Running Head: CHAOS THEORY: LITERATURE REVIEW
Chaos Theory Literature Review
Roger Howard-Robinson
BUSI 610-D01
Liberty University
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LITERATURE REVIEW: CHAOS THEORY
Abstract
The Chaos Theory was created in the 1800s by mathematicians. In the 1980s Edward Lorenz
applied the Chaos Theory to his own ideas; this allowed for the Chaos Theory to be applied
to organizational design and structure in modern times. The chaos theory describes the
organization as a complex system that is predictable and chaotic at the same time.
Mathematical equations can be utilized to define and event that may appear to be random;
overall things may seem random, unorganized and chaotic, eventually the organization’s
systems will reorganize themselves and go back into a state of control. This paper will review
literature themes and information that has been presented about the chaos theory, and the
parameters that define it. Initial conditions surrounding the organization will often determine
the direction that the organization will take; however, all circumstances cannot be known in
detail. Predictability will not always be present, but uncertainty will always be present;
uncertainty and unpredictability can be caused by predicting the end outcome of an action or
strategy. Attractors are the patterns and trajectories that a chaotic system runs on, even with
the unpredictability of the system. Strange attractors, a subset of the attractors, define the
areas within an organization where the largest opportunity for innovation, within the
predictable boundaries, will occur. Complexity is continuously increasing within the external
environment of an organization; therefore, change and unpredictability are inevitable.
However, management developing an understanding of the connections that are present
between the organization and its chaotic environment is a crucial element for the organization
to mold and control the environment in-which they operate.
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LITERATURE REVIEW: CHAOS THEORY
Chaos Theory Outline
1. Title Page
2. Abstract
3. Introduction
a. Introduction to Chaos Theory; application to organizations, and its importance
b. Themes present within the literature
•
Chaos Theory definition and origins of the theory
•
The relationship of Chaos Theory and Organizations
4. Chaos Theory Overview
a. Definition of Chaos theory
b. Effects on an organization
c. Organizational systems
5. Chaos Theory: The benefits and drawbacks based on literature
a. Benefits
b. Drawbacks
6. Conclusion
7. References
Introduction
The Chaos Theory is based upon mathematics, and is utilized in studying complex
systems (Mason & Kirkwood, 2017). French mathematician Henri Poincare first mentioned
the theory; research of the theory once again began in the 1960’ by Henry Lorenz (Mason &
Kirkwood, 2017). The Chaos Theory claims that all things within the universe are unstable
and have no maintained order(Mason & Kirkwood, 2017). The Chaos Theory attempts to
find predictability of some form by studying patterns (Rouse, 2018). The Chaos Theory has
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been adapted to be applied to behavioral and social sciences, the Chaos Theory was
originally created to use as a tool in predicting and understanding the many different
configurations that weather can take (Skiadas & Skiadas, 2016). This concept gave
researchers an environment where research can be conducted on the trends of an
organization. Through years of operation the business environment has become unstable and
increasingly uncertain and unpredictable; therefore, organizations must be flexible and have
the ability to adapt suddenly in order to survive in this environment. By performing an
analysis of the relationships present within the organizational structure, the Chaos Theory can
be used as a tool in explaining how events that seem random, can be predicted and prepared
for. An organization is essentially a complex structure, and the larger the organization the
more complexities that are contained within. The Chaos Theory describes that even when an
organization is within a pure chaotic state, there is not a limit on the number of times that the
organizational system can reorganize and renew (Mason & Kirkwood, 2017).
This literature review will discuss the Chaos Theory and how it is applied to organization
theory and design in the business environment. Within a complex organization, the Chaos
Theory can be utilized to measure what seemingly random effects may be seen across
multiple departments, and can be utilized to determine the root cause of an event so that
preventative measure can be put in place to prevent future occurrences. The Chaos Theory
has been in existence for many years but was reapplied in modern contexts by Edward
Norton Lorenz after he had discovered that weather was a nonlinear phenomenon that has a
dependence upon initial and continuing conditions, his findings were published in a
document entitled “Deterministic Non-periodic Flow” (Encyclopedia Britannica, 2017).
