Chaos Theory in Organizational Development
Encyclopedia
Chaos theory
in organizational development refers to a subset of chaos theory which incorporates principles of quantum mechanics
and presents them in a complex system
s environment.
in itself, and magnifying the interactional effects of primates and waves to reflect the interactions of different elements making up a complex system, such as an organization, assists us in seeing parallels between chaos theory
and organizational relationships. What must be pointed out, however, is that these "parallels" between organizations and the sub-atomic particles exist largely in terms of analogy (metaphorically) between two very different domains of activity; the interactional effects of sub-atomic particles, in quantum mechanics, are expressed in terms of math; bringing these theories into the domain of human activity can be seen as problematical.
Although these parallels are easily witnessed in regard to complex organizational systems, it is difficult to see evidence of irrational quantum-effects in everyday life. If you roll a ball forward, it rolls forward in the general direction intended. As a whole, Newtonian principles of interaction stand solidly within the bounds of macrophysics. But at the sub-atomic level, things do not act as expected. "At the subatomic level, the objectivity found in classical physics
is replaced by quantum subjectivity." (Shelton, 2003) The introduction of chaos theory brings the principles of quantum physics to the pragmatic world. These complex systems have a rather random appearance and, until recently, have been labeled and discarded as chaotic and unintelligible. With the advent of computer systems and powerful processors, it has become easier to map chaotic behavior and find interesting underpinnings of order. The newly discovered underlying order to chaos sparked new interest and inspired more research in the field of chaos theory. The recent focus of most of the research on chaos theory is primarily rooted in these underlying patterns found in an otherwise chaotic environment, more specifically, concepts such as self-organization, bifurcation, and self-similarity.
. One example of an organization which exists in a constant state of perturbation is that of the learning organization, which is "one that allows self-organization, rather than attempting to control the bifurcation through planned change." (Dooley, 1995) Being "off-balance" lends itself to regrouping and re-evaluating the system’s present state in order to make needed adjustments and regain control and equilibrium. By understanding and introducing the element of punctuated equilibrium (chaos) while facilitating networks for growth, an organization can change gears from "cruise" to "turbo" in regard to speed and intensity of organizational change. While maintaining an equilibrial state seems to be an intuitively rational method for enabling an organization to gain a sense of consistency and solidarity, existing on the edge of a chaotic state remains the most beneficial environment for systems to flourish develop and grow.
For instance, two competing organizations that differ in regard to their levels of homeostasis
will not be in competition for long. Generally speaking, the organization with the less-stable structure will come out ahead while the constant stability of the latter will eventually lead to its own demise. Although quite similar, small differences in homeostasis levels are enough to make a tremendous difference in future outcomes for each organization. The notion of similarity in origin vs. dissimilar results comes to fruition with the emergence of bifurcation.
Imagine dropping two identical coins from your fingertips off a 25-story balcony at the same time. Unless they are glued together, they will each take a different path towards the ground. Even though the force of gravity determines their general direction and speed, a host of uncontrollable variables such as wind and dust particles affect each coin independently. The infinitesimal and perhaps unidentifiable difference in starting conditions exponentially amplifies the effects of all other variables encountered which then feed back and add even more variation to the system resulting in very different paths taken to the ground. The moment the two coins split paths is known as the bifurcation point. The importance of this point lies in its implication of change and new direction.
Although chaos eventually gives way to self-organization, how can we control the duration, intensity, and shape of its outcome? It seems that punctuating equilibrium and instilling disorder in an organization is risky business. Throwing an organization off balance could possibly send it in a downward spiral towards dissemination by ultimately compromising the structural integrity (i.e. identity) of the system to the point of no return. The only way to reap the benefits of chaos theory in OD while maintaining a sense of security is to adjust the organization towards a state of existence which lies “on the edge of chaos”.
