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In the last few years, the field of management and organisational behaviour has diversified into a wide range of subjects as the organisation structure has changed drastically (Speakman & Ryals, 2010; Watson, 2008). As the study of management and organisation has broadened, the central point or area of study is the development that has taken place in the thinking of management and it is known as management theory. As numerous researchers have differing views on organisations, management teams and their structures, they have classified their work into different kinds of approaches (Graffigna, Libreri & Bosio, 2012).
In order to compile similar viewpoints under one category, the work of corresponding researchers is categorised into specific approaches so that the management team is provided a simple framework of study and ensure that the focus of study is set on one particular direction. The traditional management studies are classified into four major categories namely, the classical approach, the human relations or behavioural approach, the systems approach and the contingency approach (Yu & Canella, 2007). Since the study of management has undergone various stages of evolution, the latest theories have included aspects of the postmodern organisations which are known as Internet organisations.
Up till now, all of the approaches developed have both pros and cons for the organisations as they tend to focus on any particular aspect of the management and overlooked other vital factors. For instance, the classical theory emphasised the importance of the structure and purpose of the organisation which were related to its technical aspects (Alijloni, Almashaqba & Al-Qaeed, 2010). The writers of this approach based their assumptions on the logical and rational behaviours (Watson, Blackstone & Gardiner, 2007).
On the other hand, experts of the human relations or behavioural approach studied the impact of informal organisations on the satisfaction level of employees and believed that these form of organisations are ideal for meeting the social and psychological needs of the people (DePablos, 2006; Ma, Lee & Yu, 2008). The theorists working on this approach did not consider the impact of socio-technological factors on the work behaviour of employees and kept their focus on attitudes and behavioural study of people (Green, 2008; Jacks et al., 2011).
Considering the negative points of the previous workers who had strong viewpoint about classical and human relations perspectives, a new approach was developed known as 'system theory' that viewed organisations enclosed in a systematic loop (Huang et al., 2007; Ruzita & Parnell, 2008). According to this latest body of management theory, external environment factors are important for the organisation as they have immense impact on the operational activities of a corporation. The main focus of this approach is on the interaction that takes place between two vital variables i.e. social and technical so that new systems of organisations can be made part of the management team with utmost ease (Richardsen, Collins & Genet, 2006).
All of these approaches focussed on specific aspects of management and did not emphasise the importance of other vital factors of effective management such as communication processes, interaction alternatives available within the organisation, management of both interrelationship and external conflicts, managing changes within the work culture and many more. In order to allow the organisations to have a flexible and well-integrated process, the contingency theories were introduced that highlighted a range of applicable ways of differentiating among alternative forms of organisation structures and management systems (Alampay & Hechanova, 2010; Rani & Joshi, 2012).
Within these categories, various researchers developed other theories known as decision making theory, social action theory and chaos theory. The basic foundation of these theories was that the organization structures require huge amount of communication flow and interaction among people and all of these processes need to be effectively managed.
One of the growing concerns for the writers was the increase in conflicting incidents in the businesses that were impacting the productivity of organizations. In order to mitigate the conflicting risk, a new body of theories was developed known as information technology theory and it further evolved into strategic management theory (Mullins, 2005; Coyle-Shapiro & Shore, 2007; Tay & Diener, 2011).
With the advent of technology and development of information technologies, there is a growing need of managing everything in the virtual environment properly so that the corporate forms and structures can easily blend with new and changing business atmosphere (Gottschalg & Zollo, 2007; Philips & Lawrence, 2012). This new era is known as postmodernism by the management theorists and it views the entire system in a holistic form incorporating all internal and external factors that can have any impact of the organisation's functioning, projects and operations.
Hence, these postmodern organisations are a healthy challenge for the management team as they stress the importance of understanding the concepts of management and behaviours within the organisation (Henry & Evans, 2007). Regardless of the type of approach followed by an organisation, it is vital for the management team to make it compatible to its business operations' requirements so that everything within the organisation is coordinated appropriately and there are less chances of conflict among the employees (Sanders, 2007).
The recent trend in Internet organisation is implementing a scientific value approach which emphasises the need of balancing between the knowledge of theories of management and the complexities that are faced by the management of today's modern corporations (Lia & Hu, 2007; Tay & Diener, 2011). One of the key elements of all of these theories is that they give emphasis to identifying the needs of every individual working within the environment by designing an appropriate structure of management.
However, Phillips and Lawrence (2012) stress the importance of managing the interrelationships by studying the working behaviours of employees and incorporating any necessary requirements within the business structure. Although the new management theories have relevance to the Internet organisations but they will provide the desired results only when implemented wisely. One of the latest theories in the field of management is change theory also known as learning organisation structure.
Since every organisation is faced with numerous challenges within the business world, it should have adaptive systems in place so that any desired modifications can be included as part of the management quickly. The pre-requisite for implementation of this theory is continuous research in the environment about the latest happenings so that timely and accurate action can be taken. On the other hand, too much flexibility causes negative impact on the company as the people get over-confident and consider every change (small or big) to have significant affect on the business entity. There should be a striking balance between the management of organisation structure, system, processes, people and conflict (Hasin, 2010; Teece, 2010).
As today's age is driven by the technological breakthroughs, the organisations have to develop a management culture and structure that supports them in handling all challenges encountered by them. The traditional approaches of management can be applied to the new organisations but they need to be modified to a greater extent to accomplish the desired goals. Since there are new approaches for the Internet organisations, the corporations should focus on development of the organisation structures in accordance to the key elements highlighted by the experts of the field (Gottschalg & Zollo, 2007)
Every Internet organisation has to ensure that it implements a management theory that will handle all critical aspects that can raise conflict within the business operations, provide opportunities to the employees to manage the projects in highly effective manner and ensure that the operational activities allow the companies to save huge amount of time and money. Hence, Internet organisations have to take advantage of various studies of management and create a work environment that is supportive and conducive for the corporations which will enhance the performance of the corporations in the long-run.