Chaos Theory Overview
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LITERATURE REVIEW: CHAOS THEORY
Chaos Theory: Defined
Situational awareness is essential within organization when it comes to enacting
strategies that are related to organizational design and theory (Raisio & Lundstrom, 2015).
The Chaos Theory allows for management to have an overview of the entire organization and
all of the components within the organization, so that management can gain insight of the
organizations future and potential current status, with a focus on the organizations strategies
and the processes of the organization (Skiadas & Skiadas, 2016). The Chaos Theory works to
describe and predict non-linear items that are typically unpredictable and uncontrollable;
examples of these items would be weather, stocks, and an individual’s state-of-mind; these
items are typically defined by the fractal mathematics that can capture the infinite number of
complexities within all things (Rouse, 2018). By applying Chaos Theory to complex
organizations, the connection between social and economic systems is clear and can be seen.
The Chaos Theory has within its contents several key principals that are utilized when
applying the Chaos Theory to the different sections of organizational theory. Chaos Theory is
also applied to stability and instability, as well as the attractors that when applied to situations
can cause a chain reaction and a multitude of events to occur (Rouse, 2018). An attractor is
an item or event that has an effect on the behaviors of chaos (Rouse, 2018). There are two
types of attractors that are defined within the Chaos Theory; these are, attractors and strange
attractors, these attractors are utilized as the starting point when applying the Chaos Theory
to organizational theory (Rouse, 2018).
Sections of the Chaos Theory are as follows:
Butterfly Effect. This segment of Chaos Theory describes how a butterfly that is in one
part of the world can flap its wings at a precise moment and cause a weather-related effect (a
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hurricane) in another part of the world at a later time; essentially defining those small actions
can lead to larger consequences (Halpren, 2018). While it may take a long period of time for
cause and effect to take place, the connection is there. This subsection of the Chaos Theory
infers that the hurricane would not have occurred if the butterfly had not made the decision to
flap its wings at a precise moment in time and affect the initial conditions of a weather
pattern (Halpren, 2018). This subset of the Chaos Theory is considered to be the core and
basis of all aspects of the Chaos Theory; and when the flapping of the butterfly’s wings
occurs, this is the true starting point of chaos (Halpren, 2017). To explain this more clearly it
can be inferred that subtle changes in the initial conditions can evolve into drastically
changed results. A perfect example of this is how decisions that are made in the beginning of
a person’s life can have consequences later in that person’s life.
Unpredictability. With no prior knowledge of complex systems conditions, it would be
impossible to predict the end state of this complex system. Upon obtaining a measurement of
the state of a system, a slight error could cause all predictions to be null and void (What is
chaos theory, 2017). This is considered to be the area in which chaos is most present, as this
is the unpredictable environment in which an organization operates (What is chaos theory,
2017). Events will happen that are beyond the organizations management’s control, in these
situations it is best for managers to be flexible and be willing to reshape when and if
something happens (Raisio & Lundstrom, 2015).
Order and Disorder. This subsection of Chaos Theory looks at the differences between
order and disorder and what contributes to them; also, how these two appear in complex
systems (Rouse, 2018). In organizations, there is an aspect of disorder; this disorder can be
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created by management’s attempts to restore order through control, as control is typically the
cause of disorder (Raisio & Lundstrom, 2015).
Mixing. This subsection is essentially the meshing together of two portions of a complex
system, and the fact that at first their relationship will change over time (Mason & Kirkwood,
2017). An example of this would be two molecules that are in different parts of the ocean but
over time will meet; just as two portions of complex system being meshed together will
begin with separate parts that will become one over time.
Nonlinear. This is a subsection of Chaos Theory that defines that sometimes things that
are mixed cannot be unmixed (Rouse, 2018).
Feedback. This subset, when present, can have a chaotic effect on systems (Rouse,
2018). An example is the constant rise and fall of the stock market, and the buying reactions
of consumers during these rise and falls that essentially will cause another change in the
market.