By existing on the edge of chaos, organizations are forced to find new, creative ways to compete
and stay ahead. Good examples of such learning organizations are found throughout the field of technology as well as the airline industry, namely organizations such as Southwest Airlines
, which used re-invention not just for survival, but also to prosper in an otherwise dismal market. In contrast, there are organizations which, due to extended periods of equilibrium, find themselves struggling for survival. Telephone companies, for instance, were once solid and static entities that dominated the communication market. While the rest of the world was developing new communication technology, telephone companies did not creatively grow at the same rate. The result is an organization that is battling to stay alive unless they embrace the element of chaos due to crisis, and allow creative adaptability to function freely so that self-organization and re-invention can occur.
While organizations existing on the edge of chaos are known to be the most creative and adaptive of organizations, how do their members feel about constant evolution and re-invention? Is it possible to identify with, and stay loyal to, an organization that constantly changes shape? The short answer is yes. As long as the organization does not change its core essence, its identifiable, shared purpose, its members will still experience the organization as a developing system that changes shape but retains the same familiar face.
Perhaps the safest way to use chaos theory in OD is not in the instigation of organizational change, but in the use of its principles in dealing with issues that arise within the organization. By embracing organizational phenomena previously seen as dysfunctional, such as interpersonal conflict, and using it as a source for transformational change by applying principles found in chaos theory (Shelton, 2003), an organization can make "lemonade out of lemons" and become more responsive to change agents while continuously moving ahead and growing from the inside out without the fear of complete chaos.
Chaos theory
Chaos theory is a field of study in mathematics, with applications in several disciplines including physics, economics, biology, and philosophy. Chaos theory studies the behavior of dynamical systems that are highly sensitive to initial conditions, an effect which is popularly referred to as the...
in organizational development refers to a subset of chaos theory which incorporates principles of quantum mechanics
Quantum mechanics
Quantum mechanics, also known as quantum physics or quantum theory, is a branch of physics providing a mathematical description of much of the dual particle-like and wave-like behavior and interactions of energy and matter. It departs from classical mechanics primarily at the atomic and subatomic...
and presents them in a complex system
Complex system
A complex system is a system composed of interconnected parts that as a whole exhibit one or more properties not obvious from the properties of the individual parts....
s environment.
Background
Viewing a chimp as a complex systemComplex system
A complex system is a system composed of interconnected parts that as a whole exhibit one or more properties not obvious from the properties of the individual parts....
in itself, and magnifying the interactional effects of primates and waves to reflect the interactions of different elements making up a complex system, such as an organization, assists us in seeing parallels between chaos theory
Chaos theory
Chaos theory is a field of study in mathematics, with applications in several disciplines including physics, economics, biology, and philosophy. Chaos theory studies the behavior of dynamical systems that are highly sensitive to initial conditions, an effect which is popularly referred to as the...
and organizational relationships. What must be pointed out, however, is that these "parallels" between organizations and the sub-atomic particles exist largely in terms of analogy (metaphorically) between two very different domains of activity; the interactional effects of sub-atomic particles, in quantum mechanics, are expressed in terms of math; bringing these theories into the domain of human activity can be seen as problematical.
Although these parallels are easily witnessed in regard to complex organizational systems, it is difficult to see evidence of irrational quantum-effects in everyday life. If you roll a ball forward, it rolls forward in the general direction intended. As a whole, Newtonian principles of interaction stand solidly within the bounds of macrophysics. But at the sub-atomic level, things do not act as expected. "At the subatomic level, the objectivity found in classical physics
Classical physics
What "classical physics" refers to depends on the context. When discussing special relativity, it refers to the Newtonian physics which preceded relativity, i.e. the branches of physics based on principles developed before the rise of relativity and quantum mechanics...
is replaced by quantum subjectivity." (Shelton, 2003) The introduction of chaos theory brings the principles of quantum physics to the pragmatic world. These complex systems have a rather random appearance and, until recently, have been labeled and discarded as chaotic and unintelligible. With the advent of computer systems and powerful processors, it has become easier to map chaotic behavior and find interesting underpinnings of order. The newly discovered underlying order to chaos sparked new interest and inspired more research in the field of chaos theory. The recent focus of most of the research on chaos theory is primarily rooted in these underlying patterns found in an otherwise chaotic environment, more specifically, concepts such as self-organization, bifurcation, and self-similarity.
