Chaos Theory

Chaos theory, when applied to management, views organizations as complex, dynamic systems far from equilibrium. As complexity increases, so does volatility, necessitating constant adaptation to environmental and technological changes. Traditional hierarchical structures hinder the ability to respond to chaos, so organizations should be divided into subsystems that can self-regulate. Management should set clear goals and control inputs to guide these systems. This approach helps manage complexity and volatility effectively.

Why does a traditional hierarchical structure hinder the application of chaos theory in organizations?

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In what ways can management control system behavior according to chaos theory?

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