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Understanding the Rising Complexity in Business Environments Through Social Systems

This exploratory discussion delves into the increasing complexity of business environments shaped by social systems. It reviews historical management theories and their evolution from rigid structures to fluid, participative approaches. Key factors like globalization and technology's influence on organizational dynamics are analyzed, highlighting the challenge of navigating a landscape filled with interdependencies and choices. By employing diverse methodologies including brainstorming and literature reviews, this discussion aims to identify universal environmental factors that contribute to this complexity.

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Understanding the Rising Complexity in Business Environments Through Social Systems

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  1. “Complexity is messy and takes time to understand.” -Deborah Campbell Complex Social Systems: Rising Complexity in Business Environments an exploratory discussion

  2. Introduction • Genesis: • Trying to model increased business environmental complexity • Saw need to identify universal environmental factors heterogeneous output homogeneous output c c scale scale • Method: • Brainstorming, hypothesis formation, literature review • Complexity in Social Systems: • The number of incorrect possible choices for every correct choice 1 of 7 Complex Social Systems: Rising Complexity in Business Environments

  3. Historical Perspectives Is there a progression toward complexity in Management theory? 1910s: Frederick Taylor’s Scientific Management: determination of uniform methods in manufacturing (“the one best way”). Standardized tools and practices. 1930s: The Human Relations School: continued to control workers closely, but introduced a ‘bottom-up’ perspective. 1950s: The Carnegie School: introduced social psychology and an individual level of analysis to the workplace. 1960s: The Contingency School: a shift of attention from structure to process and contextual variables (the “fit” between structure and environment). Increased uncertainty requires loosened control, participation, communication. 1970s: Institutionalism: social behavior, culture, ideals, world views and symbols are key inputs into organizational dynamics. 1990s: Business Process Re-engineering: wholesale movement to restructure from hierarchical to distributed structures. 2 of 7 Complex Social Systems: Rising Complexity in Business Environments

  4. Measuring Complexity • General Measures • Software analysis tools • Matrix typology, graph theoretic • Case-Specific Measures • Dynamic density for air traffic control • Hewlett-Packard conceptual model and simulation 3 of 7 Complex Social Systems: Rising Complexity in Business Environments

  5. Environmental Factors that Drive Increased Complexity in Business Organizations • Globalization • The increased mobility of goods, services, labor, technology and capital throughout the world (Government of Canada) 2. Increased Use of Technology • Technology permeates all aspects of a business • Particular emphasis on communication channels 4 of 7 Complex Social Systems: Rising Complexity in Business Environments

  6. Environmental Factors: Globalization • Opens up many new choices and possibilities • Number of wrong choices increases • Number of interdependencies increases • Supply chains • Marketing agreements 5 of 7 Complex Social Systems: Rising Complexity in Business Environments

  7. Environmental Factors: Technology “People working on complex, non-routine, 'unanalyzable' problems prefer and benefit from working face to face…” Key Question: Does rise of technical work make the workplace more complicated? If so, does technology contribute to less hierarchical organizations? Survey says… 6 of 7 Complex Social Systems: Rising Complexity in Business Environments

  8. Environmental Factors: Technology • Rise in technical work and horizontal organizational structure of technical workers increases collaboration and non-hierarchical communication. • - Powell (1990), Barley (1994) • Evidence that today’s organizations are • less hierarchical (more networked)… • 17 papers from 1967 to 1995 7 of 7 Complex Social Systems: Rising Complexity in Business Environments

  9. THE END Complex Social Systems: Rising Complexity in Business Environments

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