Self-organization
Self-organization, as opposed to natural or social selection, is a dynamic change within the organization where system changes are made by recalculating, re-inventing and modifying its structure in order to adapt, survive, grow, and develop. Self-organization is the result of re-invention and creative adaptation due to the introduction of, or being in a constant state of, perturbed equilibriumMechanical equilibrium
A standard definition of static equilibrium is:This is a strict definition, and often the term "static equilibrium" is used in a more relaxed manner interchangeably with "mechanical equilibrium", as defined next....
. One example of an organization which exists in a constant state of perturbation is that of the learning organization, which is "one that allows self-organization, rather than attempting to control the bifurcation through planned change." (Dooley, 1995) Being "off-balance" lends itself to regrouping and re-evaluating the system’s present state in order to make needed adjustments and regain control and equilibrium. By understanding and introducing the element of punctuated equilibrium (chaos) while facilitating networks for growth, an organization can change gears from "cruise" to "turbo" in regard to speed and intensity of organizational change. While maintaining an equilibrial state seems to be an intuitively rational method for enabling an organization to gain a sense of consistency and solidarity, existing on the edge of a chaotic state remains the most beneficial environment for systems to flourish develop and grow.
For instance, two competing organizations that differ in regard to their levels of homeostasis
Homeostasis
Homeostasis is the property of a system that regulates its internal environment and tends to maintain a stable, constant condition of properties like temperature or pH...
will not be in competition for long. Generally speaking, the organization with the less-stable structure will come out ahead while the constant stability of the latter will eventually lead to its own demise. Although quite similar, small differences in homeostasis levels are enough to make a tremendous difference in future outcomes for each organization. The notion of similarity in origin vs. dissimilar results comes to fruition with the emergence of bifurcation.
Bifurcation
The concept of bifurcation cannot be explained without discussion of the term frequently labeled "sensitivity to initial conditions." Sensitivity to initial conditions refers to the high level of importance of primary conditions from which the future path and direction of a system stems. This sensitivity to initial conditions is commonly referred to as the "Butterfly Effect," in which a butterfly flaps its tiny wings in one end of the world which results in a typhoon or hurricane somewhere else on the globe. While this is an entertaining notion, sensitivity to initial conditions remains in reality a very abstract concept without the presence of bifurcation, which is mathematically labeled as the actual splitting point of two near-identical entities which, due to the sensitivity of initial conditions, tend to take two very distinct paths and result in two totally different geographically or even evolutionary places.Imagine dropping two identical coins from your fingertips off a 25-story balcony at the same time. Unless they are glued together, they will each take a different path towards the ground. Even though the force of gravity determines their general direction and speed, a host of uncontrollable variables such as wind and dust particles affect each coin independently. The infinitesimal and perhaps unidentifiable difference in starting conditions exponentially amplifies the effects of all other variables encountered which then feed back and add even more variation to the system resulting in very different paths taken to the ground. The moment the two coins split paths is known as the bifurcation point. The importance of this point lies in its implication of change and new direction.
Applications and pitfalls
The primary goal of an organizational development (OD) consultant is to initiate, facilitate, and support successful change in an organization. Using chaos theory as the sole model for change may be far too risky for any stakeholder buy-in. The concept of uncertainty on which chaos theory relies is not an appealing motive for change compared to many alternative "safer" models of organizational change which entail less risk. By careful planning and management of disorder a successful intervention is possible, but only with a truly dedicated arsenal of talented and creative resources. By permitting or actively forcing an organization to enter a chaotic state, change becomes inevitable and bifurcation imminent; but the question remains, "Will the new direction be the one intended?" In order to account for the direction of the new thrust, most planning attention should be focused on attractors instead of the initiation of disorder.Although chaos eventually gives way to self-organization, how can we control the duration, intensity, and shape of its outcome? It seems that punctuating equilibrium and instilling disorder in an organization is risky business. Throwing an organization off balance could possibly send it in a downward spiral towards dissemination by ultimately compromising the structural integrity (i.e. identity) of the system to the point of no return. The only way to reap the benefits of chaos theory in OD while maintaining a sense of security is to adjust the organization towards a state of existence which lies “on the edge of chaos”.
