Chaos Theory

Paper Summary:

This paper explains that organizations are becoming aware of the serious need to cope with and quickly adapt to change; therefore, they increasingly are turning to chaos theory in order to understand and manage change in a dynamic business environment. The author points out that chaos theory, also known as non-linear systems theory, is based on the premise that the world is made up of complex systems that are non-linear, dynamic, unstable and unpredictable, contrasting sharp with Newtonian science, which believed that the universe functioned in an ordered, stable, linear and predictable manner. The paper relates that chaos theory has led to organizations being viewed as organic or living systems that will find orderly solutions if they are allowed to do so; however, organizational management needs to be more sensitized to environmental changes, leading to flexibility, responsiveness, dynamism and a reduced reliance on precise planning.

From the Paper:

"True, that discerning the underlying structure of the complex systems that bring about change is often difficult because there are a number of myriad factors involved. However, chaos theory is nevertheless useful in understanding and managing what was previously considered to be uncontrollable, chaotic events and behavior. This is achieved by defining chaos as "the range of behaviors that deterministic processes can adopt." One such deterministic process is deemed as the organizational culture and structure itself. Indeed, this is precisely the reason why modern organizations are moving towards decentralized, leaner, flatter structures that allow for employee empowerment, self-organization and emergence."

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