Virtual Management: A New Way to Manage

Virtual Management: A New Way to Manage Technological innovation has been a driving force in the growth of e-business organizations. The e-organization growth has spawned new leadership methods and business processes aimed at maintaining competitiveness in a changing global economy. One business model attributed to the technical revolution is virtual models. This paper is intended to argue that traditional business management, methodology, and structures are failing to accommodate an ever-changing global environment, characterized by hyper-competitiveness, and the exponential increase of information systems design. The current virtual model is managed using out of date management theories, performance metrics, and technical innovations, thus creating a need to update the open systems thinking and organizational theory of the virtual model. As an open system, virtual environments are quickly becoming the new wave of business organizing.
Open Systems Organizational Theory Jones (2010) defines organizational theory as “the study of how organizations function and how they affect and are affected by the environment in when they operate” (p.7). Organizational theory maintains a master relationship with organizational structure, organizational change and design, and organizational culture. Organizational structure is “the formal system of task and authority relationships that control how people coordinate their actions and use resources to achieve organizational goals” (Jones, 2010, p. 7). Organizational change and design is “the process by which managers select and manage various dimensions and components of organization structure and culture so that an organization can control the activities necessary to achieve its goals” (Jones, 2010, p. 8). Organizational culture is “the set of shared values and