Challenges of Human Resource Management in a Virtual Business Environment

As a result of ubiquitous information technologies (IT) and their growth in the modern business environment, a virtual business reality is very close to being a part of everyday existence. It is up to organizations to identify their own recipe for success against this new business backdrop. That being so, more and more organizations tend to structure their individual functions as to make them more flexible and adaptable to change. One more implication is the need to adjust human resource management (HRM) to virtual business operations, based not only on the innovative reorganization of activities, usually IT-based, but also on the readiness by HR managers to employ a new approach to the standard issues – from leadership, teamwork, the development of required and necessary skills, to sometimes indispensable outsourcing of the very HRM function. The paper will discuss the impact of a virtual business environment on all aspects of the business process and efficiency of the HRM function.