Virtual Organization &

Outsourcing
by Charles Handy

Salma Adan 662302

Stella Musyoka 661434
Bonaventure Nabongo 661776
Fredrick Kinoti 646423
Vanessa Ochieng 660883
Gad Matoke 661917
Who is charles Handy ● Born in 1932 in Ireland.
● A well-known philosopher with a specialized
background in organization culture.
● Charles’ work basically provides a powerful
link between the leading pioneers of
management thinking and the future of
work.
● A former oil executive, Shell 10 years, he
claimed ideas were the new oil.
● Often described the office as a village for
those who worked in it.
● He stated that he simply described what he
observed and was not prescribing solutions.
“ My job is to be 10years ahead,which is why a
 Outsourcing
● According to Oxford dictionary: It is to obtain goods or services by contract
from an outside supplier.
● For outsourcing he does not explicitly promote or decry it but provides an
explanation for it.
● Core idea is pay for output delivered instead of the time invested by
employees.
● Organizations only demand for an output equivalent to an agreed upon
compensation and therefore the individual or group choose how this is
achieved as long as they come up with the output at the time agreed upon.
● With this phenomenon the organization stands to save on paying for output
instead of working time.
Concerns of Handy on Outsourcing
●Engagement in outsourcing may lead to hollow organizations.
Virtual Organizations
● Charles Handy describes a virtual
organisation as a collection of
individuals who can work away from the
physical office walls.
● In addition to the technological
implications associated with running of
virtual organizations, Handy
emphasized on the importance of the
managerial implications and the need to
incorporate trust by top management,
veering off from the conventional
managerial practices of control and
efficiency.
Shamrock Organisations
According to Handy (2015):-

● Core - Senior management staff that

are highly trained professionals.
● Contract - Individuals or other
organizations providing the primary
organization with services that involve
contract and project completion.
● Peripheral - Flexible labor force
consisting of parttime and intermittent
workers that need to be close to the
organization to feel a sense of
commitment in order for their work to
be carried out to a high standard.
REFERENCES
Handy, C. (1995). Trust and the Virtual Organization. Harvard Business Review.
https://hbr.org/1995/05/trust-and-the-virtual-organization

Handy, C. (2015). The Shamrock Organisation. London Business School.

https://www.london.edu/think/the-shamrock-organisation

The contribution of Charles Handy: Organizational Theory, Management and Administration

http://researcharticlebase.blogspot.com/2011/10/the-contribution-of-charles-handy.html?detail=yes