The Changing Philosophy of Organisation Management in the Times of e-Economy

The evolution of management resulting in the development of the electronic market has transformed the form of the organisation from relatively stable, separated from the environment, into a project realised in a temporary, fluid network structure combining various organisations or their parts and related resources. A constant point of reference ceases to be an organisation and becomes a human being – an entrepreneur or a group of people who are constantly seeking partners to carry out various projects and create appropriate structures and use their own and foreign resources. This gives rise to virtual communities that are not subject to the same patterns of communication and interaction at the physical communities, but are interpersonal social bonds. Individual participants may vary in size, industry, experience, and strategy. Heterogeneity of the network initiates a diffusion of knowledge, skills and attitudes appropriate to the individual members of the network, thus improving their ability to exploit emerging opportunities and to avoid threats.

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The disappearance of the organisation’s borders results from an unforced choice, which is dictated by pragmatic considerations of the dependence of an economic entity on the resources of other market participants. As a result, the organisation ceases to be an autonomous entity and becomes part of the project – a timely business venture implemented in collaboration. Therefore, there is a need to build an attribute that is a hybrid model of a specialised organisation, characterized by durable regulations and the ability to enter into diverse co-operation with others. This is a manifestation of the attitude to the present, creating a business model based on knowledge and experience that is adapted to the current unpredictable market conditions. The high degree of uncertainty tolerance and the acceptance of outer direction allow for optimal market moves, in the so-called “new normality”.

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The evolution of management also means changing the type of rationality as the basis for making choices in the decision-making process. Methodological rationality, typical of the logic of functioning of mechanistic organisations under predictable environmental conditions but also of modernist ones operating in variable environments, was prevalent during the development of scientific management at the beginning of the twentieth century. In the second half of the twentieth century, the requirement of flexibility, as a result of rapidly growing market competition, brought to the fore substantial rationality, whose need for pragmatic use has been strengthened by the information revolution. The resulting new communication possibilities radically change the approach to building a business model, and thus the management philosophy.

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