In virtual organisation the group or team is allowed to meet without concern for space or time and enables organisation to link workers together in a way that would have been impossible in the past. Team member use computer technology to link physically dispersed members in order to achieve a common goal- using technological advance life conference calls, video conferencing, or e-mail to solve problems even though they may be geographically dispersed or several time zones away.
The virtual organisation typically a small, core organisation that out source major business functions. In structural terms the virtual organisation is highly centralised with little or no depermentalisation. The prototype of the virtual structure is today's movie-making organisation. In hollywood's golden era, movies were made by image, vertically integrated corporation, studios, such as MGM, Warner Brothers and 20th century Fox Owned large movie lota and employed thousands of full- time specialists, set designers, camera people, film editors, directors and even actors. Now -a-days, most movies are made by a collection of industries and small companies who came together and make films project by project. Under the system of virtual organisation each project is to be staffed with the talent most suited to its demands, rather than having to choose just from those people the studio employes. This type of organisation can reduce the bureaucratic overhead since there is no lasting organisation to maintain. Of course this organisation take long term risks and their costs as there is no long term a team is assembled for a finite period and their distended. In case of virtual organisation there are many vertical levels of management and entire organisation is managed and controlled by ownership. Another characteristic of this organisation is research and development which are done in house, production occur in company owned plants, and sales and activities setistics are done by the own employees of organisation. India a view of supporting all these, management is to employ additional personnel such as accountants, human resources specialists, layers, marketing and financial experts etc. It is to be mentioned that the virtual organisation outsources many necessary functions and concentrates on what it does in the best way. In caes of United States of America, their effort focuses on design or marketing. In fact, in this organisation management outsources all of the primary functions related to its besiness activities. The core of the organisation is a small group of executives whose job is to averse directly any activities that are done in house and to co-ordinate relationship with the other organisation that manufacture, distribute and perform other crucial functions for this type of organisation.