Complexity and Chaos Theory in ‘emergence’ Management Evolution and the role of Complexity and Chaos Theory in ‘emergence’ Michael Duignan

Personal info BA, MAIB from Anglia Ruskin MBA from Hanze University in Netherlands Ongoing researcher of Management Practice and Complexity/Chaos Theory in OD

Scientific  behavioural  complexity Learning Outcomes Why study the development of management? Identify the main pre-20th Century guru’s/contributors to management Evolving management paradigms (1900’s – today) Scientific  behavioural  complexity

Learning Outcomes (cont’d) Discuss the need for greater innovation and pro-activity in today’s business environment The role complexity can play in management and 21st Century innovation Complexity Concept into a Practical Context

Why study the development of management? Management is changing at the speed of sound Business Environments are more dynamic and unpredictable More competition More products and services Increased consumer complexities Market conditions used to be consistent and predictable Management decisions made 100 years ago would remain valid for many years. Business Environments are much more dynamic and unpredictable compared to 100 years ago Market conditions used to be consistent, and it was expected that decisions made then would remain valid for many years.

Pre-19th Century Management Management can be identified as old as society itself ‘Governance’ and ‘rule’ can been seen from ancient tribes & the portrayed kingdoms we see in modern day films. Pyramids and canals ‘administered’ and ‘managed’ through powerful authorities. The rise of the Roman Empire, hierarchy established principles for the management of modern constitutional governments. The ‘first modern man’ of Niccolò di Bernardo dei Machiavelli’s at the turn of the 16th Century – First to highlight the concept of Machiavellianism touching upon a ‘cognitive side’ to management. Management can be identified as old as society itself The ‘governance’ and ‘rule’ of people can been seen from ancient tribes, the portrayed kingdoms we see in modern day films but the first practical example stems from the rise of ancient Egypt. Egypt’s bureaucracy, created the pyramids and canals that can be seen to this very day, that of which was ‘administered’ and ‘managed’ through wealthy/powerful authorities. The rise of the Roman Empire, also presents the rule of Roman order and law, backed by a state hierarchy established principles for the management of modern constitutional governments. One recommended read by all modern universities is the published work of Niccolò di Bernardo dei Machiavelli’s – ‘The Prince’ written at the turn of the 16th Century. This literature was the first to highlight the concept of Machiavellianism (the use of cunning and deceitful tactics in politics to achieve goals), that of which initially touched upon a ‘cognitive side’ to management. Some even consider him as the “the first Modern Man” (The Literary Works of Machiavelli, trans. J.R. Hale. (Oxford: 1961), p. 139) as it has had a massive influence, even 500 years later.

‘INDUSTRIAL REVOLUTION’! **** Mid-Late 1800’s – BANG! - Machines replacing humans The creation of financial markets Our environment was made more complex practically overnight!!

Starting off - Adam Smith (1723-1790) the ‘father’ of modern economics Prof of Economics and a significant contributor of the ‘Scottish Enlightenment’ Coined the term: The Division of Labour - the breakdown of jobs into narrow repetitive task First efforts to produce EFFICIENCY…!

* Time and Motion study’ / Frederick W Taylor (1856 – 1915) The ‘father’ of scientific management’ US born Mechanical Engineer 1878-1889 - employed at ‘Midvale Steel’ where he developed ‘Scientific Management’ * Time and Motion study’ / “Ones best way” * Explain what the time and motion study / ones best way was all about – finding the most efficient way to carry out tasks in production processes to increase productivity and efficiency Very Similar to the views of Adam Smith

**Only in mundane production processes and standardised tasks!** Frederick W Taylor (1856 – 1915) The ‘father’ of scientific management’ CRITICISMS Fantastic in times of Industrial Revolution but can such linear approaches to efficiency be applicable to today's business environments and organisations? **Only in mundane production processes and standardised tasks!** Explain the Linearity of ‘scientific management’ – and how it was extremely applicable to the times of production processes but in today’s business environment can such a paradigm be adopted?

Hawthorne Studies (1927-1932) Radical transformation of management paradigm Conducted by Aussie born Elton Mayo (1980-1949) at the ‘Western Electric Company’ - Initially looked at the effects of light on worker productivity – BUT…

Hawthorne Studies (1927-1932) – Cont’d …stumbled across the power of: ‘psychological’ & ‘behavioural’ elements Changing from the dominant view that employees were no different than machines

Hawthorne Studies (1927-1932) – Cont’d But…WHY? "Employees are more productive because the employees know they are being studied.“ - Elton Mayo, June 4, 1931 Mayo's experiments showed an increase in worker productivity that was produced by the psychological stimulus of being singled out, involved, and made to feel important This was the first development of behavioural management As will be discussed later – ‘Frederick Hertzberg’ the founder of ‘hygiene factors and motivators’ recognised this as one of his key motivators within the workplace.

Hawthorne and Hertzberg ‘Frederick Hertzberg’ the founder of ‘hygiene factors and motivators’ recognised recognition as one of his key motivators within the workplace. McGregor Theory Y and X managers Maslow’s Hierarchy of needs

Peter Drucker The pioneer of Management Theory in the 20th Century. He practically invented management as a discipline for all organizations

Mintzberg

Innovating in today’s business environment the need for greater innovation and pro-activity in today’s business environment Added complexity and external pressures Increased focus on ‘softer’ relationship issues i.e. trust and emotional intelligence already discussed by Steve

What is complexity? Reductionism Vs Complexity Science Newtonian Concept – Gravity - The falling of an apple Linear Cause and Effect Relationship But what if the wind catches it and takes it off course!? Chaos Theory – Small things have big effects Butterfly Effect – Changing the course of a tornado

The power of emergence Bounded by simple rules - Jazz Metaphor Business Context -

Structure needed for emergence Decentralised – Emergence comes from the bottom up Managers must be willing to steer the business onto the right path not pick it up A diverse workforce, for a character based organisation In-formal workshops/discussions

‘Skunkworks’ and Intrapreneurs

Role of the ‘hybrid’ organisation Skunkworks and Intrapreneurs in creativity and innovation

Recommended Reads… - Niccolò di Bernardo dei Machiavelli’s – ‘The Prince’ Peter Drucker – ‘Management Practice’ Mintzberg - ‘Strategy Safari’ Ralph Stacey – ‘Complexity and Creativity’ …and Google all the terms presented today