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The Benefits of the Virtual Corporation

In an age when more and more companies are downsizing, an increasingly trendy concept is the "the virtual corporation." The idea is that a company should have a core of owners and managers, but that, to the greatest degree possible, workers should be contingent - temporary, part-time, or on short-term contracts. This gives the corporation maximum flexibility to shift vendors, cut costs, and avoid long-term labor commitments. What are the advantages and disadvantages of the virtual corporation from the point of view of both employers and workers?

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From the point of view of employers, the virtual corporation as very distinct advantages. One distinct advantage that a virtual corporation offers to the employer is the ability to cut human resources costs significantly. When a corporation hires temporary and all part-time employees, the organization is free from the requirement to provide benefits to those employees, which saves the organization millions of dollars each year. In addition, the ability of a virtual corporation to ...