By existing on the edge of chaos, organizations are forced to find new, creative ways to compete
Competition
Competition is a contest between individuals, groups, animals, etc. for territory, a niche, or a location of resources. It arises whenever two and only two strive for a goal which cannot be shared. Competition occurs naturally between living organisms which co-exist in the same environment. For...
and stay ahead. Good examples of such learning organizations are found throughout the field of technology as well as the airline industry, namely organizations such as Southwest Airlines
Southwest Airlines
Southwest Airlines Co. is an American low-cost airline based in Dallas, Texas. Southwest is the largest airline in the United States, based upon domestic passengers carried,...
, which used re-invention not just for survival, but also to prosper in an otherwise dismal market. In contrast, there are organizations which, due to extended periods of equilibrium, find themselves struggling for survival. Telephone companies, for instance, were once solid and static entities that dominated the communication market. While the rest of the world was developing new communication technology, telephone companies did not creatively grow at the same rate. The result is an organization that is battling to stay alive unless they embrace the element of chaos due to crisis, and allow creative adaptability to function freely so that self-organization and re-invention can occur.
While organizations existing on the edge of chaos are known to be the most creative and adaptive of organizations, how do their members feel about constant evolution and re-invention? Is it possible to identify with, and stay loyal to, an organization that constantly changes shape? The short answer is yes. As long as the organization does not change its core essence, its identifiable, shared purpose, its members will still experience the organization as a developing system that changes shape but retains the same familiar face.
Perhaps the safest way to use chaos theory in OD is not in the instigation of organizational change, but in the use of its principles in dealing with issues that arise within the organization. By embracing organizational phenomena previously seen as dysfunctional, such as interpersonal conflict, and using it as a source for transformational change by applying principles found in chaos theory (Shelton, 2003), an organization can make "lemonade out of lemons" and become more responsive to change agents while continuously moving ahead and growing from the inside out without the fear of complete chaos.
See also
- Butterfly effectButterfly effectIn chaos theory, the butterfly effect is the sensitive dependence on initial conditions; where a small change at one place in a nonlinear system can result in large differences to a later state...
- Chaos theoryChaos theoryChaos theory is a field of study in mathematics, with applications in several disciplines including physics, economics, biology, and philosophy. Chaos theory studies the behavior of dynamical systems that are highly sensitive to initial conditions, an effect which is popularly referred to as the...
- Complex systemComplex systemA complex system is a system composed of interconnected parts that as a whole exhibit one or more properties not obvious from the properties of the individual parts....
- Complex systemsComplex systemsComplex systems present problems in mathematical modelling.The equations from which complex system models are developed generally derive from statistical physics, information theory and non-linear dynamics, and represent organized but unpredictable behaviors of systems of nature that are considered...
- Organizational studiesOrganizational studiesOrganizational studies, sometimes known as organizational science, encompass the systematic study and careful application of knowledge about how people act within organizations...
- Self-organizationSelf-organizationSelf-organization is the process where a structure or pattern appears in a system without a central authority or external element imposing it through planning...
- Systems thinkingSystems thinkingSystems thinking is the process of understanding how things influence one another within a whole. In nature, systems thinking examples include ecosystems in which various elements such as air, water, movement, plants, and animals work together to survive or perish...
- Systems philosophySystems PhilosophySystems philosophy is the study of the development of systems, with an emphasis on design and root cause analysis. Systems philosophy is a form of systems thinking....