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To what extent might applying complexity theory enhance the formation and…
To what extent might applying complexity theory enhance the formation and implementation of strategy
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attributes
Complexity theorists do not think in terms of cause and effect, diversity is fostered, effective learning takes place and self-organisation is encouraged as a method of problem solving in terms of interconnections and interdependencies
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In short, conventional management is primarily concerned with control; complexity inspired management with emergence.
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applied
HOPE that it helps to understand emergence, thereby manage emergent strategy more effectively
Downs et al. (2003) indicate that strategy can also emerge from the ways in which organisational members interpret meaningful events.
facilitate emergence
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Downs et al. (2003) highlight the fact that double-loop learning (or ‘complex’ learning as we might call it) often requires us to question assumptions that we would normally take for granted.
diversity is fostered, effective learning takes place and self-organisation is encouraged as a method of problem solving.
Complexity approaches try to keep bureaucratic rules and procedures to a minimum to give individuals maximum discretion and minimum constraint in building upon successful emergence.
complexity thinking suggests that effective managers allow the maximum degree of freedom or autonomy possible in any given situation.
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links to other methods
scenario planning
The issues of uncertainty, complexity and turbulence, which scenario planning and forecasting highlight in their respective ways, are a very appropriate note to end on, as we move to Unit 2’s account of some new ways of understanding strategy – including those drawn from complexity theory.
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vs rational/classical
They make different assumptions about the nature of the world and human beings, and the ways in which they interact within organisations.
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That the world of economics and politics is complex and dynamic there is no doubt; less clear is the extent to which traditional linear models and approximations are inadequate, or how well complexity theory can fill the gaps. levy
rejects some key assumptions of traditional neoclassical economics, such as perfect information, diminishing returns, and the implicit existence of a single rational agent