Strategic Management And Organisational Dynamics The Challenge Of Complexity Pdf

strategic management and organisational dynamics the challenge of complexity pdf

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Ralph Douglas Stacey born 10 September in Johannesburg is a British organizational theorist and Professor of Management at Hertfordshire Business School, University of Hertfordshire , in the UK and one of the pioneers of enquiring into the implications of the natural sciences of complexity for understanding human organisations and their management. He is best known for his writings on the theory of organisations as complex responsive processes of relating. His father was a welder in the steel industry and his mother was a housewife.

For the better part of a decade, strategy has been a business buzzword.

Strategic Management and Organisational Dynamics

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Download Free PDF. Philipp Rathjen. Download PDF. A short summary of this paper. Introduction With the global economy becoming increasingly interdependent through open markets and technological developments Boisot, ; Levinthal, this interconnectedness results in a phenomenon often attributed with complexity.

In such a context, even tiny interventions in one part of a system are subject to reinforcing or balancing feedback loops. Therefore, they may result in potentially unpredictable chains of events affecting many other parts of that or connected systems Heylighen et al. In order to capture the entire field of complexity in organization and management research, various papers and handbooks have already recently been written e. Consequently, this literature review focuses selectively on some key contributions important to understand the antecedents and relevance of complexity for organizations and strategic management.

It shall shed light on how this challenge has been addressed by the literature and how this may be related to the emerging framework of dynamic capabilities. Therefore, this working paper is organized according to four main chapters. In the following chapter a brief overview of established theories and research streams contributing to the new challenges of complexity to organizations operating in complex and dynamic environments is provided. Subsequently, the concept of dynamic capabilities is reviewed in relation to its synergies with a complexity perspective in chapter three.

In the conclusion, indications on its relevance for further research are outlined. Organisational Complexity as a phenomenon for management research During the second half of the 20th century an increasing number of scientists have started opposing the long tradition of scientific determinism and reductionist approach to organization and management research Heylighen et al. These theories root in the challenge of the basic assumption underlying the so-called Newtonian mechanistic worldview where the world was deterministic, deductible and linear, and, as outlined in classic economic theories, decisions were made based on rational choices converting to stable equilibrium functions.

In this Newtonian ontology, the world is objective, deterministic and observer-independent Heylighen et al. Therefore, a complex system consists of components that are distinct and interconnected at the same time Heylighen, At a more generic level, complexity science is the systematic study of complex systems as well as the phenomena of emergence and complexity to which they give rise Maguire et al.

Even if specific elements only interact with a few others, the effects of these interactions are propagated throughout the system, often in a non-linear way. Any complex system thus has a history, and the history is of cardinal importance to the behaviour of the system.

Since the interactions are rich, dynamic, fed back, and above all, nonlinear, the behaviour of the system as a whole cannot be predicted from an inspection of its components. The non-linear effect of even tiny changes, however, can lead the system to change behaviour into different attractor basins.

Therefore, it deems relevant to acknowledge the ideas of systems thinking as a scientific foundation or linkage Stacey, ; Lichtenstein and McKelvey, ; Maguire et al. Stacey distinguishes between three major pathways of systems thinking as a fundamental basis: General Systems Theory, Cybernetics and Systems Dynamics. Systems theories as a dominating scientific field throughout the first half of the last century had already addressed dynamics of systems behaviours Richardson, A clear common foundation is the perspective that a system cannot be completely understood by analysing its individual parts, and the property and characteristics need to be looked at as a whole McKelvey et al.

The heterogeneity of the divers academic fields in systems sciences had led to the development of the General Systems Theory GST Boulding, Therefore, one of the objectives of the GST was to bridge the communication gaps within the diversity and heterogeneity of scientific subgroups Von Bertalanffy, As a further derivate of the systems movement, the Cybernetics Cyb developed further computational methods for systems behaviour Forrester, ; Such models particularly included systems with several orders of feedback loops with positive and negative triggers.

