Chaos and Complex Theories - Coursework Example

Chaos and Complex Theories al Affiliation Chaos and Complex Theories Chaos theory is a scientific principle that describes how systems are unpredictable. The principle was greatly explored and identified during the mid to late 1980s and it preludes that systems are usually in chaos and always generate energy but lack any predictability or direction. The complex theory may involve weather patterns, ecosystems, water flows, anatomical functions, or organizations. Whereas these complex systems may be deemed to be chaotic, chaotic systems are taken to be having no order or finite boundaries. This chaotic theory in relation to the organizational conduct was discounted during the 1990s and paved way to a similarly identified complexity theory. Complexity theory thus differs primarily in that it attempts to discover simple ways of explaining and controlling multifaceted systems in business while chaos theory is ore into predicting changes and comprehending the random sections of systems. Organizations thus tend to respond to the concepts of chaos theory in a number of ways from the enthusiasm to scepticism. According to Lyndon Pughs 2007 Change Management in Information Services, “The major points about the chaos theory are that it is affirmative to the environmental sensitivity needs and that opportunities are represented by uncertainty. ORIGINS OF CHAOS THEORY One significant contributor to the chaos theory is Mitchell Feigenbaum (b. 1944). He put much of his time on the possible applications for the chaos theory in and out of the world of business and a variety are still under study. In an article about chaos and practice in business, several examples of data can be predicted by studying of the complexity models like the financial markets, epileptic seizures, systems of manufacturing and weather systems. In order to capitalize on the chaos theory, a three tiered approach is suggested. (Farazmand, 2003). A goal ought to be formulated, a given state to be aimed at by th business enterprise. This could be a solution to a problem or attaining a particular productivity level. 1. The business and its structure has to be capable of reaching its goal and the goal should be achievable. 2. The method of influencing the system should be identified by the organization and the leaders should put the plans into action. There is admittance of the many applications possible for the chaos theory. However, questions arise on their relevance in the business world. Complexity analysis is usually very complicated and usually requires a large amount of data and intense mathematics which can be prone to error. A business should thus have talent, time and the necessary funds to start chaos and analysis on any of its systems (Farazmand, 2003). The Theory of Complexity and Science of Chaos The basic tool for understanding theories of complexity and chaos is the theory of dynamic systems used in the description of protocols that change over time in most cases. An example is when systems are moved from their stable condition and they go through a period of oscillation whereby they oscillate between chaos and order. As Margaret J. Wheatley in Leadership and the New Science, puts it, chaos is the ultimate situation in a system’s motion away from order. In a case whereby the system does not attain that point, the parts of the system are manifested as turbulence as they completely lack in direction and meaning (Farazmand, 2003). Clearly, chaotic and familiar orders come off as bands of intermittency. Going through certain bands, a system undergoes extrusion and is caused to bend back on itself while it insists and then pulled in the direction of transformation and disintegration. In other bands, systems oscillate dynamically thus maintaining their state for long time frames. In the end, all systems feel the heat and the seductive drag of the chaotic and complex attractor (Farazmand, 2003). In simpler terms, each and every system bears the potential of falling into chaos. The complex attractor is so similar that in complex systems where everything is expected to fall apart, the attractor chips in and draws the system variables closer into a region and creates a visible shape simply because previous efforts to graph such phenomena can only be actualized in two dimensions and the effect can’t be visualized. However, computers presently permit the phenomena of complex attractors to become visible since images of multiple dimensions that represent a variety of variables can ultimately be formed. Practical Applications of the Theories of Complexity and Chaos Theories of complexity and chaos are believed to have considerable potential in the prediction of future transformations of stocks and bonds. Despite there not existing a set analysis with the ability to make use of these theories with the aim of discovering the future market patterns, researchers direct more of their work on chaos towards the predicting stock prices. The main notion is that changes in the trading market are the same as branches’ drip. This indicates that they possess similarities to the level that an individual could conceivably undertake identification of proper points in arithmetic and undertake correct predictions of fluctuations. Another area where the chaos and complexity theories are important is that of organizations. The application of these theories to behaviour in organizations allows theorists to take a back step from the day to day management activities and see how organizations function operate as unified systems. An organization acts as a typical example of a nonlinear system that minor events have the potential to set off significant reactions and major changes bear no effect on the system whatsoever. In order to explore the chaotic and complex nature of an organization, there is need to carefully scrutinize the organizational structure that emerges from a distance. Rather than pinpointing organizational causes for organizational problems, the firms should be better served according to the chaos theory by looking for patterns of organizations that promote certain types of organizational behaviour. The expectations of an organization for acceptable conduct and the nature of freedom with which people are permitted to work shape the manner in which a company’s problems and challenges are handled by its members. Through allowing autonomy to some people and groups within an organization, businesses enhance the ability of the organization to organize itself thus enacting a variety of iterations of its own functioning until the various parts of the organization can function together in the most effective ways. Firms that encourage this type of management are termed as fractal organizations, ones that trust in natural organizational phenomena to organize themselves. In the guide CIMA Learning System (2007), Botten and Sims talk about what this implies for organizations that attempt to incorporate complexity theories in the most beneficial manner. Businesses usually discover when the chaos and complexity theories application have not done enough or have done more than expected. Having taken a broad and practical look