Fractals. Fractals are defined as an ongoing and never ending series of patterns (What is
chaos theory, 2017). These patterns are complex and have a tendency to be similar across a
multitude of scales (What is chaos theory, 2017). In order for a fractal to be created, a process
is repeated in an ongoing feedback loop (What is chaos theory, 2017). Fractals are considered
to be a pure representation of chaos in motion and are derived within a dynamic system that
is forever changing (What is chaos theory, 2017).
Effects on the Organization
When the Chaos Theory is applied to an organization it allows for management to
observe the trends that can develop within an organization when specific decisions are made
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(Pryor, 2015). Managers can utilize the Chaos Theory to predict the outcomes from decisions
made and the potential causes that could have caused the outcomes (Pryor, 2015). Seemingly
random events can be tracked and thus quantified utilizing the unpredictability subsection of
the Chaos Theory (Mason & Kirkwood, 2017). Organizations are considered to be nonlinear
and dynamic systems; to put this in simplified terms, organizations are systems that when
subtle and small events or changes occur, have the potential to create severe consequences
for the organizational system or start chain reaction events within the organizational system
(Daft, 2016). Organizations are subjective to stability and instability depending upon their
operating environment and the influences that come from within the environment (Daryani,
2016).
Literature discusses that the Chaos Theory can be utilized as a tool for several different
functions that are can be considered crucial for management and organizational behavior
(Pryor, 2015). The Complexity Theory was the basis for the Chaos Theory, with the correct
application these two theories can be used to determine the approach and ability to reach a
new normal (What is chaos theory, 2017). The Complexity Theory is described as providing
a structure of dynamics that are utilized for predictive functions and further analysis (Ward,
2017). In Complexity Theory, how a system is created is identified; while Chaos Theory
identifies how a system operates within its chosen working environment (Ward, 2017). Some
researchers have written that the Complexity Theory should be used in organizations due to it
being the understanding that the majority of organizations are predictable; however, in recent
years the utilization of Chaos Theory has shown to be more beneficial to organizations as an
organization is a complex system that contains the properties of chaos (Ward, 2017).
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LITERATURE REVIEW: CHAOS THEORY
By utilizing the Chaos Theory, management of an organization is allowed to essentially
test and predict the outcomes of different problematic and potentially unpredictable scenarios
that the organization could face (Thietart & Forques, 2017). The Chaos Theory allows
management to analyze the results of this testing and learn from them and create strategies
for the organization to use when coping with different scenarios (Thietart & Forques, 2017).
Stability
There was a point in time when a company could operate and survive with very little or
no change in its operating practices; their management structure; or the environment in which
they operate (Amini & Daryani, 2016). However, in today’s business environment this is not
possible, increasingly due to the ever-changing markets and technological updates (Blocher,
Strout, Juras, & Cokens, 2016). In today’s business environment, a business must be able to
restructure their operating practices, and management structure with very little notice (Amini
& Daryani, 2016). The Chaos Theory can be essential to an organization when they are
beginning to adapt and make crucial changes by offering them the opportunity to predict
trends within the market or business environment by evaluating the organization and its
different segments and looking for repetitive behaviors within the company (Thietart &
Forques, 2017). Once the behaviors have been identified, classification of the behaviors can
take place as to whether each is acceptable or unacceptable (Thietart & Forques, 2017). The
unacceptable behaviors will be the ones that are phased out first, while the acceptable
behaviors will be analyzed for improvement opportunities. A common problem that is found
among many organizations is that older members of management may not be willing to cope
with changes that need to be made, as they may not retain the complete control of the
organization that they have become accustomed to. In companies that have existed for many
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years with very little change it is often difficult for management to be accepting of the
changes, until something causes the company to make changes for survival and then change
will be easier to accept (Pryor, 2015).
