One of the major trends in business is a move toward virtual workplaces. This is an arrangement where employees operate remotely from each other and from managers.

Advantages of a virtual workplace

• Reduced real estate expenses
• Increased productivity
• Higher profits
• Improved customer service
• Access to geographically broader markets
• Environmental benefits
• Forces managers to focus on output measurements

Disadvantages of a virtual workplace

• High setup and maintenance costs
• Loss of cost efficiencies
• Loss of learning and organizational knowledge
• Cultural problems and conflicts
• Feelings of isolation
• Lack of trust
• Not suitable for many tasks