Complexity Theory PDF

2. Complexity theory Complexity theory is a set of ideas stemming from the study of natural systems such as weather paCerns and animal behaviour and which draws on mathema$cal principles to help explain how organiza$ons behave. The concepts of complexity and complicated are frequently thought to be...

2. Complexity theory Complexity theory is a set of ideas stemming from the study of natural systems such as weather paCerns and animal behaviour and which draws on mathema$cal principles to help explain how organiza$ons behave. The concepts of complexity and complicated are frequently thought to be iden$cal. Complicated systems, although o>en diJcult to understand, are ordered systems. By contrast, a complex system is disordered in the sense that it is unpredictable. Stacey iden$=ed three cornerstones of complexity theory: 1. Chaos theory -> chao$c systems are characterized by constant transforma$on analogous to the ways that species evolve. 12 2. Dissipa$ve structures -> these need energy and impetus from outside otherwise they reduce to next to nothing (dissipate). They can withstand large forces ac$ng on them or undergo radical self-reorganiza$on in response to small events. 3. Complex adap$ve structures -> these are made up of agents each of which conforms to its own principles that shape its behaviour in rela$on to other agents. Burnes proposes three implica$ons of applying complexity theory to organiza$ons: 1. There is a need to move beyond ‘narrow employee par$cipa$on in change’ towards much more democracy and equaliza$on of power. This gives employees the scope to act. 2. The extremes of incremental change and large-scale transforma$on are not realis$c and rarely work. Between the two extremes lies a con$nuous approach based on selforganiza$on to improving products and processes. 3. To fuel the con$nuous change ideal, self-organiza$on needs the presence of ‘order genera$ng rules’. These rules evolve and are part of the processes of self-organiza$on. Complexity theory is a set of ideas that acts as a metaphor for understanding how change happens and how it is sustained (Haynes, 2008, Murray, 2003). The metaphor gives managers new insights into how their organiza$ons work and how they can conceive change, and those who act to e:ect it, in a new way. Shadow system is the old network that employees had before the new organiza$on was formed s$ll existed, meaning that employees could, to a point, con$nue with their established working ways. The concept of a shadow system, which works to destabilize the legi$mate system and establish a di:erent organiza$onal equilibrium, is crucial to understanding organiza$onal change. This is par$cularly the case with transforma$onal or frame-breaking change including management’s aCempts to change organiza$onal strategies, structures and processes. The pping point of change Another complexity theory concept that helps us to understand the nature of change is the idea of a pping point (Boyatzis, 2006). Here events occur and are contained within a system which lead up to and culminate in a $pping point. Examples: the =nancial crisis and poli$cians, press and police were in a cozy rela$onship to the point that criminality was being overlooked. 13