Ward (2017) stated that Managers should utilize the Chaos Theory as a basis for their
managerial plans and policies as this will allow for the most beneficial approach when they
are forced to cope with unpredictable and chaotic situations. Instead of a company being in a
state of reaction all the time, basing their plans policies on the Chaos Theory will allow them
to prepare and not feel that it is necessary to be in a reactionary state during all operations.
Management’s understanding of Chaos Theory in practices and policies will allow for the
mitigation, preparedness, and responsiveness when any situation arises within the
organizations environment (Ward, 2017). It has been shown through research that when an
organization is forced into a restructure, that the organization will most likely go into a total
state of chaos, and after first going into this state will begin the process to self-organize
internally, instead of the organization reverting to the standard system that was in place prior
to the forced restructure as a coping mechanism for the chaos; this internal self-organization
upon being forced into a restructure and state of chaos is referred to as the organization
finding equilibrium (Ward, 2017).
Instability
In the first stages of an organization, chaos is heavily present (Amini & Daryani, 2016).
The majority of organizations are not prepared for the unpredictable events that may happen
(Daryani, 2016). This lack of preparedness means that the organizations are always in a
reaction state, meaning that the organization will not address a problem until it is essential to
the organizations survival, in these situations the organization will hastily create a solution
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for the problems they are facing and in some instances these solutions will fail (Daryani,
2016).
Complete control of the environment in which an organization operates is almost
impossible due to the amount of existing and changing conditions (Raisio & Lundstrom,
2015). Many management teams believe that complete control will be beneficial to
succeeding in these environments; however, chaotic variable cannot be controlled and
stability and instability are defined (Raisio & Lundstrom, 2015). In a different approach, the
company can make a false sense of control, but ultimately the chaos’s unpredictability will
prevail. In some cases when presented the truth some organizations will deny, or avoid the
truth; this is a sign of instability and will ultimately cause the company to fail (Raisio &
Lundstrom, 2015).
Process Evolution
The Chaos Theory was originally created as tool to form predictions of weather patterns
utilizing mathematical calculations (Mason & Kirkwood, 2017). Within complex systems
these calculations can now be utilized as a tool to help predict the unpredictable chaos that is
sensitive to the systems initial conditions (Mason & Kirkwood, 2017). The Chaos Theory is
not applied to several business activities; such as, finance, management, medicine, and
biology (Thietart & Forques, 2017). Multiple tools have been created to utilize when
analyzing complex systems; examples of these tools are, sampled data, feedback controls,
and Poincare maps (Thietart & Forques, 2017).
Managers in today’s organizations know that learning the initial conditions of an
organization and maintaining an understanding that there is not a standard operation process
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that will always work, will equip managers with the skills to be able to cope and deal with
situations and the management of the organization in the long-run (Thietart & Forques,
2017). There are several activities that a manager must continue when in chaotic times; these
activities are social activities, identity activities, retrospect activities, cue activities, ongoing
activities, plausibility, and enactment activities (Thietart & Forques, 2017). These activities
all work together to better the organization. Social activity is management encouraging
conversation between employees and managers about the way that issues are dealt with
(Thietart & Forques, 2017). Identity is the process of identifying the parts of the issue, the
what and who, who is a victim, who is the aggressor, what is affected, what is not affected
(Thietart & Forques, 2017). Retrospect is reviewing what lead to the events and determining
what could have been done to handle these situations in a different manner to create a
different outcome (Thietart & Forques, 2017). The cue is what set off the issue or the chain
reaction and determining how to eliminate this so that it does not occur again (Thietart &
Forques, 2017). These all work to help cope with an issue and determine that affects, and the
causes of the issue.
Organizational Systems
Ludwig von Bertalanffy, in 1956, created a theory that organizations were a system, and
proposed that all systems contain behaviors that are predictable (Halpern, 2018). According
to Halpern (2018), Bertalanffy summarized that there are four behaviors that are typical of a
system and together define a system, these behaviors are:
1. Opened/closed exchanges: This is the variation of the responsiveness to the present
information about both internal and external components of a system and the factors
of a system.
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2. Interdependence: All parts of a system are interconnected and each portion can feel
the effects of another, and each have an influence on the others.
