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

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

3. 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

4. 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

5. 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.

6. 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.

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

8. 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…!

9. * Time and Motion study’ /
Frederick W Taylor (1856 – 1915) The ‘father’ of scientific management’
US born Mechanical Engineer
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

10. **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?

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

12. 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

13. 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.

14. 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

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

16. Mintzberg

17. 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

18. 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

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

23. 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

24. ‘Skunkworks’ and Intrapreneurs

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

26. 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