Important findings
Hypothesis 6: The virtual leader enacts the cultural setting found more beneficial to reach the outlined goals
Fit with the structuring level. Leaders who connect the social strings of their virtual organisations by taking part in, supporting and arranging sociability-‐increasing events will at the same time ground social structures that can knit the work processes closer together and secure performance despite geographical dispersion.
Fit with the empowering level. Through the leader’s stimulation of sociability and solidarity and the following move towards the communal culture, group members can feel calmer about working in safe settings, inspired by the backing of the other group members and empowered to pursue individual as well as organisational goals.
Fit with the enacting level. It is up to the leader of the virtual organisation to enact the cultural setting, which is found more beneficial to reach the outlined goals. Most
important is not that the organisational settles into a communal culture; most important is that the organisational members can find reasonableness in the dispositions of their employer.
Hypothesis 4: The virtual leader supports events to ground social structures and
Virtual leader as director
The ability to identify goals and direct the team towards those goals is a vital component of virtual leadership. In the case of Schippers, the laid out direction is to secure the next round of financing and this milestone serves to increase the excitement and motivation of the team. The fact that the goal contains extrinsically motivating outcomes in the shape of stock options only helps to secure the team’s performance.
Rollinson (2008:477) addresses the benefits, which leaders can derive from having clear and explicit goals and draws up eight areas. First, goals signal action guidelines, as when Schippers points to the financing round, a list of tasks is included as a premise. Second, goals set constraints on action, that is, when firm priorities indicate things that should not occur. Third, goals are sources of legitimacy, meaning goals justify an organisation’s existence and activities to external stakeholders and this helps with the acquisition of necessary resources. Fourth, goals set standards of
performance, for example when Schippers indicates what should be achieved, standards are set against which future performance can be evaluated. Fifth, goals justify evaluation and control by implying that performance should be monitored and thereby allowing remedial action to be taken to correct performance deficiencies. Sixth, goals are sources of motivation, when explicit statements of what should be achieved are perceived as challenges to employees leading to a motivational effect. Seventh, goals are basis for organising in prompting consideration of factors such as structure, technology and the human resources that are necessary for goal achievement. Eighth, goals are facilitators of planning, as they do not only specify what should be achieved, but also time horizons
Once we do the next round of financing they will all get stock options and I think at this point people have really bought into the vision, they can sort of see where Workstreamer is going and because of that, they are really excited about the opportunity to help us get the next round of financing, because then they will get stock options. (Schippers, 4)
Model 9 – Benefits from clear direction (Based on Rollinson, 2008:477)
(e.g. a deadline for the financing round), which enables activities to be coordinated and resources to be available when they are needed.
In traditional organisations clear and explicit goals may carry less weight due to the leader’s ability to constantly observe and adjust performance of the actual work as it is being done. This process intimacy is lacking in virtual organisations and therefore the leader’s actions for directing goals are particularly important within these settings.
Having established the role of the virtual leader as director, we can further examine the key areas for organisational goals as presented by Rollinson (2008:479). He emphasises market share (signalling the virtual organisation’s intended position), innovation (staying apace with, or ahead of, competitors), productivity (promoting internal efficiency in the virtual organisation), physical and financial resources (ensuring adequate finance and other resources for the company), profitability (ensuring adequate return to financial
stakeholders), manager performance and
development (managerial quality assumed to be the most important factor in organisational success), employee performance (if an organisation develops its
managers, it should also develop other employees) and social responsibility (ensuring that the firm responds appropriately to wider society).
In short, virtual leaders should formulate goals that define and plan positioning, innovation, productivity, resources, profitability, leadership, performance and social responsibility.
Model 10 – Areas requiring direction (Based on Rollinson, 2008:477)
Fit with the structuring level. By defining and presenting clear directions within the prominent strategic areas, leaders of virtual organisations reap the benefits of
structuring elements such as standards, guidelines, constraints, planning and evaluation, all of which help to secure the team’s performance.
Fit with the empowering level. Leaders of virtual organisations can through steps of direction assign tasks to individual employees, regulate areas of responsibility and thereby optimise the sources of motivation. Ideally, the leader’s direction and accompanying tasks infuse greater employee-‐experienced empowerment.
Fit with the enacting level. When leaders of virtual organisations choose and
communicate the direction, it is pivotal that the defined goals live up to requirements of both sensemaking and productivity to maintain or strengthen the environment enacted for reasons of sensemaking. Furthermore, attention must be paid to the perception of all team members.
Hypothesis 8: The virtual leader assigns tasks to individual employees to optimise