3. Homeostasis: The maintaining of stability within the system. All portions of the
system must communicate with each other and work to maintain equilibrium.
4. Nonsummativity: This is the stated fact that the system, as a whole, is more than each
of the systems individual subsection or part.
Each organization is composed of different segments that all work together to obtain a
working system and operating organization (Amini & Daryani, 2016). Organizational
systems are both dynamic, and nonlinear, and are considered in some organizational system
to be chaotic (Amini & Daryani, 2016).
Dynamic: A dynamic system contains elements and components that over time will change,
and will be able to make changes based on the changes within its environment (Amini &
Daryani, 2016). In a dynamic system, the system is continually evolving as a response to
issues or stimuli that come for the systems operating environment both internal and external
(Amini & Daryani, 2016).
Nonlinear: The majority of systems have a linear nature (Amini & Daryani, 2016). Nonlinear
systems will always have a system output that is not proportional with the systems input
(Amini & Daryani, 2016).
Chaotic: A chaotic system is one in which future behaviors cannot be predicted this is
typically a result of managers not knowing the initial conditions of their organization, or
when managers attempt to have full control of the organizations operating environment
Amini & Daryani, 2016).
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It has been stated that managers can turn instability into an asset by understanding the
patterns of a chaotic system and implementing a measure of control Skiadas & Skiadas,
2016). Each section of an organization takes up an amount of space within the environment,
this space allows for a chaotic system to self-stabilize and it moves towards given attractors,
by narrowing down attractors it is possible to learn which attractors will help to stabilize a
system (Skiadas & Skiadas, 2016)
The majority of systems are nonlinear and dynamic systems in which elements of the
organization change in response to external and internal stimuli (Juarez, 2017). Most
organizations are complex making them sensitive to change (Juarez, 2017). Organizations are
also sensitive to their initial conditions; therefore, it is crucial for management to observe and
understand these initial conditions (Amini & Daryani, 2016). Uncertainty of any amount has
the potential to create errors that will create obstacles in the relevant predictions for the
organizations (Amini & Daryani, 2016). By knowing the initial conditions of the
organization management can apply the Chaos Theory to assist with making accurate
predications with a level of accuracy.
Through the conducted research, it can be seen that management not having complete
control over all parts of an organization can be considered the best practice for the success of
the organization (Simard, Aubrey, & Labarge, 2017). This will give an organization the
opportunity to change and create opportunities for innovation. Through these growth
opportunities the organization will have the ability and experience to adapt to situations
making the organization, overall, more successful. Organizations that are not willing or do
not have the ability to adapt will ultimately become stagnant and outpaced by other
companies that are adaptable to their environments.
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Chaos Theory: The Benefits and Drawbacks based on Literature
When a theory is being used in a way that it was not originally designed, portions will
need to be adapted to work in the new ways in which it is being applied; that is the case for
the Chaos Theory, it has been adapted to be used in new ways that it was not originally
designed for. Dependent upon the outcomes of different strategies will be the determining
factors on how well the organization will perform when implementing new ideas. Chaos
Theory requires managers to thoroughly analyze their organizations so that they can identify
the initial conditions, as these will be the determining factors of how the Chaos Theory will
be applied (Mason & Kirkwood, 2017).
Benefits.
It is believed that the future uses of the Chaos Theory will likely be focused on the
organizational development using concepts that have previously been discussed in this
literature review (Qaied, Pavlovic & Alshammari, 2015). Recursive, non-linearity, and
emergence are a few of the topics with in Chaos Theory that still require further research and
explanation. Many of the works down using the Chaos Theory in organizational development
have been theoretical and continued research and experimentation of applying this theory to
organizational development would be beneficial to understanding the effects of this theory.
They application of Chaos Theory has given influence to organizational design by describing
the ability for the organization to adapt to changes within its operating environment (Qaied,
Pavlovic & Alshammari, 2015). With continued research and development the Chaos Theory
can be used in its full potential to be applied by management in predicting the unpredictable
events by analyzing developing trends, documenting these trends, and creating solutions for
them when needed.
