In the modern age where business is spread globally the challenges in front of an organization are

1800 WordsApr 23, 20198 Pages
In the modern age where business is spread globally the challenges in front of an organization are highly complex as the competition intensifies. Due to the complexity in the organizational management the older system methodology seems to become less relevant and sparingly less useful in these situations. These issues led to the introduction of complexity paradigm (Amagoh, 2008). Complexity theory was derived from the chaos and systems theory to show how a system is not confined in its boundaries and the growth or fall of an organization or a system depends upon how it is able to adapt and change to various situations. Complexity in an organization can be defined as the heterogeneity or diversity in the internal environment factors like…show more content…
Unlike the general systems theory stating that the organizations strive to achieve equilibrium complexity theory states that the equilibrium state would mean the death of an organization. The very essence of life is to change and transform according to the need of the moment like Samsung took into Smartphone market with vigor transforming them into the technology giants they are at the moment. Another difference between the General system theory and the complexity theory is the boundary. While in the case of general system theory a fixed boundary is defined for each system there is no fixed boundary as explained in the complexity theory. The boundaries keep changing along continually. As per complexity theory a 'bounded instability' state between rigidity and chaos is the perfect building block for growth and creativity in a team (The Complexity Advantage, Kelly and Alison). There are two principle ideas which the complexity theory works on. The first is based on the structure of an organization with a trade of between the efficiency and flexibility of an organizational structure. This addresses that a system should be partially connected rather than a completely coupled or decoupled system (Kauffman, 1995; Langton, 1990; Gell-Mann, 1994a). According to many when a system is over connected the ability to adapt to changing situations becomes
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