Managing Virtual Relationship-A Challenge for HR

Now a days organizations are spread across industries and geographies. This has lead to a change in the approach to handle employees as well as processes. It is giving rise to the concept of virtual organization. This force of change is bringing new realities for the organization and HR.

When employees are distributed, advancement in the communication and decision support system provides means for the organization to create virtual team in order to enhance the performance. Virtual team is a pool of talent which integrates information from own employees, partner firms or consulting agencies in order to meet the demand of competitive world. It integrates the knowledge and skills which is not available on-site. The development of personal relationships between team members is recognized as an important factor in enhancing effective working relationships among members of both co-located and virtual teams.This paper is focused on understanding the virtual relationship which comes from intellectual capital. It also aims at gaining insight of how human resource management deals with the problems created by virtual relationship.