teams.

6.1.1 Inputs:
Inputs are divided into are divided into 3 categories as per the model (Dulebohn & Hoch,
2017)

6.1.1.1 Organisational Factors:

It represents the physical environment where Virtual teams operate. Factors such as Team
Design, Reward Systems, Information & communication technology training etc.

6.1.1.2 Team Leadership:

They represent the competencies that may be needed for leadership skill such as Virtual
Team Management Skills, Transformational Leadership, and Empowerment etc.

6.1.1.3 Team Composition:

This represents the individual behaviours of the team members, their physical and
emotional attributes such as Cultural diversity, ethnicity, Personalities, values etc.

6.1.2 Emergent States and Team Processes:

It represents the team the dynamic characteristics of the team which keeps on varying. Their
behaviour and perceptions with varying time. Cognitive attributes, Affection, Motivational
attributes, Behavioral attributes are examples.
 Virtual Teams in an Organization: A Literature Review

6.1.3 Moderators:
These are the factors that may pace and direct the path of processes on inputs. They may
strengthen or weaken the relationship in the model. Key factors are Task Complexity,
Virtuality, Interdependence amongst team members.

6.1.4 Outcomes:
Outcomes are the final component of the IPO Model. It shows the ability of the processes
to modify the inputs and turn them into effective results. These are measure in two levels Team
and Individual Level. Factors like Performance, Commitment, Effectiveness, and Satisfaction
etc.

7. Conclusion:
Virtual Teams provides an effective way to the organizations in terms of across time, space,
cost and boundaries. Although researchers have found that Face-to-Face or co-located teams
are more satisfied, supportive and innovative due to more interpersonal connect and realization
of team members is easier where virtual teams have more chances of conflicts, less level of
satisfaction. Both are found to be equally important when it comes to important decision
making as Virtual Teams involve much more skillset and talents. No noticeable difference
exists in terms of performance. One of the major area of concern is the challenges associated
with virtual team like trusts and cohesion which can be developed overtime and with
continuous collaboration over time if not in a short duration. Importance of Virtual Teams can
be very well understood with the fact that every organization is investing so much in them even
with these challenges associated. The risks and challenges can also be reduced with having
required trainings and recruitments and also providing up skilling opportunities to all the
employees to gain expertise and cope up the change.
 Virtual Teams in an Organization: A Literature Review

References
Dulebohn, J., & Hoch, J. (2017). Virtual teams in organizations. Human Resource Management
Review, 6.
Ebrahim, N., Ahmed, S., & Taha, Z. (2009). Virtual Teams: a Literature Review. Australian
Journal of Basic and Applied Sciences, 17.
Hacker, J., Johnson, M., Saunders, C., & Thayer, A. (2019). Trust in Virtual Teams: A
Multidisciplinary Review and Integration. Australasian Journal of Information
Systems, 23, 36.
Hambley, L., O'Neil, T., & Kline, T. (2007). Virtual team leadership: The effects of leadership
styles and communication medium on team interaction styles and outcomes.
Organizational Behavior and Human Decision Processes, 20.
Krawczyk, B. (2016, September). Intercultural Challenges in Virtual. Journal of Intercultural
Management, 8(3), 17. doi:10.1515/joim-2016-0017
Martins, L., Gilson, L., & Maynard, M. (2004). Virtual Teams: What Do We Know and Where
Do We Go From Here? Journal of Management, 31.
Morley, S., Cormican, K., & Folan, P. (2015). An Analysis of Virtual Team Characteristics: A
Model for Virtual Project Managers. Journal of Technology & Management
Innovation, 10(1), 16.
Shikha, G. (2013). Virtual teams versus face to face teams. IOSR Journal of Business and
Management, 11(2), 4. Retrieved from www.iosrjournals.org
 Virtual Teams in an Organization: A Literature Review

Plagiarism Report: