Complex Social Systems: Rising Complexity in Business Environments an exploratory discussion

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