at the research, Botten and Sims came up with a concept of three separate states that a company can find itself in. Chaos can: (1) Fail to impact on a simple system at all thus leading to consistent and accurate outcomes with no change. (2) Can impact on a system with a small degree of error such that some calculations will always be incorrect and some outcome unexpected. (3) Can prevail in a disorderly system with copmplexities. These three possibilities are applicable to all matters addressed by the chaos theory from business planning to weather. The first state is a stable equilibrium, the second state is bounded instability (controlled chaos), and the third state is explosive instability (chaos out of control). Organizations, businesses, and even individuals have the tendency to undergo suffering without any efforts towards a little chaos and change to develop the unexpected, therefore they are compelled to undertake necessary innovations and adaptation required by firms for success. Organizations do not have the ability to react properly in static environments. Botten and Sims posit that the best condition for a business is one with bounded instability. This is a condition whereby a specific amount of chaos under regulation enables the predictability of a system for value but not so much to allow it to fall apart. With bounded instability, repetition of the system does not exist, such that employees cannot lose their function ability by being bored. However, change takes place according to a comprehended phenomenon. For example, when an organization reaches the explosive instability stage, the assumption is that it has exceeded its limits. However, relating chaos theory to managerial practice tends to go against a variety of formal management patterns. There can always be a confusion of order with more well- known control notions. Defined by organizational charts and work descriptions, ancient management practice does not usually seek to incorporate disorder to its strategic plan. As Wheatley indicates, it is not easy to open oneself up to a world intrinsic orderliness. Organizations are more focused on the design and structure as charts are drawn to indicate whom is accountable of whom and which role is played by whom and whom. Business professionals break up the firms into small sections and they create models of organizational practice and policy with the hope that through doing that, they gain adequate information on how to enhance the functioning of the organizations. Chaos and complexity theories however deem this to be unnecessary and harmful. Self-organizing structures are those facilitated to develop and change with free will. Provided each part of the system remains consistent with itself and the system’s past, the systems can harness the power of creativity, evolution and free will whereby all act within the limits of the overall vision and culture of the organization. In this respect, chaos theory shows the need for appropriate leadership that can act as a guiding vision, values, organizational beliefs and communication that is open. WRITING ON CHAOS THEORY During the 1980s, chaos and complexity theories started to change the processes of decision making in business. A proper example is in the evolution of high functioning groups. Members of effective teams usually recreate the roles that each of their team member plays depending on the needs of the team at a particular point. It must not always be the formally designated managers, informal leaders do emerge in organizations not because they possess the control but because they possess a strong sense of how to address the group needs and those of its members (Sullivan, 2004). The most successful leaders do understand that that priority is not placed on the organization or a particular individual, but the existing relationship between the individual and the organization. It should be understood that that relationship is in constant change. With the consistent transformations in the global and technological economies the way business is conducted on a daily basis is also changed and this as a clear indication of the presence of chaos and complexity (Sullivan, 2004). Businesses could succeed as non-adaptive and controlling institutions with hierarchical structures installed permanently, modern corporations should thus be able to reorganize with the progressive expansion of markets and technologies. According to Peters, in order to meet the demands of the quickly transforming competitive scenarios, people ought to simply learn to embrace changes as much as they have detested it in the past times. Organizational theorist Karl Weick (b. 1936) provides similar theories to those given by Peters, He believes that business strategies ought to be timely and supported by more investments in general knowledge, large pool of skills and the ability to conduct quick studies and the complexity in the cutting of losses. He does not however articulate on his theories in terms of the explicit ideas given sophistication in cutting losses.” Though he did not articulate his theories in terms of the explicit ideas given by quantum physics and the chaos theory. His statement backs up the idea that the overall organizational health is dependent on the interaction of various people and sections within that system. There are elements that indicate the lack of faith by organizations in their ability to undertake and complete certain tasks in several ways, aside from the faith that they can perform to the best of their ability with attention to and focus on the organization’s visions and directions. Therefore, organizations let transient forms to appear and disappear. Considerable fixation exists in structures and organizations. Those who undertake the creation of these structures survive because they are involved in building smart and crafty systems, which give them the ability to defend themselves against natural destructive forces (Sullivan, 2004). In line with the ideas of bounded instability, some extent of chaos is taken to be good for an organization. It is referred to as the edge of chaos and in as much as it is distanced from a stable environment, it tends to be exciting as it is positioned in a place where the predictable system of the organization tries to maintain unchanged structures. The dangerous shadow system tries to undermine and challenge the status quo. The power for change and needed innovation is provided at the edge of chaos when both are in competition with each other. References Botten, N., & Sims, A. (2005). Management accounting business strategy : CIMAs Official Study System, strategic level ([2006 ed.). Oxford, U.K.: CIMA Pub./Elsevier. Farazmand, A. (2003). Chaos And Transformation Theories: A Theoretical Analysis With Implications For Organization Theory And Public Management. Public Organization Review, 3(4), 339-372. Sullivan, T. J. (2004). The viability of using various system theories to describe organisational change. Journal of Educational Administration, 42(1), 43-54. Wheatley, M. J. (2001). Leadership and the new science: learning about organization from an orderly universe. San Francisco: Berrett-Koehler Publishers. Read More