Also, the Systems Dynamics SD school has evolved based on the work proceeded by John Forrester with the attempt to help policy makers through the simulation and design of social and business systems Sterman, ; Along with other authors, he points to the dilemma of limited true decision-making impact Forrester, ; There is an objective designer who tries to predict the movement and feedback loops in the system in order to prepare for appropriate interventions.

As a result, the system moves towards near equilibrium Stacey, 72 or certain archetypes Senge, Complexity sciences have evolved on similar thinking and model building methods, based on theories derived from natural sciences such as chaos theory, catastrophe theory and information theories.

According to Anderson Cybernetics, General Systems Theory, chaos and catastrophe theory all have in common that patterns can emerge in deterministic systems. Therefore, they all build a foundation for complexity theories Heylighen, Similarly, though there is no dedicated science of complexity, most theoretic strands refer to chaos theory, dissipative structure theory and the theory of complex adaptive systems Stacey, All of them accompanied the desire to leave behind the reductionist view of system, and, instead of overlooking the dynamics through deduction, attempt to embrace and represent the dynamics through the application of simulation models.

According to Holland some systems display similarities in their emerging structure. Systems with such underlying commonalities in the way they organize and reconfigure their parts have been termed as complex adaptive systems Holland, Therefore, complex adaptive systems are system with a large number of parts often called agents that interact locally according to specific, often simple rules.

In a foundational computational model—NK model—established by Kaufmann , such emerging properties were the result of the interaction between the individual parts of a system without an overall architecture but intrinsically embedded in the cooperative activities themselves.

MacIntosh et al. Accordingly, two major groups can be distinguished: those adopting a more positivist view often using multi-agent models to simulate systems behaviour and those more bound to subjectivist and interpretative views approaching knowledge generation through metaphors and narratives. Here, the complexity of the agent and their interaction is more at the centre of understanding MacIntosh et al. This also leads to differences in the view to which extent outcomes of interventions can be centrally planned.

Richardson differentiates between three schools of thought and stresses the importance of a more critical pluralism. The neo-reductionist school seeks to represent complexity through the application of models an outcome can be simulated. The critical pluralism approach acts as a balance with the principles of complexity as underlying ontology for decision-making and stresses less the application of specific methods for knowledge generation.

Table 1 provides an overview of select but fundamental contributions to the development of complexity theories. Table 1: Theoretical contributions essential for the development of complexity theories adapted from Heylighen et al.

Knowledge is subjective, lack of order Postmodernism. Sterman , Epstein Senge Complexity Architecture of complexity as Simon Theories hierarchical system.

Organisations as open systems. Thompson Self-organisation. Prigogine Dissipative structures. Chaos Theory. Lorenz Catastrophe Theory. Gell-Mann 2.

Leading a foundational shift in organisation research towards a more behavioural view of economic behaviour and decision-making, Simon , Cyert and March promoted awareness towards behavioural limitations to the rationality paradigm.

Organizational internal processes and procedures were identified as causal to organizational adaptation, therefore, bringing a more dynamic notion into the discourse Augier, Particularly, in his frequently cited paper on the architecture of complexity, Simon laid out hierarchy and near-decomposability as a key characteristics of complex organizational systems.

Their work has informed scholars in their quest for finding an optimal design architecture for organizational complexity also acknowledging the bounded rationality of the individual actors.

A focus on firm internal characteristics such as causal ambiguity and social complexity has also been brought up by Barney , a founder of the resource based view as a source for competitive advantage. A complexity based approach that understands organisations as open systems with more dynamic interaction, however, seems to provide valuable insights by enriching the more comparative, static, views through dynamic interactions.

As noted by Maguire et al. Since then, it has remained evident that complexity sciences seem to play an important role in understanding organizations Stacey, ; Brown and Eisenhardt, ; Anderson, ; McKelvey et al. In organization science, complexity is a characteristic of both—the organisation and the environment Anderson, More than ten years later, however, the same authors still confirmed that viewing … social systems as complex adaptive ones … constitutes a major revolution in thinking which will have impacts on society as great as those of the Enlightenment.