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Many researchers have found that the biggest obstacle facing the use of Chaos Theory is
management’s unwillingness towards change (What is chaos theory, 2017). Many managers
still try to hold control, creating additional issues for the organization (Amini & Daryani,
2016). Managers are not willing to change until a problem arises that requires the
organization to adapt for survival, this is the point where management is forced to implement
Chaos Theory in order to benefit their company (Amini & Daryani, 2016).
According to Pryor (2015) the Chaos Theory has still not become a mainstream tool
among managers, and still requires more research and development. However, the Chaos
Theory, if used, can be beneficial to an organization and have a positive outcome on the
organization. Organizations will always be in a state of chaos at some point with in its
operation, with the competition to this chaos and managements control being the attractors
that influences chaos (Pryor, 2015). Cottam, Ranson and Vouckx (2015) discuss that
management using a model of less control and more freedom for employees will help to
lower the amount of chaos and give more adaptability when solving problems, this will also
allow for the Chaos Theory to be easily applied to the organization.
Drawbacks
The use of theoretical materials and data comes with drawbacks. The Chaos Theory is
still mainly in a theoretical research phase when it comes to be applied to organizations. The
Chaos Theory requires dedication from managers of an organization and a lot of work to
apply the theory, and often the theory will only be used when the organization encounters an
issue that would be catastrophic to the organization and would require a change in the
business model or restructuring.
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Management having a lack of understanding about the Chaos Theory and its base theory
the Complexity Theory can result in management’s uninformed decision-making, and
ultimately the creation of strategic decisions that are poor. An organization must have an
understanding of both theories before the Chaos Theory is applied, as an understanding of the
theories will help the organization in its application and will benefit their operations and
prepare them for changes in a chaotic operating environment. If applied correctly the Chaos
Theory and the Complexity Theory will be helpful to creating a comprehensive approach to
allow management to understand the dynamics of the organizations surroundings and
operating environment.
Conclusion
Since Lorenz initially refined the Chaos Theory it has again been modified so that it can
be applied beyond the applications that its creators had originally designed the theory for.
Though created as sub-discipline for a mathematical equation, the Chaos Theory has been
shown through research that the theory can be used successfully as an application within
business and organizational environments. With the ever-constant changes in today’s
business environment, there will always be an element of chaos, this element could
opportunity, uncertainties in the operating environment, the elements of chaos are infinite.
All organizations market environment is constantly operating in a state of disequilibrium
because of the constant threats of competition, new opportunities, and customer demand. An
organization can utilize the Chaos Theory to create a guidebook that will allow them to create
new strategies and processes that will allow for adaptability based on the changes within their
environment. Organization will be able to cope with the unpredictability of issues as they
arise and be able to adapt their leadership styles and operations, as it is required. Having this
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adaptability will give organizations a competitive advantage over other companies within
their market segment because they will be prepared for situations and able to flex when
needed. The Chaos Theory can be used by an organization to explain how unpredicted
circumstances occur and how the organization will react to these events.
Managers must recognize the initial conditions of a company. Issues can arise within an
organization based on their specific environment, changes within the initial conditions are
what causes these issues to arise, and when these conditions change and issues happen
management must create strategies to cope with these events. The understood nature of
uncertainty is that issues will, no matter what, always arise; this is a large part of chaos and
the Chaos Theory. With the amount of issues that can arise within the operating environment
of an organization management has shifted their perspectives to a reactive style within their
companies to be more prepared for the issues that arise consistently. Literature states that
management will assign owners of issues and individuals will be selected to assist in
collaborating with the owners of the issues and together work to create solutions to handle
issues and any additional problems that may be identified. Positive change is what is required
in chaotic times and these positive changes can be achieved within the organization through
management’s correct planning and management’s correct application of the Chaos Theory.
