Technology has made it possible to redefine where work is done. The ''
virtual office'' offers companies and their workers many benefits: low
er real estate costs, higher productivity, and increased flexibility.
Al the same time, organizations forfeit the benefits of the traditiona
l office: a shared understanding of the corporate culture, a sense of
loyalty, informal communication; access to people, information, and ma
terials, and managerial control. Drawing on the results of field resea
rch, the authors discuss how firms can maximize the benefits while min
imizing the losses of these alternative work arrangements. The authors
identify five common arrangements: ''telecommuting'' refers to situat
ions in which workers with fixed offices occasionally work at home; ''
hotel''-based workers come into the office frequently, reserving a cub
icle where they can use the telephone and link their laptop computers
to the network; the ''tethered worker'' has some mobility but reports
to the office on a regular basis; ''home'' workers work entirely from
a room in their homes; and ''fully mobile'' workers are on the road or
at customer sites during the workday. Companies considering adopting
Virtual work must be clear about the type of virtual office that best
addresses their needs and its advantages and disadvantages. If virtual
work is to pay off, managers must adopt new approaches in five key ar
eas: managing people, managing information, managing teams, managing p
rocesses, and managing facilities. Companies need to institute new inf
ormation flows to replace those that are lost educate workers on how t
o be more effective providers and consumers of information; provide tr
aining in virtual worker management skills and personal work strategie
s; and create dialogue on how to deal with changed family relationship
s. Effective management of alternative work arrangements means mixing
virtual and nonvirtual offices. Companies should analyze the variety o
f approaches possible and their particular circumstances to determine
just how much virtuality is appropriate.