Organizational Complexity Addressing organizational complexity, many authors have tried to establish an optimal design for organizations as a contingency criterion for performance. Ethiraj and Levinthal , e. Both authors equally asked the question to which extent complexity does impact the ability of rationally bounded decision makers, engaging in first and second order adaption when facing environmental change.

They reach a similar result: Hierarchy can be a balancing response to complexity Ethiraj and Levinthal, Similar research of organizational design and hierarchy were found e. Due to the multi-dimensionality of organizations within environmental contexts, however, it is argued that the theory explaining the relationship between the amount of structure and performance is still incomplete Davis et al.

As an example, Brown and Eisenhardt came to the conclusion that successfully changing firms display a level of continuous change rather than periodic disruptions after incremental change phases as suggested by the punctuated equilibrium model Gersick, , and related to patterns similar to complex adaptive systems Brown and Eisenhardt, Most of these studies focus on the positive attribute of disorder or disequilibrium.

Equilibrium is a precursor to death. Consequently, such patterns do not explain innovation and novelty in human interaction Stacey, Houchin and McLean proposed a further critique based on an empirical ethnographic study. Accordingly, although dis-equilibrium has been suggested necessary, also balancing forces are at work.

Their case study showed that dis-equilibrium provided anxiety to organizational members and identified self-organization towards hierarchy as a natural response.

This does not, however, contradict underlying principles of complexity. The questioning of deliberate choice and control as well as the focus on the interaction and relational processes also led to new views of leadership in organisations Uhl-Bien et al. In contrast to traditional personified leadership theories, complexity-informed, generative leadership occurs through influential events of interaction Goldstein et al. Environmental Complexity Literature on responses to dynamics of an environment sometimes link different environmental forces to e.

Their analysis concludes the path- dependence of this fitness landscape where a current firm structure may depend more on the initial path taken than the actual environment p. Siggelkow and Rivkin conceptualized specific environmental forces like turbulence and complexity in relationship with formal organizational design. By using an agent-based simulation technique adapted NK-Model they found patterns between design archetypes and different environmental settings leading to design strategies by design-archetype combinations.

The notion of environmental dynamics, structure and firm performance was also stressed by Davis et al. Despite frequent references in research, however, it was argued that the current theoretical underpinning of environmental dynamics is imprecise Davis et al.

Often, complexity, velocity, unpredictability and ambiguity are mixed although they may have very distinct influences.

Strategic Management for Competitive Advantage

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As projects have become more and more complex, there has been an increasing concern about the concept of project complexity. An understanding of project complexity and how it might be managed is of significant importance for project managers because of the differences associated with decision-making and goal attainment that are related to complexity. Complexity influences project planning and control; it can hinder the clear identification of goals and objectives, it can affect the selection of an appropriate project organization form, or it can even affect project outcomes. Identifying the different concepts associated to project complexity, its main factors and characteristics, the different types of project complexity, and the main project complexity models, can be of great support in assisting the global project management community. In this paper, we give a general overview of how complexity has been investigated by the project management community and propose several ideas to address this topic in the future.

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Strategic Management and Organisational Dynamics remains unique amongst strategic management textbooks by taking a refreshingly alternative look at the subject. Drawing on the sciences of complexity as well as a broad range of social scientific literature, Stacey and Mowles challenge the conceptual orthodoxy of planned strategy, focusing instead on emergence and the predictable unpredictability of organisational life. Ideal for advanced undergraduate and postgraduate study, this critically detailed accountdeals withcurrent issues, raising the challenge of complexity within practice and theory.

Organisational Dynamics Notes is defined as enhancing employee performances and the process of continuously strengthening the resources. It can also be described as better business practices and promotes organizational learning, and how the organization manages, and also strategic management. So, the universities will be decided on which semester this subject should be placed.

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Robin A Hay robin2. Financial Times Prentice Hall, Harlow. This engagement challenged my confidence in my own teaching and leadership practice.

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Ralph D. Stacey

Стратмор дал маху. Но надо идти вперед, а не оглядываться все время.  - В трубке воцарилась тишина, и Джабба подумал, что зашел слишком.  - Прости меня, Мидж. Я понимаю, что ты приняла всю эту историю близко к сердцу.


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