Systems have a tendency to adapt and change when faced with unpredictable results;
however, from within these small changes the overall systems behavior will eventually be
corrected by the strange attractors, and in most cases this will occur before the opportunity
for complete chaos happens. Also, randomness is a common and known aspect of all
systems, and when randomness occurs, and there is a transition from the state of order to the
state of disorder or vice versa, the strange attractors will begin to appear within the
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organization. Managers should seek to find this period of transition, as this is the period
where successful innovation and creativity can be created. Through the review of literature, it
has been found that management will discover patterns through examining different parts of
the organizations systems; and once these patterns have been identified management can
determine the amount of stability within these patterns is required to allow the patterns to
continue occurring, while still allowing some turbulence to occur as this is part of the natural
cycle and is what produces the need for innovation and change within the organization. In
order to build a successful organization that will withstand the test of time, management must
be willing to adapt and use these periods of instability, and unpredictability to foster change
within the organization allowing the organization to adapt to the changes within the
environment and surpass competitors by adapting to the operating environment changes
quickly and effectively.
With a complex operating environment, there is an affect caused by these complexities on
an organizations management’s ability to utilize and understand data when attempting to
predict the outcomes of situations that could possibly happen. The Complexity Theory and
the Chaos Theory were created to recognize the issues that organization can have due to the
aspects of the environment both within and outside of the organization. It has been found that
with external environments, if they are more chaotic, an organization will have a difficult
time learning to adapt to this chaotic environment and the necessary changes that may need
to be made due this state of chaos. By using the Chaos and Complexity Theories,
management can use times of chaos and disarray to the advantage of the organization, all
through the organization may seem in a state of chaos this is the time period where change
and innovation work best to destabilize the organization by applying these theories. The
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research that has been performed on the Chaos Theory can be utilized by management to
understand how a chaotic environment can be used to the organizations advantage and
ultimately help to build a stronger organization. The data that is supplied by Chaos Theory
should influence leaders of organizations to create strategies for understanding and coping
with turbulence within and outside of their organizations, and use this as a way to positively
effect their organization.
Most of the articles that discuss Chaos Theory within organizations use different types of
businesses as examples for a complex system. By using the theories and subset of the Chaos
Theory discussed in the literature review, it can be seen that applying this to any organization
will offer management an idea of how to cope with the unforeseen and unpredicted
circumstances. When coping with chaos managers should remain strong and utilize guidance
that is gained from the Chaos Theory to calculate a strategy for the organization to work
through the chaos. Many managers have summarized that they amount of research that has
been conducted on the Chaos and Complexity Theories is sufficient; however, the research is
still lacking a guide on how to put these Theories into application within organizations that
explains step by step how to conduct the necessary studies to be able to apply these theories.
Managers should utilize the Chaos Theory as their starting point when they begin looking at
organization theory. In the future research should be conducted and documented showing
how to practically and efficiently apply the Chaos Theory into the business and organization
setting, as the Chaos Theory is a good starting point for growing and strengthening an
organization; however, it was not originally designed for this application and there are still
uncertainties on how to apply it in these settings.
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The Chaos Theory and the research conducted thus far, shows that chaos is standard in an
organization external and internal environment. Often this chaos is present and we are not
aware until it creates a larger issue that must be dealt with. Nature, business, organization,
and many different environments are for more complex than we are aware, the Chaos Theory
shows that the level of chaos in each of these systems in infinite, and will always be an
aspect of all systems.
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References
Amini, A., & Daryani, S. M. (2016). Management and organizational complexity. Retrieved
from https://www.sciencedirect.com/:
https://www.sciencedirect.com/science/article/pii/S1877042816311466
Blocher, E., Strout, D., Juras , P., & Cokens, G. (2016). Cost management: A strategic approach.
New York: McGraw Hill Education.
Cottam, R., Ranson, W., & Vounckx, R. (2015). Chaos and Chaos; Complexity and Hierarchy.
Systems Research and Behavioral Science, 579-592.
Daft, R. L. (2016). Organizational theory and design. Boston: Cengage Learning.
Daryani, S. M. (2016). Management and organizational complexity. Procedia - Social and
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