Virtual Management, Alternative to Manage Small Business. ¿Is a Socially Responsible Management Strategy?


For many years companies have adopted the traditional management as a process to organize and prioritize their operations in a continuously changing environment, however, few have evaluated other management alternatives. Moreover it is recognized that many organizations do not apply traditional management efficiently due to lack of knowledge and resources.

In point of the human resource management, the enterprise must reduce the quantity of the people who are engaged in the daily work, and outsource these works to the e xterior professional organization. Wilkerson’ s investigation (1997) about the cost of the human resource management indicates that 60% of the costs are the administration, 30% are the human resources service transportation, 10% are the strategic plan when the value of the enterprise increases, and the human resource management cost assumes the inverse proportion relations. This is one reason that causes the human resource management virtual. On one hand, virtualization can reduce the labor force cost. On the other hand, virtual can make the enterprise take all sorts of advantage which the specialization management and the scale management of the service company brings, simultaneously virtualization can also avoid the waste of the social resources, thus the cost is lower, the efficiency is higher.

Moreover, along with the information technology development, we can greatly enhance the efficiency of the human resource work and can relatively reduce the cost through establishing the partnership between the human

Virtual human resource management resource management and the information technology specialist, integrating the HRIS with the business management information system. In many companies, the local area network permits integrating the independent human resource management with the wages processing database conformity, and the companies need not increase the new HRIS expense

At the point of human resource management, the company must reduce the amount of people involved in the daily work, and outsource that work to the organization and external professional. Research Wilkerson ‘s (1997) on the cost of human resource management indicates that 60% of the costs are administration, 30% are the human resources of transportation services, 10% of the strategic plan, when the value increases the company, and the cost of human resources management takes partnership inverse proportion. This is one reason that makes the virtual human resource management. On the one hand, virtualization can reduce the cost of labor. On the other hand, virtual company can make all kinds of advantages make the management of specialization and scale management services company provides, simultaneously, virtualization can also prevent the waste of social resources, which the cost is lower, the efficiency is higher.

Moreover, with the development of information technologies that can greatly enhance the working efficiency of human resources and relatively cost can be reduced through the establishment of the alliance between humans

Virtual human resource management and resource management specialist in information technology, HRIS integration of the enterprise system management information. In many companies, local area network can integrate the autonomous management of human resources with the agreement of the database processing wages, and companies should not increase, the new spending HRIS

This document may not be retrieved by some renowned databases. Sun Jian-cheng, Ph.D. candidate in the Faculty of Economics and Business, Northwestern Polytechnical University, research field: management.

Information technology plays an increasingly important role in the implementation of strategies at all organizational levels. In fact, it makes it easier for organizations to develop a production-effective cost-control behavior that will provide administrators with more and better strategic information to monitor various aspects of their strategies, and respond appropriately. (Hill and Jones, 2008)

In response, new organizational forms have emerged, including virtual enterprises (defined as small, core organizations that outsource major business functions), imaginary corporations, dynamic networks, and flexible work teams(Raghuram, Garud and Wiesenfeld, 1998). The emergence of these so-called virtual companies, and the rise of outsourcing and telecommuting, will axiomatically lead to the proliferation of freelance and temporary workers, while large corporations will become dominated by ad hoc project teams and independent business units. All trends point to the devolution of large, permanent corporations into flexible, temporary networks of individuals, connected by personal computers and electronic networks, who join together to produce and sell goods and services, and who, when the job is done, again become independent agents.

The concept of “collaborators” by sharing office space for mobile workers or telecommuters has been for some time, but the need to reduce facilities costs during the recession seems to encourage many business leaders to expand their telework programs. And the increase in people taking the employment contract as a way to bridge the gap between jobs during the recession may be working to revive the cooperative idea.

In principle, the stated purpose of these practices is to increase the adaptive capacity of the company, making it lighter, agile, efficient and flexible by reducing its size and focus its activities on development in what constitutes its core competencies or nuclear weapons. In parallel, it also seeks to take advantage of the increased responsiveness of small and medium enterprises in economic and technological change, using its activity as an effective supplement that has been decided to run directly. No one can hide, however, that through them it also aims to achieve objectives in labor. Among them, as there will be an opportunity to examine in detail later, to encourage a reduction in employment levels and wage costs linked to it by way of transfer of productive activity, and the risks that are inherent to other subjects. (W. Sanguineti, 2004)

These developments, of course, raise a number of questions around the issue of management in this virtual landscape, especially around the management of human resource issues such as productivity, job satisfaction, organizational commitment and company identification. Other issues, such as skills, empowerment, motivation, relationships, leadership, responsibilities, authority, accountability, status and power, all create problems.

The decentralization of production has, in this manner, a disturbing effect of the labor market dialyzer, to the extent that it encourages the imbalance between workers integrated into the same production process based on a purely managerial option, as is that of whether or not to its disintegration.

This puts us in front of a business model “brief”, as previously I have said, but “petty” to the extent that bases some of its competitive capacity, if not all, savings in labor costs work generated through the massive use of subcontracted work, provided under a precarious employment and wages. (F. Valdés Dal-Ré 2001)

Once accepted the legitimacy of the decentralization of production and corporate organizational option, however, lies the fundamental question in determining whether to admit no more use as a simple means of reducing labor costs and flexible use of force work or can set limits to it. Naturally, among the interests likely to be covered, as are the subject of constitutional protection expressed are those of the workers affected by those decisions. (F. Valdés Dal-Ré 2001)

Are you responsible for a company that finds ways to reduce costs for the benefit of the profits but to the detriment of quality? Can a company be held liable in such situations that still supports a program described altruistic?

The search for answers to such questions, is echoed in various expressions of a movement which promotes the culture of corporate social responsibility, as will hereinafter be referred by the acronym CSR, understood as the “serious consideration of the impact on society of the actions of companies. (Paluszek cited by Koontz and Weihrich, 1998)

What companies do or do not do significantly affect their environment and its scope more direct “(Garza, 2000), then the conception of the company has undergone a radical change and important” from the realm of understanding as men unscrupulous, motivated solely by profit motives, to regard it as a socioeconomic institution that would have a moral responsibility of society. “(Cortina, 1996).

Small and Medium Enterprises (SMEs) are unaware of the importance of Corporate Social Responsibility, which is the main obstacle to implementing it.

While such ignorance must be fought by all, private organizations can play a particularly important role, directing its efforts in two different directions:

I. To other Private Organizations

II. By their own Small and Medium Enterprises (SMEs)

Indeed, a small business will be more easily persuaded, for example, conducting a policy of non-discriminatory recruitment (either sex, religion, race, etc.). If you can confirm the economic returns associated with respect for diversity of the workforce (because it is in access to new groups of consumers in a better understanding of diverse markets and a wider sources of recruitment and selection), which if aimed only at social responsibility “. (Chavarri, 1990)

The reality is that this concept of corporate social responsibility respond to multinational companies and small and medium because its financial and human capacity is reduced and their focus should be more economically despite having more contacts with the community which would help make your approach more socially responsible. (Chavarri, 1990)

At present, companies are refocusing their operations technological advances, slowly forcing companies to be more creative in doing business because the customer needs have changed and modified according to use that can give the new technology and the Internet. The Internet has created around a global network where we can communicate from anywhere in the world to anywhere else, has blurred the borders between countries has decreased the links in supply chains, where with just one click we can know any city talk to someone and buy anything from anywhere in the world all at the same time.

This would increase the operational cost of companies wishing to enter the market and thus overall be more competitive. The virtual management is cost-effective alternative that makes more efficient company, but should be evaluated social responsibility policies to address these new markets